With a 7-hour work system and 140 days of annual leave, how did Fat Donglai still earn tens of billions?
A supermarket owner sells the cost price and retail price on an OEM publicly, and his annual revenue exceeds 10 billion. Fat Donglai not only made profits, but also won the hearts of the people. Praise such as openness, transparency, kindness, and conscience drifted to Fat East like snowflakes. People from all provinces across the country are inviting Fat Dong to come and quickly open supermarkets near their homes. But Fat Donglai has always been confined to Xuchang, Henan, and has been trapped in Xuchang and Xuchang.
Why is it that a supermarket in a third- or fourth-tier city can earn 10 billion yuan a year? No one is jealous of this supermarket when it makes money, and they all hope that it will earn more and be larger in scale, and it is better to expand its stores to all parts of the country. But why can't Fat Donglai get out of Xuchang?
The founder of Fat Donglai is called Yu Donglai, and he is a mythical figure. In the latest interview, he bluntly said that Fat Donglai is expected to have a revenue of more than 10 billion this year. The company's front-line employees have achieved 7 hours a day, two days off, a total of 140 days of vacation a year, and 30 to 40 days of paid annual leave. After all, Fat Donglai's employees only need to work for more than 7 months a year. If the company's management is promoted, the annual vacation will rise to 190 days, and the middle-level cadres will be equipped with Mercedes-Benz cars, and the high-level cadres will be equipped with more than 3 million cars.
These are just big benefits, and there are also many small benefits in daily work, such as employees who don't want to go to work, want to take leave, and are not allowed to disapprove. If a product sells out and there are too many customers, employees are not allowed to work overtime, divert customers, and refuse customers to blindly follow the trend and overconsume.
Fat Donglai is a magical supermarket, its annual revenue is tens of billions, but the net profit is not high, only three to four hundred million. Fat Donglai can give employees such a generous treatment, the core lies in the distribution method. A normal supermarket, an ordinary boss, with a revenue of tens of billions, can probably earn 10 to 20 billion profits. As for this money, only about 1 to 2 billion will be allocated to employees, and 3-4 billion will be allocated to landlords, and after paying taxes, the rest will be put into their own pockets. As a result, employees work hard, the boss's luxury car is changed every year, and the boss's wife is becoming more and more beautiful.
That's the difference in distribution. Working in most companies, you can't make a fortune if you work for a lifetime, because the distribution system is decided. The charm of Fat Donglai is that he broke this pyramid distribution structure, took out the profits, hired more employees, and provided higher salaries to employees. With more employees, there will be less work for everyone, and vacations can naturally be raised. More money is given, and the loyalty of employees to the company is also high. The essence of retail is service, and when the service comes up, there will naturally be more customers, the marketing cost will be greatly reduced, and the profit margin can be increased. As for the profit margin that has risen up, Fat Donglai does not take it all, but impresses customers with open, transparent, honest and honest prices, forming a virtuous circle.
Fat Donglai's things are not the cheapest, but you can buy them with confidence and eat them with peace of mind. The entire business ecosystem in China is extremely trustless because there are too many scammers. In order to establish trust in e-commerce transactions, Ma Yun founded Alipay by himself, using guaranteed transactions to complete the closed loop of financial settlement of online transactions, which solved the credit problem of transactions, but still could not stop the fakes on Taobao. In China, the counterfeit market is not only large, but also pervasive.
Why has Xiaomi been able to succeed? The best thing to say is that it has knocked out the copycat machine, but in fact, it has knocked out those fake and shoddy products in Huaqiangbei, Shenzhen. Xiaomi and Fat Donglai both have a common characteristic: kindness and conscience.
Kindness and conscience are not to sell the best products at the lowest price, but to sell a kind and value-for-money product at a fair and transparent price. In China, this kind of business ethics is sorely lacking. From the perspective of market economy, Xiaomi and Fat Donglai have filled the loopholes in China's business ethics and attracted customers with touching products and services.
In terms of employment system, Fat Donglai has entered the ranks of developed countries ahead of schedule, and is even more advanced than some developed countries. This is a highly benign business model, employees have money and leisure, they can travel, to consume, solve the overproductivity at the same time, live a more leisurely and happier life. The biggest problem of China's economy today is not the decline in foreign trade, but the lack of domestic demand. Relying on foreign trade, the initiative is in the hands of others, and only by pulling domestic demand can we grasp the engine of economic growth by ourselves.
But why is there a shortage of domestic demand? Isn't it because the workers' incomes are too low? What they produce, they can't afford to buy. For China's high-end car brands to rise, they must first rely on the Chinese people to buy them. Only when the Chinese are getting richer and richer can they lead the world trend. What luxury brands, the technical content is not high, LV, Hermes and other bags, many domestic factories can produce, but they can't sell at a price, these things are smashed with money.
It can be said that the salary distribution model of Fat Donglai is the only way for China to move towards the ranks of developed countries. It is not that every company should be like Fat Donglai and full of employee benefits, but it is the general trend to raise the salary of front-line workers and service personnel.