Chapter 1896 Lessons from the Past

It’s just that rich people shop around and pay more attention to the quality of goods.

Poor people shop around and pay more attention to the price of goods.

In their words, I will buy whichever one offers more discounts. They don't care about other quality issues or whether they are good or not.

In their minds, only price determines everything.

It is precisely because they have grasped the consumption concepts of customers that these merchants have made adjustments specifically to deal with these customers.

In order to get more customers, they can only lower the price of goods again and again.

In this way, when the price of goods is reduced, they can naturally only lower the quality of the goods.

Because their production level is just that, if they want to maintain the same quality of products and lower prices, they can't do it.

After all, as the saying goes, you can’t have your cake and eat it too.

Otherwise, by lowering prices like this, they are completely passing on profits to customers and sacrificing their own profits in vain.

They would not be stupid enough to do something like this that benefits others but does not benefit themselves.

Of course, if they don't do it, it doesn't mean that other businesses on this empty island won't do it.

Although the sky island world is a mess, not all of them are bad gangsters. There are always a few that are praised by people in terms of reputation.

Just like the business alliance founded by Jiang Tian, ​​only merchants like them would do such 'stupid things'.

As for other unscrupulous merchants in small workshops, it is absolutely impossible for them to give away their profits.

To make profits possible, profits must be transferred from customers. In the end, their cakes must not be touched.

This is just like the principle that wool comes from sheep, no matter how much profit they make, they will make it.

Or make a fuss about the unit price of the product and make a profit based on the individual price.

The alternative is to make money by relying on product discounts, not relying on the profit of a single product, but relying on volume.

Just like they used to price a product at 10 yuan, and after selling it, they could make 50% profit, which is 5 yuan.

But you can only sell a hundred or a thousand items a day, and you can't sell more than that.

But now they are actively giving away profits in order to attract more customers.

The products that were previously priced at 10 yuan were sold at a price of 8 yuan, and the profit increased from 5 yuan to 4 yuan now.

In this way, they only made one yuan less.

But for customers, it is directly cheaper by as much as two yuan.

Customers who are already interested in this product will naturally be attracted to it.

Some customers who need to use it frequently may purchase this product in large quantities when they see it being so cheap.

Because this is their daily necessity, since they have to buy it morning and night, it is definitely more cost-effective to buy more now while taking advantage of the event discounts.

Otherwise, who knows how many days this activity can last? If you don't collect more points this time and the original price is restored when the event ends, you won't be the one who suffers.

It is precisely because they have grasped the idea that customers will be greedy for petty advantages that they seem to lower the price, but in return they get a sharp increase in the number of orders.

The number of orders that could only be sold a few hundred thousand pieces a day before was directly increased to tens of thousands.

Compared with the previous one, the number of orders has increased by about ten times.

In the past, it was calculated based on 1,000 items a day. Each item sold for ten yuan, and each item had a profit of five yuan.

In this way, the final profit was as much as 5,000 yuan a day.

But now after the price reduction, the quantity sold in a day is not calculated based on the larger quantity, but the lowest quantity of 2,000.

If a product is sold for 8 yuan, the profit received is 4 yuan.

The final profit from 2,000 items is 8,000 yuan.

It seems that each item is worth one yuan less, but the daily turnover is increased by a full 3,000 yuan.

From this point of view, they did not lose money and make profits at all, but made more.

This is the same truth as people often say, small profits but quick turnover.

So those customers thought they had made a profit and bought a discount, but they didn't know that they were tricked by the other party.

However, if they are customers who really need to buy this product, they will not suffer a loss.

As long as it is used up within the shelf life, it is not considered a waste.

I am afraid that those who store a large amount of goods but do not use them, and eventually break or throw away the goods after they expire, these are the ones who lose the most.

I wanted to make a lot of money from the activities and use the remaining money to do other meaningful things.

But now that it's better, I didn't save any money, but lost more money.

There is a saying that goes like this: Stealing chickens and losing rice is the best way to describe them.

When I think about the profits from such a fight, there is so much money to be made.

Therefore, those unscrupulous merchants have intensified their efforts.

The quality of the goods originally sold was not good and the price was expensive.

Now it seems that they have discovered their conscience and lowered prices for promotions. In fact, while they are making money, they are also lowering quality again and again.

Let the survivors who thought they had gained a bargain continue to complain.

Because according to their understanding, they spent less money to buy the same quality goods as before.

But the fact is that they did spend less money, but the quality of the goods is no longer what it was before, at least it is 20% off.

Just like their selling price dropped from 10 yuan to 8 yuan, their cost actually dropped as well, so the profit they made was still 50%.

It is the same as making 5 yuan from 10 yuan before, but it gives people the impression that they are selling cheaply, so they make less money naturally.

However, these people ignore the other party's cost problem.

If the other party really follows the previous quality, then after the other party reduces the price from 10 yuan to 8 yuan, the actual profit should not be 4 yuan, but 3 yuan.

Because from the previous sales of goods with a gross profit of 10 yuan and a profit of 5 yuan.

It can be seen that the price of the goods should be the cost price of 5 yuan.

So if you sell goods for 8 yuan, naturally after deducting the cost price of 5 yuan, it should be 3 yuan, not 4 yuan.

If you can make 4 yuan, then it can only be that the other party has reduced the quality by 1 yuan.

It seems to be reduced by 1 yuan, but according to the profit, it is at least reduced by 20%.

If the quality of a product is reduced by 20%, what quality can such a product have?

However, their good days were over. After seeing what those customers did on the World Channel, they immediately stopped their business.

It’s not that they didn’t want to continue the business, but they were guilty.

At least they had done the same business as the previous merchant, and they knew it very well.