I don't know who invented this phrase, but the person who said it must be the consumer. It is the consumer who painted a good cake for the business people. Let these peasant workers believe it and go into the misunderstanding of small profits and high sales. The farther they go, the more tired they are.
How low the price is, the price will fall.
Do you often encounter such a situation, clearly a bottle of pesticides, earned a few cents, customers have to bargain, you are not cheap, he is very angry! Do you often encounter such a thing, a ton of fertilizer earned tens of dollars, as a result, farmers have to wipe out odds and ends, do not wipe out, why?
Losing money will kill you!
The cheaper you sell, the cheaper you buy, the more consumers like to buy. Many people think so. So they start a price war. You sell 10 yuan, I sell 9 yuan, you sell 8 yuan, I sell 7 yuan, you dare to sell 6 yuan, I sell 5 yuan. If you don't make money, you're afraid of anything. If you lose money, you're going to kill you.
Price war leads to the prevalence of fake goods
Price war has been popular for a long time. Low-priced products may sell well for a while, but it is difficult to last for a long time. It even leads to the popularity of some fake goods. Because the cost of fake goods is lower, the fake goods are cheap and profitable, but they harm the farmers themselves, and eventually lead to business failure and disrepute!
Sales are high, but they don't make money!
You think that cheapness is the biggest killer, can seize more markets, can beat the high-priced goods, the result is busy for half a year, sales go up, but no money at all, customers run a lot, wife complained about your busy work, high-priced goods are still selling so well, people's business is still booming!
Small profits and high sales are actually chronic suicide!
If you give up profits, the owner will not give up rent; if you give up profits, the employees will eat; if you give up profits, the peasants will still want results; if you give up profits, the larger the sales, the more the losses will be, you call it hard to please!
Do any business, there must be a reasonable profit margin, because you are not a philanthropist, nor voluntary labor, do not let small profits and more harm you! Because if our businessmen want to better serve the farmers, they must survive healthily. The basic condition for a healthy survival is profit.
It is also the consequence of the view that small profits are more than sales. Small profits are not necessarily more than sales, but small profits will disrupt the normal operation of the agricultural market and intensify contradictions among peers. In fact, the profit of agricultural capital is not very high compared with other industries.
The average profits of pesticides and fertilizers are 30% and 5% to 10% respectively. Coupled with additional services such as credit, gifts, delivery and so on, it really doesn't make much money in a year. Wouldn't it be a joke to pursue small profits and high sales on such a small profit basis?
Farmers are greedy for cheapness. They often run the whole street for a dollar and ask about it everywhere. Every shop sits for half a day and inquires about the price. And this kind of farmer often talks like a cunning tongue than the owner of the agricultural store, will give us a good promise, how prestige he has in the local, other farmers listen to him, as long as we sell him cheaper, will definitely help us introduce many customers. But such customers will never become our loyal customers, but will become a messenger, which will influence our normal sales thinking.
Shops that pursue small profits and high sales often have such a common ground. The competitor's weapon of the boss is price war. They are easy to be led by farmers for lack of independent management ideas. The ability to promote new products is inadequate, but there are a lot of regular products to sell. Business may be good, but there is not much profit at the end of the year. On the contrary, there are no agricultural stores with less traffic than ours.
Agricultural stores should orientate their own business style, whether to lead the tide of agricultural use or to be led by farmers, which itself is a big topic. When we sell, we'd better establish our own sales style and sales authority.
As long as the farmers who enter our store are not afraid of expensive, they will not name which products they want, and they will buy whatever we recommend. Such agricultural retail stores are easy to sell. If we go into a misunderstanding and pursue small profits and high sales, then we will go further and further away from authoritative sales.