The Essence Of Business: Product Of Profit Model

Product is the most direct carrier of the relationship between the company and the outside world.

"Positioning is not what you do for the product.

Positioning is what you do for prospective customers.

In other words, if you want to locate products in the minds of prospective customers, Rees and Trout have clearly defined what they say "positioning" in the introduction of positioning.

In essence, the goal of positioning is not your product, your company or even yourself, but through your product, your company conveys to your target customers, in a word, you have to occupy the minds of customers through some way and means.

Products are nothing more than media and means. Just like clothing functions besides warmth and shame, another important function is to make others recognize you clearly.

Products are the most direct companies.

The product of profit model

Products vary by mode.

First, ask a question: how much can an ordinary glass bottle cost?

5 yuan? 6 yuan? - the value of this bottle is nothing more than the superposition of the cost of production, cost of logistics, cost of sales and so on. According to Marx's words, it is "labor in the product".

Today, the cost is no longer a problem. Of course, it is not worth a lot of money.

One more question: if I put two words "courage" on this ordinary glass bottle, how much can it sell?

Next, I would like to ask a question: if we open a shop with more than 100 square meters, only sell such empty bottles, and the storefront will be opened in the downtown area with high rent. Can such a shop make money?

Every time I mentioned this case in the lecture room, there was a shaking of the head when I heard this case. Is it not obvious? Even if you can earn 2 yuan for a bottle, even if you rent for one month plus the salary of the salesperson and so on, the cost is only 30 thousand yuan. Then you have to sell 15000 bottles at the very least every month to make sure that you can save the capital and convert it to 500 at least every day. This is not possible for such ordinary glass bottles.

But this kind of thing has happened in real time.

The story takes place in Shanghai in May 2007. China's first "soul supermarket" opened in Shanghai's bustling Huaihailu Road Xintiandi.

There are 16000 empty cans, empty bottles and empty cartons in the supermarket. There are 43 varieties. Apart from "courage", "confidence" and "thinking", there are "no pressure", "safe snacks", "no junk e-mail", "renewable resources", "fresh air" and so on.

The price of goods in supermarkets ranges from 10 yuan to 100 yuan.

Coincidentally, the same "soul shop" also appeared on the ground floor of a shop in East drum street, Drum Tower, Beijing. There were nearly more than 3000 empty glass bottles of nearly 30 varieties, such as "courage", "enthusiasm and calmness", "giving a hug to family every day", "every day is Sunday", "away from the ticket" and so on.

The price of each bottle ranges from 15 yuan to 35 yuan, and the highest price is "leaving the computer".

When my colleagues in the company told me the news, they asked me, "will you buy it?" I blurted out "no way" - 5 yuan, 6 yuan, and all the beautiful bottles are everywhere. Why bother to spend 50 yuan and 60 yuan to buy bottles that are just a few words.

My colleague's reply surprised me: "don't be so determined.

I can conclude that you have bought it.

And I can conclude that most of us have already bought it. "

When I saw me dissatisfied, my colleague asked, "have you ever bought a stone such as" edge "or" blessing "in places like tourist attractions?

"Of course I bought it," I still don't understand the connection.

"But is it not a stone?" "it seems to me," my colleague asked, "is this the stone you want to buy?"

Yes, is that not a stone? Is it what I want to buy, this stone or something else? That is to say, stone is nothing but a carrier. What does this carrier replace with empty bottles and empty cartons? {page_break}

Let's take a look at the reporter's live coverage of two "spiritual supermarkets" in the north and south.

"I want to buy two bottles of" pause "and a bottle of" sleeping for 8 hours ". At 11:35 a.m. on the 25 day, the first" spiritual supermarket "in Shanghai's Xintiandi North Li has just opened for 5 minutes, and there is a business door. A female white-collar worker who works nearby is paid 60 yuan to the cashier. He left happily with three empty bottles with labels.

This is the interview of Shanghai Oriental Morning Post reporter.

"Business is good. We sell dozens of products just for Christmas. Everyone is willing to pack these bottles as gifts." safety is even more popular with girls "- this is what Beijing shopkeepers" two young men of 20 years old "said to the Beijing evening news reporter.

In the past, customers no longer came to buy products, and customers came to find their interests. Besides the function of bottles to satisfy the functional needs of drinking water and other things, they also carried a lot of sentimental appeals.

In fact, the product is just a carrier, just a way to stir up the heartstrings of a customer.

In fact, enterprises are not just selling products, but actually they are meeting the needs of the target customers through products.

The bounden duty of an enterprise is not to sell the product more cheaply, but also to talk about what profit is, but to find that potential demand creates greater value, and it should strive to meet more and more expensive interests.

Product is not the first issue, and the demand of target customers is the primary problem.

The same technology, the same ability, can have different forms of products according to the different needs of the target customers, and there are different profit models.

For example, there is a metrology company whose product is to provide debugging and calibration services for all kinds of testing equipment. It seems to be a very narrow field.

The most common mode of profit is to provide customers with technical services such as commissioning and calibration of testing equipment, with the role of an independent third party.

Because of the highest qualification level, after all, there are so many research institutes and various product quality inspection departments in the country that the business volume of business survival seems to be easy. But after all, there are still more than a dozen of the same kind. The differentiation is not obvious and the income is not large. And what is the development space of this kind of business mode with a little wait for a rabbit and a single service?

Keeping an old customer is easier than developing a new customer. We must try our best to keep our old customers (such as membership cards, coupons, etc.), so as to make them repeat consumption. This is the common practice of many bosses.

This measurement company is no exception, because many testing equipment is not just one-time calibration, it can be once and for all, and it needs regular calibration and debugging. So the company has become a long-term testing service provider that can provide long-term technical services, and customers can have long-term stable growth.

The profit growth point that is further derived is the product agent. The strength of the company is precisely the grasp of all kinds of testing equipment, and the contact with customers who have a clear demand for all kinds of testing equipment. Why not do some trade, and also get substantial profit from trade differences through bulk group buying.

It can be found that the final requirement of the customer is not the calibration and debugging of the testing equipment, but the information that can be used immediately after calibration and debugging, or even the information that is qualified for the product. Why not outsource the whole package of testing equipment, such as type selection, purchase, installation, debugging and so on, and ultimately provide a complete testing system for the customers, so that the company becomes the provider of the overall solution for the testing equipment, and even the financing lease, and so on.

Focusing on the ultimate needs of customers, we suddenly find that under the various forms of products, there are many hidden profit models.