What is the profit for the next 5 years?

As a dealer, I believe you are also thinking about a topic: the next 5 years, rely on what profit? How to lead? Whether it is internal uneasiness or hard thinking, it reveals such a theme: There are thinking distributors who will think a little further, and besides survival, they must live longer!

Survival and longevity require different thinking and perspectives

Survival and longevity are the two states in which a company exists. They are also two realms. Both are two different stages of the company, so the focus and performance are also different.

In the stage of survival, what is a good dealer to sell, where to go where there is a chance to drill, first of all to solve the problem of food and clothing, is a typical "speculative" type of operation. At this stage, dealers are good at seizing opportunities, but because of different visions, the points of arrest are also different, which has led to different differentiation of dealers:

The first type of distributors seized a bunch of “popular” products, that is, the best-selling products at that time. In a strict sense, they became a “big second batch supplier”. Because they lacked the main products of their own agents, they could not obtain the core resources. There is also no team around the management of the main products. Such dealers currently have little cash flow problems, but they have low gross margins and are not profitable.

The second type of distributors led the company's growth through brand-name products. While strengthening, it also enriched the product structure and became a strong distributor in the region. A small part of the dealers grew into a super dealer through the operation model.

The third category is named agents. These distributor companies have been transformed from state-owned companies. Because of their inherent advantages, they have acquired resources. Some of these dealers became large players in the region along with the revival of security, while others held security products. They did not want to forge ahead and exploit, and the market continued to shrink. Although there were “golden dolls” in their hands, they also faced operating difficulties.

In the survival phase, the owner's personal ability of the dealer played a promoting role.

During this period, the boss’s business level was the key. The typical performance was that the salesman was uncertain, and the owner personally shot and immediately won. Thanks to the individual's superior control ability, both the company and the market can move forward quickly.

After this part of the dealers also appeared to be divided: some bosses are still the front-line charge now, everything is personally hands-on;

Some employers pass on their abilities to employees, or introduce people who are more capable than their own business to charge themselves. The former is very tired, but the company is not doing it well. The latter is easy, but the company is doing very well.

In the long-term stage, the dealers are not what to sell or sell, but to see who they want to do, and who do not do it.

Therefore, when introducing products, the price difference and policy are no longer the decisive factors, but rather the market planning of the manufacturers, the future market potential, and the matching of their own resources, which are more considered by dealers.

Therefore, many manufacturers who still hold the old concept of “the profit margin of my product is large and give more support” can only attract dealers who are still in the stage of survival, and they cannot grasp which outstanding dealers because of the propaganda of the manufacturers. Selling points have not matched the internal needs of these dealers.

In the long-term process, the organizational structure of the dealer company also changes. The organizational structure of the distributor company, whether it is in the survival stage or the long-term stage, is "2+1" type: "2" is sales and finance, and "1" is personnel. Sales generate profits, finances control costs, and personnel are the guarantee of profits.

In the survival phase, dealers put their emphasis on sales, but if they want to survive, it is not enough to rely on sales alone.

Because the profits generated by sales are difficult to keep up with the rising costs, at this time, dealers are required to pay attention to the control of costs and the training of employees, so as to drive sales growth through overall growth and control the increase in costs.

Therefore, at this stage, the individual heroism of the dealers seems to be insignificant in the world, and depending on the strength of the entire company, it is extremely powerful.

In the survival stage, dealers pay less attention to new ideas and new models, and they always feel that they need to spend money and cannot make money. To survive, they must actively pay attention to and try new models, because the new model It represents the future trend, that is, the profitability in the future. Grasping the profitability of each stage is the basis for long-term survival.

From survival to longevity, it is a problem that dealers must consider now. Because there is no long-term consciousness, even if it can survive now, the future will certainly live very hard and tired.

The survival company's revelation

The author contacted a large number of dealers. They have a strong sense of urgency. Knowing that no transformation means that they cannot survive in the future, the problem is that they do not know where to turn. This is like a butterfly on a glass window. It is a bright sight. , but I do not know where to go out, the confusion of the future, so that dealers have anxiety.

Looking at the dealer companies that have been developing for more than 10 years and occupying the top spots in the region, the business is getting bigger and bigger, and the road is getting wider and wider. It can be said that their development direction is that they will develop from survival to long-term development. The direction of attention.

"What we are doing now, Lao Zhang has already done it in the first two years. Now what he does is what we will do in the next two years. This is the difference." A strong regional dealer thinks that he and the local people are the first The difference between Lao Zhang and Zhang Lao is that Lao Zhang always worked for him for two years. Analyze these successful distributor companies that have been at the forefront and their profitability can be summarized as follows:

1, relying on brand-name products led to form a product group, polymerization upstream and downstream resources. If we say that the focus of the last decade is on upstream companies, the next five years will focus on integrating downstream consumers because, in the future, who owns the consumers and who will have the cash and consumption flows?

2. Occupation of dominant channels in a small area. This approach is more common in professional dealers, such as professional security or business super, group purchase dealers, relying on a monopoly of a channel to obtain profits. It is also a good idea to do a single channel, accumulate resources for many years, and achieve the effect of “small investment and large profits”.

3, brand operators. Such brand operators now fall into two categories: single-brand operations and multi-brand operations, with the former being more common. Although they have different profit models, there are several common features in the business philosophy. To sum up, they can be summarized by several keywords: focus, positioning, and adjustment.

One of the signs that a company matures is concentration, just as one matures.

We have found that many companies have risen and there is a well-known brand behind it. It can even be said that a well-known brand has succeeded and will surely make a group of distributors successful.

If it is those dealers that rely on certain specific market factors, it is necessary to re-examine their own direction of development.

Because the time creates heroes, the rise of the hero relies on the market environment at that time. When the market environment changes, the heroes should rethink: what is their own success, where are their advantages, and how to exert their own strengths? The current market position is accurate.

If we say that we must work hard in the survival phase, we must look up at the sky if we want to survive. This "day" is the market change, and we can continuously leapfrog in light of changing business ideas.

Then what will the dealers need to change in the next five years?

First, the place of resources. Judging from the current development trend, brand concentration is a definite fact and will continue to be a strong brand in the next five years.

Second, placeholders among distributors. In an area, dealers are also divided into second, who is first, who is second, and who is third. The leading position of the seats brings not only the satisfaction of the first place to the dealers, but also the capital of the outstanding resources.

The future development of distributors must be the development of dual brands, namely product brands and corporate brands.

In the earlier period, it was the product brand that drove the company's brand, and in the later period it must be the company brand that drives the product brand.

Focus on the company's brand, the significance is not only to obtain a good agency brand, but also whether the company can carry out horizontal expansion of related industries.

Third, focus on dynamic adjustment. Dynamic adjustment includes the following aspects:

The first is the adjustment of internal structure, which is the key to the second take-off of dealers. The victory of market competition now is not a certain point victory, but a systematic victory. The operation of a distributor company is also the same: to obtain sustained profits, not only the business part of things, but each employee's things, how to inspire For each employee to create profit under a common vision, the owner of the dealership needs to consider the company's philosophy and incentives.

The second is the control of the company's development speed. If we say that last year sales were 50 million and this year is 40 million, then we need to adjust our product structure and staffing. If we had 40 million last year and 60 million this year, then we also need to adjust because the development rate is too fast. "It's time to learn to brake." This is a piece of advice from the chairman of Yanghe Zhang Yubai.

Fourth, we are keeping an eye on new models and new thinking, such as e-commerce, O2O, WeChat marketing, micro-stores, customization, and altars. “Existence is reasonable,” and their popularity represents a part of demand and may become a trend in the future. If we do not pay attention now and do not occupy a place, the day when the trend erupts is not a matter of "stagnation," but it is subverted and surpassed.

Fifth, the boss's problem. The big problem now is that the distributors have plans and directions, but in the end they cannot. Why? It's because the boss lacks "mind strength", which is also the mind. Imagine a boss who has touched his BMW, who immediately jumped down and even beat his boss. It was difficult to make it big. Therefore, the boss with tolerance, good reputation, and reputation will be stronger and bigger in the future because he can gather employees and gather downstream customers.

Sixth, from now on, start from the basics and fix the highway to the future.