How Can The Franchising Industry Break?

Profit maximization, ruin the future

Profit maximization is the goal of enterprises rather than the purpose of enterprises. But the profit maximization makes our franchising enterprises lose their way, leading enterprises to pursue profit maximization in the direction of development, business principles and marketing strategies, ignoring the fundamental purpose of our enterprises, and some even bury their prospects.

Many enterprises mix business objectives and business objectives into a group, mistaken business objectives as enterprise strategy, and enterprise strategy is the pursuit of sustainable development of enterprises, the pursuit of maximization of interests.

That is to say, we should not only pursue short-term profit targets, but also consider the long-term interests of enterprises.

The key lies in trade-offs. Only by making trade-offs can we get light and get better and faster development.

It is also an important factor that restricts the development of franchised chain enterprises by collecting the profits from franchising fees and product spreads.

Especially when there is no scale benefit and no solution to the high cost of logistics, earning a product price is like killing the goose that lays the golden eggs.

therefore

Need to seriously consider, where is the profit point?

Based on long-term considerations, the profit structure of franchising enterprises should be the initial franchise fee and the management consulting fees provided later.

In fact, the franchise fee is to provide start-up expenses for pre opening stores, so that franchisees can quickly intervene in an industry, save time and cost, and quickly open a store, and management consulting fees are actually follow-up services.

Whether we can get these two parts profit depends on whether or not we have the ability to design a good profit model that is consistent with the development of enterprises.

Of course, some enterprises may also have other profit models. The key is to make trade-offs.

Actively adjust and win the initiative

Instead of passive adjustment, it is better to make active adjustment as early as possible so as to win the next round of competition.

Active adjustment is not a contraction, but a change from strategy. It will bring qualitative leap and sustainable development to enterprises.

First of all, the initiative adjustment should be pformed from the management idea and the management concept. We should control the initiative of the market through adjustment, and study carefully. What is the profit mode of the enterprise? What is the profit model of the franchise? Whether the two can achieve a win-win situation is the primary problem for the franchising enterprises to solve.

What is the sign of the success of franchise chain? It is the success rate of franchise operation. Only when the franchisee operation is successful can we prove that the whole operation system is successful.

The successful operation of franchised stores will not last long.

Franchising enterprises and affiliate customers are closely related. They only form interest communities and achieve win-win development. I always emphasize that the development of franchise chain can not simply rely on exploiting profits from affiliate customers to develop and survive.

Otherwise, it can only be a dead end! We can examine our own profit model, whether it is consistent with the win win mode.

When I was in the process of operating A chain stores, I found that a larger profit source came from selling products to get the price difference, and even some products appeared to offer products to the franchised stores higher than the market price, which undoubtedly blocked the way of franchisees, and this congenital defect is definitely dead.

Why does our affiliate chain not abandon the profit margin of the product? It not only improves the market competitiveness of the franchisee's products, but also improves the market competitiveness of the franchised chain enterprises. Therefore, when I design the profit model for A enterprises, I suggest that it abandon the profit margin of the products, and gain profits by raising the service and increasing the management fee.

Hard work, solid foundation

When we promote a franchising project, have we considered whether our team can successfully operate the project? If our team can not operate successfully, why can our customers succeed in operation? What can our team guide the successful operation of our customers?

Taking advantage of the current downturn in the market, it is a good idea to take the initiative to adjust the rare opportunities and carry out internal training.

We can carry out the human resource allocation according to the size and capability of the franchisee. According to our profitable mode, we use our team to carry out actual combat exercises, which is a practical drill for our franchise.

We can find many problems in the business process and constantly make amendments through actual combat. The more important thing is that we can work out a team that can fight hard battles, and at the same time, we also build confidence and enhance the image of the company. Why should we not?

Based on improving the profitability of franchised stores, the market competitiveness of franchised stores will be enhanced, and the brand influence will gradually increase.

In order to maintain the competitive advantage of franchising enterprises, we must also consider from the product point of view, carry out industrial integration, expand their scale strength, and further enhance the entry threshold of the industry.

When serving the wedding promotion project promoted by B company, it started from the wedding project and quickly pushed to the market with the popularity of the wedding market in 2007.

When more enterprises began to join in the wedding industry, B company began to step into the commercial celebration market gradually, and evolved into a celebration event with equal emphasis on wedding and business celebrations.

While positioning the development Festival, we gradually found the market segments such as birthday celebrations, student gatherings, corporate parties and so on, so that the franchisees can share the fruits of success brought by growth. At the same time, we also use our team's advantageous resources in celebration planning to set up a barrier for competition in the same industry.

With the increase of the number of festival franchisees, the layout of the whole country has gradually taken shape, and the joint activities of franchisees and franchisees have been planned, and the role of channels has been strengthened, and the interest relationship with franchisees has been clarified.

At this time, we began to extend to the upper and lower reaches. Through the integration of resources to the wedding photography, festive drinks, jubilant candy, baby souvenirs, the promotion of promotional products such as the market extension, gradually formed a festival as the main line, serving the enterprise and personal industrial chain, in the development process, gradually expand its scale, once again raised the threshold of the industry, thereby inhibiting the entry of competitors.

Now I would like to sum up the conclusion that it is customer-oriented, hard work, solid integration of resources, forming a community of interests with customers, following the law of enterprise development, from product, service, resource integration to brand development, winning the trust of joining customers, and thus meeting a rare opportunity for their development.