Millet cost control and profit model is what kind of

"CCTV

depth documentary Internet Era" tells the story of Lei Jun millet mobile phone kingdom. Mentioned in the film, millet in a short period of time to create the world’s sales shocked, and millet phone quickly leapt to the list of big brands.

millet co-founder Li Wanqiang said in an interview, in fact, entrepreneurship is not complicated, as long as the right direction to go on is the. Millet to do a thing, adhere to the price of 2000 yuan to make cost-effective mobile phone." This is the "ultimate focus, Lei Jun reputation, reflect fast" 7 words formula secondary injection. We believe that the price is the core value of millet. What is the key to marketing, is to use simple language to extract the point of sale. But many people don’t do this, talk a lot, still can not say the core value. How can this product even impress people are difficult, not to mention people.

millet brilliant is not accomplished overnight, but the wisdom of the baptism of precipitation experienced years of crystallization. Millet to what extent, spend a year of research on a cell phone, a large number of users to collect the views and used for. Such focus, the product market to win a warm market response is inevitable.

millet on the one hand into a huge manpower, material resources, financial resources, on the one hand, the price to do the cost, to achieve the ultimate, then it can be profitable? How to profit? Which contains a commercial magic?

below from the cost control and profit model analysis of the ultimate price of millet.

we know, in the field of digital products, active in a number of senior fancier, they know the functional configuration of digital products, all products are recognized by their representatives of outstanding quality. At the same time, fancier recognized digital products, such as notebook computer, the price is generally more expensive. This is the only and be quite different, millet mobile phone prices to achieve the ultimate, sold at cost price, it sounds as if it does not comply with the economic law, is the ultimate price of millet mobile phone, let the fancier is crazy.

careful analysis millet phone business model, we found:

first, millet phone does not rely on hardware to make money, but to follow the value-added software business to profitability, although the process is long, but the benefits are obvious. We can not deny that millet sold a million count plush toys. In fact, it can sell more than 500 yuan, so that each phone earned $500. But millet did not do so, is to adhere to the cost price, other configuration about mobile phone in front of millet mobile phone, instant inferior by comparison. This is the high point of millet, dare to price naked, so that the cost of price to let the fans screaming, to seize the market price of cost.

second, millet phone competitiveness come from? We can not ignore its channels. The traditional mobile phone manufacturers, are equipped with the perfect pyramid distribution system, from generation to generation, generation of province to the retail terminal, mobile phone costs rose quietly a lot of points, and all this because of the cost of the channel by consumers. Millet is how to do it?

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