Home to enter the era of low profit needs innovative profit model to make money

What do dealers rely on to make money? The home building materials industry has been harassed, and the battle of terminal stores has entered a stage of white-hot, expanding the store area, enriching product categories, increasing sales activities, training sales personnel... All of these actions have only one purpose in the end, that is, try to do everything possible. To increase store sales and sales profits. However, when more competitors join the war, you will suddenly find that the pressure of breakout is getting bigger and bigger. The single store competition form not only raises the customer's buying expectations, but also makes the dealers' bosses The operating costs have risen sharply and sales profits have become thinner and thinner. The reason why this happens is because most of us are simply copying the success of others, watching a person open a shop to make money, and immediately copying such a store, simply relying on the difference in product prices to make a profit, Such a business philosophy will soon be drowned in the turbulent market of the Red Sea.

It is better to shun the three homes to find a new way out of the battlefield on the battlefield. The profit model innovation has become an important issue for the current dealers' business transformation. What is profit model innovation? Briefly, a short story: In the mid-19th century, gold mines were discovered in California, and many people flocked to the gold rush here, including a 17-year-old peasant, Amor. However, a few months later, Amor, like most gold diggers, found nothing. Suddenly afflicted by hunger and thirst, he suddenly realized that it is better to sell water than to blindly dig gold here, and to do it. When most gold diggers are empty, Aaron has been relying on it for a short time. Selling water earned $6,000, which was quite impressive at the time. Looking at the store retail competition in the home building materials market today, quite a bit of the situation in the 19th century California gold rush, dealers continue to insist on the "gold rush" road is still actively looking for "selling water" opportunities, the answer is self-evident . So, how to carry out the innovation of the profit model, where to start? The author combines the successful experience of many distributors in the building materials industry, trying to analyze and interpret the four ways of innovation, thus playing the role of arguing and arguing.

Profit mode innovation method 1, customer segmentation

Who is the home building product sold to? Many of us will target customers to newly renovated owners. This positioning range is relatively narrow. In my opinion, our customers can be subdivided into at least three types of customers.

(1) Home users: In recent years, we have focused our attention on the owners of newly renovated real estate. People in the industry call these customers heavy users because they are the main buyers and consumers of home building materials. Many of our promotional activities are carried out for these people. Whether it is community promotion or advertising, the core purpose is to attract these people into our stores. There are also a small number of customers, we call them light users, because they are customers of product replacement, can not form a sales order, naturally did not become the focus of our attention. If you simply define the customer 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 based on household use.

(2) Engineering users: In addition to the family, the sales target of home building materials products also uses a heavy user group - engineering users. Hotel decoration, commercial shop decoration, restaurant chain decoration need to purchase paint, tiles, flooring, lamps, and even bathroom, furniture and other supplies, and the demand for procurement is very large, can bring huge business opportunities to dealers. Engineering users contribute significantly to dealer sales growth, but usually the price will be very low, generally requiring manufacturers' special support or sales rebate support. The significance of doing business for engineering users is not only the growth of sales volume, but also the influence of the brand in the local market. As the building materials are cold attention products, the product brand can be exposed through the use of engineering projects, so that the home users can There is a product experience before purchase.

(3) Industrial users: The client I am responsible for is a Pan boss who has a large annual sales volume and has double-digit growth since 2005. In the market environment where the building materials industry is so competitive, Pan’s sales have already exceeded 10 million yuan. What is a myth that a store that is less than 200 square meters has created? When discussing his customer base with Pan, he was surprised to find that 60% of his products were sold to the integrated ceiling customers in Jiaxing, Zhejiang. Mr. Pan told me that these manufacturers of integrated ceilings did not have the brand awareness and enterprise scale at the beginning of the business, so they did not have the conditions to directly negotiate with the manufacturers to get products, so getting the goods from the dealers is the best choice. And he discovered this business opportunity and successfully established a cooperative relationship with many small manufacturers of integrated ceilings in Jiaxing. With the emergence of the overall home concept, some regional home brands have begun to emerge in large numbers. Is there any opportunity to sell their products in the form of B2B? It is necessary for dealers to dig deep into the manufacturing companies and commercial enterprises around them.

Profit mode innovation method 2, sales model

(1) Direct sales: store sales are the main way of selling home building materials. The merchants who are waiting for the rabbits can no longer sit still, and began to recruit and increase the promotion of new properties. However, the promotion activities are only promotional activities. The business is usually negotiated in the store. Can you move the sales site to the community? If you are willing to deal in the community or even the customer's home, then your sales method will change and become a direct sales. Once, I went to Xuzhou, Jiangsu for a business trip, and found that a brand of radiators had been sampled at the property office. There was also a “**Cell Brand Radiator Installation Schedule” on the wall. This sales model Not only direct sales, but also recommendations for hidden channels. Solar energy is one of the more in-depth products that I have seen in the community direct sales. Their salesmen have truly achieved the sales of the customer. Of course, the cabinets and integrated environmental protection products have also joined the direct sales team. It is only one of the ways for the sales of business personnel to target sales in the community. Recently, some furniture brands have started to mail and distribute the product catalogue. It takes time to verify whether it is successful. After all, there is no time for the owners who are busy with renovation. I am also not interested in checking my mailbox.

(2) Distribution: Those businesses that seem to have small storefronts and disordered product display do not necessarily mean that business must be done well, because these businesses usually have their own sales channels, such as distribution. The so-called distribution is a dealer to distribute the product to the next level market or the blank area that the company can't cover in time under the premise of obtaining the company's authorization. At this time, the biggest test for the dealer is inventory management and logistics distribution speed. In the dealers I have contacted, there are many ways to distribute them. They can partially distribute the products to the subordinate customers, and even put a certain product of the company into some related retail terminals for joint sales.

(3) Sales promotion: It is precisely because the home building materials products are cold attention products, customers have no experience in purchasing products. At this time, the advice of professionals will be very influential, just as hospital doctors recommend drugs to patients. Renovation workers and interior designers have become experts in the purchase of consultants, and we call these people hidden channels. If you can establish an in-depth partnership with hidden channels, the potential for store sales is very large. Xuan Boss of Zhangzhou, Zhejiang Province never thought that hidden channels could become the main channel for his sales today. Three years ago, he only had a small store with only 200 square meters. The annual sales were less than one million yuan. Later I led The sales team conducted a centralized operation on this market, helping him to bring back all the local home improvement companies, designers and plumber information. Since then, the boss has been out of control and has established an exclusive alliance with the designer. Relationship, annual sales have already exceeded five million.

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