Electric Business Six people talk: Talk about how we started a business how to make money

"Guide" when the money to burn into history, the big platform has been set, the vertical industry, how to survive the small electric operators? Surprisingly, they show eight creativity. We interviewed dozens of practitioners, summed up three common ways to make money, and excerpts of the representative views. Their methods may not be perfect, but they are effective. You may as well try. The first kind: the line is too thin, the line is good live "line + offline" that is the current popular O2O mode, this model can circumvent the traditional electric dealer single line operation flaw, very suitable for the vertical field of small electrical business. The key to this model is to integrate online and offline operations into a complete chain, otherwise it will backfire. Hong Qinghua: In the beginning, we should make a steady profit now, the electric business has two kinds of practices: small but the United States of the electric business pursuit of profit, all-inclusive the size of the electric business. These practices are not right or wrong, only suitable or not. My view is that from the outset to make money steadily, through the continuous cycle of development should be the pursuit of most companies, of course, including the electric business. Every company has its own genes, and our genes start at the bottom of the line. We are the first to do tourism planning consulting, and later extended to tourism marketing, tourism development, chain hotels, etc., are offline business. At that time, we have formed the habit of making money. Set up a donkey mother nets, one is to comply with the development trend of the Internet, the second is to achieve complementarity with the line business, improve the company's business chain, forming a closed loop. The ultimate goal, or to better make money. Enterprises to make money, relying on nothing but low-cost, good products, excellent service, but the means are not the same. Donkey mother did more successful place there are two: first, the business model to take the line under the integration of the way, the second is as far as possible to achieve the ultimate service. When the mother of the donkey started doing, she learned about Ctrip and e-Dragons. I sometimes feel that the line is also very good, but Ctrip grabbed the opportunity, the second is too far away from it. Like us this kind of vertical kind of small electricity quotient, is relies on the line on-line to interact, therefore has been developing very steady. Online + offline, is now the popular O2O mode. This work I always around the tourist and the scenic area unfolds. Group of six business sectors, the donkey mother nets to the scenic spot to introduce tourists, Qi Chuang to the scenic area to do planning and design, in addition to scenic Area marketing, Operation Management, and even investment. Conversely, I am online and the formation of a good relationship between the scenic area, is bound to provide better resources on the line. I can get higher quality resources at a lower price. In this way, my product price is improved, and even provide special services for tourists. In our industry, there are quick to burn money to do market scale, but we are growing fast, and every year there is Baife growth, this is enough. As long as oneself can live very well, is not afraid of pressure, why? Because this market must be the ebb tide. I believe that it is successful to hit money quickly, but the odds are slim. What do you do when you're done with the money? I feel that having a self profitability is the most robust model, no matter how the outside changes, will make money. Oral/Donkey Mother founder Hong Qinghua Xu Xian: Go SelfHematopoietic this road to talk about making money, we actually have no outside said so profiteering, just breakeven. But as a diamond dealer, we do have our own way of making money. Mode, 2005 we first proposed the "Mouse + cement" approach, that is, the site and offline experience shop combination of ways. I have always believed that the experience shop is the brand terminal. For the diamond category, the experience shop has greatly enhanced the brand value, enhanced customer confidence, while reducing transaction disputes and after-sales service costs. However, this model is very thin in the early days, line and offline almost fragmented, after several years of optimization to gradually mature. Now, we can bring the experience shop 50% of the traffic, and the experience shop is the main contributor to revenue. In 2007 and 2008, we have received today's capital and source capital of two investment, smashed a lot of money to do the promotion, but let us take a detour. Since 2009, we have consciously reduced costs and changed marketing strategies. We reduce the TV and offline channel delivery, in the marketing approach to the use of innovative play in the marketing content to do innovation. The so-called cost reduction, not blindly save money, on the contrary, to maintain the necessary exposure rate is our brand-making companies need. Therefore, we still do not regularly in the building, television advertising, and save money into more valuable channels, such as Word-of-mouth marketing. We believe that social media is a deep and user interaction, so when micro-blog, micro-letter has not been a great way, we are in the Forum with users to maintain communication and interaction. Today, users are more likely to make their own voices through social media, and that's the chance for us. However, we do not lead Word-of-mouth, but based on the customer sentiment system to know the user's feedback, and then adjust their products and services. Cooperative marketing is another way for us. In the case of limited budget, to achieve the most effective dissemination, we must constantly look for cooperation opportunities, occasion marketing. For example, at just the end of the Chingjoy, we and the grand cooperation, the game of jewelry by redesigning the surrounding products to make it more gifts or purchase value. about how the electric business should make money, I am more inclined to the circulation type development of self hematopoiesis. We as a heavy line under the brand, service is the core. After controlling the team to 500 people, we have determined to take the path of self hematopoiesis. Oral/Diamond Bird Co-chairman and CEO Xu Xian the second: Make money is not easy, save money is the king when burning money into the past, a large amount of investment has gone, how should the electrical business survive? Saving money means profit. The upcoming sprint of the same network will be prudent to achieve the ultimate, its financial statements even accurate to every day, the meeting will cost everyone to the head. Wu Zhixiang: Burn money This road is not realistic the same way net to make money, and can make money. 2004, I came out from Alibaba to create the same network, how many affected by the old club, I feel Ali do the whole business of business-to-business can survive, I do a subdivision of the field of business-to-business should be no problem. I didn't think about taking the VCs, I was trying to make money on my own.Has。 Based on this concept, the first year we achieved revenue balance, the second year began to profit. Our approach was simple, set up a business-to-business community for travel agents, develop members, give them electronic business cards hanging on the site, and then charge, initially 100 dollars a sheet. By 2008, we had close to 10,000 paid members and the highest single charge had reached 10,000 yuan. 2008, we have attracted the eyes of VC, but VC told me, if you want to be bigger, need to transform to do the Business-to-consumer. Therefore, we need a sum of money, so we introduced the Suzhou Venture capital group of 15 million yuan investment. At the time, the investors hoped that we could find a way to enlarge the scale quickly and increase the profit quickly. No doubt, it's difficult. We only 15 million yuan, 200 supposedly people, competitors are Ctrip, art dragon such a super alligator, we are embarrassed to say that with them is a competitive relationship. But it is also from then on, with the network groping out a way of their own, take a very grassroots approach--sem and SEO. 2009, we are throwing money to Baidu most of the travel site. 2010, we realize profit, revenue 100 million yuan, the profit is about 4 million yuan. By 2012, when the Tencent investment came in, we are already very clear that the road to burn money in the country is not realistic, can only rely on fine operation. And the loss of April made us accelerate this pace. According to the original financial system, the April losses, as early as May 13 to know, what is the value of this? So we have a "report to the day", the company's annual budget to each day, if this month's profit amount is 2 million yuan, Spread to the day is 75,000 yuan, such as yesterday's profit is 50,000 yuan, so the difference of 25,000 yuan will be split out, to find a way to fill. So, 10 o'clock in the morning every day, I can get the report of the day before yesterday, the cost, revenue, profit at a glance; by the end of the month, you can clearly know the actual operation of the month and the budget deviation from how much, and then discuss how to adjust. In management, we do the same. For example, we will estimate the cost of each participant, how much per person is half an hour, what the outcome of this meeting, if not completed, that is the waste of resources. From the business, the online travel site's products do not have too many differences, spelling is a refinement of things. Ctrip's focus is on business and commerce, so let's go for a younger generation of self-help tours. Although the competition is very fierce, but our hotel business still can maintain 60% or 70% growth, but also has the profit. Oral/Network founder Wu Zhixiang Dufei: No forward cash flow, you are a beggar in the past few years, many electric dealers are burning money, because we all think that scale is the way to survive. In fact, small and beautiful companies also live very well, a lot of Taobao shop vertical brands are profitable, Amoy brand and electric business essentially no difference, but the channels of display methods and get members of the method is not the same. One common feature of these for-profit dealers is that they put their front end and shippedThe battalion controls the ability to do very strong. For example, the Royal Mud Square, the oil production control of Aphrodite is very good, at the same time very strong control of the gross margin structure and demand structure, coupled with good operating control methods, profitability is easy to show. You do management should have a habit: To do a project or annual planning, must calculate the profit of the time node, even if there is no profit node, but also to figure out from which day the cash flow is positive. If there is no positive cash flow, you will be begging for alms in the future, you would be very bitter, you are a beggar. I believe a lot of people have counted this account, but why does the enterprise eventually go out of control? First, the account is not clear, we usually use strategic losses to cover up the shortcomings of their own accounts; second, the planning did not long enough, the founder ignored the competition will make the profit node too long, and blindly pursue the scale. When you estimate that your revenue will reach 100 million, you must not take the cost of 1 million yuan and cost structure to apply, your customer unit price, fixed costs, marketing costs will change with the market. Good companies make money by running them. A good company's marketing can be done very flat, but if the operation of a good control, will certainly make money. Operations are from the beginning to the end, from the selection to the purchase, to determine the gross margin structure of goods, to monitor sales, monitoring stock, monitoring out of the library, monitoring consumer feedback, the formation of the entire data chain feedback to the executive, you will know what to do, what goods to remove, what commodity to suppress development. These are the ways that retail and electric dealers collide. So, the Operation department is the electric Business company's midfield engine. This department is to control the offense and defense, when to promote, when not promotions, not the procurement marketing department, but to the operation of the approval of the department. This method is now used in Tuo Tuo. At first, we always wanted to make the customer experience a little more extreme. When I first came to Tuo Tuo, found that our customer satisfaction is 150%, in fact, the customer as long as 80% is enough, so that the entire service cost will be reduced to a lower level. Our current customer base is very small, and when the crowd increases one day, everyone starts complaining about how your service quality has dropped. We should let the quality of service slowly improve, you breathe 150%, how to upgrade? China's electric and retail industries are not dead in the "small", but die in the "big". Founder to manage their own rhythm, do not follow the rhythm of others to run. Some companies are eager to expand their size, sometimes expanding to two or three years after the expected, and constantly improve their own costs. But in fact, consumers are really not so worried. Oral/Tuo Tuo commune CEO Dufei Third: Do not play price war, peace of mind to do service in the craziest years, the electric business are busy to melt money, burning money, playing price war, who will be the user experience in mind? When the tide receded, we found that your customers are the most important people around you. The essence of the electric business is a long-distance running, that year's vicious competition is not advisable. Li Zhico: The price war is outdated five years ago, the electric business is very crazy, as long as you will hype the concept,Easy access to investment. But by the year 2013, the market has returned to rationality. For VC, they will invest in many enterprises in the early days, but they are very clear in their hearts, many enterprises inside can not do it. This is a common practice of VC, but the capital into you, it is ultimately to profit, just because of the market environment and other reasons, there will be so-called stage losses. The entrepreneur certainly does not want to be cannon fodder, but decides whether he can survive is the speed and the scale. The internet changes very quickly, you can see a lot of enterprises now, feel good, but it is only low price, no characteristics. And the price is not the bottom line, cheap to what time is the head? The essence of the electrical business should be to facilitate consumers, not cheap, we all know that cheap goods are not good. It is one of the reasons why electricity companies are making a general loss because they blindly cater to consumers to keep prices down. Every business will look for its core competencies. We have always emphasized that we do service, we do not regard ourselves as a sales channel, but to provide service value. Now include Taobao, the cat, they are also to provide users with services rather than simply selling goods. This is especially true of Jingdong. Jingdong 6 years ago to do their own logistics, at that time, many enterprises think it is too stupid, why do logistics? including the financial, data platform, network promotion and so on, in fact, are all for businesses, to provide consumers with services. Now, the price of goods in the east of Beijing is actually much higher than it was three years ago. There are more and more big brands, manufacturers and direct cooperation with it, its price system is increasingly and external market to maintain a balance. Some of these brands also specifically for the Beijing-east customization of some products, in fact, Wal-Mart, Gome, Suning and other traditional retail industry is very common. Many people say Liu Burn money, but Jingdong warehousing and logistics is a great investment, this is not a burning money, is very normal investment, so it is now very competitive, and those who do not know what they are doing electricity dealers are burning money. Under normal circumstances, if a business is not profitable for three years, its value will be a question mark. So, first of all, the enterprise must do the business nature of things, including how to let customers trust, how to establish a security system and so on. Many companies do not want to provide protection because of the cost, it feels very smart, but the choice of consumers is very simple, come to you here because of your security system, also will leave you because there is no security. Oral/Temple Network CEO Li Zhi Xu Maodong: Now is the management and operation capacity of the competition group buy the past is the focus of attention, but in the past two years has undergone some changes. This change can be described in three key words: The first is the evolution, do not good people out, the past thousand-Regiment war is still left 35, the second is divided, also in the group, but we do not the same content, some companies or traditional group purchase mode, some companies do vertical mode, Some companies are also transferred to the physical category of goods, and the third is integration, the internet giants come in holding, mergers and acquisitions. Although the group buying website helps the merchant to sell the surplus capacity, the way is extensive, so bringA series of problems. The price is very cheap, but the user made a lot of calls can not find a seat, and not the service is not the same as group purchase. These problems are not caused by the subjective of the merchant, but because of the extensive way. But, the life service electricity merchant and buys a difference. The Life service electricity merchant is helps the life service merchant to sell the surplus ability finely, for example the time management, dynamic pricing. This is very much like airlines, airlines to adjust ticket discounts to ensure attendance. From this point of view, group buying is only the beginning of the service industry, but also a long-distance running. The first two years of group buying sites have vicious competition, but also consumes a lot of money. Now, the competition between group buying websites is not the competition of funds, but the competition of management ability and operation ability. From the end of last year, the litters group has achieved large-scale profit. At this stage, building the core competitiveness is the most important. The first is the ability to get through the supply chain, whether the merchants and consumers to solve the demand for consumer interaction, interaction is the core of the link; second, the ability to integrate the industrial chain, the quality of good, low-cost products to provide consumers; the third is to acquire, maintain the user, and develop and maintain the ability of the merchant. These three competencies are the root of the competitive advantage, not the capital. For now, China has only three sites in the market for group buying. Perhaps some companies have higher trading volumes than litters, but this is not important, the litters group will seek independent development, and not mergers and acquisitions. (This article is based on Xu Maodong's recent public comments)