Chapter 67 Is the Creator Important, or Is the Consumer Important?
The high welfare and high treatment of this company are actually really high?
No, not really.
Because of the inherent profiteering attribute of the industry, unlike other companies, where labor costs account for 3% to 5% of the company's total revenue, the monthly salary expenditure is still only 2% under the high welfare benchmark of 10,000 households.
The remaining 98 percent, a large part is used to maintain production, maintain channels and advertising investment, the remaining small part is used for research and development, again equipment maintenance, and in the end it is the payment of employee wages.
Why such an order?
Because in terms of the attributes of Wanhu, the importance is sorted in this way.
The most important thing is, of course, continuous production, because the products produced by Wanhu are mainly mobile phones and video games, both of which are fast-moving consumer goods, and the pressure on inventory is actually not very large.
In addition to stockpiling goods before the release of new mobile phones every year, it is considered a stress test for the entire warehousing and logistics system, and the management of the entire system is relatively easy in ordinary times.
Because there is no possibility of unsalable mobile phones at all, many times, they are often just stored in the warehouse and have to be distributed immediately.
And Wanhu's games and magazines also implement a policy of returning to the end.
What is a back-to-tail?
To put it simply, the dealer can return the games and magazines that cannot be bought, and return the original items according to the purchase price.
This is one of the solutions to the worries of retail stores.
Of course, the implementation of this strategy will incur additional costs for 10,000 households.
So where will this additional cost be deducted?
It's also very simple to say, that is, the purchase price is relatively high, and the retailer has relatively little profit.
In this way, retailers will also have a choice, they can choose magazines and games without a tail, so their profits are higher, and they can also choose magazines and games with a tail, so that they are less at risk.
Relatively speaking, the more best-selling magazines and game publishers are, the more they like the strategy of having a back-to-tail.
Why?
Because selling well means that almost all shipments can be sold.
And all shipments can be sold, which means one thing, which means that there are no goods that need to be returned.
The tail back strategy itself is at the expense of raising a higher shipping price, and now that there are no goods to be returned, it means that the publisher's own profits have become higher.
While these careful considerations of publishers are well known to agents and retailers at all levels, retailers have no good solution.
Why?
The reason is very simple, it is because it sells well because it sells well.
Something that is easy to sell, even if the profit is a little lower, is easier for them to accept.
Because there are only so many places on everyone's shelves, retailers don't think about the profit of a single product, but the profit per unit of time and shelf.
If you put a single magazine with a very high profit and a cold price, you may be able to sell one in a day, but if you put a magazine with a relatively low profit, you can sell ten copies and 100 copies a day.
In this case, of course, it is better to choose those that sell better.
Therefore, although at the beginning of the new century, especially after the mobile phone of 10,000 households, which can read text smoothly on the mobile phone, is becoming more and more popular.
The survival of physical magazines can be said to be more and more worrisome.
Magazines such as Weekly Shonen Jump, which sells millions of copies per issue, are certainly leading the way in terms of content.
But many people have a wrong perception, what kind of wrong perception?
It's that they think it's because the content is good that the sales are good.
In fact, this intuition gives the impression of the opposite.
The truth is that the content is good because of good sales.
Because, high sales mean that creators earn more on this platform.
With the same selection conditions, the author will of course choose a platform with a higher income.
Therefore, the key to the rise of "Weekly Shonen Jump" is not to support creators, but to take the lead in using low-quality paper to reduce costs, reduce selling prices, and increase distributor profits.
Under their set of operations, distributors are more willing to sell their products because of the higher profit margins of single products, and they are more willing to put Shueisha's products in key shelf positions.
Of course, the root of all this is that when they started to engage in this set of things, their own content did not particularly lag behind other families.
After their efforts, sales quickly went up.
The sales have gone up, and the head authors of other magazines have already felt that they have reached the ceiling on this platform, because the sales of magazines are so high.
At this time, when they see that the sales of "Weekly Shonen Jump" are several orders of magnitude higher, they will wonder if they have jumped to "Weekly Shonen Jump", even if they are no longer the first brother, their income will be higher.
In this way, excellent creators gradually gathered in "Weekly Shonen Jump", and "Weekly Shonen Jump" is precisely because of this group of head authors and demonstrations. There are a lot of new people breaking in.
A large number of sprouts have prompted the establishment of a level PK physique.
Excellent creators, or creators who are accepted by the market, stand out in PK.
Because the number of creators who come here is larger, the base of excellent creators is also larger.
If you take China's network sites as a classification.
The websites located at the head are the three websites of the starting point, the creation of the world, and the palm reading.
Why these three sites?
The starting point is because of historical reasons, a large number of excellent creators have gathered, and they have feelings for this platform, so on the basis of the number of monthly active users of the APP is only 2.4 million, there are a large number of authors.
The QQ Book City owned by Genesis, as well as the self-owned APP of Palm Reading.
The reason why it is at the top is because the number of monthly active users of QQ Book City is close to 50 million, and the number of monthly active users of Palmreading's own APP exceeds 50 million.
But for various reasons, the revenue of the three platforms has not opened up too much of a gap.
Why?
Why is it that an app with 50 million monthly active users is not as good as an app with 2 million monthly active users?
Because the starting point is 55 percent, in addition to the semi-annual reward for 20% of the total sales in the past six months, although it is more black-hearted than the previous starting point, but the share ratio is okay.
However, the other two platforms use the platform to set the platform and the website to set the website, and after layers of channels and deductions, the actual income in the hands of the author is no more than 20% of the total sales.
Therefore, there is no particularly big difference in the income of authors now.