What does the best business model look like?

 First. What is the business model

There are too many business models on the Internet, so I will talk about my understanding of business models. The business model is how you want to operate the project, in short, is what kind of people you give, what kind of services.


This figure out, to determine the corresponding method of play, basically no big problem.


To give an example of the milk tea industry, you want to give high net worth people, to provide high unit price of milk tea service. This is your business model, to this step is not a big problem, the next problem comes, you need to know how this business model corresponds to the play, is not a chain of direct operation.


If you do not choose a high customer unit price track, and take the chain franchise model, so to speak, Warren Buffett can not save you. This is the charm of the business model, just like doing arithmetic problems, you want the result is 10, but you have to list a 5 + 4, how can you come up with an answer of 10?


In fact, the business model is not complicated, it all boils down to the unit price, I was doing the public sector operations promotion, understand: the same product, the same category, high unit price and low unit price of play is completely different.


The high unit price spell is the brand, low unit price play is the efficiency, different requirements, will directly affect the focus of our operations.


Second, the best business model

Business model is based on the unit price of high and low, in the case of different unit prices, but all the larger projects are generally low unit price products.


These projects have a common denominator: low customer unit price to take the chain franchise model, 10,000 stores for them is just starting.


Like a chain to join a certain size of the boss said: want to do big, you must let the fool can earn money. This sentence I thought for a whole day, suddenly understood that the best business model, in fact, is to make fools earn money model.


Can make fools earn money, that the project's threshold is low, do not need you to know the technology, know marketing, as long as a do, can become, can earn money, such a project who do not want to do? Is there such a project? There are really.


I used to do the operation and promotion of e-commerce product cookies, there was a disagreement in the pricing, a group of people think that we are doing the Netflix products, Netflix products are generally not low pricing. Therefore, we also need to set a higher price.


Another group of people think, the price is too high no one to buy, or safe, with the market price on the line. What was my attitude? At that time I was also brainwashed by a variety of netflix brands, I think the price is not higher, how can afford the word netflix products? I also hold the attitude of setting a high price.


The final solution was a compromise, set a price of $8, a little higher than the market price. As a result, no one bought the product, and it became clear when I reviewed it.


Third, the low price model is the king


Why high price products are more difficult to manipulate, because the user in the purchase of high unit price products, it is necessary to dispel one of his concerns, that is, why this product sold so expensive?


For example, Dyson, others through a huge amount of advertising, so that the pseudo-sophisticated young people know that this product in order to develop a high-quality motor, thousands of tests, a huge amount of effort, so it is worth all that money.


If you do not know those brand stories that others blow, even if you are worth billions, you will not place an order, why? It's not a matter of money, but a matter of whether it's worth it.


The low price model is different, people buy things on the spelling xi, even if the quality of the product bought is not good, the most said a: people's prices are so low, but also picky what.


See, people like me, who are worth less than ten billion, are very concerned about the quality of life are greedy for low prices, not to mention others.


Once a product to play a low-cost strategy, absolutely no worries about sales. Do low-cost products play the supply chain, the cost of compression to the extreme, relative to the creation of the brand, to be much simpler, naturally easier to make.


I remember a predecessor said a word: 199 phenomenon, referring to the pricing of online classes, within 199 yuan, the conversion rate is very high, once more than 199, the conversion rate will plummet, want to enhance the sales of online classes above 199 yuan, you must be customer service intervention, through one-to-one communication, in order to facilitate the transaction, otherwise, more than 199 classes to invest in advertising, by natural conversion is almost a blood loss.


Think about it, the product set 99 yuan unit price, a large number of infomercial advertising, users buy single listening to the class, the process is simple and easy to operate.


And 299 yuan unit price, you have to get the user form, add the contact information, ask this, ask that, and then sales, the process is complex, the requirements of the operations staff is also high, there is no way to copy. If you go to start a company, which model to choose? Of course, the low price.


Low-priced products people will not care too much, the decision cost is low. High-priced products people will have a lot of concerns, will go to Baidu search, ask friends, this transaction chain is extended, we do operations must be in each chain to do operations, store Baidu Q & A, soft placement, celebrity endorsement, etc., the work is much more difficult.


And then compare that a two-pack of small fans, to what celebrity endorsement? The price of one dollar two out, immediately there can be 100,000 single sales, the purpose of the brand is to do sales, since the positioning of the low-price model has natural sales, the brand what can be dispensed with.


The reverse is also true, that is, do not know how to do brand people, the choice of low-cost business model is also a solid win.


Fourth, finally


Everyone wants to start a business to earn money, low-cost business model properly can run through, and it is easy to run through. This time, you need to consider is how to find more channels to help you bring goods, even if a single earn 10 cents, a day 100,000 single, there are 10,000 profits, is not very happy?

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