In recent years, with the development of the Internet, more and more industries have used the factory direct sales model for small profits but quick turnover. Some businesses promote their products under this pretense, while others are real factory direct sales, with affordable prices and excellent products.
As we all know, the difference between the price produced by manufacturers and the final transaction price when most people buy goods usually ranges from 5 to 6 times to more than ten times. Let me make an analogy. Many T-shirts may cost 30 to 40 yuan, but after OEM, they will sell for one to two hundred yuan in brand stores. Of course, this includes facade, logistics, labor and advertising costs, etc., so the premium is high. But it is undeniable that the downstream benefits of the consumer chain must be higher than the upstream benefits.
This is not just the clothing industry, but many other industries. For example, mattress manufacturers, according to statistics, the rate of processing in the mattress manufacturing industry is as high as 96%, and the final sale price in brand stores must add agency commissions, shopping guide commissions, facade costs, advertising costs and general expenses. The transaction price can reach 7-8 times the cost.
Lao Zhou is the owner of such a mattress factory. He has been in this business for many years and knows the price difference. In recent years, the factory direct sales model has become more and more popular. He is also very jealous and hopes he can share Take a cup of pie.
But the reason why there is a factory direct sales model, brand stores can still occupy the mainstream in the market, is because manufacturers are subject to many restrictions. Take Lao Zhou’s mattress factory as an example. If he wants to rely on factory direct sales, there are three weaknesses:
There are no customers. Lao Zhou makes mattresses for many big brands, but the clients who ultimately pay for the biggest profits are in the hands of agents and brands.
Lack of scene experience. Even if it is sold at a price close to the cost, the cost of a mattress of 1,500 yuan, 2,000 yuan is still not a small sum. You don’t have the trustworthy endorsement of the brand, and there is no offline store for people to see and touch. If the customer cannot experience it, they will not buy it.
Lack of traffic. Brands can spend 45% of their revenue on advertising each year. Your manufacturer may make a few years of this money. If you can’t win the brand with advertising, you will lack traffic and exposure. No matter how cheap you sell, no one buys it.
So the real factory direct sale is easier said than done. Lao Zhou also thought about setting up his own brand, but the situation is similar. If he doesn't open up his mind, he will end up as difficult as other manufacturers.
In desperation, Lao Zhou asked someone to design a plan to integrate resources and use other people's customers to trade his products.
The first step is to lock the flow pool for profit
Lao Zhou has been in this business for many years, and many big brands are contracted by his factory. Lao Zhou took the brand's order as an endorsement of his product and went to discuss cooperation with the hotel. The hotels here include various hotel-style apartments, homestays and star hotels.
Why choose a hotel? Quite simply, the hotel is the place that can bring customers a sense of scene experience most besides major home furnishing stores.
Lao Zhou proposed to the hotel to provide mattresses at the lowest cost price. Of course, this type of mattress cost 1,000 yuan, which is a popular product of big brands, and the price can reach 6,000 yuan, while Lao Zhou now gives the hotel 1,500 yuan. The price is only a very basic profit.
However, if the price is low, it is not enough for the hotel to give up the original partners or stakeholders to choose you. At this time, we will propose another plan of ours to the hotel: I will not only make profit on the front end, but also continue to bring you profit on the back end, and I will also help you promote for free here. Do you accept this condition?
Driven by interests, most hotels have chosen to cooperate with Lao Zhou. Of course, these hotels themselves are relatively high-end, so they will use this kind of mattress that costs 1,500 yuan.
The purpose of this is to exchange profits, use our immediate interests to lock the other party's traffic pool, and bind the other party's interests, so that our back-end profit.
The second step is to introduce experiential consumption and scene marketing
The reason for cooperating with the hotel is to carry out a scene marketing to customers. There is no physical store, and only selling products through e-commerce is the disadvantage of factory direct sales. Customers cannot enter the preset scenes, and they will lose a lot of consumer desire.
But now we cooperate with the hotel, the hotel has soft lighting, comfortable temperature, simple and generous decoration. At this time, every hotel room that uses our mattress is a small physical store of ours.
Speaking of this, do you all have a sudden realization? The front-end concession is for the experiential consumption of subsequent customers. We sell you the mattress at a price that is almost the cost price, which is equivalent to paying you rent and renting your place to display our mattress.
Lao Zhou asked the hotel to put our brochure next to each charging socket, because the charging socket is a place that every customer will use when checking in. The brochure has our mattress introduction and QR code. Scan the QR code to jump to a platform to place an order for our mattress.
Not only that, but also required the hotel staff to mention this mattress when receiving guests, indicating that the hotel’s cooperative brand has quality assurance and can be purchased by scanning the code to ensure that every guest receives this information.
The hotel will definitely do this, because our QR code can be traced back to the source. If a guest staying in your hotel buys a mattress, I will give you a commission. This commission is calculated according to the price of the mattress, because the hotel suites are of different grades and the price of the mattress is also different, but we all give you a 20%. In other words, I sold a mattress with a cost of 1,000 yuan to a client for 2,500 yuan, which is half the market price, but I can make 500 yuan more than before, because I only sold 2,000 yuan to the agent. For every mattress I sold, I paid 400 yuan to the hotel.
Therefore, the hotel will try its best to promote our mattresses, because our mattresses are sold well, the hotel gets more commissions.
The third step is to copy the model and spread across the country
In fact, this model is the best model among limited choices for Lao Zhou. First, the cost is very low. Compared with other advertising, the money is not necessarily effective. This model does not require cost, and at most it is a loss of profit. Even if a single mattress cannot be sold, a hotel has close to 300 rooms, and we can earn 250,000 yuan if we count various room types and need 500 mattresses.
But in fact, using this method has made mattress sales very good. Because the guests have personally experienced that it is better than any language. Moreover, this model can be copied infinitely, and you can use it in many hotels.
In the end, Lao Zhou developed this model in 120 hotels across the country. On average, each hotel can sell 5 mattresses per month. After deducting the commission, we can still earn 660,000 yuan, which is 6 times more than in the past. . On average, each hotel can earn an additional 2,000 yuan in revenue per month.
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