I Have 100 Million Stores

Chapter 285 The ultimate goal of business!

The re-signing of the contract with all the landlords just mentioned, increasing the liquidated damages and determining the detailed rules of the liquidated damages were the first measures Cao Xingyu thought of.

The purpose of this measure is obvious. First of all, it can significantly increase the cost of breach of contract and clarify the scope and amount of compensation for breach of contract. At the same time, it can also reduce the possibility of litigation, so that Meituan has to take care of its own goodwill and delay payment. The idea of ​​compensation was shattered.

But for a large Internet company like Meituan, which has strong financial resources, and really wants to be determined to target you, the increased amount is not worth mentioning at all. Even if you don’t delay the time and pay compensation directly, it is not a big problem.

Therefore, in the final analysis, it is unrealistic to rely on raising the standard of contract breaches to achieve peace of mind. This can only be regarded as an auxiliary measure, a passive defensive measure.

And right now, what Cao Xingyu said about connecting to other merchants is a real offensive measure!

And the offensive intent is extremely strong!

It is a direct attack on Meituan's core area!

Go directly to snatch their core resources!

As we all know, the reason why the food delivery platform makes money is the commission income contributed by countless merchants plus some advertising revenue such as priority ranking on the platform, which accounts for more than 95% of the operating income of the food delivery platform!

Each order can easily charge more than 20% of the commission. For orders less than a certain amount, the platform also stipulates a guaranteed minimum commission amount!

In short, don't try to avoid commissions, just suck blood!

I don’t know if the merchants are making money or not, but the platform is sure to make a lot of money anyway!

Under this model, it is conceivable that merchants are the absolute core resources of the food delivery platform, not only the guarantee of accumulating traffic, but also the support point of high profits. It is not an exaggeration to say that merchants are the winners and losers of the food delivery platform.

The reason why Meituan was able to surpass Hungry in terms of market share is that it benefited from the large number of high-quality merchant resources accumulated in the local life such as group buying and the group of experienced and powerful promotion teams accumulated over the years. This accounts for a large part of the reason!

And now, Cao Xingyu is using his subversive commission ratio to break the unspoken rules of the food delivery industry today and force Mei Tuan to face it head-on!

There is no doubt that the 1% permanent commission will be extremely attractive to merchants, and no merchant will refuse such a good thing!

The most direct impact of this is that Meituan will not be able to put all its energy on Shiwang brand stores. How to retain those merchants on its own platform will be a problem that they must consider and deal with. !

It is worth mentioning that Cao Xingyu originally did not intend to become a food delivery platform at this time.

He originally wanted to focus on building his own store, let the Shiwang brand launch takeaways first, gradually accumulate popularity and reputation, and temporarily stop connecting to external merchants.

On the one hand, the number of stores under his banner is large enough, the categories are complete enough, and the quality is high enough. In the early stage of the launch of the Shiwang brand APP, it is completely enough.

It doesn't matter whether there are external merchants or not.

On the one hand, he cannot directly control the quality of external merchants, which may cause some problems.

Because according to the previous thinking, in order to ensure the reputation of the Shiwang brand, Cao Xingyu has very high standards in his heart even if he connects to external merchants.

Therefore, this link needs to spend a lot of energy to conduct an evaluation and assessment for each merchant that settles in.

Pay and benefits are obviously not equal.

On the other hand, it is difficult to compare the prices of external merchants with the Shiwang brand. If there is no advantage in price, the possibility of members ordering takeaway from third-party merchants is infinitely close to zero.

Therefore, most of Cao Xingyu’s current 1% commission decision is based on considering that the prices of third-party merchants are too high, and giving them a profit in advance so that they can take the initiative to lower prices in the future, so that third-party merchants’ entry into the Shiwang brand APP can truly produce meaning.

Combining the above three points, Cao Xingyu didn't think about this matter for the time being, and he didn't even have a conclusion in his heart about whether to introduce third-party merchants.

But now, the situation is different, and the plan naturally has to be adjusted accordingly.

To put it bluntly, I was forced to do this.

"Okay Mr. Cao." Hearing this, Liu Ting nodded in response first, and then couldn't help but say:

"Mr. Cao, will the permanent 1% rake be too little? Although I know this is to target Meituan and counter them, we can consider starting with 1% in the early stage, and then proceed appropriately according to the situation." adjustments..."

"This leaves us with a way out..."

Really 1% commission, not to mention making money, even the technical maintenance costs, platform broadband costs, etc. that Shiwang Group will pay for it in the future may not be enough!

Obviously, in Liu Ting's view, it was a money-losing business!

"No, just 1%, forever 1%!" Cao Xingyu waved his hands in denial and said firmly.

Naturally, Cao Xingyu did not make this decision casually, but after careful consideration.

First of all, he knew very clearly in his heart that the current pattern of the takeaway field has been fixed, which is an obvious fact.

Moreover, Mei Tuan, who is backed by Penguin, and Are You Hungry, who is backed by Ahri, both have super strength.

Entering the game under such circumstances, if you want to break their monopoly, how can you succeed without doing something special?

Just like now, if you don’t explicitly say that the permanent commission is 1%, then Meituan and Are you hungry will naturally continue to fight with you on price and consume you as long as you lower the commission. To the initial stage of burning money and grabbing the market regardless of profit on the food delivery platform.

Really caught in this situation, with the amount of funds far lower than that of its opponents, the Shiwang Group does not have an advantage.

Not only can it be easily resolved by Meituan and Are you hungry, but this is their very experienced gameplay, and they have entered a rhythm they are very familiar with.

This is obviously not the effect Cao Xingyu wanted.

Moreover, merchants are not fools, they have experienced all kinds of rhetoric, such as 'you don't need to pay any fees to join our platform. ’, ‘Create a lot of extra revenue for you, why not do it. ’, “If you sell more orders, not only will you make extra money, but we will also reward you.” and so on.

Yes, that was true in the early days.

Both merchants and users have enjoyed the dividends from capital, especially merchants, with no commission and additional rewards from the platform, they have made a lot of money in the past few years.

But when the food delivery platform has accumulated a certain amount and the market structure gradually becomes clear, what will happen next?

If you spit it all out, you still have to put money into it. This is the world of capital.

The capital will not remember what it promised you before. Anyway, if there is no agreement in this regard, it will raise the commission if it needs to be raised, and increase the ratio if it needs to increase.

Although businesses strongly oppose and condemn this move, what else can they do?

It is impossible not to do takeaway, after all, the benefits of this area cannot be underestimated.

And there are only two remaining giants in the market, and there is no choice.

It can only be accepted passively.

Having had a similar experience, catering businesses are not so easy to be deceived. If you say 1%, he may accept and agree to enter the platform for a try, but he will definitely not sign any exclusive agreement with you.

If you raise the commission ratio in the future, won't you go back to the old way?

And the permanent 1%, signing the agreement in black and white is the trump card that Cao Xingyu thought of!

This is the only way to subvert an established business model and break the deadlock!

In layman's terms, the rules in the field of Internet food delivery have been formulated, if you play according to their rules, it is impossible to surpass them! This is a 100% thing!

You must know that they are the makers of the rules, and they have memorized the doorways fluently. In this case, how can latecomers beat them? !

Therefore, the only way is to overthrow and discard all the rules, and formulate a new rule again!

Use this to break their monopoly!

Only in this way can we redefine the new pattern of the market!

There are many similar examples in this regard in the history of Internet development, the most typical and well-known of which is the field of network security!

Back then, antivirus software was expensive, and the market was monopolized by several major security manufacturers. If you want network security, you have to buy it, whether you are a merchant or an ordinary user.

Because there is no other choice!

Is this situation similar to the situation faced by merchants in the food delivery field now?

This is the clearest example of the rules already being made.

But later, 360 was born, broke the original rules in the field of network security, and launched free security software!

In an instant, it stirred up the situation and disrupted the original order and rules of the entire network security industry.

In the end, 360 became the only overlord in the field of network security, rewriting the rules in this field!

But you must know that when 360 first came out, it was just a clown in the eyes of those fee-paying manufacturers. They didn't care about it at the beginning, thinking that this free model could not go on!

Who would have thought that in the end, 360 would really dominate the network security industry?

This is the Internet!

Full of unknown and unbelievable!

And what Cao Xingyu wants to do now is to re-establish the rules in the field of food delivery and overthrow the existing system!

After a pause, seeing Liu Ting's puzzled face, as if she was worried about her decision, Cao Xingyu said lightly:

"In this regard, don't be too horny, take a long-term view, and set your sights higher."

"Is it true that commission is the only profit model in the field of food delivery?"

"Is the business model they are creating now the ultimate answer to the food delivery industry?"

"uncertain."

"You have to remember one sentence: the ultimate goal of all businesses is monopoly."

"And what we have to do now is to monopolize first."

"When we become the only existence in this field, we don't have to worry about profitability at all. Naturally, there are ways."

"The ultimate goal of all businesses is monopoly..." Hearing this, Liu Ting seemed to be hit by this sentence, and her whole body was shocked, and said:

"This sentence is too true!"

"As long as we can monopolize the market, the decision-making power in the future will be completely in our hands!"

"Mr. Cao must have planned for this long ago, right? Including how to make a profit and realize it?"

"Hehe." Hearing this, Cao Xingyu just smiled lightly and didn't answer.

Liu Ting might not believe it when he said it, but he naturally didn't have any plans.

In Cao Xingyu's eyes, how to make a profit is a later matter. It is meaningless to think so much now, let's talk about the market first.

Seeing Mr. Cao's smile, Liu Ting made up her mind. It seems that Mr. Cao has already made a comprehensive plan!

That's right, Mr. Cao has always looked confident today, why do I worry so much!

My worry is purely unnecessary!

Thinking of this, Liu Ting didn't continue to struggle with the issue of commission, in other words: "However, Mr. Cao, introducing external merchants involves a problem. We don't have online payment!"

"If members order non-Shiwang brand stores and there is no online payment function at that time, can we use the member balance in our membership system for settlement?"

"And in terms of food safety, should they be forced to install cameras? Follow our existing standards?"

"Well, the question you raised is quite good, and it's exactly what I'm going to say." Cao Xingyu first praised, and then continued:

"First of all, this upgrade of the APP requires a classification to distinguish between our Shiwang brand stores and third-party stores, and it is also convenient for users to quickly screen."

"After all, although we have access to third-party stores, our core competitiveness is still our own stores. Remember, this will not change at any time."

"And after distinguishing the stores, we don't have to force the cameras! Just let them!"

"It's just that, for those who have access to the video, we give priority to display and promotion, and light up iconic icons about food safety."

"If they want access, they can apply for it and install the cameras themselves."

"Let them make their own decisions in this regard!"

I also want to attract more merchants to settle in, so as to attack the existing market of Meituan and restrain their energy.

Also want to maintain high quality, to require the specifications of each settled business.

These two points are obviously in conflict, and it is impossible to complete two things in a short period of time.

So a trade-off has to be made.

Therefore, we can only lower the quality requirements first, first reduce the display weight of those stores that do not have video installed, and then consider slowly improving it later, and then control food safety.

This is the best solution Cao Xingyu can think of at the moment.

"Yeah." Hearing this, Liu Ting nodded in agreement, and said, "If you install a camera, the display location and the promotion will be equated."

"Then there should still be many businesses choosing to install cameras by themselves!"

"Well, I hope." Cao Xingyu smiled noncommittally, it can be seen that he doesn't attach much importance to this for the time being, and he knows that this aspect is not something that can be done overnight.

"As for the settlement issue you mentioned..." After a pause, Cao Xingyu continued:

"The settlement will be settled with the balance of our Shiwang brand member APP!"

"Merchants can check the business income on the merchant's account in real time in the background, and support them to withdraw cash by themselves!"

"Also, use our member balance system to settle the settlement, this is actually the second thing I'm going to say!"

"We not only want them to settle in, but also use our existing membership mechanism to deeply bind all merchants who have settled in our APP!"

"Drain their existing regular customers to our Shiwang brand APP! Become our members!"

"Eh..." Hearing this, Liu Ting thought for a while, her eyes lit up, and she said:

"I see!"

"Actually, the problem is mutual."

"They will get a lot of traffic from our members when they settle in, and many of them may become their potential customers!"

"On the contrary, if their existing customers, especially old customers, want to continue to order takeaway meals from their stores, they must come to our platform, and to come to our platform, they must first register as our members!"

"For us, the most intuitive benefit is that we have gained more members!"

"Secondly, with the increase in the practicality of our membership card, there will be more stores that can be used!"

"For third-party shops, they actually have nothing to lose!"

Speaking of this, Liu Ting couldn't stop saying, "Unfortunately, it can only be used online. If the card can also be used offline, then our Shiwang brand membership card will be awesome."

"What are you thinking? You want to include all the merchants that have settled down offline?" Cao Xingyu couldn't help but sneered. This guy either didn't want to, or he really dared to think about it!

You know, using this mechanism online has added a lot of new work to the Shiwang brand.

Especially in terms of cash withdrawal and settlement by merchants, at the current stage, the Shiwang brand does not have its own payment tools, and it needs to spend a lot of manpower!

Moreover, unlike regular commercial streets, there are tens of thousands of side streets. There are shops in any alley or small street. The total number of them is quite huge.

The manpower, material resources and energy it needs to spend will be an astronomical figure!

Therefore, how is it possible to open up so many shops offline?

"Hey." Liu Ting smiled embarrassingly, knowing that her thoughts were a bit too unrealistic, so she quickly said:

"Boss Cao is really amazing!"

"In this way, in fact, our 1% commission is not completely useless, at least it has the potential to make every merchant on our platform unknowingly become our promoter!"

"Think about it, if they have customers who like their dishes offline, they might ask if there is any takeaway, and they are exclusive to our platform, so they can only promote us at that time!"

"Tsk tsk, I don't think those merchants would have thought of this!"

"1% permanent commission, you have to pay something." Cao Xingyu chuckled, and continued: "It's impossible to let them take advantage of it for nothing. Do you really think that our Shiwang brand APP is a charity platform?"

"nonexistent."

"And our request does not do any harm to them. After all, most of them are self-employed. How can they care about whether they are members or not? Our actions will not affect their fundamental interests at all, and they will not go with us. Careful."

"Hmm! Indeed!" Liu Ting nodded in agreement, and couldn't help but sigh:

"It's no wonder that Mr. Cao set a 1% commission. Let's not talk about the realization of the follow-up monopoly. From the perspective of promotion and increasing the value of the membership card, we are already not losing money!"

"Mr. Cao is worthy of being Mr. Cao!"

"admire!"

"Okay, now is not the time to brag. Remember carefully, there is a lot of work to do on these two things, and you have to check the details carefully." Cao Xingyu waved his hand and said seriously.

"Okay, Mr. Cao, please don't worry!" Liu Ting put away her smiling face and responded firmly.

"Yes." Cao Xingyu nodded and continued: "The third matter is about our group's internal affairs."

"Mei Tuan's action this time is a rare opportunity for us to strengthen internal cohesion and enhance the solidarity of employees."

"Internal..." Hearing this, Liu Ting thought for a while, then raised her eyebrows and said, "Boss Cao means..."

"Notify all the employees of the company about Mei Tuan's actions this time?"

"That's right." Cao Xingyu was very satisfied with Liu Ting's reaction, and said:

"After all, our company has only been established for less than two months."

"Yeah, less than two months..." Hearing this, Liu Ting couldn't help but interjected: "But there are already thousands of people... It's like a dream..."

"Yeah." Expressing Liu Ting's sudden feeling, Cao Xingyu didn't care about it, and said with a smile:

"Fast development is one aspect, the key is that our development is too smooth!"

"Naturally, it was thanks to Mr. Cao's wise and powerful leadership that we were able to go so smoothly!" Liu Ting couldn't help interjecting again.

"..." Cao Xingyu was too lazy to answer, and continued:

"Too smooth is not good, it is easy for employees to lose their sense of crisis."

"Especially because we're not strong enough yet."

"Just like this time, Meituan can easily pose a big threat to us."

Speaking of this, Cao Xingyu sighed meaningfully: "In the future, our opponents will only become more and more powerful and difficult!"

ps: 5800 chapters!

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