Traditional Culture Encyclopedia - Hotel reservation - Why is the US Mission so cheap?

Why is the US Mission so cheap?

There are several reasons why Meituan can offer cheaper prices:

1. Bulk purchase: When users place orders together, merchants can usually sell more goods or services in one transaction, thus reducing the cost of a single project.

2. Reduced operating expenses: By assembling orders, transportation and distribution costs can be allocated to multiple orders, which not only saves distribution costs, but also improves distribution efficiency.

3. Inventory management: Ordering can help merchants to better predict and manage inventory, avoid inventory backlog, and possibly reduce prices.

4. Increase sales: For businesses, price concessions are one of the strategies to attract customers and increase sales. Even if the profit is small, the increase in overall sales can bring profits.

5. Customer retention: By offering lower prices, the subscription service can attract and retain more customers, which is beneficial to both the platform and the merchants in the long run.

Generally speaking, single mode is an effective business strategy, aiming at reducing the cost of each order by merging orders, optimizing operations and increasing sales.