In fact, agricultural retailers used to make a lot of money. Some people have made a fortune because of this profession and embarked on the road to a well-off life. But now, it is said that agricultural retailers are getting poorer and poorer and have no future. I think it is mainly due to the following four reasons:
1. Low profit margin
First of all, the development of e-commerce leads to more and more transparent prices of agricultural products. Farmers can find out how much agricultural products such as pesticides and fertilizers are on major online platforms. Moreover, although agricultural products have skyrocketed in the past two years, the price increase does not mean that there is a profit, because the cost has also become higher. Coupled with the impact of the epidemic, the transportation of agricultural materials will inevitably be blocked, so this business will become more and more difficult.
2. Under the pressure of competition, agricultural commerce is gradually monopolized.
Now there are more than a dozen agricultural stores in a town alone, not to mention supermarkets selling agricultural materials in the village. It can be said that the competitive pressure is very great, and everyone wants a piece of it.
3. Serious credit sales,
Whether to increase sales or out of human feelings, selling bad debts on credit is a common method used by agricultural retailers. In short, the proportion of credit sales in many retail stores can be said to account for about 50% of the total store sales, and it takes up a lot of funds and has a long cycle. When checking out at the end of the year, retailers look at the bills in their hands as if they are making money, but they can't see the real money in their hands. Most accounts are sold on credit for one or two years, two or three years or even longer. Over time, this account will be broken, there will be more bad debts, and the risk of funds will become greater and greater. When Xiaoyu was on a business trip before, he met a retailer who worked as a farmer at home to collect accounts.
4. Agricultural materials touch porcelain frequently.
In recent years, there are more and more phenomena of agricultural materials touching porcelain: although retailers will encounter one or two difficult growers more or less when doing agricultural materials, if they really encounter "touching porcelain gangs", they will be in big trouble! They make a living by touching porcelain, finding fault in groups and drilling loopholes, and their "business ability" is very strong. Once targeted by the "porcelain gang", the retailer is really "dumb to eat coptis chinensis-there is bitterness that cannot be said".