Difference - Han Qingxiang's Marketing Lecture Record

Author: Han Qingxiang / Country: Mainland China
Publisher:
Publish Date: 2007-01-01
Features: In marketing, conventional thinking can only produce conventional results. Extraordinary thinking leads to extraordinary results, and daring to break away from traditional marketing concepts can generate extraordinary ideas. There was a company in the south that operated construction machinery, but it didn’t have its own factory. It placed orders for a batch of stone crushers with some machinery plants and paid upfront, but demanded exclusivity for itself. After receiving the stone crushers, the company went to negotiate with farmers in the mountainous areas: "You provide the labor, I provide the stone crushers. We’ll crush the stones in the mountains and I’ll transport them to the city to sell. We’ll split the profits 50-50." Here are two key points to note: First, absolutely do not let the farmers transport the stones to the city to sell, because after two trips, they’ll realize they can also make money by hand-crushing and won’t want to cooperate anymore. Controlling the distribution channel gives you the initiative. Second, when working with farmers, avoid saying "you get 51% and we get 49%," as they’ll feel you’re deceiving them. Instead, insist on a 50-50 split, which they find very clear. The farmers were delighted to think that crushing stones could earn them money. Stones are worthless in the mountains but sell for a good price in the city. With little time, the company had already recouped the cost of the stone crushers. After that, production costs became extremely low, and through this method, the company gained profits that other businesses couldn’t match, with steady income flowing into the company. In business, there’s a common saying: "A gentleman loves wealth but acquires it through legitimate means." However, it’s also important to add: "A gentleman loves wealth but uses it in moderation." The people of Wenzhou are clever in business and capable of enduring hard work, which is admirable. But making too much money can also be a problem. In Spain, the fire that destroyed a Wenzhou shoe store may have been related to excessive greed. This construction machinery company did well. Instead of waiting for the stone crushers to break down before replacing them, it replaced them as soon as they had minor issues, always maintaining high efficiency. The old stone crushers that were replaced were repaired and sent to another mountainous area for local people to use for free. When the locals experienced the benefits, they signed new agreements. This way, the business grew bigger and bigger. P12