why he sell the kick start bottles?

Oliver Wyman case: Setting up a Wine Cellar
New answer on Aug 26, 2020
1 Answer
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mehrasa asked on Aug 25, 2020
I am a business consultant. I am preparing for BCG/ Bain. Would like to work with advanced/pro members

hello

for me the number of invested bottles after 5 years in 530 bottles. my Q is why it is said that at the end of the 1st year he sells the kickstart bottles (120)?

what is the point I cannot see here?

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Ian
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replied on Aug 26, 2020
BCG | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi,

I'm sorry but your question is very confusing. The case specifically states:

"You have the kick-start of $13,500 and then only costs for the first 5 years. After 5 years, you sell the kick-start of 120 investment bottles and get a big push in revenue of 120*$250=$30,000."

Which means he does not sell the kickstart bottles at the end of the 1st year.

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mehrasa on Aug 26, 2020
this is exactly where I got confused. by end of the year 5, he will have 530 bottles not 410... in the explanation, it has been mentioned that at the end of the 1st year he sells 120 bottle.. that's why there is 120 difference between my reply and the right answer ...
Ian gave the best answer

Ian

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