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The original driving force of OEM is often that the sales and marketing in the Bank is also a large proportion of sales, and the homogenization of shop sales is also very serious. There are too many merchants to follow suit. This brings a positive, naked price war, which has lost a lot of profits. If you count the other costs such as pavement rent, freight, tax, operation, etc., loss sales are a reality, many of the peers are passive, "Lei Feng" I still can't get the customer's recognition. In order to avoid this kind of positive, naked price war, many of my peers want to be branded.
Then the OEM product gives the OEM a little pricing power, which is the first "laughing point". When the product is a niche product, or the internal differentiation is relatively large, the pricing power of the OEM is relatively high. However, if there are many similar products, it is easy to get, then the OEM products must actually face the competition of similar products, the pricing power is very limited, and the pricing is basically limited by similar products. This is the first "puncture point".
There are trademarks on the OEM, and the trademarks are attached with “creditâ€, “goodwillâ€, “serviceâ€, “supply statusâ€, “quality stabilityâ€, “gradeâ€, etc. Even if the same product, the trademark is different, the service is often implied. The quality is different, the state of supply is different, the quality and stability are different, and the degree of trust in the customer's mind is different, giving different evaluations. This brings about one of the functions of the trademark "segmentation function".
Separation function: When the product has been affirmed by the customer, even if the customer knows that a product is the same as another product, he is not sure that every detail is the same, and he cannot even think of the service attached to it. The stability of cargo capacity is the same. Due to the fear of uncertainty and the fear of trouble, when the price is basically the same, the customer often does not change similar products and suppliers when the price difference is small. This is a "laughing point" for the old suppliers - laughing two. In turn, this is a “puncture point†for the new supplier attacking new customers – the second point.
Because it is costly and costly to verify that this product is the same as another product. If the party is not good enough to be criticized by other people and departments, it will be held accountable by the boss, not to mention "stability", "supply capability", "good service" and "convenience." "Changes in the details of the "timeliness" transaction, the changes in the workload between departments, etc. are unknown. Being able to make a change requires taking risks and taking responsibility. Most purchases are reluctant to make changes when there are not a lot of “forced†factors.
OEM requires a large order for each size of each variety, starting a variety of hundreds of thousands, the cost is huge, and even if the sales have to maintain a relatively large safety stock in the future, this fund becomes Precipitate funds. This is the third "puncture point" of the OEM, and if it is not OEM, it can be used to zero the raw materials, with less capital. However, the products that are easy to adjust are often adjusted. Once the competition is over, the price war is often hitting the end, and no money is made. There are also some varieties that are sold in some places, because they do not occupy an important position in the sales catalogue of the merchants, so everyone does not fight the price, and maintains a relatively profitable sales price, such as grinding trays, the total amount is small, and there is no Everyone needs to sell the brand of the manufacturer. If it is branded, it is not worthwhile to make a small amount of money. Therefore, some people are branded because the competition is too fierce, they do not want to face face-to-face price wars, and they cannot avoid this variety being forced to paste. Some want to be a platform, want to be a century-old enterprise, to sell all over the country, the world, there are ambitious cards, such as millet phones. Without this ambitious plan, it is not necessarily cost-effective to use OEM in terms of capital occupation.
Another way is to sign an agreement with the brand leader, exclusive sales in a certain region or a certain field, so that not only enjoy the benefits of brand pricing rights, but also avoid depositing funds, both benefits are obtained, two smiles The price is to let the brand earn some gross profit, and is subject to certain restrictions on the brand management rules. I think this is extremely smart, and it can be retired. The way of trade is only the customer's pressure on the funds, and the OEM is the customer. The two sides account for the funds, inventory and customers at both ends, and the five parties are now trying to use this method, so that they can use other funds and stocks to make big business with small funds. When you want to retire or the customer loses, there is no loss, but the OEM is not like this. Once it is branded, it is difficult to quit. The customer has lost a lot of inventory, don’t want to do it, there are several customers. Always, the best-selling granular number is sold out, and there are a bunch of not-selling stocks. If you want to retire, you have to deal with it at a very low price. Even if you earned it, you have to spit it out. "It’s difficult to quit." This is the fourth "brand". Tears."
The brand is posted, and the sales are started below. If the sales force is not strong enough, then the inventory turnover is very slow. If you want to cut the price, then the money earned is no different from the non-branding. It also accounts for a lot of funds and inventory. This is not the case. I had to sell it slowly, so I sold three or five points of profit, which accounted for half a year's worth of money. To be a brand of others, the profit is thin, the amount is fast, and the volume is large, it is still worthwhile. "Turnaround slow" "can't turn" and "can't turn" is the fifth "puncture point" of OEM.
When the manufacturer has unstable quality, once a year, the OEM will be miserable, piled up in the warehouse and sold, no one will lose money. For OEMs, OEM products are still produced in small batches. Therefore, the quality of the “page wheel cloth†is relatively difficult to stabilize. "Poke it up" This is the sixth "punctuation point" of OEM.
Manufacturers often quietly make changes, formulas, and raw materials. We didn't find people to talk about it. This brought us risks and unknown changes. This is the seventh "tears" of OEM.
If you can sprint to a relatively large platform "quantity", and then have a normal heart has been selling "stable", the time is long, the brand has become a protective umbrella, able to maintain a meager profit for a long time, this is a pity of OEM This is the third smile. Of course, this smile, partners can also enjoy.
In our industry, because the true quality is in the hands of manufacturers, we can use our smart brand to be a small brand. If we do too much, then manufacturers must suppress us in many ways, such as posting the same products with many people. It's just that the brand is different. At that time, we have to face the competition of different brands of the same products, destined to a very thin profit, and the manufacturers have a large amount, and the profits are naturally many. Therefore, we must be very poor, do not expect to do a lot, there are not too many partners to earn a stable little money together.
All in all: the three cards of the three cards are laughing. In the future sales and cooperation, I hope that everyone can be honest with our partners to explain the stakes. We must bravely face the difficulties and work hard to build a brand platform that everyone shares. It is also necessary to understand clearly that the ugly words are in the forefront and lay a solid foundation for long-term cooperation.
Three laughs and seven punctuation points
Abstract I often hear from peers discussing whether to be branded, and often listen to colleagues' complaints about the various instability of OEM products. As a participant who has been in the past for more than a decade, I am here to talk about some of my personal views. The original driving force of OEM is often the domestic sales of the Bank...
I often hear peers discuss whether to be branded, and often listen to the company's colleagues complain about the various instability of the OEM products. As a participant who has been in the past for more than a decade, I am here to talk about some of my personal views.