Where's Gong? 20 16- 1 1-23

First of all, it is clear that this article is not based on personal anger, but on the experience of love recovery service. It only represents personal thinking and is purely a business model discussion.

I saw an article in a circle of friends. Chen Xuefeng said that the love of recycling is to make "collecting waste products" a noble thing. Just this week, I experienced two services that love recycling, one is the screen changing service that loves maintenance, and the other is the mobile phone recycling service that loves recycling; The first time gave me a good impression, and the second time made me very unhappy (again, the so-called unhappiness is not the service attitude and ability of the staff, but the feeling brought by the whole process, with certain personal emotions).

Three stories

Story 1

Last week, my mobile phone broke the screen. I know three startup companies that come to repair and change screens, and finally I chose Ai maintenance because they gave me a minimum price of 265 yuan. Fast response, fast door-to-door speed and good maintenance service. I asked the young man who came to repair the house why it was so cheap. He said it was because he wanted to recycle my broken screen that he deducted a certain amount of money. They recycle broken screens or disassemble them for recycling. I personally agree with this concept of circular economy and feel very good.

Story 2

In order to do a good job of family unity, I changed my wife to an iPhone7P, and the 5S was useless. She saw a flood of recycling advertisements in the subway and office elevator, so she asked me to operate it for her.

In the first step, she submitted an order online, and carried out the mobile phone model, appearance, function, wear degree, maintenance and other contents according to the operation. The final evaluation price is 420.

The second step is to go to the offline store to submit the mobile phone. The next process makes me very unhappy, although I know that they strictly follow the workflow and the service attitude is no problem.

1, the staff saw a light spot on the mobile phone screen and made a choice in the system that loves recycling, and the price became 3 10.

2. The staff said there were color differences and stripes on the screen. I admit that there is no problem, and the price has become 2 10.

3. The staff called the mobile phone case, which was affected by moisture before. I admit that there is no problem, and the price has become 1 10.

I have no problem with the above three steps from the perspective of process and work. What I want to say is the user's feeling. There is a great psychological gap from 420 yuan to 1 10 yuan, and it is in a very short time. Based on this, I didn't make a deal with them because I felt very unhappy, nothing more, just very unhappy.

Story 3

I didn't finish the last story. When I got back to the office, I hung this mobile phone on a fish on a treasure second-hand goods trading website, based on my integrity and bottom line. I wrote clearly that the mobile phone was scratched and worn, and so on. I took a photo and priced it in 650 yuan (the same model on the website is basically around 800 yuan). Within 30 minutes, two people asked, and finally 400 yuan clinched a deal, and in the process of communication, I frankly told each other that I had experienced the tide, and finally clinched a deal.

Discussion on business model

Story 1 and story 2, I feel that they are completely two kinds of business logic.

Story 1: collecting waste products

I think we have achieved a win-win situation in the price offset treatment and recycling of broken screens, and we have also achieved environmental protection. Because of my work, I once worked on a project for Taizhou, which is one of the best places for circular economy in China. During that time, I learned a lot about the concepts of circular economy and urban minerals.

("Urban minerals" refers to recyclable resources such as steel, nonferrous metals, precious metals, plastics and rubber. , refers to the substances produced in the process of industrialization and urbanization and contained in waste mechanical and electrical equipment, wires and cables, communication tools, automobiles, household appliances, electronic products, metal and plastic packaging materials and waste materials. —From Baidu Encyclopedia)

It is also based on this that I feel that the overall business logic of recycling is based on circular economy, and I have carried out very good practice and commercialization exploration for the subdivision of used mobile phones.

If it is a business model based on waste collection, it should be the following logic:

1. The transaction object of both parties is the waste that has lost its use function and value and can no longer be used;

2. Disassembly, decomposition and recycling of waste products are profit points (you can refer to the aircraft dismantling industry, where dismantling companies buy waste aircraft from airlines for dismantling, reclassify the recyclable parts, recycle waste metals, and then use engines to achieve profitability);

3. Items can't be used again after repair (just like tires sold for several kilometers after renovation, there are great safety hazards);

4. For the owner of the commodity, the commodity whose value tends to zero is endowed with value and price again, which reduces the cost.

Story 2: Opening a "Pawnshop"

Because the transaction object of both parties has become an old mobile phone with use value, rather than a waste product that has lost its function, the definition of value has changed, which is very subjective. I once saw an interview with Chen Xuefeng, which improved how to standardize the definition of price and value by standardized process.

In fact, in the whole process, I also saw the staff follow this process. However, because the target object is the old mobile phones with normal functions, and we know that these mobile phones will re-enter the circulation link for secondary sales after renovation, users feel very bad, feel that their prices are maliciously depressed, and the other party sells them at a high price for the second time, with a large price difference.

In this regard, I directly thought of another business model: pawnshop. And it is equivalent to love recycling, directly buying out, making the mobile phone "unique" and then processing it. Don't underestimate this change, the business model has completely changed (maybe I am biased, but I think it is completely comparable).

1, the transaction object has certain normal use value and functional integrity, so it is not "waste";

2. Absolute goods will eventually enter the secondary sales link;

3. The profit model is to start at a low price, sell at a high price and earn the difference, which encroaches on the interests of the owners to some extent;

4. The business model is to "evaluate" the residual value of commodities and price commodities through a simplified "internal standard".

A fish second-hand commodity trading website

The existence of second-hand goods trading websites only plays the role of going to the intermediate link, allowing second-hand goods owners and potential consumers to trade directly. At the same time, both sides pay attention to the core use function of the article, rather than the wear or scratches of the outer tube, or the wear and scratches will not have much impact on the price of the article.

There have been several examples around me, all of which love to sell mobile phones on this website after collecting inquiries. Among them, the biggest difference is a Samsung mobile phone, which loves recycling and offers 400 yuan. Finally, a fish was sold at 1200 yuan, which included the profit margin of 800 yuan.

Do you like recycling to "open a pawn shop" or "collect waste"?

1. From the perspective of "collecting waste products", recycling is really difficult to make a profit, or the road to making a profit will be very long. The domestic circular economy environment is not perfect, and the recycling and dismantling of mobile phones need the improvement of the whole upstream and downstream industries to support it. Disposal of disassembled parts, metals and plastics are all problems.

2. From the perspective of "pawnbroker", in this era of extremely high information transparency and numerous trading platforms, how many users can support this information asymmetry and high price difference model to achieve profitability is also a matter to be considered. After all, users are not really short of money to the point where they need to recycle their love and realize it immediately. In the face of most second-hand mobile phone transaction recycling users, how to improve the user experience and enter the trading system that loves recycling is the real problem to be considered.

3. If you love recycling and are working as a pawn shop in the name of collecting waste products, it will definitely make internal employees and external consumers dislocate in positioning, publicity and implementation, which is more or less embarrassing and distorted.

4. For love recycling, there is a big market, but for most individual users, the number of mobile phone recycling transactions in 1 year cannot exceed two, which means that an opportunity is lost. This customer will not enter the transaction link of recycling in 1 year.

Overwhelming advertising and large-scale network promotion are extremely costly. I don't know if the high cost of acquiring new users makes Love Recycling choose high price difference to cover the cost. However, is word-of-mouth and customer experience supported? Perhaps how many new users have entered the transaction link, and how many have dropped from a single customer acquisition cost to a single transaction cost?

Of course, even in the pawnshop mode, there is a great opportunity for love recovery. After all, the transaction cycle and communication cost of other platforms are also high. If the price difference between the two is within the user's acceptance range, I will definitely choose to love recycling. After all, it's short and fast, saving time.

In fact, it is the mainstream of the market to use a large number of second-hand mobile phones with strong functions, and the real broken mobile phones will not be the majority. It is to earn 2 times, 3 times or even 4 times the difference from 20% of people; There is still a difference of 20% between those who earn 10% and those who earn 15% and 80%, which is a multiple-choice question in front of love recycling. However, if the promotion method of online and offline large-scale carpet advertising coverage is still adopted, it is estimated that it will be difficult to change.

Chen Xuefeng said that starting a business is not easy. Even if the same team does the same thing at different times, it may not be successful. I deeply agree with this statement. I just climbed out of the pit of starting a business, and I know what it means to struggle and have a narrow escape. I hope everything will be fine with love recycling. After all, I personally agree and support the way of resource recycling!