Pang Donglai lives in Xuchang, Henan. Why talk about him? Because this boss has the same starting point as us. A child from the countryside, aged 65,438+06, went to the society, worked and built a house. Later, I started a small business and worked with my brother. Then from 1993, he took over a 40-square-meter tobacco hotel from others. Today, the annual sales exceed 5 billion.

This man is Yu Donglai. He is about our age and has no special resources or background. He made it himself. He can achieve 5 billion, which is the second. Crucially, in 2008, there was a statistic in China's retail industry, and his corporate efficiency and evaluation efficiency ranked first among private commercial enterprises in China, that is, the average sales or profits calculated by people and the average sales or profits calculated by area ranked first in China, and all commercial enterprises in China were in the top ten, including world-famous brands such as Wal-Mart, Carrefour and Lotus. Fat Donglai is very famous in China.

"This is definitely the best store in China," said Gu, director of Shanghai Chain Store & Franchise Research Institute, and president of China Chain Association after visiting Fat Donglai. This sentence is normal in Shanghai. What is the key city of Xuchang? In Henan, it can only be ranked fifth, Zhengzhou, Luoyang and Kaifeng. There is also a Xinxiang in front, and there are cities like Nanyang and Xinyang. It can be seen that there is such an enterprise in Xuchang, a small city in Henan with a population of less than 6.5438+0 million.

Moreover, to what extent and what line he does in local business, others will have a hard time. He sells mobile phones, but others who sell mobile phones can't; He sells jewelry, while others who make jewelry are shrinking; Gome and Suning can't sell home appliances.

Some people say, what's going on? Are there experts, professional managers and airborne troops? No, unlike other enterprises, he employs a large number of foreign airborne troops. Almost all of his eight senior executives are his laid-off colleagues. Only one went to high school, and the others were junior high schools. Yu Donglai himself is a third-grade primary school student.

Some people say that he is familiar with it locally. Yes, to what extent is he familiar with it locally? People will recognize what he sells. Many people don't believe me when I say this. Dozens of people from Yiwu, Fujian and Guangxi visited Henan. When they came back, they told me it was great, even better than you said.

Later, Pang Dong came to Xinxiang to develop. At that time, I thought, he is familiar in Xuchang, and going abroad may not work. Xinxiang is also a small city. At that time, there was already a Taiwan Province enterprise named Dennis, which ranked first in Henan, with sales of over10 billion. There will be another century, Lianhua, where commercial enterprises are also the oldest in China, and a Wal-Mart is in preparation. Yu Donglai's fancy position is sandwiched between the three. It's an ambush on all sides. Everyone who has seen this position suggests that Yu Donglai should be shot and there is no parking space. Are you out of your mind? Yu Donglai pushed his way through the crowd and began to do business.

In less than a year, the market has undergone earth-shaking changes. Dennis, the first brand in Henan, closed down and moved to another place. Later, a good friend told me that there were almost no guests before the Chinese New Year. These guests are almost like salespeople. If you enter the Fat East, you can't get in, just like things from the Fat East don't cost money. At that time, I thought, whoever buys things in Dennis is out of his mind, and whoever doesn't buy things in Pangdong is out of his mind.

Later, someone told me that Century Lianhua Xinxiang Store closed directly and sold it to Fat Donglai, renamed Fat Donglai Department Store. Wal-Mart has been preparing for 6 years, but it hasn't opened yet.

A small grassroots entrepreneur, a small private entrepreneur in Henan, so awesome, is it blowing?

Later, another big company, Dalian Dashang, came and opened two stores in succession, resulting in half death.

In mid-2008, the president of Dalian Dashang said at Zhengzhou * * Business Enterprise Summit Forum that I don't want to talk about Dalian Dashang today, but I want to talk about the phenomenon of "Fat East". In all these years, I have never seen such a good business in Pangdong. Have you seen the people in line? Have you ever seen cars in line? Have you ever seen electric cars waiting in line? In the scorching sun, women stood in the sun with umbrellas and pushed electric cars away 15 minutes. When a person goes out from the front, he can enter from here. There are no shops within one kilometer of Fiona Fang, and people hang themselves from this tree. The same is true of cars. The whole street is closed on weekends, whether it is Xuchang or Xinxiang. It was like this a few years ago, and it is still like this now. I can't accept it!

Pangdonglai corporate culture

When I came to Feidong, the sales staff I saw were rare in all parts of the country. They are all smiling and sincere. There's no one who doesn't call you brother or sister. All you have to do is hold the baby and go up and down the stairs with something, and someone will help you right away. In the dirty place selling fruits in the fresh food area, I saw two aunts, one kneeling on the ground with a towel to wipe the floor, the other with a fan to dry it, and they were talking and laughing happily.

I asked, did the boss ask you to kneel on the floor and clean the floor? They refused. Then why? They said it was cleaned like this. The answer is too natural. I asked our employees to do the same, but our employees gritted their teeth. Excuse me, who will kneel on the ground to clean? Family, just wipe your own floor.

I did an experiment all over the country and asked the security guards where I could buy shopping vouchers. Better tell me it's on the eighth floor, almost ask the front desk, and the worst say I don't know.

Let's see what the security guard in Pangdong said. The security guard from Fat East said, Brother, do you want to buy a shopping voucher? After that, I will leave until I reach the front desk on the eighth floor. Say, sister, he wants to buy a shopping voucher. I was asking, but I was moved by the service enthusiasm. I was really embarrassed and finally bought a shopping voucher from 500 yuan.

What's the security guard like in Pangdong? My own family.

So the boss's first priority is to copy people who are as anxious as themselves. Why do people worry? Because it has something to do with him.

Why did Fat Donglai do this? Neither does the president of Dalian Dashang. I asked the general manager of Dalian Dashang what his annual salary was, and he said that it was 280,000, with a maximum income of less than 500,000 a year. I said, guess what the annual salary of the manager from Fat East is? 1 ten thousand! Look at others, vice president and director level-500,000 ~ 800,000; Director, fresh food department, department store department, purchasing department, etc. -300,000 ~ 500,000; The squad leader is responsible for 5-20 people-10-300,000. In other words, dozens of fat people are worried about the salary of the general manager of Dalian Dashang.

Do you know how much a female worker who works as a security guard and a cleaner earns a month? 2200 yuan, three insurances and one gold. This salary is estimated to be rainy in Shanghai and Mao Mao, but it is terrible in southern Henan. The salary of cleaning female workers in Henan is generally 600 ~ 800 yuan, the monthly salary of high-grade residential quarters is 1 100 yuan, and the working hours are 12 hours. A woman worker took 2000 yuan two years ago. What would she think? She must think that I will work hard and never lose my job. When will the employees not leave? When he was working here, how many people lined up to enter the company. Pangdong recruited 50 female workers and signed up for 5000. There is no shortage of labor.

What will the middle and senior cadres from Fat East think? Will they start their own businesses like everyone else? An executive is a multimillionaire within ten years. Fat people from the east are treated as one person, one car and one villa. What do you think he wants? He can enjoy the cool under the big tree. Let's go to Yudong. Department heads and department heads are millionaires in two or three years, and assistant directors are equipped with cars. You will know how the salary is paid.

I summarized a core of salary operation as follows:

A, meet the basic material needs of grass-roots employees, relieve their worries and let them live a decent life, so that they will no longer focus on finding a job and they will feel at ease. This is the peace of mind mechanism.

B, let some people get rich first and turn the core layer into a small boss. Others don't want to leave, so they no longer focus on finding a job, but on starting a business, which will make them feel at ease and worry. This is the worry mechanism.

Pang Donglai stipulates that all middle and senior cadres are only allowed to work 40 hours a week, which is equivalent to working 8 hours a day. The busiest time for commercial enterprises is evenings and weekends, and so are holidays, but it is just the opposite. He also stipulated that he must leave the company at 6 o'clock after work. Anyone who shows up will be fined 5000 yuan. During this period, the mobile phone connection must be turned off once and 200 yuan will be fined. Moreover, our company stipulates that as long as the mobile phone is not turned on for 24 hours and cannot be connected, it will be fined 50 at a time. He also stipulates that he must have dinner with his parents once a week, travel with his family once a month, and take 20 days off every year. Can the boss do it? Better than the boss.

So, that's how wages are paid. Turning employees into small bosses is a core point.

The cost is the lowest when the salary is the highest

Some people say that I understand this truth, and there must be a brave man under the four rewards. It's a pity that I can't afford it. I want to be as rich as Pangdong. I have already opened it, but I have to pay for it as soon as I open it.

I used to think so. The high salary and high cost from Pangdong are too risky, suitable for him and not suitable for others. When Fat Donglai Xinxiang Store opened, I said Donglai must have died very ugly. Results In the first year, it was 400 million, 700 million,1200 million,1700 million. Business is getting better and better and my face is swollen. I was really confused.

Three enterprises, Luoyang, Nanyang and Xinyang, together with Pangdonglai, form four retail chain organizations in China. The bosses of these three companies also want to learn from Yu Donglai, but they dare not integrate with his salary system for fear of losing money. As a result, the gap became wider and wider, and these bosses became impatient, so they discussed with Yu Donglai and said, you have to help me. Dongfang, you can help, but you must promise me two conditions:

1. I will give you a one-year contract for each enterprise. I want to be chairman and general manager, and you all abdicate. Any management rules and regulations I have formulated are not allowed to be changed.

2. If I lose money this year, how much will I lose?

Hearing this, everyone firmly agreed. When Yu Donglai took office, his first stop was Wang Xianzhong Wandelong in Nanyang, Henan. There are 20 stores in Wang Xianzhong, with sales of1.5-200 million and profits of 8 million. Many bosses are in this bottleneck, not waiting for death, but going up to die.

Yu Donglai came, first to get rid of Wang Xianzhong and then to hold a high-level meeting. Everyone is full of expectations. Yu Donglai doesn't want to come in big shorts and a big sweatshirt. The first sentence is that your Lao Wang asked me to give you a raise. Let's see how it rises:

Tally clerk: 700- 1200, up 70%.

Middle-level cadres: 2000-5000, with an increase of 150%.

20 store managers: the annual salary is 5,000-200,000, an increase of 200%.

In addition, Yu Donglai bought a car for each of the 20 store managers with a cheque of 2 million pounds. It is stipulated that, first, as long as he has worked for six years and leaves his job after six years, he can take the car away and leave it in six years. Second, cancel all the fine system of Wandelong. Finally, the meeting was declared closed.

How did the employees feel when they heard the result? They are all crazy. As a result, two people are really crazy. Wang Xianzhong's sister, the CFO, was confused. Seriously, she complains about the East. You seem to be concerned when you do this. You must discuss it with our management team first. I have roughly calculated that this year's loss is100000. When Wang Xianzhong heard that he was crazy, he was speechless for a few minutes. Suddenly, he remembered what Yu Donglai had said, how much he lost and how much he lost. He's rich anyway. Let him throw it.

As a result, the company's sales in that month increased by 40%. You can imagine how powerful the employees are. That year, they did not lose10 million, but earned 6.5438+million. This 6.5438+million yuan is more than last year's 8 million yuan, which not only increased by 2 million yuan, but also showed a positive loss of nearly 20 million yuan. No one expected the result.

Last August, a seminar for presidents of private retail enterprises in China was held in Guangxi. Wang Xianzhong made a speech at the meeting. I now have 23 stores with sales of 800 million yuan. He said that I used to believe in salary increase, but I was dubious. I want to go up, but I'm afraid of losing money. I want to take my time. If I win Yu Donglai in one step, I may lose money immediately. I got a full pay raise this time. When Yu Donglai came, I suddenly got a raise without saying hello. Now look back at how to rise and how to compensate, and look forward to it without losing.

Jack Welch said that the cost is the lowest when the salary is the highest. Why do you say that? Because we only consider accounting costs, not opportunity costs and labor costs.

For example, a store from Fat East has 1 1,000 square meters, 1 1,000 employees, and 1 1,000 kinds of goods with sales of 20 million. If the manager's annual salary is 60,000 yuan, which is a high salary in Nanyang, Henan Province, he will definitely perform his duties seriously, work hard and measure on time, so that the boss can't find faults and the team can take care of the products.

If someone talks to him at this time and gives him 80,000 yuan, he won't be tempted, and he may not leave immediately, because the boss has trained him and treated him well, but he will always find an opportunity in his heart and suddenly say to his boss, don't worry about my poor level, someone will dig me up with 80,000 yuan. The boss said, impossible, nonsense. His heart thumped, you don't understand me. After a long time, he will be discouraged: why doesn't the boss show anything?

If that person opened 65438+ million, his heart must be pounding. He told his boss that he was too tired from work these days, his health was not good, and his children had problems with their studies, so he wanted to have a rest. The boss missed the point and said to have a rest. As a result, he went out at the front door and tried at the back door. After half a month's trial, he may find that this enterprise is no good, and it's useless to go there. He will come back after half a month. May also feel good, resigned after half a month. That's how employees leave. If you drive to 1.2 million, it is estimated that you will say goodbye to your boss on the spot and leave directly.

Now, Yu Donglai gave him 200,000 yuan, and he thought, "What should I do if the boss treats me like this?" . Can people who go all out compare with those who work hard? He will devote himself to studying the needs of this 100 people, how to arouse their enthusiasm, all the sales of 10000 products, the shortage, replenishment and promotion of Class A products, and his position will be different.

The state determines the result. Will his sales become 30 million? Isn't that all the profits of the enterprise? Will he worry about reducing the loss reporting rate of enterprises? If the loss reporting rate is reduced to 2%, all profits will be reduced. Wool is on sheep. So when the salary is the highest, the cost is the lowest.