mijobooks Chapter 82 Borrowing Money to Make Money
Chapter 82 Borrowing Money to Make Money
Inside the Three Little Bees company, Boss Gu looked at the financial report statistics for January.
In that month, he sold a total of 60,000 orders of bread. Some people bought not just one box, but several boxes, or even dozens of boxes, such as those small merchants with a keen sense of business who bought goods online and then distributed them offline.
In this month, a total of 7 cases were sold, with a monthly turnover of 140 million yuan. Moreover, the repurchase rate was also very good, with about 20% of users making repeat purchases over the course of the month.
Boss Gu was extremely glad that he had listened to Lin Mu's advice and transformed from the traditional bread business to breakfast bread. With just this one product, the revenue was comparable to the total revenue of all the company's online and offline SKUs before.
And this was just the beginning. Because of the outrageous data on Tmall, major e-commerce platforms such as JD.com, Youa, and Paipai all sent him invitations to join, and even many offline physical retailers came to him to purchase goods.
In a few months, once the online and offline channels are fully operational and production capacity reaches its peak, his monthly revenue exceeding 200 million will not be a problem.
Mr. Gu drove to the OEM factory and negotiated with Mr. Wang, the factory's owner, in the conference room.
He slammed the report card on the table and said, "Boss Wang, I ordered 7 boxes of goods from you last month, and for the next three months, I will order no less than 5 boxes per month, and no less than 50 boxes within a year. It's time we talked about the payment terms."
Mr. Wang had anticipated this outcome. The soft white bread became a huge hit in the market, earning him a substantial profit.
If you can produce 50 boxes a year, then you can earn around 40 yuan a year.
Orders of this size almost always require payment terms to be negotiated.
Boss Wang first feigned reluctance, complaining, "Oh, Boss Gu, we only make a small profit; we're just earning a meager living through hard work."
Boss Gu watched Boss Wang finish his performance with a smile. They're both ancient fox spirits, what's the point of playing at Strange Tales from a Chinese Studio?
After a period of mutual probing and back-and-forth, the two parties finally agreed on a 40-day payment period, which is considered average in the industry.
Mr. Gu calculated that for fast-moving consumer goods on Taobao, as long as the goods arrive within 10 days, the system will automatically confirm receipt and transfer the money to his account. Including the time for packaging and shipping, a cash flow cycle can be completed in about 14 days.
The 14-day payment period means that after several rounds of transactions, he can use the suppliers' money to do his own business. And as the business grows, he can continue to push down the suppliers' costs.
His own money, on the other hand, can be used to play games, expand the market, and distribute products offline.
Don't be fooled by the fact that the contract manufacturer seems to be losing money; for Mr. Wang, this kind of business is exactly what he wants.
Because this is a stable cash flow, as long as the factory has stable orders and stable cash flow, what is produced on the production line is not a commodity, but a money printing machine.
Furthermore, the factory has many ways to generate revenue, such as asking the government for policies and applying for tax breaks; or applying for a batch of low-interest loans from banks.
Most importantly, Mr. Wang doesn't have to pay any marketing expenses.
The formula was authorized for use by Boss Gu, with an annual authorization fee of 1 yuan. The production line was voluntarily funded by Boss Gu, essentially a loan to Boss Wang for its modification.
It's almost fair to say that as long as the three little bees don't go bankrupt, Mr. Wang's OEM factory is like a gold mine that fell from the sky, enough to feed him for a long time.
Pre-made breads like soft white milk bread generally have no problem staying popular for more than 5 years.
……
Tmall Project Department.
While typing on the keyboard, Lin Mu took a break to write a new strategy post on the seller forum.
The story of the Three Little Bees flagship store has gone viral on the seller forum, and the ID "Dayan" has become a top influencer on the forum, with the account's followers approaching 5.
This level of attention might not seem like much on a blog, but it's already top-tier in seller forums. Now, every post he makes on the forum is scrutinized and even over-interpreted.
Every day when I open the private messages in the backend, I get 99+ messages. Some people even ask me to give them their bank account number so they can transfer money to me and ask me to help them operate their stores.
Lin Mu, of course, could not accept such money. After finishing a concise guide to Taobao customer service, he clicked publish and then got busy with his work.
He searched through private messages to see if any shops wanted to transform from Taobao stores to Tmall flagship stores, or if any established offline manufacturers, after hearing about the story of the Three Little Bees, also wanted his help to join Tmall.
Lin Mu quickly found a store that sold nuts, mainly walnuts.
Lin Mu added the other party as a friend on QQ, and the two discussed cooperation privately. This was already the fifth merchant Lin Mu had found on the forum to join Tmall, and their monthly KPIs had long been successfully achieved.
After dealing with this matter, he cleaned up his emails.
In the email, Sanfeng, the technical expert in the project team, sent him an email informing him that the "Buy One Item While You're at It" feature had been officially launched after internal testing.
Sanfeng has already copied this function to Tmall and written a script to automatically perform some simple associations using data from Taobao. In the letter, Sanfeng asked Lin Mu to make some advanced association settings.
Lin Mu thought for a moment and set up several advanced associations based on the logic of people's mindsets.
For example, pairing a soft white milk bread with a mid-to-high-end hair dryer is based on specific data: 38% of soft white bread users are women, and 18% of them come from major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen.
These female users already have a need to dry their hair, so recommending a high-powered hair dryer that can dry their hair quickly might just hit their pain point.
Lin Mu edited the list of related individuals and sent a copy back to Sanfeng.
Meanwhile, on the other side...
Sanfeng saw Lin Mu's reply email. Looking at the seemingly unrelated related items listed on it, he scratched his head: Would a female user who would buy bread really casually buy a fast hair dryer worth more than 200 yuan?
Also, what's the connection between a silk scarf and small scissors?
Oh, so it turns out that when mothers take their children out, they sometimes encounter situations where food is too big for the baby to swallow, and they need to use small scissors to cut it into smaller pieces. Therefore, this can be used for related pairings.
"Damn, your observation skills are amazing! You even found this pain point!" Sanfeng decided to try it out first and see how useful this kind of correlation data was. Anyway, Lin Mu's track record speaks for itself, and he had complete trust in Lin Mu.
The camera pans back to Lin Mu's worktable.
He was processing messages from merchants, some asking about product selection techniques, others about store decoration, and still others about how to collaborate with online influencers.
Among these messages, he saw one from Lotte's flagship store: "Dayan, I've thought it through. I want to participate in the sponsorship. Is there still a chance? I've been thinking, and 2 yuan is a bit too little. How about 5 yuan?"