Profit-making model for Entrepreneurship: Six distribution panel Model

Profit-making model for Entrepreneurship: Six distribution panel Model

Mode security index:★★★★☆

Sustained profit index:★★★★☆

Innovation Capability Index:★★★★

Key Note: The distribution panel mode is to attract the attention of suppliers and consumer groups, the intermediary enterprises that provide communication channels or trading platforms for suppliers and consumers to obtain profits that are constantly increasing. However, this mode is highly demanding for the operator, and has a high investment cost and high risks.

Fang Yi is fond of fashion, and she is the kind of girl who likes to put every detail from the beginning to the end with a precise female tag. After graduating from college, I worked in a foreign company in Shanghai for three years. Because my mother was in poor health, she had to give up her fashion life in Shanghai Metropolis and returned to her hometown in Guangxi.

Soon after her mother died, she left her two houses and savings of 0.2 million yuan. Fang Yi also thought about returning to Shanghai again, but before she planned to return to Shanghai, she attended a high school reunion. At the party, Fang Yu's glory made the women present very jealous. They asked Fang Yu how to make the skin so delicate? Why does your hair look so good? How can you make different clothes? How are your nails so beautiful? How can we make ourselves behave so well? After Fang answered the question one by one, all she saw was disappointment. Fang Miao's words, such as spa, shampoo, hair film, and physical training, are well-known for urban women. They are all unknown to women in this small city. This gathering made Fang Yi discover a huge market in his hometown.

After returning home, Fang Miao listed his major monthly beauty consumption in Shanghai over the past few years. All of a sudden, right, why don't you concentrate on these projects and open a shop dedicated to creating beautiful women. In addition, the store name will be blurted out immediately: Temperament beauty store.

But how can we operate this store? Is it just to purchase and then sell goods from different places? This is not what Fang Miao is good at. She is even bored with the trivial work of inventory, accounting, and inventory calculation every day. However, in the retail industry, it is impossible to make money if these jobs are not in place. She thought that the temperament beauty store should be the most comprehensive store for women to dress up. It is a female-themed small department store. As long as you want to dress up more beautiful women, they will get professional guidance at this store to buy products. In this way, we can attract brand agents of all kinds of female products to this shop rental counter. Fang Miao only needs to collect the rent from agents of various brands. She uses her expertise to attract more women to pay attention to the store and then shop here. As a result, the prototype of a distribution model was formed in her mind.

She soon spent more than 0.2 million yuan in the busiest city center to buy a base merchant of 500 square meters. Then, I rushed to Shanghai, Guangzhou, Beijing, and Shenzhen to find a variety of products suitable for temperament and beauty stores. Fang Yi realized that this approach had a great risk in the early stage. First, she was located in a very small city and many major brands had not yet entered the market. Second, she must ensure that the traffic and consumption of the store can attract these brands. To do this, it is impossible for her to describe to the brand agents. She must first make a scale. Therefore, she decided to first promote one or two batches of goods to the store.

In the concept of Fang Yi, the temperament beauty store is not a simple beauty shop, jewelry shop, or clothing, shoes, and hats shop. It can find a whole dress shop with even a small hairpin. It is a store that allows ordinary girls to enter and become a real beautiful girl after being carefully dressed up. This requires that a large number of products be required. Fang spent five months searching for the magnificent female products in major cities. In the meantime, she even sold the two houses left by her mother because of insufficient funds, move to the store on your own. She spent nearly 0.2 million yuan to barely make the 500-square-meter shop no longer look empty. Later, she hired three senior image designers with high salaries from Guangzhou and Shenzhen, and finally opened the store.

In order to show that they are completely different from other female stores, Fang Miao asked senior image designers to manually train sales assistants and perform strict assessment. All unqualified employees will not be hired.

However, the newly opened beauty store is very upscale because of its products and decoration. Many women wait and see each other every day, but there are few entrants. Fang tie realized that even in a big city like Shanghai, her store could be a unique new form, not to mention such a small place. As a result, Fang Miao took out his savings of the last 60 thousand yuan and printed a very exquisite brochure with the content of Fang Miao as a model. After he entered the store, image designers design and transform each of her stages, and print each expense on the brochure, as high as the price of clothing, shoes, hats, and backpacks, as small as the overhead of a ring and eyebrow repair. In addition, it lists the series of temperament and beauty services, such as facial makeup guides, clothing accessories, and personalized skin protection service guides. Fang Yi delivers promotional materials to office buildings every day. Another part of the funds is a local newspaper, which has several tabs and introduces the types, content, and charges of different services. Finally, when the Spring Festival is approaching, the business in the store has gradually changed.

Fang Miao then held a number of targeted training courses, such as clothing matching, skin maintenance, and physical training for temperament and beauty. After more than a year of hard work, qomeimei store has finally ushered in a boom in business.

Fang Yi can finally start her next step to attract brand agents to rent a counter in her shop. To ensure the positioning of the store, Fang Yi only has the choice to contact agents of famous brands. Finally, an Italian imitation jewelry brand promised to enter the qomeimei store and became the first merchant in Fang Yi. Slowly, many sellers see the market space of this small city and gradually enter after observing the store of temperament and beauty.

Brands are increasing, and customers of qomeimei stores are increasing. At the same time, the store's sales performance is better, and more brands are also attracted. Party A's overall operation was also successful.

As the number of participating brands increases, Fang Miao has considered opening a larger branch in a neighboring city. She even hopes that her elegant beauty store will soon become a metropolis like Shanghai and Guangzhou from the current small and medium-sized cities.

In fact, the profit model of Fang only reflects a part of the distribution panel model.

What is the distribution panel mode? To be accurate, the distribution board model is in some markets. Many suppliers trade with many customers, causing high transaction costs on both sides. This leads to a high-value intermediary business. The function of this business is similar to that of a distribution board. It is used to build a communication channel or transaction platform between different suppliers and customers, thus reducing the transaction costs of buyers and sellers. Enterprises that provide intermediary services, as well as suppliers in power distribution panels, can enjoy high returns. This method is also called "joint venture" in the north, that is, to make up for the gap between the supply and demand sides, to deal with the two sides, so that enterprises as intermediary can also obtain a lot of profits. Yuan Bao, China's richest man in Forbes, was able to find the first barrel of gold in this way.

Fang Yi is an intermediary for building power distribution panels. Her profits come from several aspects. First, she rented a counter to earn a certain profit rate every year. The annual maintenance cost for 500 square meters of stores is about 50 thousand yuan, and the annual staff expenditure is about 0.2 million yuan. The rental fee for a standard counter is about 3000 yuan per month on average, and 36 thousand yuan per year. After a merchant rents a counter, each standard counter is equipped with two salespersons, whose salaries and bonuses are borne by the tenants. So she only needs to rent out six standard counters to pay for the annual cost. 500 square meters can be divided into 30-40 counters for rent. On the other hand, we offer a variety of training courses for female interests. In this way, in addition to promotion purposes, the annual training fee can also reach more than 10 million RMB. The annual profit obtained by the power distribution panel is relatively high. However, it should be noted that the investment in this model is relatively large, and it is not suitable for entrepreneurs with a small amount of funds. Fang Miao is a beauty store with an investment of nearly 60 million yuan in the early stage, which is highly risky.

However, the reason why the distribution panel model is worth learning for entrepreneurial enterprises is that it has a large market space and a strong market demand. Most start-ups will have difficulties in market development. Some entrepreneurs have good products but cannot find the right consumers, while some consumers have consumption needs and cannot find the right products. Through the distribution panel model, the supply and demand sides can be linked together, so that start-ups can directly face their customers and the possibility of making a business greatly increases. Taking Beijing as an example, many special shopping streets have been set up in Beijing, such as Dongzhimen's restaurant Street, Sanlitun's Wine Bar Street, and mailidao's tea Street, as well as various specialized wholesale markets, such as the Tianyi commodity wholesale market and Xizhimen clothing wholesale Street. In fact, the establishment of these special blocks and markets is equivalent to providing a distribution board for entrepreneurs. Because of the topic purchase, these streets are popular and the business is booming. Choosing such a market will naturally greatly shorten the period for entrepreneurs to explore the market.

In the old saying, goods are sold together and this is the case. When a "field" forms a scale and naturally leads to a sharp rise in popularity, sellers in this environment will save the cost of publicity and promotion, in addition, it greatly shortens the customer's cognitive cycle and increases the speed of entering the profit zone.

According to statistics, the number of possible business operations per unit time using the distribution board model will be twice or three times that of the traditional operation model. Because the use of the distribution panel mode is equivalent to gathering the power between the supplier and the customer, the promotion cost and operation cost are greatly reduced, therefore, the profits produced by the unit time and unit effort are 7-10 times that of the traditional model.

In addition to building a power distribution board like fang Yi, entrepreneurs may wish to look for a reverse thinking and add a suitable power distribution board. For general entrepreneurs, this is a more effective use of the profit model of distribution panel, which can reduce the growth risks of start-ups and accelerate the growth process.

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