The strategy is to sell more at lower prices. Because of the large online shopping group, merchants can attract many buyers with a low price close to the wholesale price, the price of a single item is much lower than the retail price, but the surge in the number of orders improves the total profit.

Through the group pre-sale, you can immediately get a lot of cash, which for a small number of financial chain is not so smooth business, but also provides a good solution.

The reasons are as follows:

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In addition, the advantage of the low price will help the goods to be sold quickly, shorten the time of commodity circulation This also has the advantage of free publicity, which can save businesses a lot of advertising costs.

Paying in advance. We all know that online shopping is paid in advance, some goods such as KTV, catering and entertainment, often in the order after 1, 2 months before consumption, this first pay after consumption to ensure that the merchant's cash flow, to improve its capital turnover, in favor of its operations.

Some merchants' fixed daily expenses are constant, and by attracting more customers, the fixed costs can be shared so that the cost of a single customer is low, so they can offer customers incredibly low group-buying prices.

Taking KTV as an example, the fixed expenses of the business mainly include the cost of the facade, the depreciation of equipment and labor costs, and the cost of customer consumption (utilities, etc.) is very low. So the business can give a very low group purchase price to attract customers for its share of fixed costs, and customers can spend less than the usual several times the money to enjoy the same service.

Currently, many merchants' group-buying coupons have a time limit for consumption, and refunds are not allowed after that date. A small number of consumers, for various reasons, may not be able to consume the vouchers within the given time limit, which is also considered a special income for the merchants.

So, group-buying can really help consumers save money, but the purchase should be rational, and sometimes the price of the business is really ridiculously low, the service may not be very good, this must have a certain discernment. In addition, shopping should be restrained, do not buy a bunch of cheap things and can not be used, or will be very wasteful.

Through group buying, to advertise, improve its visibility, awareness. You can consider the difference between the price on the group buy and the price in the physical store as the cost of advertising.

In certain entertainment venues, such as game halls, movies, etc., you can make a pre-sale through this activity, his store is so open every day, you come to consume is to give him an increase in revenue; and for the restaurant category, itself has a high gross profit, some stores are to attract people with the environment and atmosphere, under certain circumstances, the more people who come, the more he also makes money.