The richest man starts from a street stall

Chapter 130 I don't care about the franchise fee, what I care about is

For the brand, Chen Shi recognized it very much.

Although he has golden fingers, the influence of the brand is still very large.

For example, the restaurant of Niande Chicken and Uncle Wang’s next door to my house both sell fried chicken.

We'll tell people I'm eating German chicken, not that I'm at a fried chicken shop.

On a blind date, you may be eating German chicken, but you will never be at Uncle Wang's fried chicken shop, even if the environment of this fried chicken shop is also very good.

The problem is that everyone doesn't recognize Uncle Wang's fried chicken restaurant.

However, Giande Chicken has formed its unique culture, and everyone thinks it is good. This is the power of the brand.

Our country is known as an infrastructure madman, which is also the power of brands.

If some buildings belong to the three countries, foreigners probably won’t recognize them.

Chen Shi has a golden finger, but it can greatly reduce the influence of the brand.

But the role of brand cannot be ignored either.

He can also quickly establish his own brand after selling a product through Goldfinger.

However, if you want to build a brand, you need to open a factory, or commission processing, which is OEM.

Let him open a factory, even if he has the funds, even if the factory is rented, even if the recruitment of personnel goes smoothly, production goes smoothly, everything goes smoothly, it will take at least half a year to produce products in batches.

Note that it is a batch, not an experiment.

There are too many risks, even if it comes out in batches, Chen Shi can't guarantee whether the supply speed of lower-level suppliers can keep up. This is a supply chain problem.

At the same time, he has just opened the factory, and the supply price of the supply chain will definitely be higher than others.

So, if there is no unique technology, or foundry.

OEM?

This is also what Chen Shi once had. He also wanted to create his own brand.

However, the timing is not yet ripe and a large amount of capital is needed.

A large number of experienced fashion designers are needed, and a clothing store has hundreds of varieties, and the time is too tight.

After thinking about it again, the profit of making low-end clothing is too low, and Chen Shi doesn't like it.

With that energy, it is better to open more shops and write more books.

The profits of mid-to-high-end clothing are not bad. If you have the energy in the future, you can give it a try.

After much deliberation, it is not appropriate to open a factory or OEM, or to make your own brand.

"Don't correct me, time is tight now, let's sell other people's clothing brands first."

Chen Shi shook his head, and no longer struggled.

However, there are many things he doesn't understand about selling other people's clothes.

When he first started searching, he found a lot of nouns, which confused him.

This is one of the reasons for his annoyance.

For example, sales channels, sales terminals, brands, chain stores, directly-operated stores, franchisees, agents, distributors, and consignment sales.

Many people are confused about these industry concepts. Sales channels, sales terminals, and brands may be easy to understand literally.

It is easy to confuse chain stores, franchisees, agents, distributors, and consignment sales.

Take Chen Shi selling sesame seed cakes as an analogy.

He found out that the biscuits he sold tasted good, so he made better packaging and printed "Wu Erlang" on the packaging.

At the same time, I went to the Industrial and Commercial Bureau to register a trademark, which is to establish a brand.

He is also a manufacturer and supplier himself.

He opened another branch by himself, which can be called a chain store or a second store.

If it is all of its own funds and managed by its own company, it can be said to be a directly-operated store, not a franchise store.

One day, there was a long-legged girl named Jinlian who liked to eat his biscuits. She also wanted to open such a store, and bought goods from Chen Shi, and paid a franchise fee of 5 yuan, the first purchase payment. Then this Jinlian is the franchisee , but not a dealer.

Suddenly, one day, a short man named Wu Dalang saw that Chen Shi's biscuits were selling very well.

He said that people in his hometown of Jinggang Province also like to eat biscuits, and hoped that Chen Shi could supply them to him. He sells them in Jingyanggang Province, and only his family sells them. Wu Dalang is called the agent.

Wu Dalang has many business friends who lived in various cities in Jingyanggang Province and became his downlines. For example, Ximen Qing, Ximen Chuuxue, and Ximen Zhuaobao, their brothers, all became distributors.

Considering the huge flow of people in the supermarket, Ximenqing felt that there should be great potential in the supermarket. He talked with Wu Songnong, the buyer of the supermarket, about entering the supermarket. The final way is:

Ximenqing sent the biscuits to the supermarket for sale, and the supermarket settled the sales amount deducted by him on a monthly basis. Ximenqing brought back the unsold biscuits by himself.

Later, Ximen Qing made money and became a business partner with Wu Dalang.

Suddenly one day, Ximen Qing and Wu Dalang found a long-legged girl named Jinlian, and they fought, which delayed the business and failed to complete the sales task.

After Chen Shi found out, he canceled Wu Dalang's agency rights and confiscated the deposit in accordance with the contract.

Suddenly one day, Wu Song found out that his brother Wu Dalang was being bullied, and wanted to discuss it with Chen Shi, but was beaten to death by Chen Shi.

It's a bit far away. In reality, Chen Shi, after compiling various professional terms into a novel, found that he quickly understood each professional term.

"Hey, since we wrote the novel, our ability to make nonsense has become stronger and stronger, and we even believe ourselves when we write it."

Chen Shi couldn't help laughing, Yu Ran who was sitting outside the office could hear his laughter.

After figuring out the brand, channel, and these messy professional terms, he felt less troubled.

However, whether to be an agent or a franchisee is still a bit disturbing.

Distributors and agents are the middlemen of the channel.

Generally speaking, the channel path from the manufacturer to the retail terminal is: manufacturer→distributor→distributor→consumer.

Those who sell things directly to consumers are called dealers, such as franchise stores, direct stores, other branches, etc.

It seems that the concepts of the two are a bit convoluted and difficult to understand.

The most obvious: in the same region, to join, you have to apply once to open a store;
As an agent, open as many as you want!
Agents do not need to pay franchise fees or less market deposits, while brand franchises must pay a certain amount of franchise fees and brand deposits.

Agents can enjoy regional product protection and price advantages, which are the endorsement of the manufacturer in the local area. The manufacturer has a basic sales requirement for it, and the manufacturer will support it in advertising, technology, and equipment.

Franchisees are only a type of terminal brand operators, which are reflected in sales or service points. There is no advantage in product prices, but sales tasks are generally not very heavy, and there are more brands, service or technology-based industries.

In fact, for Chen Shi, it doesn't matter whether he is an agent or a franchise. What he cares about is the purchase price of the products and the right to manage them.

As long as you get a lower ex-factory price, it doesn't matter.

It's not that the prices the agents get are low, but generally speaking, they are.

Some franchise stores get goods from city agents and provincial agents, so they will definitely be eaten up.

Of course, some companies stipulate that the agent, according to the volume of goods, has a unified delivery price, which is similar to that of delivery from the factory.

However, some franchise stores can get the goods directly from the manufacturer when they have a large quantity of goods, without going through an agent.

"Each clothing brand has different requirements, if you sell a lot, you can act as an agent;

Selling less, it is more cost-effective to be a franchise store. After all, some clothing companies have high agency fees. "

Chen Shi fell into deep thought again, muttering to himself.

In reality, the so-called "agent" is no longer an agent in essence, but more of a distributor, and some are a mixture of the two, with both agency behavior and sales behavior.

Sometimes it is necessary to take money to buy goods. There are very few agents in the pure sense. Manufacturers and agents are not so stupid. It is more appropriate to call them dealers with agency rights.

Under normal circumstances, the market price of the agent and the manufacturer is the same, but some agents will request to change the price within the scope of their agency, so there will be different prices in different regions.

In reality, the prices in various places are controlled by the agents themselves, and the manufacturers will give a minimum price, which cannot be circulated in the market at a price lower than this price.

For example, OPPO and Meizu in the IT industry in the previous life had very strict price management.

Someone once tried to buy products at a low price in order to combat competitors, (within this price, the agent still has a profit, or in order to increase sales, or to complete the target to get the highest rebate, lower than the purchase price There are a lot of people who distribute goods at the lowest price).

Then hand over evidence such as invoices to the manufacturer, thereby imposing a fine on the opponent or disqualifying the agent.

Business intrigues are very complicated, and there are many laws and regulations related to the economy, Chen Shi doesn't understand too much.

However, after seeing so much, I have become familiar with it a lot, at least I am no longer a noob.

After pondering the nature of agents and franchise stores again, Chen Shi finally decided to become a dealer with agency rights.

"I have a lot of stores. If I join, each store will have to pay a franchise fee. It's too uneconomical, and I can't accept it."

"However, if you are an agent, the agency fee is not low. It is cost-effective to have more specialty stores in the province, which can offset the franchise fee."

"As far as the purchase price is concerned, I buy a lot. There is no difference between the two. You can get the lowest ex-factory price. If it is an agent, there is a sales target rebate, one or two points, which is not a lot."

"However, if you want to be a provincial agent, you have to see if there are any vacancies in the province."

Different agent levels, such as provincial, city, and county agents, may have different purchase prices, which depends on how the clothing company decides.

Some clothing brands are provincial agents, and there is no limit to one. According to the regional conditions, several are allowed.

Agency fees may be required, and the higher the level, the more. For example, after the contract period ends or the quota is completed, the agency fees will generally be refunded (but there are also non-refundable ones, and the agency fees will generally be much less if they are not refunded). There is a target for monthly sales, and if you fail to meet the sales target, you will be disqualified.

Franchise stores do not need agency fees, but franchise fees and deposits (refundable), but if there are many stores, it is better to get an agency.

If, for the same purchase price, the provincial agency fee is 50 (non-refundable), or the provincial agency fee is 300 million (refundable), the monthly target is 300 million yuan (referring to the purchase amount), and a fine of 10 yuan cannot be completed. Ten thousand.

If the franchise fee is 10, and the franchise fee is 50 if you open five stores, the franchise fee is non-refundable.

If there is only one store in a province, it is of course good to join; but if there are many stores in a province, then it is good to be an agent.

It is estimated that there will be a 1%-2% rebate for the agent to complete the target. The more sales tasks are completed, the more rebates will be.

Agents have more autonomy in marketing and are not subject to the supervision of the headquarters like franchise stores.

Chen Shi finally decided to be an agent, a dealer with agency rights.

Each clothing company has different requirements for agency and franchise, so it needs to be negotiated on the spot.

The next step is to choose a brand manufacturer.

But first, take a break and savor the beauty.

(End of this chapter)