As competition in the furniture industry intensifies, business of living room chair manufacturer has become more and more difficult:
Operating costs are increasing rapidly, and all kinds of expenses are faced every day; staff management becomes more difficult, and recruitment is inherently difficult. The post-90s employees are even more unpredictable, and the attrition rate has risen sharply.
1.What is a discount and price reduction? A suicidal behavior. Most furniture dealers allow a variety of discounts to boost order volume. For dealers with a gross profit margin of only 10% and a net sales margin of only 2%, an additional 2% discount will force the gross profit margin to drop from 10% to 8%, and the net sales margin from 2% to 0, thus erasing it. Net profit. Therefore, for dealers, discounts are a suicidal behavior. For example, a home furnishing dealer conducted a discount event. It was in the off-season. Although it attracted many customers, it basically didn't make much profit. But if there is no discount, the originally negotiated customer will choose another home because of the price issue, which will hurt both the merchant and the customer. In fact, discount promotion activities are not conducive to long-term holding, and short-term holding can still achieve good results. Faced with such a market situation, can only low prices prevail?What kind of behavior is changing careers? It means that the industry resources accumulated in the past few years or even decades have no value. Product knowledge, sales network, customer resources, regional brands, etc., these hard-working, time-consuming and energy-saving capitals vanished in an instant, and it can be said to be more difficult to re-establish such resources. It is almost impossible in the case of Geshan.
We can see that the expiration of the home appliance industry policy has led to sluggish sales and home appliance distributors are forced to switch careers: Before 2011, Pan Keqing, a refrigerator brand agent who enjoyed the "home appliances to the countryside" policy, could achieve over 20 million sales in a year. However, by 2012, its revenue was still less than 3 million. Now there are only one or two of the dozen or so business personnel employed. Pan Keqing has begun to shrink the front and prepare to switch to the guarantee industry. The guarantee industry is unknown. What will the industry bring to Pan Keqing?
The living room chair manufacturer often prone to phenomena: relying on manufacturers for promotion, relying on manufacturers for training, relying on manufacturers for market development, relying on manufacturers for advertising, relying on manufacturers for subsidies… When dependence becomes a habit, it is lost The ability to be independent. Distributors should not rely on the manufacturer to help you solve the problem, because you cannot guarantee whether the manufacturer can really help you solve the problem!