Chapter 100 SynTao 99 is good at winning with low prices

The essence of business: the same belt, others sell it for 15 euros, Wenzhou merchants only sell it for 10 euros, low prices, small profits but quick turnover are a major business know-how of Wenzhou merchants. In terms of light industrial products such as clothing, leather shoes, glasses, and lighters, Wenzhou merchants have made a long-term drive and firmly occupied the vast urban and rural markets.Many local professional households who have been operating in these fields for many years have all been defeated by the flood of Wenzhou merchants. Why would such phenomenon happen?The reason is that Wenzhou products are the cheapest among products of the same grade.

Cheap and good quality is a magic weapon for Wenzhou merchants in the ruthless market competition. Some people may ask, why are the commodities in Wenzhou cheaper than other commodities?The reason is simple. The Wenzhou People's Congress adopts the method of "shop in front and factory in back", which saves many intermediate links.In addition, specialization and large-scale production are implemented, which greatly reduces the cost. Scale operation, small profits but quick turnover, is not a "secret weapon" in the business rules of Wenzhou merchants, but it is the most powerful weapon.The top ten professional markets in Wenzhou in the early stage were formed by low prices.

Not only in the domestic market, but also in the international market, Wenzhou commodities have a strong advantage in price.For example, in Europe, the lighter market was dominated by the Japanese in the past, but now most of them are "made in Wenzhou".Because of the production cost of Wenzhou lighters, even the wages of workers in Japan are not enough. In price competition, Wenshang always has an advantage.Chengdu East Street was once dominated by Cantonese businessmen. Most of the lamps and electrical stores there were opened by Cantonese businessmen. Their novelty and luxury attracted Chengdu people, and the business was booming.Later, Wen merchants squeezed in. At first, they only rented an inconspicuous shop on Dongdajie. The decoration was also very ordinary, and there was nothing attractive about it.But they quickly robbed the Cantonese of their business.The reason is that the products they sell are as fashionable and beautiful as Guangdong products, but the prices are much lower, so people flock here.Cantonese businessmen can resist it for a while at first, and there are discounts and promotions, and sales with prizes, but this kind of thing can only happen once in a while. Of course, they can't afford it in the long run. There are discounts every day.

In the end, the magpie's nest was occupied by the doves, and the Cantonese were quickly defeated and left in dismay. One after another, the shops were transferred to the hands of Wenzhou merchants.The market developed by Cantonese people is so easily enjoyed by Wenzhou businessmen.Cantonese businessmen almost said angrily: "Wenzhou merchants have become the nemesis of Cantonese business. As long as Wenzhou merchants interfere with it, our business will be lost." In terms of price competition, there are indeed very few Cantonese. Can compete with temperature quotient.People wonder why Wenzhou products can be sold so cheaply?The purpose of business is to make profits. If the price of the product is lowered below the cost and sold at a loss, of course it will not work.Therefore, no matter who is doing business, there is always a minimum even if the price of the product is set low.However, the lowest limit of Wenshang is always lower than that of others, which is why they win in the price competition.But the content contained in it is extremely complicated. To produce products with the lowest cost and guaranteed quality, Wenshang spends all kinds of efforts.

In fact, since Wenshang entered the market, it has already had the advantage of price competition.After the reform and opening up, countless Wenzhou merchants started from family workshops with shops in the front and factories in the back, starting from small commodities.The reason why the production cost of these small commodities is extremely low is that they use their home as their factory, and the factory is their home, so the investment in the factory building does not need to be counted.The second is that the labor cost is low.People in Wenzhou start their business from a young age, relying on their families and family members. One family has one factory. The elder brother or father is the boss, and the younger brother or son and other family members are subordinates. From the "boss" to the "subordinates", they all work in the same way.It is precisely because they are working for themselves that they will not be lazy or work hard, but will work as hard as they can, and they will persevere no matter how hard they work.In order to further develop the factory, there is no need for any income. It is enough to have food and clothing at ordinary times, and money is never discussed until major events such as birth, old age, weddings and funerals.In this way, only calculating the production cost of a certain week or a certain month will reflect very few figures.

Precisely because Wenzhou merchants pay attention to starting small and working hard pragmatically, and at the same time, in line with the business awareness of "not afraid of making less money, but afraid of not making money", Wenzhou's plethora of small commodities spread all over the country, and they are small commodities and large markets. road.Later, they developed, detached from the family workshop form of a store in the front and a factory in the back, and started a decent business.But even at this time, they are not pursuing grand style and big products, building large factories, and recruiting workers in a big way. They also start from a small place to fill the gaps in the national small commodity market. They also rely on their families and family members to start businesses gradually. If you are frugal, you will be more frugal, and if you are diligent, you will be more diligent.

Therefore, in the price competition of shopping malls, no matter in the past or now, few people can match Wenshang.In their hearts, small money is also money, and they have never considered small money in business, and they will do any small business as long as they make money. No wonder a rich man said, "Small money is the ancestor of everyone."In reality, many millionaires started with small money. Shi Zhenrong, chairman of Acer Group, has a deep understanding of the principles of "small profits but quick turnover" and "small money is big money". Shi Zhenrong lost his father at the age of 3.In order to make a living, he once helped his mother sell duck eggs and stationery in the store at the same time.Duck eggs are 3 yuan per catty, and they can only earn 30 cents, which is almost 10% of the profit. They are also easy to deteriorate, and if they are not sold in time, they will be broken, causing economic losses.The profit of stationery is high, and you can earn at least 4 yuan for a business of 10 yuan, which is more than 40% of the profit, and the stationery will not be damaged.It seems that selling stationery is better than selling duck eggs.But in fact, when talking about his experience, Shi Zhenrong said that selling duck eggs is far more profitable than selling stationery.The profit of duck eggs is thin, but the turnover is once every two days at most; the profit of stationery is high, but sometimes it cannot be sold for half a year or a year.

Shi Zhenrong later applied the experience of selling duck eggs to Acer, and established a "small profit but quick turnover" model, that is, the price of the product is set lower than that of its peers.Although the profit is low, the number of customers has increased, the capital turnover is fast, the inventory is small, the operating cost is greatly reduced, and the actual profit is greater than that of the industry. A few years ago, at a "experience exchange meeting on economic development and operation" in Shaoxing, Zhejiang, a manufacturer of high-end worsted socks sold a pair of socks for three yuan and fifty cents, and only made a penny of profit!

However, it is this insignificant penny profit that has cultivated countless millionaires.They calculated an account for the participants: a pair of socks earns a penny, and an ordinary booth sells 700,000 to 800,000 pairs of socks every month, and there is a profit of 7,000 to 8,000 yuan. Nearly 100,000 yuan. Today, in Datang Town, Zhuji, the Datang Socks Market has 1,600 stalls.More than 7 billion pairs of socks were sold here in one year. Also in Shaoxing City, a Zhejiang group that only owns a well-known trademark in China, apart from opening counters and specialty stores in large shopping malls and commercial streets across the country, is also engaged in a little-known business: selling three Forty yuan a pair of trousers.Faced with doubts, the chairman of the group explained: "Although the price of trousers in the supermarket is relatively low and the profit is not large, the payment is made once every three months, and the funds can be returned immediately without the risk of backlog. Don't look down on that little profit. Last year, we did more than 10 million yuan in business in several big supermarkets in Shanghai. Why not do it?"

It is true that in order to hit the market and expand sales, it is not enough to rely solely on low prices. Factors such as product quality, corporate reputation, after-sales service, publicity efforts, and marketing methods are also very important.But it is undeniable that whoever sells the same product cheaply will sell more.Price war is a very important means of competition under the current situation.The problem is that not everyone is suitable for price wars, so ordinary companies always have to think twice before lowering product prices, and dare not easily challenge competitors in the market with low prices.Whether the price can be reduced, and how much the price can be reduced so as not to affect the development of the enterprise itself is an important issue. If there is insufficient preparation for this, it will be counterproductive.And when facing the low-priced products produced in Wenzhou, you must also be calm, because it is not easy for Wenzhou merchants to sell products at such a low price. They are all carefully planned and budgeted, and they need a mature production and operation model as the backing to do so.If there is any secret here that is surprising to others, it should be said that Wenzhou businessmen have flexible business concepts. What others think works, but they may not think so. Instead, it is a long-term plan to calculate the benefits that can be obtained in the future.