Ding Yuanying was asked to write a myth for Rui Xiaodan, and agreed to help Wangmiao Village with poverty alleviation. From formulating the plan to reaching a strategic cooperation between Metrics and Lesheng, it took only two years. From a business perspective, two years from the establishment of a company to normal operations to achieving a certain scale must be considered "super fast", but under Ding Yuanying's shady control, all of this was really realized.
What was Ding Yuanying’s thinking during the entire implementation process? Why did he say that his actions were to kill the rich and give to the poor, and why did he say that he just asked them to take a look at the edge of the well, and whether they could come up depends on their personal cultivation?
Let’s start with the pattern.
01: Business strategy
After Ding Yuanying inspected Wangmiao Village, he shut himself up at home and thought for a few days, and finally formulated the following overall strategy. Based on the existing resources of Wangmiao Village, he first decided that Wangmiao Village would only produce and process large auxiliary products such as racks and outer boxes in the "audio product production line", while the more refined products such as "power amplifiers", "motors", Precision facilities such as "power supplies" are purchased from companies that already have finished products on the market, and then reassembled to a certain extent.
In other words, Metrics based in Wangmiao Village is indeed an audio company with its own brand and patents, but their real patents and technologies are only in cabinet production, rack production and the integration of various precision products. Instruments undergo varying degrees of assembly and construction.
That is to say, in the high-end technology section of the audio production line, rhythmic poetry is not mastered.
However, because Wangmiaocun’s polishing of the racks, outer boxes and other products is indeed fine enough, and the innovative reorganization of internal components and instruments has greatly improved the sound quality of the speakers, it ultimately resulted in The quality and appearance of the speakers produced by Rhythm are not inferior to those of the large brand manufacturers already on the market.
It’s just one thing if something is good, but another if it can be sold.
At this point, Ye Xiaoming and Liu Bing, the founding veterans of Metric Poetry Company, have different views and opinions on the subsequent operation of Metric Poetry.
Ye Xiaoming believes that what Wangmiaocun is good at and masters is only the production and design of auxiliary equipment (such as racks), while precision instruments can only be purchased, and the purchase price is originally higher than its own production cost. On the high side, when the two items are superimposed, the original profit margin of rack production will be reduced, and the increase in the cost of purchasing precision instruments will be wiped out. Ultimately, even if the sound quality of Rhythm is excellent, the overall selling price will have no advantage. There are already big brands in the market with no price difference.
So in Ye Xiaoming’s view, since there is no difference, the market will definitely be more accepting of existing big brands at the same price. Therefore, Ye Xiaoming thinks that Metrics should only focus on the production and sales of racks. Liu Bing insists Supportive attitude.
However, Ding Yuanying, who led the metrical poetry, did not consider and absorb this idea. Instead, he insisted on the high-end model of producing large pieces, purchasing small pieces, and reorganizing and processing, and rented a spacious storefront in Beijing. , and handed over the BMW that was welcomed by the bet to the Beijing company of Metrics for use. At the same time, it strictly controlled high-price sales and refused to reduce prices.
From the perspective of business needs to make profits, profit is equal to sales volume * profit per unit. Under Ding Yuanying's model, although the profit per unit is high at this time, the extreme lack of sales volume makes Gelu The performance of Shi Beijing Company was embarrassing, and what puzzled Ye Xiaoming and others even more was that "Ding Yuanying was not only unwilling to lower prices, but paid special attention to pomp and publicity."
Just when Ye Xiaoming and others were full of confusion and doubts, Ding Yuanying also instructed Ye Xiaoming to register various patents, and at the same time asked Rui Xiaodan to arrange another matter, to promote the rhythmic poetry sound in Europe. Promotion, and spent money to buy a false reputation as "the world's top ten top audio reviews".
In short: At this time, the reputation of metrical poetry was great, and the brand was steadily rising. In the eyes of peers, there must be a well-funded consortium behind the metrical poetry, but the market's acceptance and reaction was not It requires a long process, and Ye Xiaoming and the others are worried about whether the metrical poetry can survive this process.
During the excruciating wait, the Beijing International Audio Exhibition was held. Due to Ding Yuanying's repeated instructions, all 500 sets of speakers planned to be finished during the exhibition had been shipped to Beijing. At this time, Ding Yuanying gave the order. : All of Metrics' finished speakers have been significantly reduced in price, with wholesale prices dropping from 7,600 to 3,400 and retail prices from 11,600 to 3,900. They also promise that if there are quality problems, Metrics will bear 10 times the fine.
Due to Metrics’ early brand building efforts and its excellent quality, the sudden and substantial price reduction received enthusiastic feedback from the market, and 500 pairs of speakers were sold out instantly.
But behind the excitement is the extreme dissatisfaction of Ye Xiaoming and others. The price reduction to this extent means that there is not much profit margin left after excluding various costs. Although there is still a small profit, this way of handling it is obvious. This is not acceptable to them, because even if the price needs to be reduced to stimulate performance, it can still be reduced to a mid-range level such as 5,000.
What happened next is briefly summarized as follows:
Due to the substantial price reduction of metrical poetry, similar brands like Le Sheng were severely criticized by the market. The market believed that the same quality was Even if metrical poetry drops to this level, there is still money to be made. Wouldn't it be possible to make more money from the more expensive Le Sheng? There was a loud voice in abandoning Le Sheng and choosing metrical poetry for a while.
Lesheng, on the other hand, came to the conclusion after careful analysis:
According to the current finished metrical speakers, their production cost should not be less than 4,000, then Metric's 3900 was a loss-making transaction. According to the relevant provisions of the commercial law, Metric's move was considered malicious competition.
Lesheng sued Metrics for unfair competition based on this. However, Lesheng’s calculation standards were based on the cost standards of its own production and those of other peers, thus ignoring the cost of processing under the OEM model such as Wangmiao Village. The low cost ultimately led to the failure of the lawsuit. Under the pressure of market pressure, reputation damage and other pressures, Le Sheng finally chose a cooperation model with Metric Poetry each taking an equal share. Since then, Metric Poetry has officially integrated into the market and has a stable profit channel.
Ding Yuanying's "killing the rich and giving to the poor" was thus successful.
02: Key points analysis
The reason why Ye Xiaoming and Ding Yuanying disagreed was that the monetization models they set were different from the beginning.
In Ye Xiaoming’s understanding, the realization model of the operating company should naturally be sales, and the profit is the price difference generated after the sale. The realization model set by Ding Yuanying is to directly sell off the entire Metrics Company. , this sale can be a complete sale, a partial sale, or even a trusteeship, and Ding Yuanying's realization has a more popular name called "enlarging the market value and cashing out capital."
From a business perspective, both Ye Xiaoming and Ding Yuanying are right. Ye Xiaoming’s idea is even the most orthodox and sustainable, so why didn’t Ding Yuanying adopt it?
Let’s first talk about what Ding Yuanying did in order to realize the cash-out of “killing the rich and helping the poor”?
First: Build up the brand and reputation, including Beijing’s appearance, European agents, top ten audio exhibitions, etc.
Second: Strictly control prices and resolutely not allow any form of price reduction. At the same time, we have applied for various patents to prevent plagiarism and imitation.
Third: Strictly control the quality of racks, casings and other products produced in Wangmiao Village.
Fourth: Deliberately lowering the price below the cost price that Le Sheng can calculate.
Fifth: Inducing Slack to follow up with price cuts, Piaget Electronics made a false purchase.
Sixth: Separate and set up in advance, Lesheng and Wangmiao Village changed from a subordinate relationship to a cooperative relationship.
With these six tricks, the brand of metrical poetry was successfully built and patent protected, but Lesheng failed to sue. Under market pressure, Lesheng had no choice but to cooperate, so that Ding Yuanying could realize his cash-out purpose.
Is it possible that Le Sheng will never cooperate with metrical poetry? From the perspective of probability, there is, but from the perspective of business logic, this kind of non-cooperation is unreasonable. If Lesheng does not cooperate, and they cannot reduce their own costs, it means that the sales price of their products cannot be reduced. In the market supply and demand, Under self-regulation, Lesheng will inevitably face a cold winter in sales. When the cold winter comes, the entire ecological chain that Lesheng has built for many years will collapse (theoretically, the collapse of Lesheng will also lead to the simultaneous collapse of Metrics, which relies on the purchase of Lesheng equipment).
Let’s go back to the previous question, why doesn’t Ding Yuanying adopt Ye Xiaoming’s business model? There are two answers, time and concept.
Rui Xiaodan's days in the ancient city are limited, and Ding Yuanying's days in the ancient city are also limited. If you want to write a legend in a limited time, what you need is naturally great opportunities and big moves.
The model that Ye Xiaoming hoped for had already been done in Wangmiao Village before Ding Yuanying came. Whether it was plate processing or the production of low-end speakers, Wangmiao Village had already tried it, but what was the outcome?
Due to the difficulty of market sales and the personnel structure of Wangmiao Village, they are destined to not have good and wide sales channels. At the same time, farmers are busy with farming and other things, which also destined them to be unable to sustain and balance. to produce products.
That is to say, if the products cannot be provided on time and in a balanced manner, and the sales channels on the other side cannot achieve rapid sales, then the profits will naturally not be very high.
The rack sales of Metrics at this time seem to be good, but behind this is the support of Beijing's big door and the farmers' strict control of quality in the early stage. If the time is prolonged, the instability factors will increase. It will lead to the disillusionment of myths, such as the rising cost of facades in Beijing, the ups and downs in the quality of farmers' production, and the sudden arrival of farming time.
The most important thing is time. If this model cannot produce major changes within two years, then Ding Yuanying will not be able to realize the myth promised to Rui Xiaodan.
Let’s talk about concepts again. Ding Yuanying said in the chat with Han Chufeng, “If you take a look at the well, it depends on yourself whether you can jump out.” The “self” here mainly refers to Ye Xiaoming Three people, including ordinary villagers in Wangmiao Village.
Let us analyze one or two through the cultural attributes mentioned by Ding Yuanying. In the play, the people of Wangmiao Village believe in God and place their desire to get rich partly on God. They are used to petty fighting and poverty. , and the reason why this status quo has not changed after decades is because of insufficient endurance and mismatched cultural attributes.
Although the conventional rack sales model has short-term profits, such profits are small and long-term. After a certain period of unstable orders, Wangmiao Village may return to its previous state of survival. Go, so only a quick and violent breakthrough (such as being acquired by Le Sheng and seeing the possibility of becoming rich) can suddenly drag them to another level. This is the only possibility to change their ideas. Similarly, Ye Xiaoming's three The same is true for people, because weak cultural attributes have taken root in their characters, and if they want to uplift them, they need to use strong medicine.
But in the end, whether we can break out of the barriers of weak culture (that is, the well mentioned by Ding Yuanying) still depends on the good fortune of Ye Xiaoming and others.
Therefore, from a time perspective, Ding Yuanying can only choose the cash-out model. From a conceptual perspective, that is, to alleviate poverty from the root, he can also only choose the cash-out model. Cashing out means that someone contributed money, and the rich man who contributed money and was killed eventually became Le Sheng.
Ding Yuanying’s model can be said to be a simple one, or to be more complex, but it can’t escape the suspicion of speculation and calculation. Some people still use Ding Yuanying today. The model is making a lot of money. They don't need to master the core technology, they only need to make the appearance bright and beautiful, and then continue to exaggerate and build momentum, and finally cash out and leave the market. But after leaving the market, will they be nothing? It depends on whether the person still has a moral bottom line. From this point of view, Ding Yuanying is killing the rich and giving to the poor as much as possible within the scope of retaining the bottom line and preserving his conscience.