Chapter 287: Zero Integer Ratio

"Golden Nine Silver Ten" is a buzzword coined by the Celestial Automobile Industry, meaning that September and October are the best selling seasons of the year, and this term has now become known as the Celestial Empire-style market law.

"Golden Nine Silver Ten" On the one hand, because of the crisp autumn weather in September and October, people are impulsive in spending money and investment, and family consumption has increased significantly; on the other hand, manufacturers and car dealers take advantage of the Mid-Autumn Festival in September (the fifteenth day of the eighth month of the lunar calendar is generally in September of the solar calendar) and the National Day in October to formulate some promotional strategies, trying to create a lively atmosphere; moreover, many people in the Celestial Empire have the idea of going home for the New Year and driving a new car back, and many times buying a car is not immediately able to pick up the car, and even if you pick up the car, you need to drive for a month or two to be proficient, so in order to be able to drive home during the Spring FestivalIt's best to buy a car around September and October.

The price of Wang Jiang Automobile Sales Co., Ltd. 4S store has been almost done under the control of Wang Zhenguo. Wang Zhenguo also set the opening time in advance and asked Jiang Hui to attend as well.

"Liao Yun, is it true that only Mr. Tang and Mr. Fang have special cars in our group, and other personnel can only use official cars?" Jiang Hui asked.

"Yes, it was said that the personnel above the vice president could be equipped with a car, but at that time, the management configuration of most companies was not yet perfect, except for Mr. Tang and Mr. Fang, the other personnel said that they did not need a special car," Liao Yun said.

"Since the system has been formed, it must be implemented, and now it is assigned to the level of deputy general manager. In the future, when the company develops, it can consider expanding to the ministerial level," Jiang Hui said.

"Okay, then I'll tell the companies to purchase vehicles," Jiang Hui said.

"That's it, I opened an Audi 4S store with a buddy in the dormitory, and you can go with me when it opens in a few days, and this batch of cars can be regarded as a good start for the store," Jiang Hui said.

2004 was the year of the Celestial Empire, and the automobile market was not so prosperous.

After the establishment of the World Trade Organization in 2001, the automobile market in 2002 ushered in a cycle of rapid growth. The growth of the automotive industry was exceptionally outstanding among all industries at the time. Statistics show that in 2002, Tianchao Automobile produced a total of 3.25 million vehicles, an increase of 5% over 2001.

The boom in the automobile market in 2002 stimulated major automobile companies to significantly increase their production plans, and at the same time, the import tariffs brought about by joining the World Trade Organization were further reduced, which also stimulated the gradual increase in the impact of imported automobiles on the market. However, the explosion of market demand in 2002 and 2003 ushered in the first sharp downward revision of the growth rate in 2004. Data show that in 2003, the growth rate of the Tianchao automobile market was as high as 2%, and the growth rate has slowed down to 15% so far in 2004.

So Jiang Hui considered giving Wangjiang Automobile the first 4S store a batch of orders, anyway, these dozen cars are to be bought wherever they are bought, why not buy them in their own company?

"Third child, who will be present on the opening day?", Jiang Hui called Wang Zhenguo and asked.

"In addition, I also invited the vice president of the Tianchao Automobile Association, who is my mother's college classmate, and the general managers of several other Audi 4S stores in the imperial capital will also attend, and I have also invited some automotive media," Wang Zhenguo said.

"Will other Audi store personnel also participate?", Jiang Hui said with some curiosity.

"Of course, although we are competitors, we are also partners. Preferential range, car purchase requirements, etc. are to be talked about together, otherwise there is a store messy, everyone is uncomfortable, manufacturers also hope that our 4S stores in each region can communicate more, so their sales tour also regularly organizes each store to sit together to communicate", Wang Zhenguo said.

"Well, how do I feel that the water in car sales is quite deep," Jiang Hui said.

"That's a must, the sales water is deep in any industry. Why did you have time to take the initiative to call me today, and what instructions do you have?", Wang Zhenguo said with a smile.

"How dare I instruct you, even if our company is ready to allocate cars to the management, I think that the fertilizer and water will not flow into the fields of outsiders, and they can all be bought in our store," Jiang Hui said.

"Okay, it's off to a good start, I'm still thinking about not going cold on the first day of opening, how many units are your company going to buy, I'll sell it to you at the manufacturer's ex-factory price," Wang Zhenguo said.

"More than a dozen units, you don't have to make money at a loss, the market price is as much as it is. In addition, I wondered if I should have a handover ceremony, which would be lively," Jiang Hui said.

"It's a good idea, I think that in the future, every car transaction can have a delivery ceremony, and it doesn't have to be complicated, but it should be very beneficial for the future aftermarket cultivation to make customers feel valued," Wang Zhenguo said.

"I think it's very rare that you're able to focus on the aftermarket right now. With the increase in car ownership, the after-sales demand is also increasing rapidly, and it is possible that the money earned from selling cars in the future is not as much as that earned by after-sales service," Jiang Hui said.

"No, with our current Audi, four or five hundred thousand a car, we can earn twenty or thirty thousand cars, if we rely on after-sales service, where can we make such a big profit," Wang Zhenguo said.

"Don't underestimate the money you make after the sale, the price of the car is still relatively high, the profit is huge, the price of the car will only get lower and lower in the future, and when the competition is fierce, it is even possible to sell the car at a loss." And the after-sales service is different, that is the focus on the long stream. On average, a car needs to be maintained two or three times a year, and the cost of materials and man-hours is calculated, and the ordinary maintenance of an Audi needs at least 1,000 yuan, and the profit in it is hundreds. In addition, you don't count vehicle maintenance, there are so many car accidents every day, there are many accident cars that need to be repaired, and there are many ways to make money," Jiang Hui said.

In 2004, the "zero-to-whole ratio" of automobiles was still a very unknown term. The so-called "zero integer ratio" of the automobile is the ratio of the sales price of the parts to the whole vehicle, that is, the ratio of the sum of the prices of all the spare parts of the vehicle on the market to the sales price of the whole vehicle. Taking Audi A6 as an example, its zero integer ratio coefficient is more than 750%, which means that consumers will pay a "sky-high price" of 3 million if they replace all the spare parts on a 400,000 Audi vehicle. In other words, the total cost of spare parts for the Audi A6 is more than the sum of the prices of seven new Audi A6 cars.

This has led to lucrative profit margins in the automotive aftermarket. A parts car manufacturer buys it back for 100 yuan from the parts manufacturer, and then sells it to the 4S store for 200 yuan, and the 4S store sells it to a consumer at a price of 400 yuan or even higher, and the profit in the middle is amazing.