Learning Business Strategy from the Streets: A Real-World Lesson in Pricing

Relearning in life comes from practical observation and learning. Take the case in point: Chinese food, which is tremendously popular in Hyderabad. In our colony, a single plate of Veg Manchuria costs around Rs 60–70 at roadside shacks, and even in small roadside restaurants it costs around  Rs 80–100. Along with a normal roti or rumali roti, a plate should be Rs 150 - 180, and it will go up to  Rs 200 with mineral water and tax.

No surprise that most eaters throng roadside shacks and not the restaurants. To learn how business is run, one needs to go to the KPHB shops near the KPHB metro station in Hyderabad. This area is a popular hangout for students, employees, and has heavy footfall.

Here, the prices are jaw-dropping. A single plate of Manchuria is sold at  Rs 30 and a double at  Rs 40. Manchuria with rumali roti is sold at  Rs 50. Chicken Manchuria with rumali roti is  priced Rs 80 and at the same place another stall sells it at  Rs 74! Chicken Manchuria is either  Rs 60 or  Rs 55. Chicken Pakodi is Rs 45 only.

This is penetration pricing at its best, high volumes, low margins, but they earn decent income per day. And all the joints are side by side, yet they remain amicable. I don’t find anyone fighting with anyone else. They all seem to have loyal customers who come for the taste not necessarily for the slightly lower cost that the next shack is offering. 

Keywords: Chinese food Hyderabad, street food pricing strategy, penetration pricing example, Hyderabad food business, roadside food stalls Hyderabad, real business lessons, pricing psychology Indian market, Manchuria price Hyderabad, KPHB food street, entrepreneurship lessons India, marketing strategy real life examples, consumer behaviour food industry, high volume low margin model, street MBA, learning business from street vendors, small business success strategies India, competitive pricing case study

From MRP to reality: How a Firecracker package could have sparked a lesson in Observation centric learning.

In the modern world, we are quick to “Google it” or, more recently, “Ask ChatGPT.” But real learning doesn’t always happen on screens. It happens when we observe, question, and experience the world around us.

I was reminded of this while conducting a session on Pricing. We were discussing how the Maximum Retail Price (MRP) system in India has, frankly, become a bit of a joke. Anything and everything is negotiable. The MRP, instead of standing for “Maximum Retail Price,” often feels like “Maximum Recorded Price”—something printed just for formality.

I gave my students an example that always puzzled me: firecrackers. Every Diwali, I noticed that the prices printed on cracker packets are outrageously high—no one actually pays those rates. I remarked in class how MRP laws are blatantly flouted and suggested that if anyone could bring a cracker package to the next session, we could have a live discussion.

As expected, most ignored the suggestion (after all, Diwali was over). But knowing Indians, I joked that some would have saved a few crackers—for post-Diwali celebrations or maybe for India’s next cricket victory!

One girl tried but couldn’t get the details. Still, I appreciated her effort at least she tried. Then, fate intervened. Yesterday, during Kartik Pournami, I heard loud cracker sounds near my home. Curious, I went downstairs and found kids from the next house bursting crackers. To their surprise, I asked if I could have the empty packages.

And there it was—proof of what I’d been saying. The total printed MRPs on just three of the firecrackers were as high as ₹3,400! Of course, no one actually pays that much. But that’s not the point.

The point is this: I confirmed something that AI couldn’t. When I asked ChatGPT earlier for pictures of firecracker packets showing MRP, it couldn’t provide even one real image. But walking down just a few steps from my house did the trick.

That’s the real lesson. In a world obsessed with virtual shortcuts and AI tools, don’t forget that real learning still happens in the real world. Step out, observe, question, and experience.

Students, remember this: If you walk that extra kilometre, you don’t just find answers—you earn insights, credibility, and stories worth telling. 

Key words: Observation, Learning, Management Education,  Experiential Learning Pricing, MRP, Indian Markets, Consumer Behaviour, Marketing, Business Insights, Firecrackers, India, ChatGPT, Artificial Intelligence,  AI and Education, Real World Learning, Life Lessons, Teaching Reflections, Critical Thinking,  Curiosity