Chen Xiaoming: Turning Stones Into Gold, One Can Turn Losses Into Profits.

Caught in a trap, he took over the loss of others.

No one expected that Chen Xiaoming could make a big palm.

As a matter of fact, his shop is not prosperous, and there are many similar shops and fierce competition. Many shops are closed because they have no business.

So, what is Chen Xiaoming's best strategy for doing business so well? Let's take a look at this Jiangxi.

Caught in a trap, he took over the loss of others.

Chen Xiaoming, 28, is a man in Mapai Town, Linchuan City, Jiangxi province.

In 1994, he failed in the college entrance examination, and he came to work in Guangdong.

Ordinarily, he came out early and had a high school diploma, so he could do a bit of a job in any factory.

But Chen Xiaoming is a man of uneasy nature.

In the 8 years he worked, he could not replace 20 factories.

So until 2002, he was still a regular wage earner.

In September 2002, Chen Xiaoming came from a family in Liaobu town of Dongguan.

One morning, Chen Xiaoming went to work in Liangping industrial area, Ling Xia Village.

He turned around in the industrial area and did not find a desirable factory, but at the edge of Liangping market, there was a small shop with the word "pfer" on the doorway.

He thought that he had been in the factory for so many years, and he was tired of it. Why not open a small shop? This way, he will not only be angry with the boss and the foreman, but also work for himself.

The small shop that pfers is a couple shop selling daily necessities, about more than 20 square meters.

In Guangdong, many couples live in such a small shop.

Chaoshan couple saw Chen Xiaoming interested in their shop and enthusiastically promoted him.

The smart boss said, "this shop is flourishing. If we hadn't found a better project, we wouldn't be willing to let it out!" Chen Xiaoming hesitated. "But there are many shops around here."

"Little brother, you don't understand it!" said the shop. "You see, Ling Xia is so big that there are tens of thousands of workers in big factories such as Samsung, VTech and Fu Rong, and the local residents are so popular that they can't have many stores." the boss also took the lead and said, "you can rest assured that our shop is at the market gate and on the main street. It's a good place to hold lanterns. If you take over the shop, it's not my bragging, you are doing your work with your eyes closed, and you are working harder than you are in the factory!" the landlady explained:

When Chen Xiaoming saw that people were coming and going around, he also made several small businesses in the shop, and he became more interested.

After some bargaining, he put the store down with 12000 yuan, and all kinds of goods and freezer in the shop were settled separately according to the accounts provided by the boss.

Chen Xiaoming turned from a wage earner to a small boss.

On the second day, when Chen Xiaoming counted the stock, he found that the value of the stock was not as much as that of the boss. He had eaten at least two thousand or three thousand yuan.

But the couple left the money and left no contact. Chen Xiaoming regretted it too late.

Fortunately, he was born to be an optimist. He thought that he would lose his fortune. Having such a good shop, it was not easy to make money back later, so he began to run with confidence.

However, a month later, Chen Xiaoming found that the business here was not only that good for the couple in Chaoshan, but also almost at a loss. Although the shop had a turnover of more than 100 yuan a day, there was little left after the market management fees and store rents were handed over.

Chen Xiaoming observed with a calm heart that there were many factories around the shop, but shops like this were numerous.

Moreover, although the location of the store is good, the rent is relatively high.

The more Chen Xiaoming thought about it, the more annoyed he was. He knew he had come to a terrible mess and became a couple.

Chen Xiaoming was in a constant struggle, but at this point, he had to work hard to keep the shop running.

However, as time went by, the business of small shops was still not improving.

Chen Xiaoming became less confident.

He thought that when such a small boss worked too hard, he opened the door at eight or nine every day, and later after 12 p.m., even longer than working in the factory.

Moreover, when he works in a factory, he has more than a thousand yuan of income every month, and the business he deals with now is hard to lose.

If we go on like this, the old version of work saved will fade away.

Chen Xiaoming decided to pfer the store.

But he did not think that the people who came to see the shops were old businessmen who knew how to read the market and analyze the market. Therefore, the word "pfer" had been posted for over a month, and the shop still did not get rid of it.

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Turning a stone into gold is a way to turn losses into profits.

In the Spring Festival of 2003, desperate Chen Xiaoming simply closed the shop door and went back to his hometown in Linchuan for the new year.

When he returned to Linchuan, he went to the biggest supermarket in the city to buy new year products. He found that the supermarket was promoting sales, and many products were sold at a special price.

Northeast rice sold only 1.36 yuan, 1 kilograms.

Chen Xiaoming has been doing business for several months and knows a lot about the price of many commodities. He knows that the price of rice is so much, that is to say, the selling of northeast rice is zero profit! Chen Xiaoming thought, the operation cost of the supermarket is much higher than that of the ordinary small shops. It sells not only a little profit but also labor costs. What is the reason?

Looking at the hustle and bustle of customers in the supermarket, Chen Xiaoming suddenly realized that big supermarkets and shopping malls sell special items not for profit, but for low prices to attract customers. A few specials can not only attract many customers to visit, but also let customers have the illusion that all goods here are cheaper than other places, so as to produce desire for other commodities.

Most customers will buy something else when they buy special items, which are the profit points of big shopping malls and supermarkets. No wonder those businesses are always keen on special sales promotion.

Chen Xiaoming suddenly realized.

He thought, such a simple truth, how did he never think of it? If your own shop also adopts the marketing strategy of big supermarkets, can it bring back to life?

During the Spring Festival, Chen Xiaoming has been considering this problem.

When he returned to Dongguan, he began to cross the river by feeling the stones.

He roughly counted the categories and numbers of all the goods in the store, and produced 40 kinds of small items, such as towels, socks, pure water and cigarettes, to make special sales promotions, which accounted for about 1/20 of all commodities.

Then, Chen Xiaoming set up a noticing sign at the door of the shop, which says the types and promotional price of the special merchandise.

Chen Xiaoming's action immediately aroused the attention of the owner of the surrounding shop.

These businessmen talked and said, "this kid is coming home. It seems that he has made a mistake. He will sell 1.60 yuan for 1.60 yuan of towel."

"Socks are the best selling products now. He also sells the cost price! To wash the goods and wash out the old goods!" "I think he's doing this rabbit tail - it's too long to lose money sooner or later!" Chen Xiaoming ignored all the other people's arguments and persuasion. He has decided to throw all his eggs in one basket.

Chen Xiaoming knows that many stores like to use "jumping price", "cost price" or "big wash goods" to attract customers. In fact, it is only playing word games, cheating is the main ingredient. Once consumers perceive the truth, they will be very disgusted.

But Chen Xiaoming's special promotion is genuine, so when customers come into his shop in a dubious way, they will find that the special products here are really 2~3 cheaper than others.

As a result, his business on that day was much more popular than usual, and customers kept coming in like a horse lantern.

One day, the turnover is even more than ten times as many as before. Although many of the items sold are zero profits, other commodities that are sold are several times the usual ones.

That is to say, his profit on that day is several times that of normal times.

Chen Xiaoming's income was high, and his shop soon became the hottest shop in Liangping market.

He was so busy at the store that he was busy all day.

Facts have proved that he used the "marketing strategy" is successful, so he was busy again tired also feel very happy.

The bigger surprise is still behind.

Chen Xiaoming soon discovered that the good start brought chain effect: he sold more things and bought more goods in wholesalers, and there would be a big discount on wholesale prices.

Therefore, the operation cost of Chen Xiaoming has been reduced, and the commodity looks more attractive than others.

In this way, all links have entered a virtuous circle.

At the end of February 2003, Chen Xiaoming took inventory of cash and found that he earned more than 3000 yuan in just 20 days. This result made Chen Xiaoming excited.

However, Chen Xiaoming had just tasted the sweetness of business and had new troubles.

As the saying goes, shopping malls such as war Chen Xiaoming's business is so prosperous that the surrounding colleagues are gradually dissatisfied and jealous.

One day, the head of Liangping Market Management Office looked for Chen Xiaoming, saying that more than a dozen business owners jointly accused him of using unfair means to disrupt the market order and showed him the anti unfair competition law.

Chen Xiaoming first surprised, after seeing the relevant provisions, he sighed.

He took out his purchase voucher and said to the market manager: "this is my bill of lading. Do you see which item is dumping below cost?"

Those competitors could not afford to fail Chen Xiaoming, and they began to learn him to do special sales.

But Chen Xiaoming has been able to use the strategy of special sale at the moment. He knows which commodity prices attract the most consumers. Every few days, he adjusts the varieties of special goods, often changing the new ones, so that imitators are at a loss.

Small shops can catch up with supermarkets.

Chen Xiaoming thought, though others haven't been able to take away many business from him now, they undoubtedly set their alarm bell for themselves. If they always keep their feet on the ground, one day they will be overtaken by others.

He knows that only innovation can remain invincible in the market.

So as long as he was idle, he racked his brains to think of new ideas.

In the industrial area, the customers are mainly migrant workers.

Chen Xiaoming found that many of the women who work in shops and work girls do not have labels on their bosom.

Looking at the photos and names on the label, he thought of a promotion method -- surname promotion.

He chooses a surname every day, and anyone who has this surname can buy anything in his store at cost price.

Once the new promotion method was launched, it immediately attracted the attention of many migrant workers, and more people visited his shop every day.

While Chen Xiaoming was happy, he also found a problem: because if your surname is the one selected today, you can buy any goods in the shop without restriction, so of course, many colleagues and friends will commission to buy what they need.

In this way, a lot of profits will be lost in vain.

After finding this problem, Chen Xiaoming stipulates that the daily surname beneficiaries can not purchase more than 5 items at the purchase price.

After the "surname promotion" received good results, Chen Xiaoming went on to win the chase and launched the "birthday promotion".

"Birthday promotion" and "surname promotion" work the same way, but the selected objects are different.

These two promotion methods have strong human touch and are very popular with customers.

Chen Xiaoming's shop has also gained a good reputation.

With these successful "planning", Chen Xiaoming's sense of smell in the market is becoming more and more acute.

The weather in Guangdong is very hot, while the working girls and working girls often work late into the night, so most people have the habit of having supper.

So Chen Xiaoming bought more than 10 folding tables and laid them on the street every night at the shop door.

After 10 p.m., he supplied drinks and non-staple food at a discount.

For example, beer with a price of 1.80 yuan and a bottle of beer should be sold at a minimum price of 2.50 yuan for others, while he only has 2 yuan.

For workers with low incomes, it is also good to save 10 Fen, so the move is highly welcomed by migrant workers.

Although the profit is thin, sales are large, and the income is still considerable.

Therefore, this initiative has become his new profit growth point.

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In business wars, price war is most likely to be imitated by competitors.

Every time Chen Xiaoming unveiled a low price promotion measure, it was not long before he was always surrounded by small shops. Chen Xiaoming was very concerned about this.

In order to keep the store's business in a good momentum and always lead its peers, he began to study marketing.

He bought several modern marketing books from bookstores, and learned that the market is becoming more and more homogenized. For example, many shops like him, and the goods sold are basically the same brand. This is called homogenization market, and a good businessman is to make consumers feel that their brands or products are different in the homogenized market, so as to successfully create a distinctive brand image and cultivate consumers' preference and loyalty to the brand.

To give a simple example, if you like and often smoke a brand of cigarettes, this is your preference and loyalty to this kind of cigarettes.

Experience has proved that the marketing planning of big business supermarkets is also effective in small shops.

Chen Xiaoming knows that he has to continue to learn and apply these marketing methods, constantly using new sales promotion methods to attract consumers, and establish the brand image of small stores, so as to have more loyal customers.

Chen Xiaoming learned from business psychology that people often have such illusions when they shop: they think odd numbers are even smaller than integers, so they use a fractional price strategy to store goods.

For example, 1 yuan of goods, he set the price at 0.97 yuan.

Although it costs only 3 cents, it makes consumers feel cheap.

The "difference" of small shops is reflected in such details.

Then Chen Xiaoming thought of an ingenious idea: from 8 to 8:30 every morning, rice noodles, sauce, vinegar, dried vegetables such as kelp, squid and cuttlefish were discounted and sold to attract local residents. Every day, from 12 noon to 12:30, some daily necessities and non-staple foods were sold at a discount, so as to attract workers working at noon.

He gave the promotion a name, called "economic half-hour", and asked someone to write a large character with a brush and stick it at the door of the shop.

At this point, even CCTV brand column made him free advertising.

This ingenious plan has achieved good results.

Later, Chen Xiaoming put a newspaper rack at the door of the shop, bought several newspapers a day, and showed them to the customers.

He also bought a second-hand Cara OK device, and placed it at the door of the shop for free entertainment.

None of these measures cost much money, but no doubt it has added popularity to his shop.

Chen Xiaoming's endless stream of tricks left his colleagues with no time to deal with, and many shopkeepers had to pfer the store to others.

In July 2003, Chen Xiaoming recruited 3 migrant workers to buy two shops that could not be opened next door.

The store has expanded, and there are more varieties of business.

One day in August 2003, a middle-aged man came to Chen Xiaoming's shop.

After half a day's wandering in the store, he said to Chen Xiaoming, "I heard you made a small shop as big as a supermarket, and felt curious and came to see it from the market.

Seeing is believing. Now I have to believe... "

It turned out that the middle-aged man was the chief executive of a large supermarket in Dongguan. He wanted to invite Chen Xiaoming to work in the planning department of his company and set out a favourable condition.

But Chen Xiaoming is no longer what he used to be. His monthly income has reached over 20 thousand yuan. How can he work for others?

After the Spring Festival of 2004, Chen Xiaoming's shop launched a series of promotional measures such as buying one get one, buying the amount of money, giving gifts, etc., and held many times Cara OK competition, which is popular and easy to participate in.

Confidently, he told the writer in an interview that he was planning to expand his business and open the store to Guangzhou.

A small palm shop is not really ideal.

For most small shopkeepers, this is just a living business.

Why is Chen Xiaoming able to make the business go all the way and win the gold? The reason is that he is constantly thinking about business and actively learning from the successful experience of a large supermarket, and then according to the actual situation of his store, he has introduced unique business practices, and has constantly made innovations and changes, which has led to greater success.

Now, many people are lamenting that "heroes are useless", but the story of Chen Xiaoming can give us such a revelation: there is boundless potential in a small world.

As long as you are willing to study hard, you will be able to accomplish something.