From knock-off old-man's electric vehicles to industrial giant

Chapter 79 is PUA... He's using PUA!!
"From the perspective of a market economy, the fastest way to make money is to efficiently meet the needs of others."

Consumers will naturally choose the products with the best value for money.

Those who violate this logic will eventually be eliminated by market competition.

That might be a bit of a general statement.

Let me talk about something more practical...

The traditional dealer model typically involves paying manufacturers in advance to "stock up" on vehicles, resulting in enormous inventory pressure.

It's common for 4S stores to go bankrupt due to poor business conditions and stockpiling of inventory.

Our Xingchen Auto authorized dealerships operate on a "production-to-order" model, where the factory produces only after a customer places an order, resulting in virtually no excess inventory and higher capital efficiency.

Without inventory pressure, there is naturally no possibility of bankruptcy due to overstocking.

Speaking of it.

Many smaller distributors' eyes lit up immediately.

Previously, they were in the low-end electric vehicle business or ran repair shops.

To operate a traditional 4S dealership, you need at least several million yuan in capital. At the same time, you also face the risk of having to purchase a large number of vehicles in advance and stockpile inventory for the manufacturer. Even for larger 4S dealerships, which are joint ventures with multiple partners, you can't operate without tens of millions of yuan.

Xingchen Motors' move undoubtedly lowered their entry barrier significantly.

If funds are insufficient, joint ventures with manufacturers can be adopted.

……

"In addition to being more stable and requiring less capital, joining our Xingchen Auto's direct sales channel chain completely changes the profit structure from 'single car sales' to 'long-term revenue sharing'."

The manufacturer's ecosystem and brand status will empower its brand-authorized stores.

The future era will be the era of the internet.

It's an era where traffic is king.

Whether it's clothing, food, housing, or transportation, you can do it all on your phone or app.

Even the car rental industry has evolved to the point where you can order online and have cars picked up and delivered to your door.

So here's the question—why can't you do this when buying or looking at a car?

As long as the brand is successful enough, the distribution channels don't even need to advertise or compete. In the Internet age, all the traffic of people placing orders will automatically be directed to the nearest distribution store.

Dealerships have near-zero customer acquisition costs, allowing them to earn money effortlessly through vehicle deliveries!

...

Behind Xu Yi, a network-like projection diagram appears.

Led by their directly operated stores in Shanghai, the online traffic and inquiries came from all over the city, leaving all the dealers present stunned!

In fact, Xu Yi wasn't bragging.

In the era of the Internet, the "customer acquisition cost" for traditional distributors is simply too high.

In the future, manufacturers' traffic and the proportion of online omni-channel marketing will completely cover this part.

As you can see, when CEO Lei raised his arm at the press conference, stores across the country immediately saw a surge in orders!

The overall internet buzz and customer conversion rate are simply phenomenal!
Let alone franchised distributors, even a salesperson who's just started out and knows absolutely nothing can have their sales figures skyrocket!
In this situation, the franchisee doesn't need to do anything; they just need to make the right choice at the very beginning.

……

"hiss--!!!"

Gasps of shock rose and fell across the scene.

in fact.

Most of the small distributors present did not understand the second half of the speech.

They even had to make do with the traditional 4S store distribution model on short notice.

Moreover, there's the concept of "direct operation hybrid model" that Xu Yi mentioned.

It's somewhat ahead of its time these days.

Damn...

Although I don't fully understand it yet.

But strangely, these words sounded really appealing!

……

Some experienced medium-to-large-sized distributors present stared blankly!
I'm getting a little confused.

"Hiss... What he said makes some sense. From this perspective, the traditional distribution model does have a low efficiency in dissemination and the inventory risk is too high."

"wrong!!"

Wang Zheng quickly shook his head, staring at the stage with a look of astonishment.

It's PUA... He sensed the scent of PUA!

"This kind of pie-in-the-sky promise... is this something a startup car company CEO could come up with??"

Wang Zheng remembered.

I sensed this aura from the big boss on my very first day at the company.

Putting everything else aside, the company's big boss is not only a master at attracting investment, but he's also incredibly adept at manipulating and deceiving employees.

But the difference is.

The company's big boss's manipulative tactics give people a very hypocritical feeling.

At the scene, what Xu Yi talked about was quite accurate, but the concepts were ahead of their time and difficult to realize. Coupled with the "strength and scale" of the startup car company, it was hard to inspire great confidence.

After a while, things started to get a bit conflicted!
in fact.

Sometimes, realizing that you've been given empty promises isn't necessarily a bad thing when it comes to investing in a franchise.

The most terrifying thing is.

Even though you already know it's a pie, and the future is uncertain, it still smells delicious, and you might even want to take a bite.

Wang Zheng currently has this mindset.

Looking at the small distributors on site, they were all secretly pondering and calculating.

A large portion of them have already clearly made their choices.

……

After the dealer conference concluded.

More than half of the participants voted with their actions.

"I never expected that with such stringent conditions, so many people would be willing to join!"

Yu Nian found it unbelievable.

This franchise rights statement was developed through internal discussions.

Most of the senior executives felt that these conditions were a bit too "harsh".

On the one hand, it completely broke the traditional dealer model and cut off too many dealers' interests.

On the other hand, Xingchen Automotive is not large enough and does not have enough strength to require dealers to make such a high degree of cooperation.

In the current automotive industry, besides Tesla, there are several emerging players that also adopt the brand direct sales model.

But they have at least tens of billions burning through their coffers, a level of funding that Xingchen Motors can't match at present.

"Didn't President Xu give them a choice?"

Liang Shouzhou shook his head slightly: "Many small distributors don't actually have enough capital, so they end up choosing the joint venture model with the manufacturer, which is basically just us hiring a highly skilled worker..."

Furthermore, I found Mr. Xu's speech to be extremely persuasive!

Small dealers have their own considerations. Without sufficient investment budget, Xingchen Auto's joint venture store opening model is more feasible and less risky for them.

Large distributors, on the other hand, are more concerned with the returns on their investment and the autonomy they have over their stores.

Under the current traditional system, many distributors have considerable amounts of illicit income.

These controlling terms from Xingchen Motors are cutting into their very lifeline.

and so.

Almost none of the major distributors present made a statement.

But overall, it's already a success that it has attracted so many people!
Mr. Xu's promise is too grand and too perfect.

How can it be so convincing?

Is this a talent? Or a special physique?
……

As the time goes.

Most of the dealers at the scene have left.

On the contrary, there was one person who sat in his seat and didn't move an inch.

After seeing the others off, Xu Yi couldn't help but smile knowingly when he saw the scene inside.

"Mr. Zheng... it seems you're more committed to this partnership than the others?"

Zheng Guozhao stood up and smiled: "President Xu, I, Old Zheng, heard everything from downstairs. They said you were doing P... what A, I think that's pure nonsense!"
A bunch of short-sighted people, missing this opportunity, they'll regret it later.

As one of the earliest partner distributors, their "loyalty" goes without saying!
The key thing is that he listened to everything Mr. Xu said!
Although I didn't understand much of what came after that.

But this doesn't prevent him from making the same correct judgments based on different complex situations!
……

(End of this chapter)