Squeeze means many companies making money Jiemi appliance stores

 

Despite the distance "51" three weeks vacation time, but some appliance stores in Beijing have started, "just around the corner", and price promotions is still business, "crying," the biggest selling point. Yesterday's

(April 9, 2006) in Beijing to see some home appliances stores, air conditioners, refrigerators frequent price cuts hundred, thousand, while a 42-inch Panasonic flat-panel TV actually straight down 12,000 yuan. We must ask, drop so much, where does the profit?

2006

The last day of February, Suning Appliance (002024) released its 2005 annual report, annual report of Suning's main business revenue in 2005 reached 15.936 billion yuan, 9.107 billion yuan compared with the 2004 surge 74.99 percent, with net profit more than 1.81 billion yuan in 2004, 93.37 percent, reaching 350 million yuan.

Reporter by more than a week of intensive investigation, home appliance chain giant crush on the manufacturers seem more serious than expected, with the "exorbitant taxes and levies" to describe it as. From opening new stores, "slotting allowance" to the promotional activities of daily sales charges, advertising support from every weekend to Gesanciwu the rebate, all additional costs can be described as pervasive.

Appliance maker said annual rebate "blood and tears"

159.36 billion, the main business income, 74.99 percent growth rate, net profit of 350 million yuan, only in respect Suning Appliance 2005 Annual Report of the primary data, it seems to come to this conclusion: the Suning Appliance represented by the giant home appliance chain are still maintained rapid and healthy development momentum. But the fact is, most people have neglected their annual reports to hide information.

Suning 2005 financial report in the "Profit and Profit Distribution Table" can be seen in a group of numbers: 1,519,560,539.82 yuan operating profit, operating expenses 1,536,435,208.21 yuan, management fees 314,071,890.67 yuan, the financial cost of 26,461,616.10 yuan.

The above data can be seen in the main business profit of 1.5 billion, while Suning operating costs, management fees, finance charges total cost of up to three 1,876,968,714.98 yuan, whole higher than the operating profit 357,408,175.16 yuan .

Suning's main business is electrical sales and profits of the three charges higher than the main means Suning 2005 sales occurred in the electrical losses.

Suning

it is worth noting that the financial report in an amount of 912,034,275.49 yuan also "other business profits." Suning announced as early as 2005, three quarters of the newspaper some experts pointed out that the so-called "other business profits", mainly from the manufacturer's rebate and other fee charged. In other words, rebate saved Suning. Similarly, for the same business state Gome, Dazhong and other home appliance chain enterprises, the rebate is their savior. Other operating profit mainly by sales revenue, admission fees, management fee income, was added to our cost, air-conditioning installation, management fees, booth fees, agent fees, advertising fees constituted. These revenues are derived from the final analysis, supplier rebates and the pay channel charges.

Entry fee: Do not try to sell something without pay

2006

TCL announced Feb. 9 to return to the open channels of commercial ultrasonic one of the reasons is the heavy appliance chain giants "slotting allowance." This has become a home appliance chain industry, the "established rules."

"Color TV in our company to enter the newly opened store sales of medium and large, need to pay 50,000 yuan of the slotting allowance", H company, a TV business manager, Mr. A told reporters. But 50 thousand yuan only store the hors d'oeuvres, manufacturers are only paid tickets only. For most manufacturers, in stores in a good selection of booth location will highlight the product, the company showed strength, related to the availability of good sales. Therefore, the brand appeared in each slotting allowance varying fees, but only those who were most of the manufacturers pay slotting allowance to get the best booth location. Relatively good position, then to the store is 100 000 -15 million.

Booth location is not determined after the peace of mind. Mr. A explained that country the United States and other home appliance chain store enterprises will from time to time in order to upgrade the image of the grounds of an internal stand adjustment, "In fact, the original shop is re-opened once again to the equivalent of a Progressive Field fee. "is more annoying, H Company slotting allowance for each category must pay to enter the store sales.

According to reports, home appliance chain slotting allowance to the amount charged by suppliers generally 500 per single product to 10 million, the amount of slotting allowance by the number of outlets, sales, product will be very different in different , received very flexible way. The supplier rebates generally calculated based on product sales, ranging from ranging from 0.3 to 0.5 percent. Basic appliance stores now have more than three or four hundred brands, if the slotting allowance by each factory is 50 thousand yuan terms, appliance stores slotting allowance is a sum of each alone is not a small income.

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