Please analyze the reasons why Xinxiang Fat Donglai’s business is booming? What implications does it have for your work?

Pang Donglai was in Xuchang, Henan, why should we talk about him? Because this boss has the same starting point as us. A child from the countryside entered the society at the age of 16, worked as a migrant worker, built a house, and later started a small business, working with his brother, and then, starting in 1993, he took over from others A 40-square-meter cigarette shop has annual sales of more than 5 billion today.

This person is Yu Donglai. He is about the same age as us and has no special resources or background. He just made it on his own. He can achieve 5 billion, which is the second priority. The key is that in 2008, there was data from the Chinese retail industry that showed that his company ranked first among Chinese private commercial enterprises in terms of human efficiency and evaluation results, that is, average sales or profits calculated per person, and average sales calculated by area. In terms of revenue or profit, it ranks first in China, and all commercial enterprises in China are also among the top ten, including the world-famous brands we know, Wal-Mart, Carrefour, and Lotus. Fat Donglai is extremely well-known in China.

Gu Guojian, director of the Shanghai Chain Store and Franchise Research Institute, and Guo Geping, president of the China Chain Store and Franchise Association, said after visiting Fat Dong Lai: "This is definitely the best store in China." This saying is perfectly normal in Shanghai. . The key is what kind of city is Xuchang? It can only rank fifth in Henan. Zhengzhou, Luoyang, Kaifeng, and Xinxiang are ahead of it. There are also important towns like Nanyang and cities like Xinyang. In Henan, a city with a population of less than 1 million It is evident that there is such a company in the small Xuchang.

Moreover, no matter how well he does business in the local area and which line of business he does, it will be difficult for others. He sells mobile phones, and other mobile phone sellers can't do it; he sells jewelry, and other jewelry manufacturers are shrinking; he sells home appliances, and Gome and Suning can't do it.

Someone said, what’s going on? Are there experts, professional managers, and paratroopers? No, unlike other companies, it hires a large number of foreign airborne troops. Almost all of his eight senior executives are his laid-off colleagues. Only one of them has attended high school. The others are all at junior high school or primary school level. Yu Donglai himself is also at the third grade of primary school.

Some people say that he is familiar with the local people. Yes, to what extent is he familiar with the local people? Whatever he sells, the people will recognize him. When I say this, many people don’t believe it. Dozens of people from Yiwu, Fujian, and Guangxi went to Henan to see it. After they came back, they told me that it was great, even better than what you said.

Later, Fat Dong came and went to Xinxiang to develop. At that time, I thought that since he was familiar with me in Xuchang, he might not be able to go to other places. Xinxiang is also a small city. At that time, there was already a Taiwanese company called Dennis, which ranked first in business in Henan, with sales of more than 10 billion. There is also Century Lianhua, which is also the leading commercial enterprise in China, and there is also a Wal-Mart in preparation. The location that Yu Dongkan was looking for was sandwiched between these three. It was like an ambush from all sides. Everyone who had seen this location suggested that Yu Donglai should be shot. There was not even a parking space. Maybe he was out of his mind. Yu Donglai defied all opinions and opened the business.

In less than a year, the market has undergone tremendous changes. Dennis, the number one brand in Henan, closed down and moved to another location. Later, a good friend told me that before the Chinese New Year, when I entered Dennis, there were almost no customers. The customers were just like salespeople. When I entered Fatonglai, I couldn’t even get in. It seemed like Fat It’s like buying things from the east for free. At that time, I thought, anyone who buys things at Dennis is screwed up, and anyone who doesn’t buy anything at Pandong Lai is screwed up.

Later, someone told me that the Century Lianhua Xinxiang store was closed directly, sold to Fat Donglai, and renamed Fat Donglai Department Store. Walmart has been planning for 6 years, but it has not yet opened.

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

Later, another big company, Dalian Dashang, came and opened two stores one after another. As a result, it was half dead.

In mid-2008, the president of Dalian Dashang said at the Zhengzhou ** Business Enterprise Summit Forum that today I don’t want to talk about Dalian Dashang, but I want to talk about the phenomenon of fat Donglai. In all these years, I have never seen a business as good as Fat Donglai’s. Have you ever seen people queuing up? Have you ever seen a queue of cars? Have you ever seen a queue of electric vehicles? Under the scorching sun, women stood in line pushing their electric scooters for 15 minutes under the sun and holding parasols. One car went out in front and one came in from here. There were no shops within a kilometer, and people lived in this tree. Hang yourself. The same goes for cars. On weekends, entire streets are closed, whether in Xuchang or Xinxiang.

This was the case a few years ago, and it is still the case now. I cannot accept it!

Pangdonglai Corporate Culture

When you enter Pangdonglai, you will see salesmen that are rare in all parts of the country. They are all smiling and speaking from the heart. Brother doesn't call me sister, you just need to hold the child, carry things, go up and down the stairs, and someone will help you immediately. In the dirty fresh fruit section, I saw two aunties, one kneeling on the floor with a towel and wiping the floor, the other with a fan to dry it. The two were talking, laughing and happily.

I just asked, did the boss ask you to kneel on the floor and mop the floor? They replied no. Why? They said it wiped it clean this way. The answer was so natural. I also ask employees to do this in our company, but our employees do it through gritted teeth. May I ask who kneels on the floor to wipe the floor? Family members only do this when they mop their own floors.

I conducted an experiment across the country and asked security guards where to buy shopping coupons. The better ones told me it was on the 8th floor, the worst ones told me to ask the front desk, and the worst ones said they didn’t know.

Let’s see what Fat Donglai’s security guard said. Fat Donglai’s security guard said, brother, do you want to buy a shopping voucher? After saying that, he pulled me away and pulled me to the reception desk on the 8th floor. Said, sister, he wants to buy shopping coupons. I originally asked about it, but I was so impressed by their enthusiasm for service that I felt really embarrassed and ended up buying a 500 yuan shopping voucher.

Who would be like Fat Donglai as a security guard? My own family members.

So, the first priority of a boss is to copy people who worry as much as himself. Why do people worry? Because it has something to do with him.

Why did Fat Donglai do this? The president of Dalian Dashang didn’t understand either. I asked the general manager of Dalian Dashang how much his annual salary was. He said 280,000, and the highest annual salary was less than 500,000. I just said, what do you think the annual salary of Fat Donglai’s store manager is? 1 million! Let’s look at the other people, deputy general and director levels – 500,000 to 800,000; division chief, fresh food department, department store department, purchasing department, etc. – 300,000 to 500,000; section chief, in charge of 5 to 20 people – 10 to 100,000 300,000, in other words, Fat Donglai has dozens of people with the same salary as the general manager of Dalian Dashang to worry about.

Do you know how much the female security and cleaning workers in Fat Donglai earn per month? 2,200 yuan, three insurances and one fund. This salary is probably a drop in the bucket in Shanghai, but it's incredible in Henan. The salary of female cleaning workers in Henan is generally 600 to 800 yuan, and the highest-end community security guards earn a monthly salary of 1,100 yuan, working 12 hours. What would a female worker think when she got 2,000 yuan two years ago? She must have thought, I have to work hard and never lose my job. When do employees not leave? When he was working here, how many people lined up to enter the company. Fat Dong came to recruit 50 female workers and signed up for 5,000. Why was there no labor shortage?

What will Fat Donglai’s middle and high-level cadres think? Will they start a business like others? An executive becomes a multi-millionaire in ten years. Fat Donglai's treatment is a car and a villa for each person. You said what else is he thinking about? It’s nice to enjoy the shade under the big tree. Let’s follow Yu Donglai. The division chiefs and section chiefs below will become millionaires in two or three years, and all the division chief assistants and above are equipped with cars. You know how wages are paid.

I have summarized a core salary operation as follows:

A. Meet the basic material needs of grassroots employees, relieve them of worries, and enable them to live a decent life, so that they will no longer regard If you focus on finding a job, you will feel at ease. This is the peace of mind mechanism

B. Let some people get rich first and turn the core people into small bosses. Others will be reluctant to leave, so they will no longer put their minds to it. If you focus on finding a job or starting a business, you will feel at ease and worry. This is the worry mechanism

Pang Donglai stipulates that all middle and high-level cadres are only allowed to work 40 hours a week, which is equivalent to a day He works eight hours, and the busiest times for commercial enterprises are evenings, weekends, and holidays, but he does the opposite. He also stipulated that people must leave the company at 6 o'clock after get off work. Anyone who shows up will be fined 5,000. During this period, they must turn off their mobile phones and connect them once, and they will be fined 200. However, our company stipulates that as long as the mobile phone is not turned on for 24 hours and cannot be connected, a fine of 50 will be imposed. He also stipulated that he must have dinner with his parents once a week, take his family on a trip once a month, and have 20 days of compulsory leave every year. Can the boss do this? He is simply more boss than the boss.

So, this is how wages are paid. Turning employees into mini-bosses is a core point.

The cost is lowest when the salary is the highest

Some people say this and I understand it. There must be brave men under heavy rewards. Unfortunately, I can't afford the money. I want to be like Fat Dong. As rich as they are, I opened it long ago, but I lost money as soon as I opened it.

I used to think so too. Fat Donglai’s high salary and high cost are too risky, so it suits him but not others. When Fat Donglai’s Xinxiang store opened, I said that Donglai would definitely die in an ugly way. As a result, in the first year of opening, it increased from 400 million to 700 million, 1.2 billion, and 1.7 billion. The business was getting better and better. My face was swollen and I couldn't understand it.

There are three companies in Luoyang, Nanyang, and Xinyang in Henan Province. Together with Fat Donglai, they have formed a four-industry chain organization in China’s retail industry. The bosses of these three companies also want to learn from Yu Donglai, but they dare not follow his wage system. Everyone is afraid of losing money. As a result, the gap became larger and larger. These bosses couldn't calm down, so they discussed with Yu Donglai and said, you have to help me. Donglai said that he can help, but he must agree to two conditions:

1. I will manage each of your companies for one year. I will be the chairman and general manager, and you will all abdicate. No management rules and regulations are allowed to be changed

2. If there is a loss this year, I will pay how much money I lose

After hearing this, everyone firmly agreed. Yu Donglai took office immediately, and his first stop was Wandelong of Wang Xianzhong in Nanyang, Henan. Wang Xianzhong has 20 stores, with sales of 150-200 million and profit of 8 million. Many bosses are at this bottleneck. If they don't develop, they will die. If they go up, they will die.

When Yu Donglai came, he first drove away Wang Xianzhong, and then held a meeting of middle and high-level people. Everyone was full of expectations. They didn’t want Yu Donglai to come wearing big pants and a sweatshirt. The first thing he said was, you old man. The king asked me to give everyone a salary increase. Let’s take a look at the increase:

Tally clerk: 700-1,200, an increase of 70%

Middle-level cadres: 2000-5,000, an increase of 150%

20 Store managers: 5,000 - annual salary of 200,000, an increase of 200%

In addition, Yu Donglai took a check of 2 million and bought a car for each of the 20 store managers. The stipulation is that the first , as long as you have worked for 6 years, you can take the car with you if you leave after 6 years. If you leave within 6 years, you can keep the car. Second, cancel all fine systems in Wandelong. Finally, the meeting was adjourned.

How did the employees feel after hearing this result? They were very excited. The employees went crazy. Two people really went crazy. Wang Xianzhong’s sister, the financial director, was confused at the time. She really complained about Donglai. , you seem to be very caring in doing this, and you have to discuss it with our management team first. I roughly calculated that we will lose 10 million this year. Wang Xianzhong went crazy when he heard that he was speechless for a few minutes. He suddenly remembered what Yu Dong said, no matter how much he loses, he will pay how much. Anyway, he has money, so let him do it.

The result was that the company’s sales increased by 40% that month. Can you imagine how much strength the employees contained? After that year, not only did they not lose 10 million, but they earned 10 million. This 10 million was 8 million higher than last year. Ten thousand, not only an increase of 2 million, but one plus and one minus nearly 20 million. No one expected this result.

In August last year, a seminar for CEOs of private enterprises in China’s retail industry was held in Guangxi. Wang Xianzhong spoke at the meeting. I now have 23 stores with sales of 800 million. He said that I used to be reluctant to raise wages. I believe it, but I am half convinced. I also want to get a raise but I am afraid of losing money. I want to take my time. If I follow Yu Donglai in one step, I might lose money instantly. This time, I will get a full salary increase. When Yu Donglai came, he didn’t say hello. The salary was suddenly raised, and I didn't expect it to be so effective. Looking back now, we will compensate for the gains, but we will not lose if we look forward.

Jack Welch said that costs are lowest when wages are highest. Why do you say that? Because we only consider accounting costs, but not opportunity costs or human costs.

For example, Pang Donglai has a store of 1,000 square meters, 100 employees, 10,000 product varieties, and sales of 20 million. If the store manager has an annual salary of 60,000, which is considered a high salary in Nanyang, Henan, he will definitely recognize it. Fulfill your responsibilities conscientiously, work hard, and meet the quota on time, so that the boss can find no faults, lead the team well, and operate the product well, but will he be very willing in his heart and have plans to start his own business?

If someone negotiates with him at this time and gives him 80,000 yuan, he may not be tempted to leave immediately, because the boss has trained him and is kind to him, but he will be thinking about it. , I will always find an opportunity, and suddenly say to my boss, regardless of my poor skills, someone is poaching me for 80,000 yuan. The boss said, it’s impossible, it’s nonsense. He felt a little thump in his heart, actually you don't understand me. As time goes by, he will also become discouraged: Why does the boss not show any signs of it?

If that person offered 100,000, his heart would definitely be beating wildly. He would tell his boss that he had been working too hard these days, his health was not good, his child had learning problems, and he wanted to take a break. The boss didn't hear the core and said to rest. As a result, he went out the front door and tried it out the back door. After half a month of trial, he may find that the company is not good and it is useless to go there, and then come back half a month later. It’s also possible that you feel good about it and resign after half a month. This is how employees go. If the price reaches 120,000, I would probably say goodbye to the boss on the spot and leave directly.

Now, Yu Donglai offered him 200,000 yuan, and he thought to himself, the boss treats me like this, what else should I think, just run it as my own store. Can a person who goes all out compare with a person who works seriously? He will concentrate on studying the needs of these 100 people, how to mobilize their enthusiasm, he will study all the sales of 10,000 products, and he will study the out-of-stock, replenishment, promotion, etc. of Class A products. His state will be different. .

Status determines the result. Will his sales become 30 million? Isn’t this all the company’s profit? Will he worry about reducing the company's loss report rate? If the loss reporting rate drops to 2%, isn’t it all profit? The wool comes from the sheep. Therefore, costs are lowest when wages are highest