Repeated consumption

I was hungry.

I was eating a bowl of noodles on the north side of the office door. The boss, Lao Li, handed me a cigarette and started to chat with me.

Lao Li said: My business is not doing well, and I am worried! Don't know what to do?

I also like to talk nonsense, so I say: If you want to do a good business, it depends on whether your business can generate repeated consumption. If it can be formed, then you are awesome. If it cannot form repeated consumption, and it even requires you to develop new customers all the time, then such a business is not far from closing down.

Lao Li said: What is repeated consumption?

I said: For example, I only ate your noodles once, and I won’t come back next time. Why? First of all, I waited too long. I have to wait 10 minutes to eat noodles. But I only have to wait 30 seconds at the southern noodle shop. People who come once will not come again the next time, and there will be no repeat customers.

Lao Li: Then why do you often come to eat my noodles?

I laughed and said: Don’t get me wrong, it’s not because your noodles are delicious and your dumplings are not that good either. Just because the Nanbian store is closed at noon, I came to your house to eat noodles just to make up for my lunch. I also played mobile games while waiting for the noodles.

Lao Li took a long puff of cigarette and said: Hey, you are right, but I am also curious, why doesn’t the store in the south open at noon?

I said: Because they can earn you several days’ worth of money in one morning. They only need to earn the money for the morning noodles, and they only sell noodles. In marketing terms, this is called focus. Your store not only sells noodles, fried rice, and dumplings, but that’s all if they are delicious. The key point is that each of them has no characteristics. In terms of marketing, it is called diversified operations at best, or wall-mounting tactics at worst. Sorry, I like to tell the truth, so don't mind.

Lao Li's eyes lit up: Oh, I can't tell, you know a lot about marketing. I haven't asked you yet, what do you do?

I smiled bitterly and said: I understand, I am in business, and I have read a few books on this topic. I also want to have a casual chat with you, haha.

Lao Li: Sometimes I will observe at the door and find that there are not many people entering the house on the south side?

I said: I often eat noodles there in the morning. I have noticed that on average, the southern noodle shop has at least one customer in two minutes in the morning, and 30 customers in an hour, from 6 to 9 in the morning. , there are at least 90 people, the per capita consumption is 7 yuan, and the profit in the morning is 630 yuan, which is small. Easily earn 20,000 yuan a month. The rent is 10,000 yuan per year, and the cost of water, electricity, and raw materials is 50,000 yuan. It is no exaggeration to say that the annual profit should be more than 150,000 yuan.

Lao Li: Haha, how is that possible? I don’t believe it!

I say: There are many things in the world that you don’t know, but just because you haven’t seen them doesn’t mean they don’t exist.

Lao Li: If it is really what you said, do you think my store can do that?

I said: No!

Old Li: Why?

I said: There are many reasons. First of all, the store in the south only sells noodles and only does morning business, so it is more dedicated than you. Secondly, if the whole family works together and works as a team, they can make a bowl of noodles in 30 seconds; if you are alone, the next person can make a bowl of noodles in 10 minutes, and there are so many people that you can’t even serve. There is also a lack of detail and care. I often get hair strands in your noodles.

Lao Li said: It’s not that I don’t want to, but I think this is a small business to pass the time. I also have children in school, so it’s convenient to take care of them. I don’t expect to make much money. I’ll do it after my children graduate. Went out to work.

I said: Haha, in fact, people like to aim high and ignore the opportunities in front of them. For a real businessman, no matter how big or small the business is, the key lies in your attentiveness. If you put your attentiveness into it, your customers will feel it. It’s great to achieve the best in any business. If you do it well, your small shop can still earn 100,000 yuan a year. It’s no better than working. The key is freedom, and the annual rent of your shop is only 8,000 yuan a year. That’s it, the cost is low and it’s easy to eliminate the cost.

Lao Li: What you said makes sense, but to be honest, I actually don’t have that much ambition. After all, I am almost 40 years old.

I say: The difference between the poor and the rich is ambition. Without ambition, you will never succeed in anything you do. If you say you have no ambition, then I guess you are just dawdling around when you go to work!

Lao Li: Then you can help me with this little shop!

I said: Do you want to hear it?

Lao Li said: Tell me, I would like to hear the opinions of marketing experts.

I said: I am not an expert. Even if I am, I am just throwing bricks and edging ideas, because no one can make decisions for you. The master can still lead the apprentice or not.

Lao Li said: Go ahead, I won’t charge you for this bowl of noodles.

I said: Oh, I am flattered.

Lao Li said: Speak quickly. Give me a reference, I also want to transform.

I said: Haha, okay. From an environmental analysis, there are only two of your breakfast restaurants on this road. Speaking of selling noodles, you will definitely not be able to sell the ones opposite, but what if you only sell dumplings? Is it different? Noodles are your weakness. Avoid the real and attack the weak. You can specialize in dumplings and only sell dumplings in the morning! The dumplings must be delicious, and the cooking speed must be guaranteed.

Lao Li: Would it be too monotonous to only sell dumplings?

I said: Wrong, not only will it not be single, but it will be very rich. Dumplings are made with different fillings, and then different fillings are used to make steamed dumplings, fried dumplings, etc. This is called a single-variety product strategy, focusing on your core, becoming stronger, bigger, and more professional.

Lao Li said: You can consider it, what else?

I said: The above is the product strategy, and the product strategy is based on competitors. There is also a promotion strategy. Of course, if your dumplings are delicious, it will form a word-of-mouth effect. With more and more customers, there will be demand for takeout. Give your dumplings a resounding name. Why can't your dumpling shop be called == dumplings? This is called taking advantage of the situation. It is obviously a handmade dumpling, but adding a == name makes it feel high-end. I'm just providing an idea, and you can think about it yourself.

Lao Li: It’s interesting. I’ll consider it.

I said: Think about it when you have nothing to do.