[China Glass Network] A Jun took over a small paint factory about 20 years ago. At that time, the factory only produced special specifications of paint, with a small turnover and a loss of business. After the management of A Jun, the performance improved greatly. The company had a profit. After three years, there was a small amount of funds, and the bank also agreed to increase the loan amount. At this time, there was a large-scale paint factory. The boss was too old to be allowed to go on business and sold the factory. The paint brand and main production equipment of the factory were also taken over by other paint factories, leaving some old machines unattended, and several old employees were unemployed. Ajun bought the old machine and some raw materials at a very cheap price, and hired the old employees to start producing some of the most widely used “big road goods†in the market, which need to be sold to the market through retail stores. Even such a small investment has exhausted A’s funds, exhausted the bank’s overdraft, and owed the supplier’s payment, so the launch of the new product can only be successful without failing – if it fails, A will go bankrupt. It is. YiWu Home Of Crowns Co.,Ltd , http://www.crystal-crowns.com
At what price is the product brought to market? A Jun met with two salesmen to discuss. A salesperson said: "Our brand has no fame, we must attract business at a low price. Brand goods sell for one hundred yuan, we can only sell for 60 yuan or 65 yuan." Another salesperson said "We can use discounts and sales increments. The more shops we sell, the more we give discounts and encourage the enthusiasm of the shops." The two colleagues said that they all made sense, but A Jun always felt uncomfortable. I will carefully consider this matter in the future.
By the former method, selling low prices can only have two results: one is to lower the quality and maintain a certain profit, but the inferior products can not stand in the market; the second is to produce the same quality products as the brand, but the company has no profit, but also A dead end. Another salesman's method, his suggestion sounds feasible, but the retail store owner is not sure to sell a new brand, he will perfuse you, not necessarily interested in helping you sell goods.
A Jun came up with a method later. At the meeting on the second day, he announced that the brand sold for one hundred yuan, and his brand sold for ninety-eight yuan. The quality is as good as the brand goods. The discount for brand goods to retail shops was 9.2% at the time. A Jun gave the shop a discount of 18%, and sold one can also be the price. That is to say, the retail shop sold a can of A-Jun, compared to selling. A can of branded goods should earn 60% more.
When A Jun's goods were launched on the market, the shops were willing to introduce him, and immediately occupied a place in the retail market. The factory soon developed to a medium size.