Traditional catering thinking: I sell what I have, and the product is the main factor to determine the marketing direction;

New catering thinking: I sell what the user needs, and the user is the main factor to determine the product direction;

 

In the current new catering market, whoever can mine the user's ordering needs through market data can occupy a large market share and order volume, thereby obtaining a profit margin far exceeding that of traditional categories.

According to the three core general principles of new catering: cost advantage, data advantage, and stock market!
Cost advantage is related to the supply chain, bargaining power of ingredients, packaging premium, and platform commission premium;
Data advantage is related to store entry rate, order rate, new customer conversion, old customer conversion, input-output;
The stock market is related to product quality, product price, new customer retention, and old customer repurchase;

For traditional individual merchants, individual inventory seems to have become an extremely difficult thing, limited by energy, time, bargaining power, and knowledge. ”

So, for new takeaway catering, what kind of category can be considered the right category?

 

The right category we think should meet the following conditions:

 

1. Large categories are not small categories

 

Large categories such as simple meals and rice noodles, which are mainly based on Chinese people's dietary preferences, have the advantage of a large user ceiling, while small categories such as steaks have insufficient user ceilings.

 

Under the same market conditions, the exposure and order volume that large categories such as simple meals and rice noodles can obtain are far greater than the upper limit capacity of small categories.

 

If the market ceiling is too low, no matter what you do, it is difficult to achieve excellent order growth. This is the importance of choice.

 

2. User-driven products, operations determine direction

 

Categories should follow the user-driven principle, reversely develop food products based on user needs, and integrate supply chain costs based on profit needs, so that it can meet the user's consumption level and achieve dual guarantees of cost and profit.

 

3. Innovation in traditional catering categories

 

Pure new categories are easy to explode in an instant, but the subsequent growth is weak; while traditional categories are long-term stable but lack explosive power.

 

A truly good category should be an innovation in the traditional category, so that it can meet the two-way advantages of explosive power and subsequent stability.

 

It is said that pricing determines the world. For takeaways, how can we achieve both fame and fortune?

 

 01 The last digit of pricing may be a misunderstanding

Many people say that the last digit of the price should be 8 or 9. This little trick will make users feel that it is very valuable;

 

Many merchants are overjoyed after hearing this. In fact, you only see the surface meaning. Of course, the lecturer is not clear in his statement and only explains the surface meaning.

But it is important to remember that whether this digit is 8 or 9, it does not mean much in itself. It can only be regarded as icing on the cake. If your pricing itself is unreasonable, it is useless even if you set it as XX.021.

 

The user's consumption level is 18-20 yuan, and you set the price at 23.8 yuan. Who will pay for the extra 3.8 yuan? The user? But the money in his wallet is not enough to support the consumption level of 23.8 yuan.

 

The courses on the market have exaggerated the logic of digit pricing, while ignoring the most important rational planning in pricing.

 

So, what is the core of pricing?

 

The core is to make the best optimization within the user's consumption power and make the most reasonable pricing calculation.

 

Our creed:

 

Pricing convergence, average profit, reverse cost and profit based on consumption power, reduce user decision-making time, and thus increase order rate.

 

02 Scale reverse pricing method

In Internet catering, we have always emphasized that we can reverse the profit and cost space based on user consumption power, and make profit estimates based on the current market capacity and profit.

 

If we use a new word to describe this logic, we can also call it scale reverse pricing logic.

It is known that the current market capacity is 6,000 orders, and everyone's price is 5 yuan, while the cost of the product is 3 yuan. If you set the price according to the current market price of 5 yuan, then you may grab 1,000 orders out of 6,000 orders, and the profit is 2,000 yuan;

 

If you reversely calculate based on the scale of 6,000 orders in the market, you set the price at 4 yuan, then the profit per order is 1 yuan, but your price is much lower than the market, and the product itself remains unchanged, then you can grab 3,000 orders, which is a profit of 3,000 yuan;

 

If you can strictly control the cost range, then the cost is compressed to 2 yuan, then at a price of 4 yuan, your product profit can reach 6,000 yuan.

 

From this example, you will find a very obvious change in profit growth. If the number of orders remains unchanged, the profit will double. This is the importance of cost control.

 

However, many merchants do not pay attention to how to control costs, but only focus on the number of orders and profits, and finally get nothing and fall into a vicious circle.

How does profit come from? This question is very simple, but merchants always ignore this essential problem.

 

Profit is the number obtained by subtracting cost from price, so can it be understood as price and cost? Any adjustment of one will cause changes in profit, either growth or decline!

 

In simple terms: cost or price determines the upper and lower limits of profit.

 

However, in this link, if the price is too high, the user order demand will decline on a large scale, exceeding the market or user psychological price.

 

If the price is consistent with that of peers, the user order demand will go with the flow, neither up nor down, and fall into inconsistency;

 

If the price is lower than that of peers, the user order demand will increase, but if the cost control is unbalanced, it will lead to loss of profit, heavy debt, and bankruptcy.

 

So, in the final analysis, cost is the core thing.

 

03 Traffic and profit balance method

The lecturers on the market are all talking about high-profit pricing for low-frequency and high-premium products;

The lecturers on the market are all talking about high-frequency and low-premium products to be traffic-generating products;

 

In fact, perhaps this set of logic is effective and feasible in traditional industries, but I think in Internet catering, this set of logic will only make store orders too concentrated on certain products.

 

What are the consequences of this?

 

Let's avoid talking about it first, and we will get the answer if we look at this problem from the perspective of the actual situation.

 

When orders decline or are not satisfactory, merchants will first look at the store information of the first-selling competitor in the same category. When you make a basic judgment, you often directly benchmark the best-selling products. In order to obtain orders, you usually take the most direct and violent way: low-price competition.

 

So every merchant who ranks first in a category will have countless pairs of scarlet eyes staring at him.

 

The higher the sales volume of the goods, the more likely it is to receive vicious price competition from mid-level and bottom-level merchants. Therefore, there are constantly new competitors lowering prices, and in order to maintain your top position, you have to be forced to fight. You can resist one today, but there will be countless tomorrow. In the long run, your profits will be squeezed and compressed, and finally forced to close the store.

 

This is also one of the fundamental reasons why many stores with monthly sales of 9999 eventually died out.

 

Why this result is caused is because the order volume is too concentrated on certain products.

 

It's just like falling in love. You like a girl, and this girl likes a boy. This boy has no advantages, but he is very handsome. As a competitor, you need to win the girl's heart, so you take some means or strategies to destroy this boy.

 

Because the boy's handsomeness is too prominent, too obvious, and too easy to be targeted.

 

If the boy is handsome, rich, talented, humorous, and sensible, then you will never win the heart of the girl. Even if you make the boy poor, he still has countless bright spots.

 

In other words, in Internet catering, we should not advocate hot-selling methods and strategies, but rather mediocrity.

 

Mediocre means that the sales volume of all products tends to be the same, that is, our orders need to be dispersed as much as possible to each product to create an average state.

 

In this case, if the competitor wants to take targeted measures, he can only copy all your products to his own store, and the profit margins of all products will be compressed again, which is a lot of pressure.

 

So why is there a difference between low frequency and high frequency? Should low frequency mean high premium and high profit?

 

We hold the opposite attitude to this understanding.

 

Why is it low frequency? That is just a consideration from the original perspective. Because you think the cost of this product is high, you can't lower the price. Since the cost itself is very high, my profit will naturally increase.

 

For example:

Pork costs 2 yuan, so I set the price at 4 yuan;

Beef costs 5 yuan, so my price must be more than 2.5 times that of pork, so my beef should start at 12 yuan.

Therefore, when the price of beef is so high, most users naturally do not have the purchasing power, but it does not mean that they do not like to eat it or are unwilling to eat it every day, but your price forces it to become a low-frequency commodity.

 

Whether it is the previously popular abalone rice or the previously popular pizza category, in essence, they are actually converting low-frequency demand commodities into high-frequency demand.

Only 10 people can afford the 188 yuan abalone. You think that the frequency of consumption is too low. In fact, it is because your price is too high, which limits many users who want to order but cannot afford it.

 

If we change the price of 188 yuan abalone to 88 yuan, then 40 or even more people will be able to afford it, and the frequency will naturally increase. People who could afford 188 yuan abalone can now consume it twice instead of once. People who could not afford 188 yuan but could afford 100 yuan can now order it once.

 

The significance of doing this is that it not only increases your sales and order volume, but also improves your platform weight, because your costs are controlled and the quantity is regulated. In fact, your profit is far greater than the previous profit margin, and it is difficult to make a loss. Since it is profitable, why must you lose money?

 

Many merchants just want to look good, and never think about the logic behind it. When they encounter this statement, these merchants usually ask: My costs are so high, how can I make money with 88 yuan.

 

My answer is that if you can't even do cost control and debugging, and can only judge and think with a fixed mindset, then you deserve to close your store and go bankrupt. If doing business does not require thinking, but only physical strength, then sorry, it's not your turn to make money.

 

I have never seen anyone who can get rich by physical strength, of course you can think you are an exception.