The two people who talked it out actually didn't change much and still maintained their previous busy lives.
Needless to say, Yue Chengyu has never had a moment of rest. Ye Han is now studying the transformation of the shop and is also very busy.
At this moment, Ye Han was inspecting a clothing store. This store was one of the unprofitable stores mentioned earlier.
Ye Han had been to every clothing store in Beijing since he left home that morning, checking out every high-end or low-end store. By the time he arrived at his own store, it was already afternoon.
When the shopkeeper saw Ye Han come in, he quickly brought up the tea and snacks that he had prepared in advance.
Ye Han saw the snacks and ate a piece to fill his stomach. After walking around, Ye Han had gloriously missed lunch. So far, he had only had a little breakfast in the morning and was already starving.
After finishing a piece of dessert, Ye Han finally spoke, "Shopkeeper Sun, you already know the purpose of my visit. We discussed the transformation of this shop a few days ago. What are your thoughts, Shopkeeper Sun?"
"Princess, I've been thinking about this for the past two days and have inquired about other shops. However, I'm a fool and feel that our shop isn't any worse than others. Furthermore, we have better resources and better fabrics than others."
After Manager Sun finished speaking, his palms were sweaty with nervousness. When he first met Ye Han, he thought Ye Han was young and easy to talk to. He thought he would be a little sheep, and even if he had some tricks, he would not be that experienced and would be easy to control.
As a result, Ye Han used thundering means to replace several shopkeepers who tried to cause trouble, and the prince did not care about it. From then on, all the shopkeepers put away their little thoughts.
After a period of contact, everyone understood that this was no little white rabbit, but a thousand-year-old fox. His skills and insights were no worse than the prince's. The only difference was his temper. But when it came time to deal with someone, he was ruthless.
Shopkeeper Sun waited anxiously for Ye Han to speak, and Ye Han also noticed the nervousness of Shopkeeper Sun. He slowly finished the snack in his hand and then spoke.
"Don't be nervous, Shopkeeper Sun. You've done a pretty good job. If you can't find the problem, let's look for it together. Please sit down."
After hearing what Ye Han said, Shopkeeper Sun sweated even more. He was a little confused about what Ye Han meant. He pretended to be calm and replied, "Thank you for your consideration, Princess. I think standing is fine."
Ye Han looked at the trembling Shopkeeper Sun and began to reflect in his heart, "I thought I was acting quite amiable just now, how could I have scared him like this?"
Finally, Ye Han said helplessly, "No, Shopkeeper Sun, it's you who's standing while I need to look up to talk, which is quite tiring. Also, you're the elder and have worked in the palace for so many years, so let's just call ourselves me in private."
Shopkeeper Sun heaved a sigh of relief after hearing this. It seemed that the princess had no intention of blaming him. "Thank you, Princess."
Shopkeeper Sun was also very tactful and immediately sat on a chair nearby.
Ye Han watched the people sit down and began to talk business, "Shopkeeper Sun, you are right. Our shop is backed by the Rui Palace, so we have good resources. This is our advantage.
Looking at the account books, we can see that most of the shop's revenue comes from selling fabrics, while the ready-made clothes business is always in the red, only barely breaking even at times. Has Shopkeeper Sun ever considered why?"
"Please enlighten me, Princess." Shopkeeper Sun thought for a while and felt that he seemed to have thought of something vaguely, but he couldn't grasp it.
“I can’t say I’m giving you any advice, but I’ve discovered an interesting phenomenon through my observations over this period of time.
Shopkeeper Sun, our ready-made clothes are made of good fabrics, and the embroiderers we hired are the best on the market.
This results in our garments having higher costs than other stores, which means they are more expensive.”
"But our clothes are worth the money."
"Yes, it's good value for money, but all the costs combined mean our clothes are unaffordable for the vast majority of people."
"The only one who can afford our clothes is..." Ye Han stopped here and looked at Shopkeeper Sun.
After hearing Ye Han's suggestion, Shopkeeper Sun finally understood and said, "Princess, I understand now. Only a few wealthy families can afford the clothes in our shop.
However, large families have their own tailors and embroiderers, and rarely buy ready-made clothes from outside, but only buy fabrics."
Ye Han smiled when he heard this and said, "Yes, there is something wrong with our shop's positioning of target customers."
"Then how does the princess plan to change it?"
"I still want to hear what Shopkeeper Sun thinks."
"Based on the current problems, we can either lower the quality of our clothing and make it more accessible to the general public, or find a way to attract members of wealthy families to buy our clothing. Or we can give up the clothing business altogether."
"Does Shopkeeper Sun want to give up the clothing business?"
"No, the profit from ready-made clothes is much higher than simply selling fabrics."
Ye Han nodded. "Yes, the profit margin of ready-made clothes is very high, and I can't bear to give up this piece of fat meat for nothing."
"The only two options left are to lower the cost of ready-made clothes or to attract people who can afford them to buy them."
Ye Han nodded and motioned for Manager Sun to continue.
"Princess, I don't think the first path will work."
"Oh? Why?"
"This... I can't tell the reason, I just instinctively feel that reducing costs is not a good idea." Shopkeeper Sun was telling the truth. He just instinctively felt that this was not a good idea. As for the reason, he really couldn't explain it.
"Shopkeeper Sun is indeed very experienced. Cutting costs and focusing on the low-end market is truly self-destructive."
"Please enlighten me, Princess." Although it was the first time that Shopkeeper Sun heard the term low-end market, it did not prevent him from understanding the meaning of this sentence. Therefore, after connecting the two, he understood the meaning of this low-end market.
"Let's not even talk about whether we can compete with the stores that have been operating in the low-end market for several years or even more than ten years.
Our fabrics, for example, are all high-quality. If we focus on the low-end market, not only would we waste our resources, but we would also lower the image of our fabrics among our existing customer base.
Over time, the ready-to-wear market may not be able to take off in the low-end market, and we may even lose our original customer base.”
Shopkeeper Sun nodded in sudden realization and looked at Ye Han with admiration.
"Yes, that's exactly what's going on. After all, if the first thing that comes to mind when people think of a shop is low-end products, then no matter how good your products are, people of status and position may never set foot in your shop again. While I can't say you'll lose everything, you'll definitely lose some, or even most." Shopkeeper Sun had been managing the shop for many years, and after Ye Han finished speaking, he immediately realized the key point.
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