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How do Yiwu businessmen make money?
How do Yiwu businessmen make money?

Yiwu has business relations with 206 countries and regions in the world. According to United Nations statistics, there are 500,000 kinds of goods in the world, and more than 300,000 kinds can be bought here. Customs exports more than 65,438+0,000 standard containers every day ... In 2004, the market turnover was 26.69 billion yuan, which was not included in the statistics at least 654.38 billion yuan. This is the never-ending Canton Fair, and everyone in Yiwu is a business textbook.

Standing on the streets of Yiwu, I can see high-end cars, Buick Honda, at least Mercedes-Benz BMW, and it's rare to see Santana.

Yiwu Charity Federation was established. From the end of July, 2005 to the end of September, 2005, in just two months, we raised funds from the people1.1.40 billion yuan. Fan Baojun, president of china charity federation, said that there are no more than five counties and cities in China that can raise 1 100 million yuan. Not only some large and medium-sized enterprises in Yiwu participate in charitable donations, but also self-employed, employees and students at school can come up with money, which shows that Yiwu citizens have more and more disposable funds.

It's so cheap to buy things in Yiwu.

In the past six months, the author handled the goods for a relative who was doing business in Australia and went to the small commodity market in Yiwu, Zhejiang Province for seven times. Buy 3 pairs of white cotton sports socks at Qipu Road 10 yuan, where they sell for 70 cents; Shanghai Carrefour Supermarket sells 100 double-ended cotton swabs at a price of 0. 19 yuan. Toothbrush, the latest health care type, with narrow head and wavy hair, 100 with a beautiful plastic handbag, 15 yuan; The shape of the ointment, Bai Di brand and band-aid brand are the same. There is a huge advertisement on the road, a box of 100 films, 2.7 yuan. A doll with more than 100 in Shanghai, only sold in 20 yuan! A toy pistol of more than ten dollars, only three dollars here! As for all kinds of beautiful ornaments and handicrafts that girls like, 50 yuan can buy a lot.

Selling 100 toothpicks only earns 1 cent. A vendor named Wang wholesales 10 tons of toothpicks every day. According to the calculation of 100 toothpicks earning 1 dime, he sells about 1 100 million toothpicks every day, making a steady profit of 1 10,000 yuan. There is a stall selling sewing needles, thick and thin, long and short, with an average of 1 minute. This small vendor can earn 800 thousand a year by selling needles.

Why can a small toothpick make so much profit? This is the shrewdness of Yiwu businessmen-seizing the market at an incredibly low price. The turnover of small commodities is fast and the sales volume is increasing rapidly, making Yiwu a national distribution center for small commodities. The more such "centers", Yiwu will gradually become a national distribution center for small commodities.

In Yiwu, there are countless bosses who start businesses for only 1 cent, and they are called "ant merchants". The secret of "ant merchants" to make money is: every family opens its own factory, keeps the cost to a minimum, and gets a penny for each product! They calculate an account: a pair of socks earns a penny, and an ordinary booth sells 700,000 to 800,000 pairs of socks every month, which means a profit of 7,000 to 8,000 yuan, which is nearly 6,543,800 yuan a year. Rent 10 booth, that is 1 10,000!

A large clothing group in Yiwu sells pants for 30 to 40 yuan in a supermarket in Shanghai. The chairman of the group explained: "Although the price of pants in the supermarket is relatively low and the profit is not very big, the money will be paid every three months and the funds can be withdrawn immediately. Last year, we did a business of 10 million yuan in several big supermarkets in Shanghai. "

Everyone thinks he can make money in this city.

A businessman opened a restaurant by the roadside. The food is delicious, but the price is very cheap, so each table of food is probably lost 10 yuan. It is natural that business is booming. Diners say such restaurants will close soon. Surprisingly, the hotel not only persisted, but also opened a branch, and the business was booming.

Why? It turns out that this businessman has opened chicken farms, pig farms and fish farms in the nearby countryside, and also planted dozens of acres of vegetables, but agricultural products are often unsalable. After the opening of the hotel, agricultural products are delivered to the hotel, and the loss of the hotel is made up by the profit of the farm.

In the workshop transformed from several houses, Mr. Li methodically arranged more than 40 workers to produce fashionable topless sun hats. This full-scale workshop can produce 0.2 million/200 thousand sun hats a day, which will be transferred by traders and put into Wal-Mart stores.

Boss Li knows that his seemingly simple sun hat, once hung in supermarkets in Europe and America, will be worth several times or even more than 10 times. Boss Li's position is that a hat only earns a penny, which is the key to his business with the world's top 500 Wal-Mart.

Companies in Jinzhou supply Hong Kong trading companies at the price of 1 1- 12 yuan per meter. The Hong Kong company transferred the cloth to a garment factory in Thailand for processing, and then sold the ready-made clothes (such as shirts) to Wal-Mart for US$ 3 (about RMB 25 yuan). The price of Wal-Mart hanging in American stores suddenly rose above $30 (about RMB 240 yuan). Complaining is complaining. Jinzhou district company has never given up this big customer who took 30% of the factory output. This indirect supply relationship lasted for 8 years. In the final analysis, Jinzhou District Company still finds it profitable. A profit of $300,000 a year is not dispensable for a small factory with 100 employees.

The profit of a lighter is only 5% 1 cent. Can you really create "profiteering"? Sure! In 2004, a small factory named Sheng Mao exported 90 million pieces with a profit of 900,000 yuan. 5%, the first principle of a penny for a share of goods is to dig costs, according to their actual operating costs, rather than blindly reducing workers and processes. How did the Sheng Mao factory work out the account of "small profits but quick turnover"? Mainly because the rural areas where the factory is located have unique production conditions-cheap land rent and concentrated labor force.

It is said that Yiwu is a city where all people do business, and everyone wants to make money. A special book named "Yiwu's Urban and Rural Trade" has been added to the primary school textbook. What makes people feel even more is that everyone thinks that they can make money in this city. Locals, outsiders and outsiders are all looking for their own gold rush dreams in Yiwu.

"Why are the small commodities here so cheap?" As the saying goes, cheap goods are not good, and good goods are not cheap. Many people who have just arrived in Yiwu can't believe what they have seen. In this regard, Chen Xiuxian, Propaganda Minister of Yiwu Municipal Committee, said: "Price is a powerful means to win in market competition. The same goods with the same quality are 50% or more cheaper in Yiwu. The success of Yiwu small commodity market lies in that it can always maintain the ultra-low market price of the whole country and even the whole world. " A shirt costs 5 cents, and a pair of socks costs a few cents. I'm afraid no one will pay attention to such a business anywhere, but Yiwu people are not only concerned, but also extremely willing to accept it. It is this humble transaction, and I don't know how many multimillionaires and billionaires Yiwu has to go out every year.

Yiwu in the eyes of Wal-Mart and Dell …

Four years ago, we consulted Yiwu Commodity Market, and I took experts to Yiwu many times. Since then, we have kept in touch with Yiwu and have been to Yiwu many times.

My summary of Yiwu is that from buying and selling the whole country to buying both the whole country and the local area, buying both the whole country and the whole world.

Yiwu Commodity Market (also known as China Commodity City) used to be mainly engaged in small commodities, but now the scope of commodities is getting wider and wider, almost everywhere; In the past, it was synonymous with counterfeiting, but now the products are genuine, and many of them are fine products.

In the past, Yiwu itself had no industry, and its products came from Wenzhou, Guangdong, Fujian and other places. Yiwu is just a hypermarket.

Later, many products gradually turned to local production. Yiwu has changed from a simple intermediary market to a market of origin. At present, among the products sold in Yiwu, local production accounts for 40%. The annual transaction volume of Yiwu market is about 50 billion yuan, and the local production is about 20 billion yuan. In other words, because of the market, it has promoted the development of local industries.

Up to now, the export transaction volume of Yiwu small commodity market is about 30 billion yuan per year, and it has increased significantly year by year. Every day, more than 5,000 foreign businessmen from all over the world purchase goods, and more than 200 foreign companies are stationed in Yiwu, selling Yiwu goods wholesale to their own countries. Yiwu commodity market has become an authentic international market. I even wonder if it is necessary to hold the Canton Fair with Yiwu market every year. Because Yiwu market is already the "Canton Fair" that is opened every day.

There are two ways to succeed in Yiwu commodity market:

First, the road to success lies in three lows, namely, low cost, low taxes and fees, and low price. People who have been to Yiwu are interested in Yiwu's things, mainly because they are cheap and beyond your imagination. In the past, the commodity prices in Yiwu were low, mainly from bulk purchase, with more imports and more exports. Now, there are a lot of imports, a lot of exports and local production. Localized production has become an important factor supporting low cost. The low taxes and fees come from the fact that the government is not jealous of businessmen getting rich. Management fee for a booth: 800 yuan 15 years ago, now businessmen have made a fortune, with an annual turnover of10 million yuan or even tens of millions of yuan, and the management fee is still 800 yuan. We often say that geese pluck their hair. After the "geese" from all over the country flew to Yiwu, the government in Yiwu hardly plucked their hair. Therefore, these "geese" can fly far and all over the world. Why many local markets in our country collapsed is because the local government pulled too much wool, and the "geese" all over the country flew there. All the wool has been pulled out. They can't fly, so they have to be sold to local people. As a result, the wholesale market has become a retail market and a market for local people's pockets. ;