What is profitable model innovation? To tell a short story briefly: In the mid-19th century, a gold mine was discovered in California, USA, and many people flocked here to dig for gold, including a 17-year-old farmer Yamore. However, a few months later, Yamor, like most gold prospectors, found nothing. Suddenly tortured by hunger and thirst, he suddenly realized that instead of blindly digging for gold here, it would be better to sell the water and do it. When most gold prospectors are empty-handed, Yamor has been relying on it for a short time. The sale of water earned US $ 6,000, which was quite impressive at the time. Throughout the battle for retail sales in the home building materials market today, there are quite a few situations in the United States during the 19th century gold rush in California. Whether the dealers continue to stick to the "gold rush" or actively look for opportunities to "sell water", the answer is self-evident . So, how should we innovate the profit model, and where to start? The author combines the successful experience of many dealers in the building materials industry, trying to analyze and interpret from four innovative ways, so as to play a role in attracting wisdom and controversy.
Innovative ways of profit model 1. Customer segmentation
To whom are home building materials sold? Many of us will target our customers to the newly renovated owners. This positioning is relatively narrow. In the author ’s opinion, our customers can be subdivided into at least three types of customer groups.
(1) Household users In recent years, we have completely focused on the owners of newly-renovated real estate. People in the industry call these customers heavy users because they are the main purchasers and consumers of home building materials. Many of our promotional activities are carried out against these people. Whether it is community promotion or advertising, the core purpose is to attract this group of people into our stores. There are a small number of customers. We call them light users, because they are customers who replace products, they cannot form a large sales order, and naturally they have not become our focus. If you simply define customers as these two types of people, then your sales method is a more traditional way of retailing, because your sales target is the end user who is mainly for household use.
(2) Engineering users In addition to households, the sales targets of home building materials products also use a heavy user group-engineering users. Hotel decoration, commercial store decoration, and restaurant chain decoration all need to purchase paint, ceramic tiles, floors, lamps, and even bathroom, furniture and other supplies, and the purchase demand is very large, which can bring huge business opportunities to dealers. Engineering users contribute significantly to the sales growth of dealers, but usually the price will be very low, generally requiring manufacturers' special price support or sales rebate support. The significance of doing engineering user business is not only the growth of sales volume, but also can quickly increase the brand's influence in the local market. Since building materials products are cold-focus products, the use of engineering projects can expose the product brand and allow family users to The experience of using the product before purchase.
(3) Industrial users The client I am responsible for has a boss Pan, whose annual sales are very large, and it has been growing in double digits every year since 2005. In such a brutal market environment of competition in the building materials industry, Pan's annual sales scale has already exceeded 10 million. What can a small shop with less than 200 square meters create such a myth? After discussing his customer base with Mr. Pan, he was surprised to find that 60% of his products were sold to integrated ceiling customers in Jiaxing, Zhejiang. Mr. Pan told me that these manufacturers of integrated ceilings did not have the brand awareness and the scale of the enterprise at the beginning of their business, so they did not have the conditions to directly negotiate with the manufacturer to negotiate the product. Then, taking the goods from the dealer is the best choice. And he discovered this business opportunity and successfully established a cooperative relationship with many small integrated ceiling manufacturers in Jiaxing area. With the emergence of the overall concept of home furnishing, some regional home furnishing brands have begun to emerge in large numbers. Are there any opportunities for their products to be sold in the form of B2B? Dealers need to dig deeper into the manufacturing and commercial companies around them.
Innovative way of profit model Second, sales model
(1) Direct sales Store sales are the main way of selling home furnishing building materials products at present. The businessmen who are waiting to wait are finally unable to sit still, and they have begun recruiting to increase the promotion of new properties. But the promotion activities are only promotion activities. Business is usually negotiated in the store. Can the sales site be moved to the community? If you are willing to make a deal in the community or even the customer's home, then your sales method will change to direct sales. Once, I went to Xuzhou, Jiangsu for a business trip and found that a brand radiator was sampled in the property office. There was also a "** Residential Area ** brand radiator installation schedule" posted on the wall. This sales model Not only direct sales, but also implicit channel recommendations. Solar energy is one of the more in-depth products that I have seen in the direct sales of the community. Their salesmen have truly realized the point-to-house sales. Of course, the cabinets and integrated environmental protection stove products have also joined the direct sales team. Targeting sales to customers in the community is only one of the direct sales methods. Recently, furniture brands have started to mail and distribute sales of product catalogs. It takes time to verify their success. After all, there is no time for owners who are busy renovating. , And I ’m not interested in checking my own mailbox.
(2) Distribution Those businesses that do not seem to have a large storefront and the product display is confusing do not mean that the business will not do well, because these businesses usually have their own sales channels, such as distribution. The so-called distribution is that a distributor can distribute products to the next level of market or a blank area that the company cannot temporarily cover under the premise of authorization of the company. At this time, the biggest test for the distributor is inventory management and logistics distribution speed. Among the dealers I have contacted with, there are many distribution methods. They can partially distribute products to lower-level customers, and even put a certain product of the company in some relevant retail terminals for joint sales.
(3) The sales promotion is precisely because the home building materials products are cold-focused products, customers have no experience in product purchases, at this time the professional advice will be very influential, just like the hospital doctor recommends medication to patients, decoration Workers and interior designers have become a group of experts when customers buy and consult. We call these groups hidden channels. If you can establish in-depth cooperation with hidden channels, the potential for store sales is very large. Boss Xuan of Quzhou, Zhejiang, never thought that hidden channels could be his main sales channel today. Three years ago, he only had a small store with a surface area of ​​only 200 square meters, with an annual sales of less than one million yuan. The sales team conducted a centralized operation on this market, helping him get all the information of local home improvement companies, designers and hydroelectricians in one fell swoop. Since then, the boss has announced that he has been out of control and has established an exclusive strategic alliance with the designer. Relationship, annual sales have already exceeded five million.
(4) Online marketing I haven't quite believed in the amount of gold in the phrase "technology changes lives" until I personally witnessed the growth process of boss Cao Lu in Shanghai. In 2006, boss Feng of Cao Road, Pudong, Shanghai called me, hoping to cooperate with us to represent our products. He was doing curtain business at the time. I ran to his store and saw that there was no real estate around, and he shook his head without the conditions to open a store. Boss Feng was anxious and said: This store is not for rent in his own home. There are no stores selling lights in the surroundings. Great potential, give me a chance.
The opportunity was given to boss Feng, but how to do business? Everyone was forced out. Boss Feng was only in his twenties. When he had nowhere to go, he opened a shop on Taobao and started an online business. First, secretly selling, barely maintaining a livelihood so as not to close the store, who knows that the business will grow bigger and bigger, there are more than 100,000 business every month. Faced with the rapid growth of Boss Feng's business, the company gave him the qualification of an online merchant, and he turned out to be a model customer of net merchants across the country.
Innovative ways of profit model Three, product management
(1) Product buyouts In the past, when I was responsible for the planning work in the home appliance retail store, I often put some buyout machines and underwriting machines on the newspapers to attract customers. The so-called product buyout refers to that when the merchant talks with the manufacturer about the annual cooperation agreement, it sells an exclusive agent for a product that it thinks has market potential. The premise is that the merchant can complete the sales task required by the manufacturer within the agreed time, otherwise the buyout The product will also be transformed into the merchant's inventory. It has nothing to do with the manufacturer. Simply put, the merchant is responsible for the problem of product digestion since it is bought out. Now the retail channel of the home building materials industry has begun to integrate, such as the production of provincial agents of ceramic products, the emergence of super lighting stores, and the emergence of lighting chain supermarkets. They already have the conditions to talk with manufacturers to buy out products. If realized, the retailer alliance is a good attempt. The biggest economic benefit of the alliance is that it can be unified with the manufacturer's requirements to purchase, thereby reducing the cost of purchase.
(2) Customized products With the advent of the era of personalized publicity, the more popular the product, the harder it is to win the favor of the new generation of consumers. What they need is unique and different. Distributors who mainly sell small and medium-sized projects have already felt the importance of customized products. Not only can customized products bring unique product experience to customers, but also create value by satisfying customer needs. When I was doing market development, I met a boss Dong. He once talked about the experience of customizing a small bedside reading lamp for the army. He asked: Can you make such a product? There is nothing you ca n’t do, the only question is how much do you need, who can you sell to other than the extra products sold to the troops? Dealers and manufacturers customize products to ensure profit margins. The key question is to know who these products can be sold to and how long it will take.
(3) Brand discount store A few years ago, a friend of mine started to try to operate a brand discount store for home building materials products. He thinks that many building material products are updated faster, why not use some old products in the way of brand discount stores For special sales, at this point, the brand discount store model of the clothing industry Li Ning and Adi can be emulated. My friend has always been an outsider, and he has not been able to achieve the desired results after a lot of tossing, but his approach has greatly inspired our dealers in the building materials industry. The Yangtze River Delta region is a production base for flooring products. I often see various brand flooring stores organizing customers to take buses to the factory for group purchases. The market promotion in the early days of the event is very fierce. The store staff often tells you excitedly, "Please wait for the floor. First, let's go to the factory for group purchase with us. "The group bus that keeps flowing, the customers who are full of excitement and anticipation, the factory with colorful flags fluttering and renewed, the well-promoted lady who is fully armed, and the most attractive ... The shocking price of everything, everything looks so beautiful, how many people care about style in such a great situation, because they come to the factory they all have a common goal: must buy cheap, as for buying It seems that it is not so important whether the old inventory of the manufacturer or the slow-moving product is in stock. Such a business promotion model is actually the prototype of the sales of brand discount stores.
Innovative ways of profit model IV. Value-added services
(1) Extended Warranty Service As early as 2007, the home appliance retail industry launched the "Home Appliance Extended Warranty" service, and Gome has promoted "Home Security" extended warranty products nationwide in 2008. Since then, Suning Appliance has also kept up and launched the "Sunshine Bag". And home appliances sold online in Kuba also have "extended warranty" services. For the extended warranty service business of the home appliance industry, the US marketing FromEMKT.com.cn experts have long pointed out the purpose of making money. The home appliance sales staff sells not home appliances but insurance, because in general, extended warranty services are for retailers A profitable business.
Let's take a look at what our home building materials industry has done in after-sales service? What is certain is that after-sales service in the home building materials industry is much easier than in the home appliance industry, but this cannot be an excuse for our lack of innovation in services, because services can create value.
(2) Design services For customers who purchase building materials, the biggest confusion is not the product purchase standard, but whether the product to be purchased matches the overall home style in function and style. Before the decoration, customers basically do not know what style of home improvement, you will find that many people will issue a burst of exclamation in the home improvement company, praise the designer some of the previous decoration cases are too beautiful, and even two couples often because of this A quarrel occurred because the two people liked the different styles of home improvement. If our stores can provide customers with some design services in the use of products, it can not only increase sales opportunities, but even the service itself can bring revenue. When we are still selling lighting products, some foreign companies have begun to set up professional lighting design service companies to provide customers with design solutions for overall lighting effects. As to which brand and what products are finally purchased by these design companies That's the deal. If you are professional enough, you can also try to develop home improvement design services for products in the building materials industry. After all, this business is still a blue ocean.
When I interpreted the profit model of dealers in the home building materials industry from the four dimensions of customer segmentation, sales methods, product management and service value-added, I was suddenly surprised to find that there are many opportunities for dealers in the home building materials industry. Who can take the first step now.
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