Chapter 234: Model Battle
Ji Yingyang was a little dizzy.

She is only 25 years old now and has been working for a few years, doing administrative work and has never had the opportunity to face business directly.

So much so that I couldn't understand it.

Zhou Haoran also noticed it and deliberately showed off.

I want her to see the abilities of the two apprentices I brought up!
"Xiaochen, Nuonuo, each of you tell me the shortcomings of the other's strategy." Zhou Haoran didn't reveal the answer directly, intending to let them discuss it. "Nonuo, you go first, what do you think is wrong with Senior Sister's model?"

"The model you're talking about is nothing more than speculation! This business philosophy is terrible. They buy goods from factories at low prices and then resell them to other traders at higher prices. This model relies entirely on information asymmetry, lacks long-termism and core values, and has no standardized system."

Qiao Nuo said it simply and clearly.

In order to write letters, she read many books on business management.

We attach particular importance to institutional building.

Hu Xiaochen hadn't read as many books as her and didn't know much about theory, but she had a better understanding of reality. "What's wrong with speculation? We're in a business with information asymmetry."

Qiao Nuo said seriously, "Some companies can make 10 billion a year, but they go bankrupt very quickly. Other companies can only make 10 a year, but they can thrive and get better and better."

Hu Xiaochen snorted.

Qiao Nuo said seriously, "Because the two sides pursue different goals. The former only cares about profits and benefits, but ignores the construction of corporate systems. The latter has low benefits, but first lays the foundation and improves the corporate system. Without excellent production relations, no matter how powerful the productivity is, it is just a bubble that will burst sooner or later. With advanced production relations, powerful productivity will definitely be stimulated. Master, is that right?"

"Correct."

Zhou Haoran smiled. Although this second apprentice was young and naive, he learned things quickly.

Qiao Nuo raised his chin slightly, very proud, "There is a cause for every effect, we must pursue long-termism."

Although Hu Xiaochen was the eldest disciple, she wasn't usually around Zhou Haoran and hadn't been exposed to these things, so she was a little annoyed. "I don't know what you're talking about, but I know your model isn't working. Isn't your approach just like a real estate agent's?"

Qiao Nuo was unconvinced, "This is called standardization."

"Come on." Hu Xiaochen curled his lips, dismissing the idea. "I've been saving money for the past few years to buy a house, and I've looked at properties. Those real estate agents are most afraid of me establishing a private relationship with the homeowner. Why? They're simply worried that I'll close the deal privately with the homeowner, bypassing the real estate agent, and avoid paying a commission!"

Qiao Nuo argued, "Any system has loopholes, but we can't stop establishing a system just because there are loopholes."

Hu Xiaochen felt a bit of a headache. "I know you know a lot, but you're talking too big. Can you be more down-to-earth? We're just trying to make some money by taking advantage of the information gap... Master, am I right? Nuonuo's ambition is too big. It's like he wants to build a Fortune 500 company right from the start."

Zhou Haoran smiled and said, "You two can discuss this. I won't get involved for now."

At this moment, Ji Yingyang felt mixed emotions.

She thought she was much better than her two younger sisters, Hu Xiaochen and Qiao Nuo.

Because she works for a foreign company!

There is a more professional working environment there, with more outstanding elite talents, and you can speak English and deal with Americans... What can two girls from a TV station understand by doing some simple jobs in a state-owned enterprise with little competitive pressure?
I didn’t expect the result to be like this!

The reason for this is simply because they have a better master!

Ji Yingyang looked at the young and sunny Zhou Haoran.

The eyes are complicated.

It turns out he is really qualified!

Qiao Nuo's face tightened, and he said seriously, "Senior Sister, you're wrong. Real estate agents do run away with orders, but this is only an isolated incident. The establishment of the commission system is the reason why the real estate agency business can exist in the long term and make stable profits."

Hu Xiaochen pondered for a moment, found an angle, and his eyes lit up, "Nono, I think you overlooked a key factor."

"What is it?"

Qiao Nuo looked suspicious.

Hu Xiaochen smiled and said, "Buying and selling a house is a one-time transaction. The same buyer and seller can't possibly close multiple deals, right? So, all the real estate agent needs to do is manage information well and ensure that the buyer and seller don't come into contact before the actual transaction. That way, the real estate agent can take advantage of the information gap and guarantee their commission."

Qiao Nuo said "hmm".

The business model of real estate agents is a real information asymmetry business.

Buyers have money but lack houses, while sellers have houses but lack money.

A perfect match.

However, there is an information gap and the connection cannot be made.

The real estate agency becomes the place where buyers and sellers connect.

This kind of business is so similar to their current situation!
So Qiao Nuo is very confident.

I think the commission model of real estate agents should be adopted.

Hu Xiaochen shook his head and said, "We're in a business of information asymmetry. To do this well, the most important thing is to ensure that there is always an information asymmetry between the buyer and the seller. Otherwise, they can just contact each other privately. Why go through us?"

Qiao Nuo hummed, "So before the transaction, try to avoid any contact between the buyer and the seller, like a real estate agent."

Hu Xiaochen said, "Here comes the key point. Once a transaction occurs, the buyer and seller will inevitably come into contact, and the information gap will disappear. Real estate transactions are one-time transactions, so once the information gap disappears, the real estate agency will not suffer any losses."

"Yeah." "But we can't. Manufacturers are continuously producing, and traders are continuously shipping. This is a long-term, continuous transaction. This isn't a one-time deal."

"what?"

Qiao Nuo's eyes widened and he finally reacted.

Hu Xiaochen was very excited, feeling like she had regained her senior sister's dignity. She said with a smile, "If it's a commission model, the first transaction is fine. But after the transaction, the manufacturer and the channel dealer will be in contact, and the information gap will disappear. When it comes to the second transaction, why do they need to go through us? Wouldn't it be better to contact them directly privately? Wouldn't that save them the commission?"

"right……"

Qiao Nuo blinked his eyes and finally discovered the loophole in the model he designed.

Hu Xiaochen glanced at Zhou Haoran, his pride evident in his words. "Our business may look very similar to that of a real estate agency, but there are significant differences in the most crucial aspects of our operations. The real estate agency model has many clients and a wide coverage, but these are all one-time transactions. Our business has fewer clients and a narrow coverage, but it can be a long-term, recurring business."

Qiao Nuo hugged his shoulders, pouting and stopped talking.

Hu Xiaochen said with a smile: "Junior sister, you still need to learn more from me!"

"Master!"

Qiao Nuo's eyes were filled with tears, and she looked at Zhou Haoran with a long tone.

Zhou Haoran glared at Hu Xiaochen and said, "Don't bully Nuonuo!"

Hu Xiaochen knew she had won, and she felt relieved. She said with a smile, "I didn't bully her. I'm the eldest sister, and I need to teach my younger sister."

Zhou Haoran concluded, "You both have a point, but each has its shortcomings. Nono's strategy is more suitable for the platform economy of B2B businesses after the rise of the internet industry, but it's not suitable for now. Xiaochen's strategy is suitable for today's social reality, but it's too extensive, lacks standardization and process, and has no long-term sustainability."

"Oh."

Hu Xiaochen's arrogance has subsided a little.

Qiao Nuo's eyes also lit up again and he looked happy.

Only Ji Yingyang looked a little gloomy.

Don’t even mention comparing yourself to Zhou Haoran.

She couldn't even keep up with the conversation between his two apprentices!
That complex and winding pattern of argument was like a series of punches, each of which hit her cognitive soft spot.

Finally, Zhou Haoran's unbiased conclusion really demonstrated his style as a master.

There is indeed a fascinating charm in him.

Zhou Haoran smiled and said, "Sister Yang, then we will set up a trading company and follow the model Xiaochen just mentioned. We will first buy the inventory from the manufacturers at a low price, and then sell it to the traders who need the goods at a high price."

Ji Yingyang was somewhat timid, but he couldn't back down. He pretended to be calm and said, "Shall I take responsibility?"

Zhou Haoran smiled and said, "Yes, you are the general manager of the new company, you will be in charge."

"Sister Yangyang, you are the general manager!"

Hu Xiaochen applauded.

Qiao Nuo was not familiar with her, but he also smiled and applauded.

Ji Yingyang blushed slightly, a burning desire rising in his heart. He said without hesitation, "Okay, then I'll do it. How should I get started? Where's my information?"

Zhou Haoran said calmly, "No rush, we can take our time... Nuonuo, which deal is more suitable to do first?"

Qiao Nuo said crisply, "Let's do the business with the garment factory first. It just happens to connect with the sales network of Tongtai Trading Company."

Ji Yingyang asked, "What is it?"

"There's a clothing factory called Yinghua that's stockpiled 80 yuan worth of goods. They're short-sleeved shirts and shorts for summer, complete sets. 80 yuan is the cost price, and there are 30 sets in total. The distributor they were working with originally said they were selling to the northern market, but now that summer is almost over, they've run into some production and turnover issues, so the backlog has built up."

Qiao Nuo talked about it as if he knew everything about it.

Not to mention Ji Yingyang was envious, even Hu Xiaochen was a little jealous.

I feel it’s better to stay with my master.

Even if I am a little follower, it is better than being a team leader in the column group.

Qiao Nuo continued, "Tongtai Trading primarily targets the rural market in the south, primarily in the Sichuan and Chongqing regions, supplying goods to merchants in those towns and villages."

"What is a street party?"

Ji Yingyang had never heard such down-to-earth words.

Qiao Nuo smiled and said, "It's just a market. This business should be easy to do. All we need to do is buy the clothes from the garment factory and then sell them to traders."

Ji Yingyang's beautiful eyes were full of energy, and she glanced at Zhou Haoran eagerly.

She knew that he was the one who called the shots.

(End of this chapter)

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