[Young man selling crabs] Selling crabs by car scam

Crabs are "ripe" for half a year, so from the Lantern Festival to early September, the turnover of crab dealers is basically zero. The store is idle while waiting for crabs, but Hu Haiping said that when preparations begin for the Mid-Autumn Festival sales peak in August, the employees will come back, because the half salary during vacation will not be repaid until the Mid-Autumn Festival eve until the Lantern Festival.

Hu Haiping’s experience comes from Shanghai Xieduhui Aquatic Products Co., Ltd. (hereinafter referred to as Xieduhui), and he is the co-founder of the company. Hu Haiping claimed that relying on the "publicity" of Metropolis Daily, Xieduhui has become China's largest crab dealer, with more than 200 franchised stores located in more than 100 cities, and the company's turnover in 2012 will reach 150 million yuan.

Hu Haiping has an unattractive appearance, a medium build, and a dark complexion. “They are all farmers, coming from the countryside in their hometown in Jiangxi,” this is how colleagues described the founder of Xieduhui. This young man was born in 1986. He graduated from junior high school and scored 168 points in the high school entrance examination. Most of his classmates work in leather factories, shoe factories, glasses factories, etc. along the southeast coast of China. Now, he is driving a BMW 730 to take reporters to visit the Royal Territory Waters of another company owned by him.

Follow his uncle in business

It was his uncle Xu Nengzong, who was 11 years older than him, who led Hu Haiping into the crab distribution industry. In 2004, after Xu lost money on a small business in Guangdong, he planned to go to Harbin to sell crabs. He called Hu Haiping and asked him to help him sell "Learn to Do Business" to seafood hotels.

Hu Haiping considers himself a "weak person", but he has had "a special urge to change his destiny" since he was 18 years old. In 2004, the year when he followed his uncle into the business world, Napoleon Hill entered Hu Haiping's world. He didn't know where he got a copy of "The Law of Success": Your efforts must be greater than your rewards, and you can change your destiny through struggle. The cases in the book shocked Hu and made him yearn for it.

Previously, he worked in Shanghai for more than 3 years. Most of the time he worked in a restaurant called Memory (Transliteration of Memory) in Yangpu District, Shanghai. His daily work included taking care of the salinity, temperature, and water content of the fish tank. Cleanliness, monthly salary is close to 1,000 yuan. He thought at the time, "When can I get a salary of 3,000 yuan, how happy will it be?"

Hu Haiping, Xu Nengzong and Crab live in a 26-square-meter rental house in Harbin and do door-to-door sales during the day. They obviously won't meet the person in charge of the hotel in one visit, and they won't close the sale in one meeting. These are actions that make Hu Haiping timid. He was previously in a closed environment and rarely communicated with others.

Hu Haiping asked two salesmen for help. One is Chen Anzhi, with one arm raised and his index finger raised to the sky, wearing a red suit. Chen is called "the world's number one salesman" by Anthony Robin, the "world's potential master"; the other is American Joe Girard , this one is "the greatest salesman in the world." They gave Hu chicken blood, and Hu recalled, "It made your blood boil..."

From 2004 to 2005, Xu Nengzong earned about 200,000 yuan, while Hu only received a few thousand yuan in salary, but he had the idea of ??selling Crab experience: The market is in remote areas of China; you have to find the person in charge of the hotel to promote it and allow the hotel to give it credit for trial sales; you have to promote the nutritional value of Yangcheng Lake hairy crabs.

Find cooperation with a local metropolitan newspaper

Hu Haiping felt that the time had come to go it alone. But the local underworld gave him a disincentive. After several threats and punches, they told Hu that all seafood requires a protection fee of ten yuan per box. This is tradition. Hu once thought of quitting. At this time, Hu's cousin Huang Shengyu called to share his joy.

Huang was the first among Hu’s relatives to sell crabs. He went to a city in Northeast China in 2003, but his profits were always meager. In 2005, after being prompted by a vice president of a local evening newspaper who loved crabs, Huang donated crabs to the newspaper to cover advertising costs, and the newspaper published a report about his crab shop during the festival. Hu recounted what his cousin saw, "Wow, so many people suddenly appeared in line to buy hairy crabs, and even one purchase cost five or six hundred pounds. The hotel had to pay on credit, but now it's all cash."

When his colleagues were either targeting hotels or staying at the aquatic products market, Hu Haiping's heart was moved. In 2006, he borrowed tens of thousands of yuan from his grandmother and went to Nanning.

He took the newspaper faxed by Huang Shengyu, pointed to the article on it and told the local newspaper, "I am going to invest 100,000 yuan in advertising. Can you plan it?" Then the newspaper appeared, "The first Yangcheng Lake hairy crab specialty store is here!" information.

This year, Hu Haiping earned 300,000 yuan. You can’t be wrong, you can sell crabs by cooperating with a local urban newspaper. "About 30% of our sales revenue is given to the media," Hu Haiping said. On the eve of the Mid-Autumn Festival, their advertising will be overwhelming. "In 2011, specialty stores across the country spent about 30 million in advertising fees in one day."

The spine of the book "Principles of Success Learning" was about to be torn by him, and the two "world's best salesmen" also had their ebb. When he opened a specialty store in Nanning, he found that he no longer needed door-to-door sales, "advertising and marketing capabilities were important." Hu Haiping thought of Li Jian, chairman of Action Success International Education Group (hereinafter referred to as Action Success). He had seen Li's CD "Be Who You Want" in Northeast China, and also knew that Li Jian was once the president of TOM Outdoor Media Group. In 2006, Hu Haiping heard Li's story again and again in airport videos and pirated CDs in Computer City. For example, regarding advertising, "Who should you say it to, target customers; what should you say, selling points; when and where should you say it, your delivery time; how to say it, and what form your creative expression should take; how to write it, and evaluate whether the advertisement is effective."

Hu Haiping recalled his reaction: "This man is really awesome. He summed it up." Hu said to Huang Shengyu, "Cousin, should we visit Li Jian together?" It was exactly what he wanted. An article on the Internet titled "Details Improve Quality, Learning Achieves Business - A Note on Huang Shengyu, Manager of Xiedu Summary" stated that Li Jian's CD "Be Who You Want to Be" has already become "a turning point in Huang Shengyu's life".

In 2007, when the influx of relatives and franchisees was about to begin, Huang and Hu drove from their hometown in Le'an County, Fuzhou, Jiangxi to Shanghai. They told Action Success about their confusion: How to run a big business? The Yangcheng Lake hairy crab production is scarce and we cannot sell fake crabs. What should we do? The learning consultant of Action Success said, "Teacher Li Jian's "Profit Model" can be solved once you listen to it. I recommend you to take the class."

Abandoning "Success Learning"

About 200 of Hu and Huang's relatives, friends, relatives, and friends of friends heard that the crab business was profitable and joined them one after another. , expanding nationwide.

As the number of relatives and friends joining gradually increased, Hu Haiping, Xu Nengzong, and Huang Shengyu, three self-employed individuals with sales incomes of millions each, felt the need to unify management and procurement and establish a commercial brand. In 2008, Xeduhui was registered in Shanghai, and the three of them were the major shareholders.

The cost of a crab shop is not high, and the net profit margin is about 30%. According to Hu Haiping, find a place with cheap rent in second- and third-tier cities and rent a store of 50 to 80 square meters. Usually, only one or two employees are hired, and each employee earns a monthly salary of about 2,000 yuan. Sales during the Mid-Autumn Festival can account for about 70% of the whole year, so temporary workers are hired to tie crabs. A male crab of about 4 taels costs 100 yuan during the Mid-Autumn Festival.

The crab business is not short of cash flow either. "Suppose 1,000 kilograms of crabs are worth RMB 100,000. We sell crabs worth RMB 100,000 before buying them. The goods worth RMB 100,000 may disappear in one day during the peak season. With 100 turnovers, the turnover will be RMB 10 million, and the purchase cost is always 100,000." Nonsense.

During the development of the company, Hu Haiping and his colleagues made decisions that they still regret. "At that time, many markets had just been developed and were losing money. The Shanghai branch of Xieduhui lost more than 1 million in the first year. The three of us realized that Shanghai was not going to work anymore, so we should leave the new market to our relatives instead of operating it directly. Or holding a holding, let’s go back and build our own private land. As a result, there are now 30 or 40 people in the headquarters, and there are more than 30 people in the purchasing department, which is actually delivering goods to franchisees. ”

“Franchises are equivalent to. The city’s permanent general agent, the headquarters allows him to carry the Xieduhui brand without charging fees, and he also teaches him how to make money almost steadily.” Hu said that Xieduhui’s sales have grown by about 40% year-on-year in recent years. "But the headquarters does not make money every year. In 2011, the headquarters' turnover was about 80 million yuan, and the net profit was less than 3 million yuan."

"Our original intention is to help these people get rich. They are all relatives. If someone doesn't have money to buy crabs when he starts, we will even give him the money he owes," Hu Haiping comforted himself.

Today, Hu Haiping is laughing while flipping through his notes from back then, such as "Five Golden Values ??for Successful Actions". “It was only after the class that we had the concept of branding and the idea of ??establishing Xieduhui. In 2008, we discussed setting up a company during class. I sometimes followed Li Jian’s advertising teachings to negotiate with metropolitan newspapers. He said, "They will give you a basic understanding of many things, but what we learned was one-sided. Why did the organization end up like this? We learned it wrongly and did not look at the overall situation." , the most important thing in business management is marketing. What a person who only knows marketing can do is hype, but not other things." In 2011, Hu Haiping completed the successful "teaching organization model". After taking the course, I discovered that the content came entirely from the book "Built to Last". "Moreover, the teacher didn't understand it thoroughly. It was all superficial things, and he was screaming." Hu Haiping's wife, Zhang Song, said.

Hu Haiping has since “abandoned the study of success.” But this experience gave them at least one gain: in 2008, the two met in a class where Action was successful.

Later, Hu Haiping found a copy of "Master Figures: Practical Cases of Original Ecological Business in China". This book confirmed what he had heard before that "Wang Mingfu (the founder of Hejun Consulting) is a very powerful person." Hejun Consulting’s training courses were already quite famous among grassroots entrepreneurs. He decided to take the courses and recommended Wang Mingfu to his uncle and cousin. But his cousin recommended Sibada to him.

Hu and his cousin Huang Shengyu participated in the "Operation Wisdom" course delivered by Liu Yimiao, founder of Sibada, at the Guangzhou Sports Center in May 2011. Liu told "more than 10,000 students": "The shareholding reform is the most important. Why has China succeeded in reform and opening up? Because everyone is helping themselves."

There is Huang’s avatar in the case of Sibada’s official website. This is a middle-aged man who is starting to go bald, holding a crab and grinning at the camera. On this website, Huang Shengyu claims to have understood Liu Yimiao's core idea - "All problems in the company are problems of the mechanism", and he is "planning an equity incentive plan based on the original performance incentives."

"He really implemented a shareholding reform." Hu Haiping said that Huang Shengyu invested millions of yuan in the pig farm business, while Huang's wife and uncle provided manpower and land, with each party holding half of the shares. Hu felt that his cousin was basically giving away money and seemed to be deceived by "options instead of management".

Hu analyzed Liu Yimiao: "The core is to know how to divide money. This is correct, but it is too one-sided. So many people are talking about this trick, and I think most of it is inappropriate. He accepted I’ve paid you to teach everyone a skill that I haven’t practiced myself. What will happen if people use it after they hear it?”

“A first-class company in the aquatic products industry”

Competition is intensifying, and e-commerce has entered the crab industry as a substitute for traditional business formats. Not to mention the pace of offline dealers selling "high-end" crabs, in the mid- to low-end markets, there are also many farmers and dealers who go to Taobao to sell crabs. Hu estimates that the annual turnover of some Taobao crab sellers has reached 10 million yuan due to price competition. He also tried to sell at a discount in Taobao stores, but his relatives were not happy, "We don't offer discounts, you give discounts online?"

Crabs have been rampant in the gift market in recent years, and crab coupons of about 600 yuan have become the capital of crabs. Hui’s flagship product. Hu Haiping wanted to strengthen the appearance of Xieduhui brand, unify the appearance, improve the image design, and invest in national advertising... but "the headquarters' profits are not enough to spend." Therefore, Xieduhui plans to set up a management department, prohibit franchisees from taking accounts on credit, prohibit private smuggling of goods, and charge an annual franchise fee of 10,000 yuan. In addition, Xieduhui intends to adopt direct operation or holding mode in the blank market that has yet to be developed.

Feedback from relatives came, "My colleagues don't charge... Just pay the franchise fee. If the delivery goes up a little, just don't go too much." Hu Haiping explained one by one, "My colleagues all It’s a small company, and no one wants to join him! Our shareholders don’t rely on this to make money, we rely on our own market.”

Hu Haiping heard from his colleagues that there was actually no such company in Yangcheng Lake in 2001. How many crabs, "Yangcheng Lake resources are gone, and all you sell are fake." After reading Feng Lun's "Savage Growth", he felt that he had also experienced "Savage Growth", but said that he no longer sells fakes.

In 2011, Hu Haiping founded the Royal Territory.

He said that this company that sells exotic seafood has achieved a profit-loss balance with a turnover of more than 10 million yuan, and its future goal is to become a "first-class company in the aquatic products industry."