Seeing Wei Zhijie operating the entire process, many decoration company owners exclaimed: "The wolf is coming!"

This is a true subversion of the business model of the entire home furnishing industry.

If we carry out whole-house home product services according to this business model, it will be calculated based on more than 70% of the traffic entrance of the decoration company.

A large number of stores in the custom home furnishing industry will die.

In particular, stores that mainly focus on panel style and focus on the mid- to low-end market will find it difficult to survive.

It can be said that this model directly addresses the pain points of decoration companies.

In the past, they could only watch as owners who were unwilling to open cabinets on site took their design drawings to major brand home furnishing stores to complete transactions.

And they can only get 5% to 10% rebates, and the majority of product profits are divided up by major home furnishing stores.

If this model is followed, as long as they reduce the prices of household products by 10% to 20%, they are confident that they can directly capture more than 80% of the owners.

The core of this model is that they only need to formulate a decoration package in the early stage.

Clarify the product area for contracting work, materials and customized home furnishings.

The follow-up work will be handed over to Xinghui Home Furnishing for full-process services.

If a national chain decoration company like Mingjiang, Huaxun, or Mingjiang renovates a house in Asia, and packages it with a cross-industry alliance, the price per square meter will be at least around 4,680 yuan.

The premium for products like Yapai Home Furnishing can even reach 2-3 times.

It is not unusual for a 136-square-meter apartment with about 45 projection areas of home products and solid wood multi-layer board products to sell for 168,800 yuan.

According to the service price provided by Xinghui Home Furnishing, 45 projection areas are only 44,100 yuan, resulting in a profit of 120,000 yuan.

Even if the brand price factor is reduced by 1/3.

The home products section can also generate a profit of 80,000 yuan, which is so exciting that it makes many owners of large decoration companies breathe quickly.

Of all the decoration company owners invited today, none of them can reject Wei Zhijie's business model.

They can imagine that in the subsequent decoration general contract sales model, if you do not include customized home products, how much market share will you lose?

They were all secretly thankful that they were invited to participate in Xinghui Home Furnishing's new business model today.

Mr. Lin, the boss of Nominal Decoration, asked: "Mr. Wei, which cities can Xinghui Home Furnishing currently provide home furnishing services?"

Wei Zhijie smiled and said: "The directly-operated stores that have been completed so far include Haishi, Qiongshi and Danshi."

"Yashi, Wanshi, Wenshi, Cangjiang City, Dongshi and Liuzhishan City are working overtime and are expected to officially receive orders in early May."

Many decoration company owners were excited when they heard this.

Mr. Liu, who was decorated by famous generals, asked: "Mr. Wei, has the direct-sale store in Haishi opened?"

Wei Zhijie nodded: "There are two direct-operated stores in Haishi. The one that can already provide services is the commercial and residential villa No. 8 of the Banshan Peninsula project."

"We are working overtime on decoration. We will also be able to officially take orders in early May."

"After the meeting, I can take you to visit the Haishi Banshan Peninsula direct-operated store. Future orders from Haishi will be placed at the Banshan Peninsula direct-operated store."

Hearing what Wei Zhijie said, many bosses started talking, and many of them turned red.

Especially the owners of several decoration companies who specialize in Haishi decoration business.

One of them raised his hand and asked: "Does Mr. Wei have any discounts for opening?"

Hearing him say that, everyone burst into laughter.

Desperate for discounts! This is the glorious tradition of China.

Listening to Wei Zhijie's explanation of the cost of the entire chain, everyone knew that the prices of Xinghui Home's products and services were extremely low. Some people actually asked if there were any discounts, which made everyone laugh.

Wei Zhijie laughed and said: "Everyone knows the advantages of centralized purchasing. Logically speaking, there should be no discounts, but considering that if everyone deposits cash in their account, let's increase it by 3%."

"That is, 1 million deposited in advance can be used as 1.03 million yuan."

"Wucao! I'll give you 10 million first."

"I'll give you 5 million, too."

"I have 6 million."

When they heard that there was indeed a discount, many bosses were surprised and asked to pre-deposit.

The boss here is not stupid. The entire Xinghui Home Furnishing Co., Ltd. has invested over 1 billion, and many home furnishing supporting companies have settled in Tengfei Industrial Park.

I am not afraid that Xinghui Home Furnishing will run away.

Moreover, the annual sales of many of their decoration companies exceed 1 billion, which is calculated based on the fact that household products account for 40% of the total decoration budget.

RMB 400 million in household product sales a year is quite reasonable.

More than 30 million yuan in household purchases a month.

A pre-deposit of 10 million is only half a month's supply.

Don't underestimate this 3%, even if the annual sales are 100 million, there is still an increase of 3 million.

Anything extra is profit!

The meeting continued, and many bosses had multiple rounds of exchanges with Wei Zhijie on some core elements and key points of the product service process.

Finally, a consensus was reached and they signed customized home product service agreements with Xinghui Home Furnishing.

After the product service agreement was signed, Wei Zhijie initiated the establishment of the Decoration Company’s Customized Home Product Price Supervision Committee.

The development history of the customized home furnishing industry analyzed by Wei Zhijie.

This kind of home products and services will have at least 6 years of bonus period, as long as the decoration company industry does not get involved, undermine each other, and compete with each other.

Then you can enjoy huge dividends in the next 6 years.

Wei Zhijie also shared with them some insights that decoration companies will gradually enter the era of low profits in the future development of the industry.

Many owners of decoration companies had inexplicable shock on their faces.

After everyone looked at each other, they started talking.

According to Wei Zhijie's calculation, it is not difficult for everyone to analyze that the result determined by Wei Zhijie is true.

After the signing ceremony, there were a total of 36 decoration companies.

The maximum deposit is 30 million yuan, and the minimum deposit is 3 million yuan.

In the end, 288 million yuan was deposited.

The company's finances were stunned.

After the contract was signed, Wei Zhijie took many bosses to the Banshan Peninsula Commercial and Residential Villa Direct Sales Store and visited the model room on the first floor.

Looking at the model rooms divided into three sets of simulated apartments, they are complete with furniture and soft furnishings.

Everyone was shocked again.

This is the true move-in-your-bag model.

Many bosses immediately asked if they could provide a full turn-key move-in service.

Wei Zhijie shook his head and explained that the furniture part was temporarily unavailable, but the soft decoration parts would be available for purchase on the official home furnishing website in the future.

The product sales on the home furnishing official website will not be open to the public in the short term and will only be open to decoration companies.

Of course, the price of soft furnishings is not low.

We will not adopt the cost price method. After all, we want to make money, but the price will also be 20%-30% lower than the market price.

The bosses of the decoration companies expressed their understanding.

After visiting the direct-operated store in Mid-Levels Peninsula.

According to Xinghui Home Furnishing’s plan, after the owners of the decoration company returned to the company,

Within three days, submit the number of accounts required by the home service platform and the internal business processes of the respective companies.

And organized personnel to go to Xinghui Home Furnishings to conduct training on the use of the product service platform.

On March 20, Xinghui Home Furnishing will officially accept orders.

Provide full-process services for customized home products for decoration companies.

After Wei Zhijie returned to Xinghui Home Commercial Building.

A management meeting was held.

Until February 8, the thirteenth day of the lunar month since returning to Haishi.

By March 13, for more than a month, Wei Zhijie was almost completely busy.

First, we completed the recruitment of production masters for Xinghui Home Furnishing Industrial Park.

Then the busy work of purchasing raw materials began.

Complete the main marketing building, management building, information building, dormitory, canteen, supermarket and warehouse.

Then work on the three directly operated stores and the headquarters showroom.

Fly to Zhejiang Province and Hangzhou to participate in the official launch of the home information sharing network and home service platform on March 1st.
To be continued...