Hu Haiping's experience comes from Shanghai Crab Du Hui Aquatic Co. Hu claimed that by relying on the Metropolis newspaper's "publicity," Crabtree had become China's largest crab distributor, with more than 200 franchised stores in more than 100 cities, and that the company's turnover in 2012 would reach 150 million yuan.
Hu Haiping is a man of modest appearance, medium stature and dark skin color. "are farmers, Jiangxi home countryside out," peers on the Crab Du Hui founder so described. Born in 1986, this young man graduated from junior high school with a score of 168 in the Chinese Middle School Examination. Most of his classmates worked in leather factories, shoe factories and eyeglass factories on China's southeast coast. And today, he drives a BMW 730 to take a reporter to visit another company under his umbrella, Royal Territorial.
Following uncle's business
The man who put Hu on the crab distribution path was his uncle Xu Nengzong, 11 years older than him, who planned to go to Harbin to sell the crabs after losing money on a small business in Guangdong in 2004. He called Hu Haiping and asked him to go and help him market to seafood hotels to "learn to do business."
Hu Haiping, a self-confessed "mudblood," has had "a special urge to change his destiny" since he was 18, and in 2004, the year he followed his uncle into the business world, Napoleon Hill entered Hu Haiping's world. He got a copy of the book "The Law of Success" from somewhere: your effort must be greater than your return, and you can change your destiny through struggle. The cases in the book made Hu feel shaken and eager.
Before that, he had been working in Shanghai for more than three years, mostly in a restaurant called Memory in Shanghai's Yangpu district, where he worked every day to take care of the salinity, temperature and cleanliness of the fish tanks, earning close to 1,000 yuan a month. He was thinking, "How happy I would be if I could receive a salary of 3,000 yuan at some point."
Hu Haiping, Xu Nengzong and Crab rent a 26-square-meter-sized rental house in Harbin and sell door-to-door during the day. They obviously won't go once to meet the hotel's director, nor will they meet once to close a sale. These are actions that embolden Hu Haiping. He had previously been in a closed environment and communicated with few people.
Hu Haiping turned to two salesmen for help. One was Chen Anzhi, who wore a red suit with one arm up and an index finger in the air, and Chen was called "the world's first salesman" by Anthony Robin, the "world's potential guru"; the other was Joe Girard, an American who was " the world's greatest salesman. the world's greatest salesman". They gave Hu chicken blood, Hu recalled, "to make your blood boil ......"
In 2004-2005, Xu Nengzong earned about 200,000 yuan, while Hu received only a few thousand dollars in salary, but he carried the experience of selling crabs: the market is in remote areas of China. He had to find hoteliers and allow them to sell on credit in order to try them out; he had to talk to people about the nutritional value of hairy crabs from Yangcheng Lake.
Finding a local city newspaper to work with
Hu felt the time had come to go it alone. But the local triads gave him a hard time. After a few intimidations, punches and kicks, they told Hu that it was tradition to charge protection money for all seafood, ten dollars a case. Hu once budged back. That's when Hu's cousin, Huang Shengyu, called to share his joy.
Huang was the first of Hu's relatives to sell crabs, going to a northeastern city in 2003, but profits were always meager. 2005, a local evening newspaper, a crab-loving vice president of the prompt, Huang to the newspaper to give crabs to offset the advertising costs, the newspaper in the festivities of the newspaper ran a story about his crab specialty stores. Hu relayed what his cousin had seen, "Wow, all of a sudden there were so many people lining up to buy hairy crabs, even buying 500 or 600 pounds at a time. The hotel still had to take credit, now it's all cash."
The peers or aiming at the hotel, or stay in the aquatic market, Hu Haiping moved. 2006, he looked for his grandmother to borrow tens of thousands of dollars, went to Nanning. He took Huang Sheng Yu faxed over the newspaper, pointing to the top of the article told the local newspaper, "I'm ready to invest 100,000 dollars in advertising, you plan it?" The newspaper then appeared "the first Yangcheng Lake hairy crab store is coming! The message.
This year, Hu Haiping earned 300,000 yuan. There's no mistaking that working with a local metropolitan newspaper will sell the crabs. "Roughly 30 percent of our sales revenue goes to the media," Hu said, adding that on the eve of the Mid-Autumn Festival, their ads will be all over the place, and that "in 2011 the national specialty store a **** spent about $30 million on advertising."
The Laws of Success book spine is almost broken by him, two "world's first salesman" also have a tide. In Nanning to open a store, he found that he no longer need to door-to-door sales, "advertising and marketing ability is important. Hu Haiping remembered Action Success International Education Group (hereinafter referred to as Action Success) Chairman Li Tram. He had seen Li's CD-ROM "Be the person you want to be" in Northeast China, and knew that Li was once the president of TOM Outdoor Media Group. 2006, Hu heard Li's words again and again in airport videos and pirated CD-ROMs in computer cities. For example, about advertising, "to whom to say, the target customer; what to say, the selling point; when and where to say, the time of your placement; how to say, your creative expression, what form; how to write, to assess whether the advertisement is effective or not".
Hu Haiping recalled his reaction, "This guy is really great, this is all summarized by him." Hu said to Huang Shengyu, "Cousin, should we go visit Li Tram together?" Right on the money. A network article entitled "details to enhance the quality of learning achievements in business - Crab City sinks general manager Huang Sheng Yu," said Li Tramp's CD-ROM "do what you want to do" has long been Huang Sheng Yu "a turning point in his life.
In 2007, the relatives of the franchisee will soon be a large influx of the occasion, Huang, Hu and two people from their home in Fuzhou, Jiangxi Le'an County, drove to Shanghai. They told Action Success about their confusion: how to do big business? The production of hairy crabs in Yangcheng Lake is scarce, so they can't know the fake and sell the fake, what should they do? The learning consultant of Action Success said, "Mr. Li Tramp's Winning Mode, once you listen to it, you can solve all the problems. Recommended that you go to class."
Ditching the "success story"
Hu, Huang's relatives and friends, relatives of relatives, friends of friends, about 200 people, heard that the crab business earns money, one after another to join the expansion to the country.
The number of relatives and friends joining the business gradually increased, and Hu Haiping, Xu Nengzong, and Huang Shengyu, all three self-employed individuals with million-dollar sales revenues, felt the need to unify management and purchasing, and set up a business brand. 2008 saw the registration of the Crab Capital Exchange in Shanghai, with the three of them as major shareholders.
Crab stores don't cost much, and the net profit margin is about 30 percent. According to Hu Haiping, in second- and third-tier cities to find a place with cheap rent, rent a 50- to 80-square-meter store. Usually only need to hire one or two employees, an employee monthly salary of about 2,000 yuan. Mid-Autumn Festival sales can account for about 70% of the annual proportion, then hired temporary workers to tie crabs. A male crab of about 4 taels costs 100 yuan during the Mid-Autumn Festival.
The crab business isn't short on cash flow, either. "Assuming 1,000 pounds of crabs are worth 100,000 yuan, we sell 100,000 of them before stocking up. 100,000 yuan of stock may be gone in 1 day during the peak season. Turnover 100 times, turnover to 10 million, the cost of goods is always 100,000." Nonsense.
The company's development process, Hu Haiping people made decisions that they regret to this day. "At that time, a lot of markets are just developed, is losing money. Crab Du Hui Shanghai branch lost more than 1 million dollars in the first year. We three look, Shanghai is not working, or put the new market to relatives, do not directly or holding, we go back to engage in their own piece of self-reservation it. As a result, the headquarters is now thirty or forty people, the procurement department has more than 30 people, in fact, is to the franchisee shipments."
"The franchisee is the equivalent of the city's permanent general agent, the headquarters let it hang Crab Du Hui brand, no charge, but also teach him marketing. He is almost steady money." Hu said Crab Du Hui turnover in recent years year-on-year growth rate of about 40 percent, "but the headquarters year after year does not make money. 2011 headquarters turnover of about 80 million, net profit of less than 3 million."
"Our original intention is how to help these people rich, are relatives. Some people start out with no money to buy crabs, we will even give him the money owed." Hu Haiping persuaded himself to be open-minded.
Today, Hu Haiping flipped through his notes of the year "action success five gold value" and so on, smiling straight. "After the class, we only have the concept of branding, only thought of doing Crab Du Hui, in 2008 we discussed the establishment of the company in the class, and I sometimes follow the teaching of advertising Li Tramp talked about to negotiate with the metropolitan newspaper." He said, "a lot of things they will give you a basic understanding, but what we learn is one-sided, why get to the end, the organization whole into this? It's all learned crookedly, not looking at the big picture. He told you that the most important thing in business management is marketing. What does a person who only knows marketing do, hype, nothing else."
In 2011, after Hu Haiping on the action success of the "teaching organization model" course, found that its content is completely from the book "base business". "And the teacher did not understand very thoroughly, are superficial things, ow ow ow ow." Hu Haiping's wife, Zhang Song, said.
Hu Haiping has since "abandoned the science of success". But the experience gave them at least one thing: In 2008, the two met in an Action Success class.
Afterward, Hu found a book called "The Master's Shadow: The Case of China's Original Business Ecology" out of nowhere. The book confirmed what he had previously heard, "Wang Mingfu (founder of Hejun Consulting) is a very powerful person". Hejun Consulting's training courses were already famous among grassroots entrepreneurs, so he decided to take a course and recommended Wang Mingfu to his uncle and cousin. But his cousin recommended Spectrum to him.
Hu and his cousin Huang Shengyu attended the May 2011 "Operational Wisdom" course presentation by Spartan's founder Liu Yisui at the Guangzhou Sports Center. Liu said to "more than ten thousand students": "share reform is the most important, why China's reform and opening up success? Because everyone is helping themselves."
The official website of Spectrum has an avatar of Huang. It is a middle-aged male who is starting to go bald and grinning in front of the camera with a crab. On this site, Huang Sheng Yu claimed to have eaten through Liu Yi second of the core idea - "all the company's problems are the mechanism of the problem", he is "the original performance incentives based on the planning of equity incentive programs."
"He really is a stock reform." Hu Haiping said, Huang Sheng Yu invested millions of dollars in the hog farm business, Huang's wife and uncle to provide manpower and land, both sides of half of the shares. Hu felt that his cousin was basically giving away money, and seemed to have been fooled by the "options instead of management".
Hu analyzed Liu for a second: "The core is to know how to share money. This is also true, but too one-sided. So many people are talking about this trick, I think a large part is not suitable. He received money to teach people a kung fu, they have not practiced it themselves, people listen to you this go back and use it, what will they practice?"
"Aquatic industry first-class company"
Competition is intensifying, e-commerce on the traditional business alternative has entered the crab industry. Sell "high-end" crab offline dealers footsteps and not to mention, in the low-end market, there are many farmers and dealers to Taobao sell crabs. Hu estimated that some Taobao crab sellers rely on the annual turnover of the price war has reached 10 million yuan level. He also tried to sell at a discount in Taobao stores, but relatives were not happy, "We do not even discount, you discount online?"
Crab has run rampant in the gift market in recent years, and crab coupons of about 600 yuan have become the main products of Crab Du Hui. Hu Haiping would like to strengthen the brand appearance of the crab all sinks, unified facade, enhance the image design, investment in national advertising ...... but "the headquarters of the profit is not enough to spend". So, the crab is ready to set up a management department, prohibit franchisees on credit, prohibit private tampering with goods, charging an annual franchise fee of 10,000 yuan. In addition, the crab is intended to be in the blank market yet to be developed to take direct or holding.
Relatives of the feedback came, "peers are not collected ...... franchise fee to pay, shipping up a little on the rise, not too much on the line." Hu Haiping explained one by one, "peers are small companies, to join him there are no people! Our shareholders do not rely on this to earn money, we rely on their own market."
Hu Haiping heard peers say that in 2001, Yangcheng Lake, there is actually not much crab, "Yangcheng Lake resources are no longer available, you are selling fake. After reading Feng Lun's "Savage Growth", he felt that he also had a savage growth, but said he is no longer selling fake goods.
In 2011, Hu Haiping founded Royal Link. He said that the company sells rare seafood has been profit and loss flat, turnover of more than 10 million yuan, the future goal is "aquatic industry first-class company".