March 15, 2009, 10:08 am.

Witnessed by many personnel from the Municipal Investment Promotion Bureau, Tengfei Industrial Zone, Municipal Propaganda Department, groups related to the home furnishing industry, decoration companies, etc.

Haishi, Fenghuang District, Tengfei Industrial Zone, Qiong Province Xinghui Home Furnishing Industrial Park, officially opened!

The opening ceremony was held in the open space outside the Home Furnishing Industrial Park.

At the ceremony, Ji Weiwei, as a corporate legal person, took the lead to speak and elaborated on Xinghui Home’s business philosophy, vision, and social responsibilities.

Then Cai Tianming, general manager of Xinghui Home Furnishings, spoke.

From an information perspective, he elaborated on Xinghui Home's concept of using digitalization, informationization, and intelligence to develop business layout.

All kinds of noble words, a combination of Chinese and English, popped out of his mouth.

It makes people listen to it in a foggy way, and they don't know how powerful it is.

Finally, Fang Zhengxin, deputy secretary of Tengfei Industrial Zone, spoke. She fully affirmed Xinghui Speed ​​from the perspective of the industrial zone.

It also stated that the industrial zone will fully cooperate with Xinghui Home Furnishing to provide various effective and timely administrative work.

Then, everyone cut the ribbon and set off firecrackers. The masters all performed their duties and started the machine together.

The entire Xinghui Home began to roar.

As the first general manager, Cai Tianming took everyone to visit various facilities of Xinghui Home Furnishing.

Including the layout and facilities in the home production workshop, countertop production workshop, smart warehouse, delivery platform, information main building, management main building, and business main building.

Everyone lingered in the 2,000-square-meter home furnishing showroom of Xinghui Home Furnishings.

among these visiting crowds.

Many new faces looked at each other.

After the thank-you dinner at noon, they couldn't wait to return to the conference room in the main commercial building of Xinghui Home Furnishings.

14:00 pm.

Wei Zhijie appeared in the conference room with a smile on his face and looked at the thirty or so people in the conference room.

He sat in the chairman's seat and said: "First of all, thank you for coming to attend the opening ceremony of Xinghui Home. Three days ago, I sent you an invitation and opened an account on the Xinghui Home service platform for you."

"In the letter on the site, we have clearly explained the business model of Xinghui Home Furnishing to you, and we invite you to attend the opening ceremony today."

"On the one hand, it is to visit the completion of the home furnishing industrial park, and on the other hand, it is also to show the strength of Xinghui Home Furnishing."

“It invites everyone to join Xinghui Home’s business strategy.”

As Wei Zhijie spoke, he observed the expressions of everyone in the venue. In this venue, almost all the leading decoration companies in the province gathered.

For example, Mingjiang, Huaxun, Weibo, Daqian, Xinfeng Decoration, etc. are all well-known nationwide chain decoration companies.

Plus some regional brands.

It can be said that in their hands, they account for almost 80% of the decoration share.

After Wei Zhijie finished speaking, he indicated that everyone could ask questions.

Liu Xiong, general manager of Mingjiang Decoration Qiong Province Branch, was the first to ask: "Mr. Wei, your company stated in the letter on the site that you will be committed to providing customized home services for decoration companies. I want to know what your advantages are."

Wei Zhijie nodded and replied: "The decoration company currently provides three types of customized home services to the owners."

"The first is to arrange for carpenters to build cabinets on site. These carpenters can be trained by your company itself, or they can cooperate with masters outside the company. The two parties agree on a price to earn the difference."

"The second type is cross-industry alliances, such as cooperating with brand home stores such as Yapai Home Furnishing, Soya Home Furnishing, Pinshang Home Furnishing, etc., to package and provide owners with a full set of home furnishing services."

"The third method is for you to bring the order to the brand home furnishing store. After the owner purchases, you will draw the corresponding rebate points."

"Of these three ways."

"The first type occupies 70% of the business formats, and the second and third types each occupy 15%."

"In the first type of business, except for high-end properties such as villas and large flats, which require solid wood products, the remaining 80% are panel products."

"It can be said that it accounts for most of the decoration company's on-site cabinet making business."

"Everyone knows that when making cabinets on site, except for solid wood cabinets that are painted, there is no way to seal the edges of board-type products."

"In order to take over the business, many cabinets use solid wood toothed boards as the cabinet body, and the panel cabinet door is nailed with a ring of aluminum alloy as the edge."

"I believe the boss sitting here also knows how the product will look after it is completed."

After Wei Zhijie finished speaking, he looked at the many bosses in the conference room, and their expressions were indeed ugly.

Wei Zhijie gave everyone a moment to digest, and he continued: "The second type of cross-industry alliance, from the perspective of the decoration company, is actually a helplessness, which is equivalent to the decoration company coming forward to help the owners get better prices.

.”

"From a profit perspective, decoration companies do not gain much profit. Instead, they need to endorse various stores in cross-industry alliances."

"And your starting point is just to help owners reduce overall costs and improve your competitiveness in order taking."

"From the perspective of profit, there is no third convenience. First of all, the third way is to bring the order. The store can increase the price first, pretend that you bring it over and get a discount, and then give you a commission."

"To sum up, among these three types of business, except for the first type of carpentry master, the profits you can get from other methods are limited."

"In other words, the bulk of the profits have nothing to do with you."

"The model of Xinghui Home Furnishing is to provide you with full-process services from precision, design, order signing, order disassembly, production, distribution, installation and after-sales."

"And our prices are cost prices, and our goal is just for the factory's production capacity."

After hearing what Wei Zhijie said, many owners of decoration companies looked at each other, and some of them still didn't know why.

Wei Zhijie smiled again and said: "To put it in layman's terms, I would like to ask you a question. Household products with solid wood multi-layer boards are priced according to projection. How much is the sales price in brand stores, and how much is the settlement price given to you?"

The boss of a decoration company loudly said: "The market sales price of solid wood multi-layer board home products is 1,680 yuan per projection area, and the settlement price is about 1,480 yuan."

Wei Zhijie nodded and said: "It's about 200 yuan in profit per projection area, or rebates, right? Let's count 11 points."

"Then let me ask again, if you open the cabinets on site, how much is your sales price and how much money can you make?"

Another boss said: "At a price of approximately 1,480 yuan per projection area, the total budget can make a profit of 300 yuan per projection area."

Other bosses also agreed. We are all in the same industry, and there is nothing to keep the price secret.

Wei Zhijie glanced at the many bosses and said straight to the point: "Xinghui, no matter how much you sell at the terminal, the all-inclusive service price for you is 980 yuan per projection area, which includes what I mentioned above including design, transaction, and order placement.

, including production, including delivery, including installation, and after-sales service.”

"Wucao, real or fake."

"No, then what does Xinghui Home Furnishing earn?"

“It’s not about providing fake and shoddy products, right?”

"That's right, that's right."

Looking at the uncontrollable discussion below, Wei Zhijie smiled slightly and waited for everyone to calm down.

He said: "In order to deepen everyone's mutual trust, I will tell you all the costs today so that everyone can clearly understand where Xinghui's profits come from."

"First of all, the cost of household products in terminal stores consists of the ex-factory price of the product, design, transportation, and installation."

"The cost of installation is different in various counties and cities. For example, in Hai City, it is about 80 yuan per square meter, excluding the installation of drawers, accessories, baskets, and hardware accessories."

"From the perspective of a whole-house package, converted into a projected area of ​​100 yuan, everyone agrees with this, right?"

Many of the bosses below nodded. They purchased some solid wood products from OEMs in Guangdong Province and brought them back for installation. They knew the installation costs.

"For transportation from the factory to the site, if a whole house is in Haishi, a 7-meter truck is needed, and the amortization is about 30 yuan per projection."

"Unloading and transporting goods to the room costs 30 yuan per projection if there is an elevator. If there is no elevator, going up to the 5th floor costs at least 50 yuan per projection."

"According to industry standards, the dismantling price is 20 yuan per projection, and the design is calculated at 50 yuan."

"In this way, the average installation cost is 100 yuan, the average delivery cost is 30 yuan, the average handling cost is 40 yuan, the disassembly order is 20 yuan, and the design is 50 yuan, a total of 240 yuan."

"The tax is 13 points, if calculated as 7 points, 980 yuan is 68.6 yuan."

"So, 240 yuan 68.6 yuan = 308.6 yuan."

"The total package price is 980 yuan - 308.6 yuan = 671.4 yuan."

"Among household products, there are 6 door hinges per projected area. Because the sea salt level in the air in Qiong Province is very high, high-quality door hinges are priced at 8 yuan each, which is equal to 48 yuan. Three handles are also priced at 8 yuan.

Calculated, it’s equal to 24 yuan.”

"671.4 yuan minus 72 yuan, even if one projection area is 600 yuan, and for home products, one projection area is calculated as 4.2 according to the expansion coefficient."

"600 yuan divided by 4.2 equals 142.85 yuan, an expanded area."

Having said this, Wei Zhijie paused and asked everyone to digest the data, after seeing many bosses nodding.

He continued: "Currently on the market, the ex-factory price of branded multi-layer boards in small workshops is 148 yuan per expanded area."

"Xinghui Home Furnishing has the advantage of cluster production. Our raw materials and production costs are lower than those of small workshops."

"Moreover, we have made presets for the product."

When Wei Zhijie said this, many bosses frowned, because the product preset means that the selection is very low, and customers may not be satisfied.

Wei Zhijie seemed to know what the bosses were thinking. He turned on his computer and projected the screen onto the screen.
To be continued...