Chapter 998 Power Leverage(1/2)
"Retirement? You mean I will do nothing in the future?"
"Yes, what I mean is that if you take 200 million or not, you will spend until you die, and you will never have to worry about money anymore."
Xu Lu thought for a while and said, "It should be enough."
"Okay." Nan Yi nodded, "Then I want to tell you that this assumption is not valid at all. There is no legitimate business with a profit of 200 million times. Even if it is not justified, I would never think of it for a while."
"Well..." Xu Lu thought for a while, as if she didn't expect the answer she wanted, so she asked unwillingly: "There are always those who make 200 million in business, right?"
"Yes, and there are quite a few, but I can tell you that businesses that can make 200 million yuan in net profit at a time often require a cost of one billion or more. Of course, the cost can include bank loans, which is the so-called leverage operation.
In theory, you can use a small amount of money, leverage and leverage, and a billion-dollar business can be leveraged with one or two million, but the more leverage, the greater the risk. Moreover, leverage exceeds ten times is unlikely to be a simple financial behavior, and power must be attached, that is, power leverage.
For example, your elder brother, I am in charge of the canteen in the factory, and you are a vegetable vendor. I will pay you a deposit of 10,000 yuan and ask you to deliver vegetables to the canteen every day. Once you deliver them, you will pay you once. Each time, it will cost about 5,000 yuan for vegetables.
Think about it, if I were not your elder brother, how could such a good deal without capital fall on you? This is power leverage."
Xu Lu said in confusion: "I don't understand very much."
Nan Yi said happily: "What does it mean to collude between officials and businessmen?"
"Of course I know this."
"What are the officials?"
"Quan..." Xu Lu suddenly realized, "I probably know what it means."
"Don't know roughly. Understand it yourself. Power leverage is easy to use, but it cannot be used more or more, and it cannot be used deeply. The more harsh you use, the deeper the backlash. How did it come about and how to return it back then. Okay, I'll continue to tell the story."
Nan Yi settled his mind and continued: "In the rush to buy, Sun Yuefeng's electrical appliance store... By the way, at that time, Sun Yuefeng's electrical appliance store should be called Nanhu. Forget it, the name is uncomfortable after changing, so I just said Jin Lan.
Jinlan Company previously stocked up all home appliances worth hundreds of millions in a month, and Sun Yuefeng's 200 sales staff had a per capita sales of more than 500,000.
During the buying boom, some stores use a more vicious combination sales method in order to take the opportunity to sell backlogs. If you want to buy a best-selling product, you must buy a backlog, otherwise you won’t sell it to you.
Jinlan Company's electrical appliances are both best-selling and unsold. However, Sun Yuefeng not only did not conduct matching promotions, but he also launched a high-quality service activity for customers to make a profit of one million yuan.
He did this to play a good role in stabilizing prices, benefiting the majority of consumers. Therefore, he was praised by relevant departments and established a good corporate image for Jinlan Company.
After the rush to buy, the people have less spare money and the home appliance business has entered a low period.
Although Sun Yuefeng has not been in the business world for many years, he has been aware of the market and has done steadily and thoroughly. When the business market rises, he seizes the opportunity to grab the tide. When the market is weak, he can also see the way to make money from the low point and find ways to make money that others have not noticed.
Later, the situation in the electrical appliance market took a sharp turn and encountered a low tide.
Sun Yuefeng was thinking again, what should we do in the next business.
Soon, he took two measures, one was to continue to stabilize the sales market in big cities, and to promote the lowest price brand in the city in terms of prices, and to carry out after-sales service in terms of business methods to solve customers' worries.
In doing so, Jinlan Company can still guarantee a certain sales in Fengtian. At the same time, he launched a chain battle in the Northeast market, adopting the strategy of swallowing one and two, and immediately expanding the number of stores whenever he has the opportunity.
Sun Yuefeng's business strategy is to quickly occupy the market, first take down the fortress, then clean up the battlefield, first talk about quantity, then quality, wherever there is a blank on the map, Jinlan's flag will go.
This kind of playing style is very satisfying. It is said that sometimes Sun Yuefeng would watch a map for a long time, then point to a town without Jinlan chain stores and say to one of his subordinates: You, go to open a chain store there. If you become a manager, go and go to handle the procedures immediately.
The place designated by Sun Yuefeng usually can open a Jinlan chain store in no time.
The specific measures are: let the business department first understand the market, the development department obtains a license, the decoration department decorates the storefront, and the engagement department recruits workers. When the business is about to open, the public relations department will go lively to hold a public relations event, and Sun Yue Summit will go to the opening.
It takes half a year for others to run a store, but Sun Yuefeng’s chain store can get a license in as early as fifteen days and can open it in just a month.
Is Sun Yuefeng's shocking achievements in these aspects because he has any special means?
There was once a factory manager who came to ask Sun Yuefeng for advice because he had not obtained a license after half a year when applying for a company in another place: What are your tricks? Should you throw money or use women?
Sun Yuefeng gave an official answer: If you can use whatever you can within the scope permitted by national policies, you can use whatever you can. This is the trick.
Jinlan Company is constantly expanding its sphere of influence, and its momentum is like a rainbow that makes colleagues in some neighboring areas worry. Some places adopt local protectionism and do not want Jinlan to open a chain store.
When Jinlan Company was about to enter a city in Jilin Province, some of the leading figures and business owners shouted: Jinlan should not be allowed to come in.
At that time, Sun Yuefeng had signed a contract with a loss-making store to merge the store, but the deputy mayor in charge just refused to do it.
Helplessly, a female subordinate who took Sun Yuefeng's appointment letter to serve as manager had to climb to the door of the deputy mayor's house. She said to the mayor: What is wrong with letting us run a store here? First, I have arranged employment opportunities for you; second, bringing you market prosperity."
Then, she also brought the industrial and commercial taxation people to work together as the city government leaders. The industrial and commercial taxation people of course welcomed a company that could bring them tax profits, so they would also help plead for love.
Later, the Jinlan chain store in that city was well-managed and its business was very prosperous, and it became a model for local companies to follow.
By the way, the female manager is named Wang Yajuan, remember this name.
Sun Yuefeng's strategy of quickly occupying the market is also reflected in the fact that once he is optimistic about a certain product, he will quickly launch it in Jinlan's chain stores. Any product he wants to sell can be arranged overnight in more than 100 chain stores. The next morning, the advertising flag promoting the product will flutter over dozens of cities.
The key to Sun Yuefeng's rapid market occupation strategy is that Jinlan can provide the best service and has reliable credibility. In hundreds of cities in Fengtian and even the three northeastern provinces, there is nothing I don't know about Jinlan.
Buying home appliances and going to Jinlan has become a nursery rhyme circulating on the streets and alleys.
Why is the Golden Orchid Tornado so powerful?
Because the products in Jinlan chain store are always at the lowest price in the local area, and they are refunded, exchanged, and compensated. They teach customers how to use them. Large items are also delivered to your doorstep, making you happy and return satisfied, and truly treat customers as God.
Sun Yuefeng has his unique interpretation of Jin Lan's miraculous expansion over the years, which he compared to the sphere effect.
The ball has strong plasticity, large and small, round or flat; it has great flexibility, east, west, south, north and middle, variable direction and unlimited speed. Small balls surround the big ball, and each part echoes each other and connects each other, forming the unique chain store effect of Golden Random.
Jinlan's headquarters is like a big ball, which accumulates energy during movement and continuously transmits energy to the small ball that rotates around it. The energy generated by the small ball returns to the parent body's large ball, and the large ball recreates the small ball.
It's like atomic fission, and Jinlan's energy comes entirely from its own movement.
Jinlan's development relies entirely on its own capital and has no external investment. Capital accumulation is far less fast than capital concentration, so I partnered with you to establish Xianlu Capital to concentrate the capital of the two of us.
However, Sun Yuefeng has proved with practice that the snowballing speed of capital accumulation is not slow, and it can still explode quickly in a short period of time."
Nan Yi poked Xu Lu's forehead, "I specifically stated that you should remember the words that deliberately say accent to me. When reviewing them later, they are all the key points."
"knew."
Xu Lu spitted out her overly grown tongue.
Nan Yi sipped the tea again, "Any operator is inseparable from scientific decision-making if he wants to succeed. Sun Yuefeng may not be well aware of the profound scientific decision-making theory, but he instinctively makes decisions based on actual conditions. He founded a chain store, which is the decision.
He studied the success of a series of companies such as Toyota, Panasonic, Ford, and Daewoo, and got useful inspiration from Wandefu. Based on the specific situation of Fengtian and Northeast at that time, he decisively decided to set up a unique commercial group "chain store".
The so-called chain stores are actually a series of stores with unified store name, logo, unified business management and unified accounting; under the command of a headquarters, they have a unified business strategy, sell similar products, the same price, and the same service standards; customers can enjoy the same service no matter where they are from all over the world.
This completely unified management system is very conducive to the decision-maker Sun Yuefeng's unified command and unified leadership of the entire enterprise.
This chain store has great advantages. It can achieve a large purchase of more than 100 Jinlan stores with unified funds, and the purchase price is naturally lower than that of others. Unified dispatch, scattered sales, scattered goods can be adjusted to each other. The east is not bright in the west, and the west is bright in the place, where the place is unsalable.
Release can disperse the five fingers, and retract can be clenched into fists. It can not only resolve risks, but also make great strides forward. It can be said that it can attack and defend, and fight without any danger.
As long as Sun Yuefeng gives the order at the headquarters, Jinlan's chain stores can publish the same advertisements to promote and sell the same products in different cities and locations.
Sun Yuefeng's success is not only based on decisive decision-making based on reality, but more importantly, he has a set of advanced decision-making skills.
In your Fengtian business community, it is said that whatever Sun Yuefeng sells will be sold, and he will be sold. He is revealed to the truth. In the eyes of many people, he is simply a business god.
Speaking of which, Sun Yuefeng is not so evil, but his eyes and decisions are half a year earlier than others, and it is exactly this half year that allows him to seize the market first, seize the opportunity to obtain huge profits, and develop and strengthen Jinlan Company.
I will now jump out of the appliances and tell you about Sun Yuefeng’s actions in other aspects.
That year, due to the economic tightening, many people who sold land on Qiongdao left. Sun Yuefeng went the other way and brought a huge sum of money to Qiongdao and went to Coconut City.
At that time, I happened to be in Coconut City, and I was more concerned about Coconut City real estate and knew Sun Yuefeng's actions in Coconut City. He bought 300 acres of land for 20,000 yuan per acre. At about the end of 1992, he sold the land for 180,000 yuan per acre, and this business allowed him to earn 40 million yuan.
In the first half of 1991, the national governance and rectification work was fully launched, infrastructure was discontinued, and the building materials market was seriously weak. Sun Yuefeng made a lot of money into building materials. After the "Southern Tour" of the second year, the prices of building materials soared, and he made a lot of money.
Sun Yuefeng made two big money in speculation, and Jinlan's business did not delay. In 1992, Jinlan's sales had exceeded 700 million.
From the beginning of business in 1985 to 1993, from 4,000 yuan of startup capital to a large part of it becoming a billionaire, Sun Yuefeng has been doing well along the way. Do you know where others are now?"
"Brother, how could I not know? Sun Yuefeng is a celebrity. If you don't need to inquire, someone will tell me that I have been arrested in 1993." Xu Lu disagreed.
"You are right. Sun Yuefeng has become a prisoner." Nan Yi nodded and continued: "In 1993, there were 136 Jinlan chain stores, and the expansion speed is very fast. Have you heard of Jingxi Yigo?"
Xu Lu: "I heard from the dissident in Beijing in Moscow that, like Jin Lan, I also run a home appliance chain."
"The friend I mentioned who makes home appliances is the boss of Jingxi Yigou. I also have investments in Jingxi Yigou and is one of the bosses. Jingxi Yigou was established in July 1984. It took almost a year to change from one store to two stores, and then I stayed there.
In 1987, when Jinlan Company began to expand greatly, Jingxi Yigou still had two stores, but at that time, Jingxi Yigou launched a promotional activity for home appliances to go to the countryside, launched a guerrilla war, and sent home appliances directly to the village to sell.
Jinlan Company has a flexible Jinlan mechanism, which Sun Yuefeng summarized into 12 words: whoever sells, whoever loses, whoever loses, whoever loses, whoever loses, which means Jinlan's distribution mechanism, incentive mechanism, and constraint mechanism.
Jinlan Company decomposes the company's profits to the number of goods, linking employees' personal income with sales, and whoever sells more will share the more. This is naturally an incentive for employees' labor enthusiasm.
‘Whoever loses will compensate, whoever loses will compensate’, this is a strict constraint on employees.
Employees are irresponsible for their work, and the damage and loss of goods will be entirely responsible for the employees themselves.
Jinlan Company's distribution mechanism makes everyone know the personal income of employees. If you don't have to settle accounts, you will be very clear about the expenses at the end of the month.
Enterprises implement a full-staff employment system, and cadres are selected once a year. Those who are good will continue to work, and those who are not good will be removed. In Jinlan Company, there is no iron seat in cadres.
It is under this advanced mechanism that customers truly become God in the eyes of all Jinlan employees. They welcome and give in with a smile and serve with thoughtful service. They do not need to be constrained and guaranteed by service conventions and opinions on the walls, and there is no need to set up supervision mailboxes and reporting hotlines.
In all chain stores in Jinlan, service attitude is regarded as an investment. Regardless of whether the customer is shopping or not, the clerk always patiently introduces the performance, quality, variety, characteristics, origin and how to maintain the product, leaving a good impression on the customer, and even if he does not buy things, he will never forget Jinlan.
Customer satisfaction is efficiency. This is a motto believed by Jinlan people and a principle of practice by Jinlan people. It has been deeply rooted in the hearts of Jinlan employees.
It is this that has brought immeasurable economic and social benefits to Jinlan Company.
Jinlan Company not only has a flexible operating mechanism, but also has a complete set of standardized operating specifications. Jinlan Company stipulates that if there is a sound, if there is a bright sound, if there is a bright sound, if there is a bright sound, if there is a turning, it will heat up.
Specifically, the TV needs to be developed, the audio needs to be sounded, the refrigerator needs to be refrigerated, and the washing machine needs to be turned on. Before customers buy, they should operate it and learn to debug it themselves. They should teach customers what they sell.
To be continued...