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Pencil: Small Commodity Market

2010/6/12 16:05:00 53

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The largest city in Yiwu

Pencil manufacturer

Zong Yuan, chairman of China Yuan pen industry Co., Ltd. was originally engaged in food wholesale business.

In 1993, he began to try to make lactic acid drinks, but without technology, he could not sell the drinks, and finally lost all his family property - 600 thousand yuan.

In order to repay debts, the boss had to work in his father-in-law's pencil factory and began to deal with pencils.

From a tree to a pen, it has to go through more than 300 channels.

working procedure

A pencil has a profit of up to 5 cents.

"When can we pay off debts?" Zong Yuan was somewhat desperate.

But his father-in-law said to him, "make a lot of fat, and you don't want to be fat."

Zong Yuan now appreciated his father's words.

From his father-in-law, he came to 3 machines and began to make pencils in his more than 10 square meter bedroom.

He and two workers make pencils in the evening, sell them in the market during the day, and a few cents a pencil can sell more than 100 yuan a day.

After selling a pencil for a year and having a little money on hand, Zong Yuan felt that he could not develop new products.

In 1998, he borrowed 30 thousand yuan from the bank, bought new equipment and made a pencil.

This pencil was then produced by only a few large enterprises.

Due to the low production cost of Zong Yuan, the price of each pencil is 1 points and 5 points lower than that of other enterprises. The door-to-door goods people break the threshold, and the factory will produce about 100000 units a day.

When production is large, profits rise exponentially.

In July 1998, a businessman from Indonesia took a fancy to Zong Yuan's pencil, then ordered 660 boxes to him, and made over ten thousand yuan in 3 months.

This is his first export business, which really made him see what "is".

Small commodities

Big market ".

Since then, he has been running exhibitions in all parts of the country, specializing in export business.

Now, Zong Yuan's factory produces 200 million pencils a year, making millions of dollars, and pencils are sold all over the world.

There are big businesses and small businesses in business activities.

Regardless of the size of business, each has its own knowledge.

As long as we can tailor ourselves and proceed from our own reality, we can make big markets as small businesses as possible.