What are the characteristics of the business model of the open marketer supermarket that triggered the national rush to buy?

His model succeeds in pointing out that there are a few key features of a member's warehouse supermarket

The only way to buy something is to pay a membership fee, it's a warehouse supermarket so it's certainly not in the city, it's chosen to be in a more remote location so if you have to drive, you'll find that it has a lot of parking spaces. He has a large number of items, for example, I buy a lot of things at the Good Market in the US, soaps are a lot of fast sleeping pieces, dried fruits are also in large packages, in short, there is only a single assortment of one or two brands because it chooses the most cost-effective brands.

Then precisely because it is this model, then its goods are characterized by good value for money! Good value for money! The best value for money!

There is no money to be made selling things. In the words of Brother Strong, I don't know if you can make money selling things. His profits come mainly from membership fees. As you can see from Good City Multi's financial report, merchandise sales basically include operating costs, and membership fees are its net profit!

So, his model traditional superstore or e-commerce, spell cost you certainly can not spell! It sells goods basically do not make money! I think it opened the first day of the market so hot, in fact, it has its own uniqueness, but there are also consumers impulse to spend the emotions of blame!

What is a business model?

Business model is a combination of concepts, it includes six aspects, Mr. Jiang summarized as: positioning, profitability, cost, replication, threshold, links! Peter Drucker, the world-famous management scholar, said, The competition of enterprises in the 21st century is no longer the competition of products and prices, but the competition of business models. Visible business model on the importance of the enterprise!

What is business?

In fact, in general, it is making money, raising a family, setting up a stall, selling fruits, selling breakfast, street haircutting, street art, and even fortune-telling.

What is the difference between a business model and a business model? In short, a business model is an upgrade of business, and lacking a business model, you don't want one!

Cost

If you only consider the revenue and ignore the cost, such a business is very easy to close down, many people do business, blind pursuit of turnover, ignoring the cost, cost is a macro-concept, if your cost of production or customer costs are higher than competitors, then your profits are bound to be lower than competitors, if the brand effect is the same, then you are at a complete disadvantage in the price competition.

The most common ways to reduce production costs are big data and scale production. Big data allows companies to produce flexibly and avoid waste, while scale reduces the cost of producing individual products.

The cost of recruiting customers is also easy to understand, if you put your product on Taobao, if you want to sell, do you have to spend money to buy a drive-through car, if your drive-through cost is 100,000 yuan per month, sell 10,000 units, we calculate based on the average consumption of each customer once,then your single customer cost is 10 yuan. If your product profit is only $8, then you still have to lose $2, so this business is not sustainable.