Chapter 652: Extra 4: Concentration and Decentralization

In the afternoon, a man arrived and, after sitting down, introduced himself as the owner of a car dealership. He was a man in his thirties, with the surname Ding.

It's just a recent entry into this business. It currently sells SAIC's Feifan series of new energy vehicles. Feifan's first flagship model, the R7, wasn't released until 2020.

I nodded, took out a cigarette, smoked it, and said with a smile:

"Forgive me, I'm a mouthworker. Just spitting out isn't enough; I need to inhale some energy. Cigarettes can refresh me."

He smiled and said, "It's okay."

I said, "If you have any questions, just speak up."

He said, "Because this is a new variety, not many people know about it. I would like to ask you for advice on how to promote the brand well."

I said: "The prices of new energy vehicles are fixed, there is no room for negotiation.

Therefore, large price discounts are not your advantage."

He stared at me and said, "Teacher Wan, what industries do you know?"

I laughed and said, "There's no other way in my line of work. I force myself to learn. If you were selling a car and I couldn't guide you, wouldn't the two thousand yuan consulting fee be wasted?"

He smiled and said, "You say."

I analyzed, "In modern society, the division of labor is becoming increasingly specialized. In the past, when it came to fuel-powered vehicles, automakers had engine R&D departments and different gearbox models."

Now, when making new energy vehicles, different companies all use batteries from CATL. Other safety systems, audio control systems, and electronic control systems basically have components provided by upstream companies.

Therefore, your prices are relatively transparent, and price wars are unlikely. It's not the case that products are cheaper in your store and more expensive in others.

At the same time, whether it's Musk's cars from foreign brands or the Li Auto series, BYD, Zhiji series, and so on, the prices are quite transparent. This is the characteristic of new energy vehicles."

Boss Ding nodded quickly: "Teacher Wan really understands the new energy series."

I said, "Don't give me any compliments. Do you have any thoughts of your own?"

He said: "I am going to donate a few bikes to the Upstate Off-Road Biking Association and sponsor them to hold an off-road race."

I shook my head: "This is called spending a lot of money to do small things."

"Why?"

"Off-road vehicle racing isn't a popular sport. Those who care can pay attention. For those who don't, it's none of their business if you're racing enthusiastically."

Boss Ding smiled awkwardly.

I said, "I understand what you mean. It proves that your car has good sports performance and a high safety factor. However, most people don't buy a car to participate in any competitions."

He wants to see it in person, sit down with you, and listen to you explain the various performance and parameters. He is concerned about the price-performance ratio.

So, don't do any advertising, just rent an area in a few major supermarkets upstate, put a few sample cars in the mall."

"Put it in the mall?"

"Yes, absolutely. A large supermarket has at least 10,000 customers a day. They know there's a car dealership in the mall, so they come over to take a look.

Not everyone is a buyer, but it is the best place to advertise.

People come to look, touch, and sit on it. It's much better than advertising on TV or in newspapers or holding an off-road vehicle race.

First, if you don't want to buy a car, just look at it. If you want to buy a car, you should touch it and sit in it. Take a look today, then come back to the supermarket in a few days to take another look.

Because you put the cars in your store, only people who want to buy cars will come in. At the same time, there are many car dealerships, but they may not necessarily come to your store.

Put it on display in the mall so everyone can see it. They don’t have to go to your store specifically to see it, they can just look at it by chance. This is called actively getting close to consumers.

Consumers are also happy about it. They have to go to the supermarket anyway, and while they're there, they can look at the cars and experience them.

At this point, you can send him a business card and add him on WeChat. If he really wants to buy the car, he can go to your store to test drive it.

At the same time, large shopping malls and supermarkets will also welcome you because new energy vehicles do not require refueling, which is a terrible factor in fire hazards.

Secondly, if the car is parked for a long time, there will be no oil stains on the ground. Because refueling will inevitably stain the ground.

Third, there is no exhaust gas, so it won’t pollute the environment.”

Boss Ding clapped his hands and said, "That's a good idea. I don't need to advertise anymore."

"Yes, go and try it."

After paying two thousand yuan and saving a lot of advertising fees, he left happily.

Now if you go to a big shopping mall and see cars displayed there, don’t be surprised. This is the marketing method now and for some time to come.

In other words, I would like to take this opportunity to talk to you about intensification and decentralization.

The so-called concentration means that many things are concentrated in one direction, especially in big cities. For example, shopping malls now sell more than just traditional goods.

The mall has restaurants and a variety of them. You can shop for a while and then eat afterward.

Cars are also displayed in shopping malls. Although they are not sold directly there, they serve as the best publicity window.

As I've written before, building a shopping mall underneath a hospital is also a form of intensive development, linking two completely unrelated industries.

This is because all sales are done in person. Where there are many people, that is the best place for you to sell and promote.

What is decentralization? Decentralization means taking things to the extreme. It is a manifestation of the increasingly specialized division of labor in society.

For example, in the current automobile industry, the main factory is mainly responsible for final assembly and synthesis, and it distributes various sub-projects to upstream companies.

Upstream companies then specialize in one area. For example, CATL specializes in batteries, taking them to extremes. Its batteries are used by every new energy vehicle manufacturer.

This is the concrete manifestation of dispersion.

The same is true for entrepreneurs in general. You can't just open a restaurant because others do, or a teahouse because others do. That won't work.

You have to strive to achieve perfection in a certain content in order to make money. Therefore, you can make a lot of money by focusing on small businesses.

For example, lock picking. You can open any lock with just one finger. Others are unemployed and you are too busy to handle it.

The social division of labor will only become more and more detailed, and people's small needs will be discovered in the vast market. As a song goes, one plus ten, ten plus a hundred, a hundred plus thousands and millions.

Capital will concentrate in large areas, while focus will disperse in small areas. The more concentrated, the more dispersed. This is the inevitable direction of the development of social division of labor.