Rebirth: From Cottage To Big Money

An Ran knows very well that in a few years, many express companies will rise.

The method they use is capital operation. In less than two years, they can spread their outlets all over the country, and only some very poor areas have failed to establish a single outlet with a town as a unit.

Contracting mode!

That’s right, it’s through contracting to collect franchise fees, and then there is a deposit, and a large amount of money is collected. The company has more sufficient funds, which can be used for other, even subsidies, and reduce express delivery costs. Survive in the industry.

Need to know, it's 2015, not 2018!

It turned out to be far less intense and huge than imagined.

The current postage rate is still quite high. A piece is at least 8 yuan as a base. There must be room for compression, but there are some limitations. The capitalization operation can be compressed. After all, you The company has accumulated a lot of funds, so can you carry out some R&D, or commission R&D, or cooperate in R&D?

Develop a highly automatic sorting machine, and add more intelligent identification, then you a huge sorting center, can you reduce the cost?

In this era, manual sorting is still used. It is a bit automatic. It means that some conveyor belts are automatic, while others are sorted manually. That is to say, after a large number of pieces are collected, they will be concentrated. Go to a huge sorting center, then manually sort them out, and then send them to a conveyor belt belonging to a certain city, and then load them away.

After that, it is sent to a certain city, and then sorted. When it comes to the city level, the subordinates go to the county level for the sorting, and then go down one level at a time.

With so many sorting links, let me ask how much manpower is needed. In the era of labor, this will become the largest cost of express company operations. Under this premise, it is impossible to have too much room for postage compression. What if a highly intelligent and automated sorting machine is developed?

It will eliminate labor in a large area, reduce the company's operating costs, and achieve the purpose of reducing freight.

The small express delivery industry is not as simple as you think.

Before An Ran’s rebirth, he had already progressed to this point. The major express delivery companies have begun to develop in another direction, that is, intelligent delivery, based on drones, to achieve the purpose of unmanned delivery. The emergence of some smart mailboxes is the effort of major companies. The purpose is to reduce the number of couriers.

The fewer the number of couriers, the lower their operating costs, so that they can reduce operating costs, and then reduce postage, so that they can better gain a foothold in the industry, compete with other companies, and survive.

However, there are some express companies, including two giants. They have done a little too much. Even the county-level sorting centers have chosen to contract out instead of operating themselves, and even in some unimportant cities. Using the contracting model can better spread their operating costs.

The contracting model is not bad, but it is a bit too much to contract out the municipal sorting center.

The biggest drawback of contracting out is probably the loss of items. After all, it is contracted out. The sorting center is privately owned. It is not a big problem for others to lose a few items, even if your company has a set of punishment mechanisms, such as lost items. For example, you have to pay fines, but you can lose a few pieces a day. Compared with the money they make every day, they are only a very small amount. It also allows those contractors without any pressure and burden, so they still do it. NS.

If you lose a piece, you will lose it!

The final result is that there are many courier companies, even if they are giants, their reputations are somewhat stinky, because everyone knows that your company often loses packages, who will use your courier company?

This is the biggest drawback of the contracting system!

And An Ran pointed out that the county-level unit, that is to say, the sorting center in the county must be its own operation, not within the scope of the contract, and only the towns under its jurisdiction. The contracting system is adopted for the first-level outlets.

Invisibly, the company’s operating costs are high, and the investment is huge, but the benefit is that it’s not easy to lose items. They are all in the county and sent to the town’s outlets. If you return the lost items to me , Then I’m sorry, there is no need for your network to exist anymore.

"I know that to build a self-operated county-level sorting center will undoubtedly increase the company's operating costs, and the initial investment will be very huge."

An Ran explained and said in a very detailed way: "But the benefits are unlimited. One is not easy to lose parts, and the other is the safety of protective parts. If the contract is out, those people will be careless and very careless. It’s easy to lose items, and it’s also easy to damage the express. Some ordinary things don’t matter, but some electrical appliances, some glass products, and fragile objects can be a big trouble."

"Either you don’t do it, you have to do it big if you want to do it, and if you want to become bigger in the end, you can still retain the ability to compete, then word-of-mouth cannot be lost. That is the foundation of a company. If you lose these , No matter how much business you have in the future, you will gradually lose it one day. On the side of the online shopping company, if your company always has damaged parts and lost parts, it will also cancel the cooperation with you, and some Ordinary merchants will not choose you either." An Ran finally emphasized.

In a word, either don't do it, do the best!

"In this way, the investment will increase a lot!" Xu Jiawei sighed. Of course, he also hopes that a company’s reputation is very important for the company, but he is also an investor, so he naturally wants to save costs, because Cost savings can enable the company to achieve profitability faster.

With profit, the financial report will look good, more funds can be raised, and a perfect cycle will be formed, and then the last step will be the success of the IPO!

It seems that all venture capital companies want this!

Investing in you is thinking that you can succeed in IPO as soon as possible, otherwise how can venture capital companies make money?

The fewer cycles the better.

There is nothing wrong with him from this point of view. This is where a venture capitalist needs to stand.

"Long Yue Venture Capital, let's get involved."

An Ran didn’t mean to blame Xu Jiawei, his position is different, and his consideration is also different: “First, make a budget and have some characteristics for the acquisition targets. I think the information department of Longyue Ventures should have collected a lot of information from express companies. Check it, find a high-quality company for the acquisition, and complete a foundation first."

"After that, calculate how much you need to invest. As for the final investment, how much shareholding, and how much share left to enter the financing, I think you are all elites in this area, professionals, and it is up to you. Plan it." An Ran said at last.

…….

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