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Chapter 385 Small profits but quick turnover make piracy unprofitable(2/2)

As long as the reputation is established, setting the price higher in the future will naturally not be a problem.

What's more, Cao Zhiqiang not only has a distribution channel through regular channels, he also has his own distribution channel.

Strictly speaking, this own distribution channel is divided into two types, namely the sales department of Hongguang Publishing House and Hongguang Department Store.

Hongguang Department Store is actually a chain of convenience kiosks currently being piloted in Beijing.

Since there are not enough convenience kiosks at present, there are only twelve officially open convenience kiosks so far.

Although many new convenience kiosks have been built, they cannot be fully expanded until the government fully approves them. They can only operate the twelve pilot convenience kiosks first.

But no matter what, twelve pilots are equivalent to twelve sales points. For a city in Beijing, the sales volume is still very objective, and it may not be worse than Xinhua Bookstore.

After all, the number of Xinhua bookstores is limited and they are not as flexible as convenience kiosks.

Apart from anything else, the prices of goods in Xinhua Bookstore are very high and you cannot bargain, but you can at convenience kiosks.

In particular, the convenience kiosk project can also be said to be Cao Zhiqiang's own project, so selling his own manager's song album in his own convenience kiosk can naturally lead to bargaining.

The sales model of convenience kiosks is a sales agency system, where the goods are sold first and then the money is paid.

The difference is that the "Blooming Life" album sold at convenience kiosks has a retail price of 2.5 yuan.

In other words, for every "Blooming Life" music album sold in convenience kiosks, only 2.5 yuan needs to be handed over to the headquarters, and the remaining 30 cents are considered as redundancy for the convenience kiosk salesperson.

In this way, the salesperson can sell the product at the original price of 2.8 yuan per plate and earn the 30 cents himself, or he can sell it at a slightly cheaper price, such as 2.7 yuan per plate, with more or less room for fluctuation.

After 2.5 yuan was handed over to the headquarters, 0.3 yuan was left to Hongguang Department Store, and the remaining 2.2 yuan was sent to Huaxia Audio and Video Company.

In this way, for every disc of "Blooming Life" sold at convenience kiosks, Huaxia Audio and Video Company can get a rebate of 2.2 yuan, minus the cost of 1.2 yuan, and the gross profit is 1 yuan, which is one dollar.

Of course, the convenience store is a trivial matter. The real money maker is another one, which is the sales department of Hongguang Publishing House.

The sales department of Hongguang Publishing House is managed by Li Youfu, who are actually some self-employed individuals.

It's not entirely correct to say it's an incorporation. It should be said that it's a cooperative relationship.

Li Youfu has established a friendship with individual self-employed wholesalers, and they can get any goods from Hongguang Publishing House at a discounted price.

For example, for the genuine products of "Blooming Life", those lower-level dealers under the jurisdiction of the sales department of Hongguang Publishing House, or self-employed franchisees, can purchase the products at a price of 2.3 yuan.

After these self-employed franchisees get the goods at a price of 2.3 yuan a plate, even if they sell them at a price of 2.8 yuan, they can still make a profit of 50 cents. This profit is already considerable.

Not to mention, some self-employed franchisees from a little further away can ask Hongguang Machinery Factory's transportation team to help deliver the tapes as long as they purchase more than 10,000 tapes at a time. The delivery fee is very cheap, and they only need to pay the transportation cost price.

Don't underestimate this. Transportation during this period is very troublesome and there are many checkpoints. However, Hongguang Machinery Factory is a state-owned enterprise and can be exempted from inspection. This saves a lot of trouble.

After Hongguang Publishing House received the rebate of 2.3 yuan per plate, 0.3 yuan was left to Hongguang Publishing House, and the remaining 2 yuan went directly to Huaxia Audio-Video Company.

2 yuan minus the cost of 1.2 yuan is 0.8 yuan.

In other words, the sales department of Hongguang Publishing House, a channel for self-employed franchisees, makes a gross profit of 80 cents for every tape sold.

Although 80 cents is less than a dollar at a convenience kiosk, it can’t stand up to the large quantity.

Moreover, these self-employed franchisees pay in advance to purchase goods. In terms of pure profit, they are far more profitable than formal sales channels such as Xinhua Bookstore.

So the real question is how popular "Blooming Life" will be and how high its sales will be.

After all, Cao Zhiqiang's sales strategy this time is a simple one of small profits but quick turnover.

If sales are not good, then everything is in vain.
Chapter completed!
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