mijobooks Chapter 22 Pearl Stockings
Chapter 22 Pearl Stockings
Lin Mu calculated the figures for Factory Manager Mao: based on monthly sales of 3000 units, this single product could generate nearly 15 yuan in revenue per month (many people would buy several units). Thanks to the high gross profit, after deducting all costs such as Taobao traffic fees, warehousing fees, packaging fees, and R&D fees, Factory Manager Mao could get at least half of the profit, which is a net profit of about 6 yuan per month!
You should know that when Director Mao was making low-end products and competing fiercely, let alone selling 3000 units a month, even if he sold 3 units, the net profit would not reach 6.
In the real economy, there are too many links in the chain of business where profits are divided. Moreover, according to Lin Mu's plan, Factory Manager Mao will transform into a supplier of blockbuster B2B products, and the turnover will only continue to expand. Earning a million yuan in net profit a year will not be a problem—and that's a million yuan in 2008!
Factory Director Mao could have stopped there, ousted Lin Mu to claim the spoils of victory, and forgotten his previous promises, but he didn't. This shows that he is a trustworthy and grateful person, and Lin Mu can now begin to trust him and move on to the next stage of cooperation.
Inside the factory.
Li Zhi relayed Lin Mu's reply, then said to Factory Manager Mao, "Sister Mao, I know a friend who's very good at Taobao operations, but her fees are a bit expensive. I wonder if you'd be willing to buy her services?"
Factory Director Mao, being a shrewd businessman who thrives in the offline market, naturally understood Li Zhi's unspoken question and asked, "How exactly do you charge?"
Li Zhi replied, "We'll charge a 5% operating fee, deducted from the total revenue; in addition, you can agree on a target amount, and if it's achieved, you'll receive an extra 10% commission. For example, if you and the operator agree on an annual revenue of 1000 million, and it's achieved by the end of the year, you'll have to give her a total of 15% operating fee, which is 150 million."
This commission didn't scare Factory Manager Mao; on the contrary, it made her think Lin Mu was quite conscientious. You see, when she previously partnered with supermarkets, they collected entry fees, code fees, and display fees upfront without her doing anything; and once the goods were sold, they would still earn a 30% commission. If a product became a bestseller, the supermarket would even require bundled sales, selling their less popular products along with it.
In contrast, Lin Mu not only didn't ask her to pay any fees upfront, but also took the initiative to help her select products and turn them into best-selling items, which was practically like doing charity.
Factory Director Mao asked, "Li Zhi, how do I get in touch with your friend?"
Factory Manager Mao was willing to give Lin Mu a commission not only to express her gratitude but also because she had her own ulterior motives: if Lin Mu could create a hit product, he might be able to create a second one; moreover, Lin Mu was currently a rising star within Alibaba and might be promoted to management in the future. At that time, merchants like her who had a good relationship with Lin Mu would have an advantage.
……
A few days later, Factory Director Mao had finalized the operating contract with Lin Wan (Lin Mu's cousin). The contract divided the commission into three tiers: the first tier was a basic operating fee of 5%; the second tier was an additional 10% commission if the total online store turnover (C-end + B-end) reached 500 million; and the third tier was an additional 20% commission if the total turnover reached 1000 million.
After the contract was finalized, Lin Mu came to Factory Manager Mao's factory after get off work, bringing new design drawings: "Sister Mao, the pearlescent stockings I mentioned before, you still haven't developed them. This time I brought the design drawings. I've been busy the past few days, but I finally found the time to finish them."
Seeing Lin Mu arrive with the design drawings, Factory Manager Mao secretly rejoiced that her gamble had paid off. She said warmly, "I always have hot tea ready whenever Mr. Lin comes. Mr. Lin, I recently bought a 5000 yuan cake of Pu'er tea from a friend. I'm not good at judging tea, but I heard you love it, could you try it for me?"
Lin Mu waved his hand with a smile: "I don't know anything about tasting. It's just like drinking water, purely to quench my thirst."
This time, Lin Mu didn't refuse the gift like he did the first time they met. Instead, he laughed and joked—which showed that he had already accepted Director Mao as one of his own.
Afterwards, Lin Mu and Factory Director Mao went to the tea room for tea, while the R&D personnel took the design drawings and began to study them.
A week later, sales of the rhinestone stockings successfully exceeded 1000 units; at the same time, the R&D department finally produced a sample of the pearlescent stockings.
Lin Mu arrived at the factory to inspect the first batch of samples that came off the production line. According to his design, pearlescent stockings are divided into four grades based on their thickness (den number) to suit customers with different needs: 0D pearlescent, 0D aurora, 5D shimmering, and 20D starry.
Lin Mu touched the stockings, stretched them out to test their quality, and found that all indicators were up to standard. He nodded and said, "Very good, the product quality is fine. Sister Mao, you can prepare the raw materials now. We'll produce 1 pieces for the first batch, and then contact the models. This time, we'll launch simultaneously on both the consumer (C-end) and business (B-end) sides: first, we'll make the pearlescent stockings a bestseller on the consumer (C-end), then recruit agents offline. Once the product becomes a hit, we'll start selling it on the business (B-end) side."
Factory Director Mao asked, "Are we going to use the same model as last time?"
Lin Mu shook his head: "This style of stockings is different from the last one. The last one was suitable for mature women and young girls, while this one is more geared towards mature women, and the target audience is between 25 and 35 years old. After you find a model, contact me, and I will come to the site to guide you in taking pictures and writing titles. In addition, I noticed that many nightclub KOLs played a key role in the last hot sale of rhinestone stockings."
"What is a KOL?" Factory Manager Mao asked, puzzled.
Lin Mu explained simply: "They are opinion leaders in a certain industry. There are only a few people who can play a leading role in a nightclub. There are only about 300 bars, nightclubs, and KTVs in the entire city of Hangzhou. We find KOLs in each store and give away a few pairs of stockings for free. In total, we give away four or five hundred pairs. Each of them can become our walking GG brand."
Factory Director Mao pondered for a moment: "I have a niece who's a regular at nightclubs; I could try asking her for help."
……
Alibaba's headquarters.
Wang Zaixing stood upside down under a sign that read "Learn to think upside down," veins bulging on his forehead and his face flushed red.
Lin Mu walked over, bent down, turned his head, met his gaze, and asked, "Fugui, what are you doing?"
Wang Zaixing seemed unable to hold his breath any longer. He gave up the handstand, slumped to the ground, and leaned against the wall, panting, "I'm trying to deeply understand Lao Ma's instructions and learn to think upside down. Dayan, the way of thinking you taught me last time was really useful. The manufacturer I'm working with has already produced a funny pillow that sells hundreds of units every month for several months."
Oh, Lin Mu suddenly remembered that there really was such a thing in Ali.
Jack Ma believed that many problems remained unsolved because people hadn't considered them from a different perspective. Therefore, he proposed that all Alibaba executives learn to do handstands to see the world from an upside-down viewpoint. Several executives, to amuse themselves, actually performed handstands in front of Ma, making him laugh heartily. Later, this practice spread from top to bottom, and the "handstand culture" permeated Alibaba.
Everyone can see different problems in this matter from different perspectives; it's a matter of opinion.
Lin Mu returned to his workstation and began working.