Is the high benefits and high salaries of Wanhu Company actually really high?

No, not.

Because of the inherent profit-making attributes of tens of thousands of households engaged in the industry, unlike other companies' labor costs accounting for three to five percent of the company's total revenue, with tens of thousands of households maintaining a high welfare benchmark, the monthly salary expenditure is still only two percent.

The remaining 98% is used to maintain production, channels and advertising investment, and the remaining small part is used for research and development. Once again, the maintenance of equipment, and finally the payment of employees' wages.

Why is there such a sequence?

Because in terms of the attributes of Wanhu, the importance is sorted in this way.

The most important thing is of course continuous production, because the products produced by tens of thousands of households are mainly mobile phones and electronic games. Both of these are fast-moving consumer goods, and the pressure on inventory is actually not very large.

In addition to stocking up before the new mobile phone is released every year, it is considered a stress test for the entire warehousing and logistics system. In normal times, the entire system management is relatively easy.

Because there is no possibility of unsalable sales in ten thousand households, many times, they are often distributed immediately after they have just been stored in the warehouse.

Wanhu’s games and magazines also implement a policy of turning back.

What is the end-of-stop?

Simply put, dealers can return the products of ten thousand household games and magazines that they cannot buy and return them according to the purchase price.

This is one of the solutions to the worries about retail stores.

Of course, if you implement this strategy, tens of thousands of households will have to spend extra costs.

So where should we deduct this extra cost?

It's very simple to say, the purchase price is relatively high and the retailer's profits are relatively low.

In this way, retailers will also make a choice, they can choose magazines and games that do not end back, so that they will have higher profits, and they can also choose magazines and games that have end back, so that they will have smaller risks.

Relatively speaking, the more popular the publisher of magazines and games, the more he likes it is the strategy of turning the tail.

Why?

Because best-selling means that almost all shipments can be sold.

All shipments can be sold, which means that there is no goods that need to be retracted.

The strategy of closing the tail is itself at the cost of increasing higher shipment prices. Now there is no goods that need to be closing the tail, which means that the publisher's own profits have become higher.

Although the publishers' little thoughts are known to all levels of agents and retailers, retailers have no good solutions.

Why?

The reason is very simple, because the best-selling is because it is easy to sell.

Even if the profits of something that is easy to sell are easier for them to accept.

Because everyone has so many places on shelves, retailers do not think about the profit of single items, but the profit of unit shelves within a unit time.

If you put a magazine with a very high profit per book, you may be able to sell one in a day, but if you put a magazine with a relatively low profit per book, you can sell ten and one hundred in a day.

In this way, of course, choose those that sell better.

Therefore, although the beginning of the new century, especially devices such as Wanhu mobile phones that can read text smoothly on mobile phones are becoming more and more popular.

The survival status of physical magazines can be said to be increasingly worrying.

Magazines like "Weekly Jump" that can sell millions of copies per issue are certainly in the leading position in terms of content.

But many people have a wrong perception, what kind of wrong perception?

They think it is because of the good content and the sales are good.

In fact, this instinct produces the opposite impression.

The fact is that it is because of the good sales and the content.

Because, high sales mean that creators earn higher income on this platform.

Under the same selection conditions, the author will of course choose a platform with higher income.

Therefore, the key to the rise of "Weekly Jump" is not to support creators, but to take the lead in using inferior paper to reduce costs, lower selling prices, and increase distributor profits.

Under their operations, distributors are more willing to sell their products because they have higher profits in single products and are more willing to place Shueisha's products on key shelves.

Of course, the root of all this is that when they started working on this set of things, their content was not particularly behind other companies.

After their efforts, sales quickly increased.

Sales have increased, and the top authors of other magazines have already felt that they have reached the ceiling on this platform because the sales of magazines are so high.

At this time, when they saw that the sales of "Weekly Boy Jump" were several orders of magnitude higher, they would wonder if they would jump to "Weekly Boy Jump" even if they were no longer the number one player, their income would be higher.

In this way, excellent creators gradually gathered in "Weekly Youth Jump", and "Weekly Youth Jump" was precisely because of these top authors that they had a demonstration. A large number of newbies broke in.

A large number of newbies have prompted the establishment of a level of PK physique.

Excellent creators, or those accepted by the market, stand out from the PK.

Because the base of creators who came here is larger, the base of the birth of excellent creators is also larger.

If you use Chinese online novel websites for classification.

The websites located at the top are the three websites: Qidian, Chuangshi, and Zhangyue.

Why are these three websites?

The starting point is that due to historical reasons, it has gathered a large number of excellent creators and has feelings for this platform. Therefore, based on the number of monthly active users of the app, it has a large number of authors.

The QQ bookstore owned by Chuangshi and the own app of Zhangyue.

The reason why it is located at the top is that the number of monthly active users in QQ Book City is close to 50 million, while the number of monthly active users in Zhangyue’s own app exceeds 50 million.

However, for various reasons, the income of the three platforms has not widened too much.

Why?

Why is the application with a monthly active 50 million not as high as the application with a monthly active 2 million?

Because the starting point is 55% share, in addition, there is a reward of 20% of the total sales in the past six months once every six months. Although it is more unscrupulous than the previous starting point, the share ratio is still OK.

However, the other two platforms use the platform to build platforms and websites to build websites. After layers of deductions, the actual income from the authors will not be at most 20% of the total sales.
Chapter completed!