Chapter 063: The First Pot of Gold (Part 2)
After careful consideration, Ren Pingsheng decided to change the existing retail method to a distribution method, and initially establish a distribution system in Hanhai City.
Compared with retail, distribution is an intensive sales model with lower management costs and sales expenses, that is, the manufacturer radiates the product to each sales terminal through distributors (agents), and finally sells it to customers through the sales terminal.
The biggest advantage of distribution is that the sales terminal is laid and carried out by specific distributors, and manufacturers and large distributors do not need to invest huge costs to put products into the hands of customers.
Of course, there are also shortcomings in the distribution model, because the channels and terminals are in the hands of small distributors downstream, it is difficult for manufacturers and large distributors to collect market feedback and customer needs in a timely manner, and it is difficult to carry out targeted innovation and reform according to feedback and demand.
At the same time, the longer the distribution system is done, the stronger the solidification effect of small distributors and channels, and it is easier for them to form offensive and defensive alliances to increase bargaining power under the guidance of common interests, threaten and kidnap the decision-making of manufacturers and large distributors, and form a situation where sales force manufacturing.
Due to these inevitable drawbacks of the distribution model, with the continuous popularization of the Internet and the gradual improvement of logistics and express delivery, Internet e-commerce has gradually begun to erode the market share of the distribution model.
In the past, large and small distributors have lost the need to exist on the Internet, because the Internet can directly face the end consumers for sales, so there is no need to strictly divide the sales area and scope, nor can it achieve unified pricing in the region, and small distributors have lost their meaning of existence.
Moreover, with the help of Internet e-commerce, manufacturers can collect customer feedback on products in the first time, which helps enterprises to increase innovation and produce better products that are more suitable for customer needs, which is a great help for the development and value enhancement of enterprises.
It is with the help of the power of the Internet that a circle of Internet e-commerce enterprises represented by Ali Ma Ma has emerged, becoming the leader of Chinese enterprise innovation in the past decade, and also creating several e-commerce giants and a large number of e-commerce tycoons.
However, in 2006, when the Internet e-commerce and direct sales model had not yet risen, the distribution model was still one of the most efficient sales models.
Ren Pingsheng's TAGRISSO, which is sold in India, is a product from LUBIN Pharmaceuticals in India, and he is a major distributor of LUBIN Pharmaceuticals in China.
What he has to do now is to establish a next-level small distributor in Hanhai City, and distribute the drugs he has brought into China to them, so that they can carry out their own sales.
As long as Ren Pingsheng continues to bring goods into the country, he can easily count the money while sitting at home, and he doesn't have to do it himself like before, making himself and his friends tired and half dead, and the money he makes will not be much more.
Ren Pingsheng was very thoughtful, and his eloquence was excellent, An Qi and Lin Lisong quickly accepted his idea, and they immediately set about establishing a distribution network.
Everything went well, and when the first batch of goods was sold, the group owners were given a nine-percent discount, and some group owners with flexible brains and big skills have tasted the sweetness.
As soon as the distribution plan of Talisso, India, came out, they immediately smelled the business opportunities, and those who had the way to raise money to compete for the right of sub-agents, and those who had no way also got together to compete, and in just one week, there were already several sub-agents.
According to the distribution of hospitals in Hanhai City, combined with the conditions of geography, population distribution and economic status, Ren Pingsheng divided Hanhai City into eight districts:
District 1 (Huangpu, Luwan), District 2 (Jing'an, Chabei), District 3 (Xuhui, Changning), District 4 (Putuo, Qinpu), District 5 (Hongkou, Yangpu), District 6 (Baoshan, Jiading, Chongming), District 7 (Minhang, Songjiang, Fengxian, Jinshan), District 8 (Handong New District).
When Ren Pingsheng divided the region, he comprehensively considered the distribution of medical resources in Hanhai City, and realized the combination of fat and thin, and the combination of abundance and poverty.
Based on the memory and experience of his previous life, he also took the lead in integrating some areas that may be withdrawn and merged in the adjustment of administrative divisions in the future, such as Luwan being merged by Huangpu and Chabei being merged by Jing'an.
Although the volume of Handong New Area is not large at this time, the future potential is huge, and Ren Pingsheng also listed it as a separate district.
Under the careful organization of Ren Pingsheng, the auction of secondary agency rights presided over by An Qi was held in a remote military guest house in Handong New District.
According to Ren Pingsheng's arrangement, the reserve price of this sub-agency auction is 1 million yuan for 1 district, with no upper limit, and the price will be increased from 100,000 yuan.
Although Ren Pingsheng has tried his best to divide it scientifically, it is obvious that Hanxi, which has the most excellent medical resources and mature city facilities, is the most popular.
Each round of price increases is more than 500,000 yuan, and several powerful buyers raise prices with each other, and no one is willing to give in, and the price is quickly raised several times.
In the end, the first district (Huangpu, Luwan), the second district (Jing'an, Chabei) and the third district (Xuhui, Changning) were auctioned at high prices of 4 million, 3.8 million and 3.2 million respectively.
However, the other five districts are not so popular, with price increases hovering around 100,000 yuan, and there are very few cases of competition with each other, but in the end, a total of 6.6 million yuan was auctioned.
Roughly calculated, Ren Pingsheng has earned 17.6 million yuan through the auction of secondary agency rights, and he still has 25,000 boxes of Indian Tyresso.
Although the purchase price he gave to the sub-agent was 6% off (480 yuan/box), this batch of goods could also contribute 12 million yuan in income.
Not counting labor and transportation costs, the rough profit reached 30.6 million yuan, compared with 500,000 yuan at the beginning, an increase of 60 times in half a year.
It can be said that the first pot of gold in Ren Pingsheng's life is full of gold, which is enough to support him to carry out the next business plan.
Of course, the real money that the sub-agents took out for auction was not given in vain, they sold Tagrisso India to patients according to Ren Pingsheng's price, making a net profit of 320 yuan per box, and the profit margin was as high as 70%.
From An Qi's knowledge of the number of patients in these hospitals in Hanhai City, the sub-distributors in the first three districts could sell 10,000 boxes in a year.
A sub-distributor can pay for itself by selling an average of 5,000 boxes, that is, from the second year onwards, these sub-dealers can make money, and they can easily make millions a year.
However, there is also a clear class division in this auction, and the sub-dealers in the first three districts are not the owners of the original "Dancing with Cancer" group.
They are either relatives or friends of the group owners, or investors who have heard the news, and the only thing they have in common is money.
Although the sales of drugs still need to go through those group owners, the majority of the drug profits are taken away by the funders, and the original group owners can only become the workers of capital.
The few districts that were won by the original group owners were also auctioned by the joint ventures of several group owners with more money, including An Qi's right-hand man Li Li.
She and several group owners won the auction of District 8 (Handong New District), spent 1.2 million yuan, and in order to scrape together the cash for the agency, she had to sell a house in her Xuhui District.
As soon as each region is auctioned, the sub-distributors who have obtained the regional agency rights have a monopoly on the sales of drugs in the region.
Therefore, in order to ensure their own interests, each sub-distributor not only makes great efforts to promote and sell drugs, but also strictly guards against the "cross-border operation" of sub-distributors in other regions.
Although everyone can still coexist peacefully at this stage, the relationship of equality and mutual assistance between the group owners of "Dancing with Cancer" has disappeared.
Ren Pingsheng and An Qi had no time to take into account the feelings of these old group leaders at this time, they were immersed in the shock and pleasure brought by money at the moment.
Just the income from the auction of secondary agency rights allowed them to have nearly 10 million yuan in cash in their hands, and An Qi did not inform Tang Jian of the disposal of these money, nor did he ask for his due share, and gave it to Ren Pingsheng to manage.
Once a woman falls in love with a man, then she gives everything to that man with all her heart.
A man can take not only her heart, but her body, but everything about her.
The more a woman loves a man without regrets, the more she will entrust every penny of herself to the man.
Because in her heart, love is everything, and this is the woman.
What's more, along the way, Ren Pingsheng has proven many times that he is truly talented and learned, and he is a reliable and capable man, unlike Tang Jian, who is short-sighted and unreliable.
After Ren Pingsheng received the auction money and the purchase price, he divided the money into three parts:
The first part was used to repay debts, including the funds raised by Ren Jia and An Qi at the beginning of the business, and paid 100% of the interest expenses, with a total expenditure of 1 million yuan, including 500,000 yuan for An Qi, 400,000 yuan for Ren Jia, and 100,000 yuan for Ren Xueping;
The second part is used to repay the arrears of 3.5 million yuan on credit of LUBIN Pharmaceutical, and set aside 5 million yuan as the payment for the next batch of purchases;
The third part is the remaining 20 million yuan, which Ren Pingsheng intends to use to invest in new projects and open up new financial routes in addition to generic drugs.
An Qi naturally agreed with Ren Pingsheng's arrangement, and she felt more and more that this man was not simple.
Although he was young, in the face of such a huge sum of money, he did not lose his mind like a nouveau riche, and began to squander with revenge in order to make up for his past humility.
His every move was as if planned, without the slightest slack or mistake.
Similarly, Ren Pingsheng also deepened his trust in An Qi in the distribution of this money.
Her character of not fighting or grabbing and taking into account the overall situation has solved many problems for Ren Pingsheng.
Of course, he knew that the reason why An Qi trusted him unconditionally was because of her love for him.
For such a lovely and respectable woman, Ren Pingsheng will definitely not treat her badly.
Therefore, when they discussed the distribution of funds, Ren Pingsheng took An Qi to visit the real estate together.
That's right, Ren Pingsheng is going to buy a house this time.