Some shopkeepers of these closed physical stores switched to catering, some went to run errands to deliver food, some went to work in factories, and some were temporarily idle at home. With such a large market, people in the consumer goods industry have entered other industries, resulting in more involution. As a result, no one can make money.
With the rise of e-commerce, the traditional middleman model has been gradually eliminated. To be honest, I don't approve of opening a physical store as a middleman at this time. Middlemen in the pure sense should gradually change to producers and service providers. However, it is inevitable for both manufacturers and service providers to purchase goods.
The purpose of purchasing goods is to sell. The quality of purchase directly affects whether the profit of the physical store can be realized as scheduled. Therefore, the purchase of goods is also a science, which is worth studying and summarizing by merchants.
The problems that should be paid attention to when purchasing goods are: sales expectation, commodity specifications, quality problems, commodity prices, time costs, batch costs, opportunity costs, storage costs, sales costs, capital costs, etc.
1. Sales expectation. Upstream suppliers, whether manufacturers or wholesalers, generally don't give you a return guarantee just because you can't sell the goods. At most, they will exchange or return goods for you because of quality problems. Therefore, the sales forecast must be accurate. For example, off-season and peak season, holidays and other time points, the purchase quantity will be different. If you are a novice, you would rather buy goods in small quantities many times, and never bring back a lot of goods for greed and cheapness.
2. Goods specifications. The same batch of goods, different specifications, sales will be different. Attention should be paid to the purchase, the specifications should be complete, but there must be a focus. It is best to know in advance the proportion of consumers' demand for different specifications in this region, so as to know fairly well.
3. Quality problems. Physical stores are different from e-commerce, with small service area and can only focus on repeat customers. When shopping for goods, we must pay attention to quality, and don't be greedy for cheap. Once there is a quality accident, it may smash its own brand and completely lose the trust of consumers. Even if it is more expensive and earns less, it should be easy to use and durable.
4. Commodity prices. Generally speaking, both factories and wholesalers want customers to get more goods at one time and are willing to make small profits but quick turnover. So try to buy more goods at one time without overstocking. In this case, the purchase price can be cheaper. In addition, if there are similar products on the market, you must shop around, know more about the market and find a reliable supplier. When purchasing goods, every low point is pure profit. But generally speaking, the profit of upstream suppliers will not be too high, about 3 to 5 points. Pay attention to the way of negotiation, and don't let the other party feel that you are demanding.
5. Time cost. Time cost should be considered when purchasing goods, and try not to purchase goods during business hours. If you do more business, maybe you will earn more than trying to keep the price down. Be sure to allocate time and prioritize according to the usual business situation. Don't blindly purchase goods in small batches many times, but consider the time cost wasted by repeated procurement and the use of comprehensive management time.
6. Batch cost. Generally speaking, the larger the one-time purchase batch, the greater your right to speak in the negotiation, and the more rights you can win in terms of purchase price and after-sales service. However, everything is relative, and we should consider it comprehensively according to our own financial strength, sales ability and other factors, and don't blindly purchase in large quantities. Otherwise, it will greatly increase the risk of backlog of goods and put yourself in a dangerous situation. Cash is always king in the market.
7. Opportunity cost. Luck is also an important factor in making money. Sometimes, an opportunity to make money is just around the corner. If you are not ready, you can only watch it slip away. Therefore, when purchasing goods, we must leave room and be ready at any time to prevent the opportunity from coming but unable to grasp it.
8. Storage costs. Storage costs include warehouse rent, management fees, equipment depreciation, shelf costs, water and electricity costs, cargo damage costs, etc. When purchasing goods, we must take this cost into account, so as to ensure supply and low-cost operation.
9. Cost of sales. Promotion also has costs, and this aspect should also be taken into account when purchasing goods. Generally speaking, a new product will have market growth period, maturity period and recession period. The promotion cost is different in different periods. In the growth period, the promotion cost is relatively high, and it can no longer be purchased, so as to prevent the market from not recognizing the products, resulting in backlog or even losses.
10. Cost of capital. The market is always short of money, and the acquisition or borrowing of funds will generate expenditure or income. When purchasing goods, we should also consider the cost of capital. Whether there is money in hand or not, we should calculate the benefits brought by bulk purchase.
These different factors have different emphases in different periods. When purchasing goods, all factors must be integrated and considered as a whole, so as to produce the greatest benefit.
When purchasing goods, we should also maintain the relationship between upstream suppliers, strive for reasonable interests and achieve mutually beneficial and win-win cooperation.
In short, the purchase of goods is also a science, which needs the boss of the physical store to keep learning and studying.
Nowadays, commodity information is extremely developed, and it is also a trend to buy goods online. However, you must not give up offline communication. Good communication with suppliers offline can show your sincerity and get the full support of upstream suppliers. In case there is any chance to make money, a message from the supplier may be your chance to turn over and make a fortune.
The next article is: Beating E-commerce Series 16: Receiving Orders and Selling in Physical Stores.
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