Who does it: The buyer is typically a small workshop owner, a retail shopkeeper, or a procurement head at a mid-size factory in Madurai or one of the 12 taluks surrounding it (including Vadipatti, Peraiyur, Usilampatti, Nilakottai, and Thirumangalam). The seller is usually a manufacturer, a distributor, or a job-worker within the same radius. Both ends are MSMEs registered under Udyam, most with fewer than 20 employees and no dedicated sales team.
What they use:
- Personal phone calls and voice notes on WhatsApp, the dominant channel. Business groups in WhatsApp (often 50-200 members) function as live RFQ threads.
- Excel sheets maintained by the buyer's side for supplier lists, updated manually after each transaction.
- Physical visits to the Industrial Estate (Madurai SIDCO Industrial Estate on Melur Road houses over 400 units) or the weekly shandy (weekly market) for raw materials like metals, textiles, and agricultural produce.
- Local commission agents (dalals), who take 2-5% on each transaction and handle trust (assuring payment, quality, delivery). These brokers are most entrenched in textile and agro-commodity supply chains.
- Time spent by the buyer calling 10-15 suppliers individually to get a quote. At an average ₹200/hour opportunity cost for a proprietor and 3-4 hours per week per business, this is ₹600-800/week per buyer, or roughly ₹30,000-40,000/year.
- The dalal commission: 2-5% on transactions that may run ₹2-5 lakh/month per buyer means ₹4,000-25,000/month flowing to a broker for a function a WhatsApp group could partially replace.
- Stockouts and price opacity: the buyer does not know who is currently stocked, who has a surplus, and at what price, until they call. Surplus inventory sits with sellers while buyers are unaware.
- Payment default risk handled by dalals — they hold buyer credentials and guarantee payment for a cut.