Business Profit Model II Professional model

Business Profit Model II Professional model

Mode security index:★★★★★

Sustained profit index:★★★★★

Innovation Capability Index:★★★★

Key Note: Specialization means a Professional Course, that is, the saying goes, "It's a breeze, it's a day ". In such an era of temptation, it is not easy to calm down and concentrate on one door. Otherwise, there will not be a few years of "diversity" in the domestic business world.

Maybe you think the nail clippers are too "small", but you have never thought about it. As long as 1/5 of Chinese people use your own nail clippers, how much profit will you make? What if 1/5 of the people in the world use your nail clippers? If the profit margin is not big, you may think about it again. The profit margin of normal-grade nail clippers is indeed limited, but what if it is a high-end product? What if it is a full set of specialized nail repair tools?

Liang boqiang is closely grasping the main business of the nail clippers and strengthening the work on the nail clippers, so he smoothly entered the profit zone. With the help of the "very small" nail clippers, the St. Alun brand became China's No. 1 and the world's No. 3 nail clippers brand, and Liang boqiang became a billionaire.

In April 1998, Liang boqiang read an article named "Speaking of nail clippers" from the old newspaper on the coffee table. The article mentions that Zhu Ji uses the nail clippers as an example, A speech asking light industry enterprises to strive to improve product quality and develop new products. He came up with the idea of creating a popular Chinese brand nail clippers.

Soon he rushed to the "555" state-owned nail clippers factory in Guangzhou, but the plant had been discontinued. Later, he went to four representative State-owned nail clippers furniture factories in Tianjin, Beijing, Shanghai and Suzhou, all of which were closed. The failure of state-owned enterprises is a pity, but it also makes the market available for private enterprises. As a result, Liang boqiang began to learn technology and target the famous "777" brand nail clippers in South Korea.

Liang boqiang ordered 0.3 million yuan of goods from South Korea, and then organized the staff to study the "777" technology, and then sold the purchased nail clippers. When the researchers encountered something they did not understand, liang boqiang flew to South Korea. Since Liang boqiang went to investigate as a Chinese distributor, the South Korean not only explained in detail the question raised by Liang boqiang, but also brought his own visit to the factory. In this way, Liang boqiang carefully understood their automatic production technology and equipment.

In the past year, Liang boqiang flew over 20 times to South Korea and bought more than 10 million yuan of goods. During this time, his researchers basically brought "777" technology to the market. By being a "777" distributor, he gradually opened his own sales network, his first batch of nail clippers named "Santa Alun" were freshly baked.

Liang boqiang did not hesitate to invite experts from all walks of life to take the carefully improved samples and fly them to Shenyang Hardware Product Testing Center for testing. In June 2000, "St. Alun" received the first "nail clippers Quality Inspection Certificate" issued by the National Association of hardware products in history ".

Of course, it is not the paper certificate that has truly achieved the "very small" expert position in China's nail clippers manufacturing industry. To be a brand, you must increase the added value of the product. Liang boqiang strives to emphasize the product's personalization and environmental protection concepts in terms of product details and cultural content. More than 200 varieties have been developed with just one tiny nail clippers. This laid the professional position of "Santa Alun" in nail clippers. Liang boqiang has always followed the development of the professional model, not only making "St. Alun" a famous brand in the world, but the most important thing is to make the small device into a large device and gain a huge wealth through the small nail clippers.

Why can professional services become your profit model? One of the simplest explanations is that it is refined, so deep and deep, it raises the threshold, and it is not easy for others to come in for competition, but specialized production, its organizational structure is much simpler and easier to manage than compound production. In terms of marketing methods, once the market opens, there is almost no need for more investment in the future. Another aspect of cost reduction is the dramatic increase in profits. Under normal circumstances, specialized production usually forms dedicated production at the end. At most, several industries compete on the same platform with oligarchy, and the industry is easier to coordinate. Practitioners are more likely to form mutual protection tacit understanding, it is conducive to maintaining a high average profit of the industry. This is a closed or semi-closed market. Unlike products in the open market, once you see profit, everyone will flock in, the profits will be quickly diluted, the cost will rise rapidly, and the originally profitable products will soon become chicken ribs, everyone feels tasteless, and at the same time, they feel a pity.

It is estimated that if the profit of a general product is 15%, the marginal profit of a professional product can usually reach 60-70%. When an enterprise is specialized in production, most of its costs are spent in the development and creative stages of the solution. Once the solution is established, it can be replicated continuously and, according to its own wishes, determine a high market price. Because you are the only or few people who can provide the solution (or product), the market has no objection to your high pricing. Another way of specialized production is to simplify the drive for large-scale production, quickly reduce the average profit of the industry, and make small-scale producers have no balance at all, so that they do not want to compete with you. Galanz uses this method.

Liang boqiang uses the method to personalize the product. Liang boqiang has seen the best nail clippers in the world in the German state of Regan, that is, the German "dual-person" nail clippers, but such an enterprise only uses the nail clippers as a subsidiary product for production. The main business of "Shuang liren" is to make kitchen supplies. Japanese brands such as green clock and Yuli are also attached to cartoon products for agency production. The profit margins of these famous nail clippers are far greater than those of Liang boqiang's "very small tools", but what they earn is dependent profits, that is, the profits produced by relying on other products, not the profit produced by the nail clippers. This is a good production form and an effective profit production method, but they are not regarded as specialized production.

Liang boqiang is specialized in production, because he only produces nail clippers, and all profits come from nail clippers. So he is interested in studying what men's nails are, what women's nails are, what children's nails are, what old people's nails are, and what are the differences between shoes and fingernails, specialized products are designed for different groups of people. For example, for baby-specific nail clippers, the nail clippers are flat and half shorter than adults. This design fully takes into account the characteristics of the baby's nails to avoid damage to the baby due to equipment. Once the product was launched, it became a love thing for mothers. From product R & D to production organization, to marketing, because they all face the same product, but the shape changes, the essence is exactly the same. Therefore, the same process can be reproduced and replicated repeatedly, there is basically no new cost. On the contrary, with the increasing level of proficiency in various links, the cost will gradually decline. This is the advantage of professional production, simple and elegant.

Another source of professional profits is experts, including not only R & D experts, but also production and organization management experts and marketing experts. The process of specialized production and repeated operations is conducive to the rapid cultivation of professionals specialized in one stage. The experts mentioned here are different from the experts people generally understand, but they are more profitable. Generally, this kind of expert employees will bring 10-15% more profits to enterprises than ordinary employees, which is a unique benefit of specialized production.

 

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