Rebirth to 90s: Start from Scratch

Chapter 499 Foreign trade is hard to do

Zhang Qianxiu still admires and admires Ding Yao’s entrepreneurial experience very much.

I just don’t know if what Ding Yao said is true or not.

In any case, Ding Yao’s “show off” easily brought the relationship between the two parties closer, chatting and talking like old friends.

While chatting, Zhang Qianxiu even wondered if this was Ding Yao’s routine, deliberately “showing his heart out” to you and talking about his past.

But when I look back, people like Ding Yao who came up and said that they had past is sometimes annoying, because others may not be interested in your past.

By the time Ding Yao finished his “History of Entrepreneurship”, more than an hour had passed, and Ding Yao was basically talking about this more than an hour.

This more than an hour is not completely unproductive. Zhang Qianxiu already knows what Ding Yao has done, what clothes he makes in his current factory, and how large it is.

Zhang Lanmei seems to have gotten used to it. After Ding Yao finished speaking, she said, “Boss Ding, my brother is here to invest in Pengcheng and do a little business. He just values ​​the clothing industry, so I want to ask you about it.”

Ding Yao was very bold and didn’t know his personality, so he drank a few glasses of wine and said in a big way: “These are all trivial things. If there is anything Brother Zhang doesn’t understand, just ask me.”

“I dare not say anything else. I can still give some advice on clothing.”

Zhang Qianxiu asked: “Brother Ding, how is the profit of the clothing industry currently?”

Ding Yao said: “It’s not easy to do! In terms of gross profit, the gross profit of domestic orders is about 30%, and the net profit is about 10%.”

“For foreign trade orders, the gross profit can be about 50%, and the net profit can be 30%.”

“On the gross profit, different people have different algorithms. If someone can calculate 80% of the gross profit for you, he will only count the cost of the cloth. What can you do?”

Zhang Qianxiu understands that this has something to do with the current finances and the level of the boss. Some bosses think that as long as everything except cloth is gross profit, he does the same.

Zhang Qianxiu asked: “Brother Ding, let me ask a linger, how much is the cost of an ordinary shirt now? Only the fabric, consumables, and labor costs are included.”

Zhang Qianxiu originally wanted to add water and electricity, but many people don’t count this thing.

Ding Yao said: “It depends on both domestic and foreign countries.”

“Let’s say that the domestic shirts are of medium quality, and there are more than 20 pieces on the market.”

“Even 21 pieces! Retailers basically earn 50%, half of them are earned. Their wholesale prices are around ten yuan, and wholesalers are also divided into levels, at least two, and some three levels.”

“The smaller the wholesaler, the more he earns. Even if the second-level wholesaler earns 20%, he goes to the first-level wholesaler to get the goods, that’s eight yuan.”

“The first-level wholesaler earns 10%. He goes to the factory to get the goods, which is about seven yuan.”

“But there are still costs involved. After calculating the various costs, it will probably cost about two yuan.”

“The factory shipment price is about five yuan.”

“For the five dollars, the factory owner wants to make a percent, and the real cost is four and five dollars.”

“These four and a half include losses, labor, water and electricity, factories, machinery, etc.”

“To sum up, the real fabric, buttons and other accessories cost about two yuan.”

“Many people don’t want to go to the mall to buy clothes, so they can buy some cloth and make them by themselves, which can save a lot of money.

Business profits are high now, which seems to be very profitable, but it is not.

Business is regular. If I have less sales, I have to increase profits, or I will lose money.

There are generally three situations for high profits. The first is that there are barriers to this product. Only you can make it and others can’t. It doesn’t matter how you bid the price. Others can only buy from you. He knows that the cost is only one dollar, and you sell one. Thousands, I can only buy with my teeth, this kind of products are basically high-tech.

The second is that the market is small and it’s not easy to sell. I can’t live without such a high profit. I can only sell one piece of clothing a day. The profit of this piece of clothing must be enough for my normal life. It’s better to go farming. If I can sell a hundred pieces a day, then my profit on a piece of clothing will be reduced. Even if you don’t want to drop it, it’s useless, because others will drop it and you will be forced to drop it. In short, the bigger the market , The lower the profit of a single product.

The third type is particularly dangerous. It takes one’s life to fight. Without enough profit, no one will fight hard.

Later, the net profit of the clothing manufacturing industry was only about 5%, even as low as 3%. The big reason was that the market was large, the orders were more, and the production efficiency was higher. One order made a little less and more orders were made. You can also make money.

Zhang Qianxiu is still very satisfied with the profit of the clothes now, but he also has some doubts in his heart: “Brother Ding, is there anyone in the market lowering prices to receive foreign trade orders?”

Ding Yao said: “Basically no, most ordinary people can’t make foreign trade orders. Foreigners have very high requirements. If they are not satisfied, they will return the goods. They have a contract. It is indeed your problem. You can’t do anything, you can only give it to others. Returns.”

“For example, if you make 10,000 shirts and others don’t want them, if they are from Asian countries, they are of the same size and can be sold domestically. Because of the high cost of foreign trade orders, domestic consumption is basically not affordable. If you don’t have any money, it’s good to be able to keep the cost. Even if you lose a little, you can still make a profit if you make a new batch to complete the list.

“If you encounter the European side, this batch of clothes is still relatively large, and it is not sold in China. Those shirts are just like skirts on me. I am still relatively tall, and ordinary people can wear them to the knees. Now, who will buy you?”

“This batch of clothes is basically smashed in hand, and the final order is made, and it will be a loss.”

“So, for foreign trade orders, you must first be able to receive orders. If you can receive orders, you must have the ability to handle return orders.”

“If you can’t handle these, basically you don’t make much money.”

“Didn’t I say that foreign trade orders have a 30% profit? If you can’t handle the return order, you won’t be able to make this profit.”

“Generally speaking, when doing foreign trade orders, they will make a certain amount. I have seen the most. People made 30% more clothes, 10,000 pieces of clothes, and he opened the material and opened 13 thousand pieces, just because he was afraid of making them out. The question is, pick out all the good ones and ship them. In the end, the remaining 3,000 pieces are sold at a cost price. You cannot sell these 3,000 pieces of clothes in China. Isn’t it a loss?”

“There are two main reasons for this kind of problem. The first is our own technical problems, so we can only pick the best ones and sell them; the second is that foreigners don’t think much of us. If there is a problem, he We have to pick up the thorns, we have to make money from others, and they are the uncles, and they have to be ancestors. What do those ancestors say?”

“So, people who can receive foreign trade orders have low profits and would rather not do it because they are afraid of losing money.”

“Those who don’t understand anything, when I talked to them, I calculated it in my head. This list has a profit of 10% and can be done. In the end, the best clothes are taken out. When they look at it, 100% Twenty unqualified, requiring rework or redo, those people are immediately dumbfounded.”

“Those foreigners say that they are unqualified. From the domestic perspective, it is not a problem at all.”

“For example, two pieces of cloth need to be stitched together with three horizontal lines on them. As long as the tailor is good in China, the three lines must be aligned in foreign countries. There are many problems such as this. Generally speaking, as long as the clothes are suitable in China, the clothes Stitching is fine, but foreign countries still require aesthetics, and it’s almost a bone in the egg.”

Zhang Qianxiu has never done foreign trade, but hearing Ding Yao say that, he also feels the difficulty of doing foreign trade.

If foreign trade is really like what Ding Yao said, even if there is a 30% profit, if you don’t have the ability, you really can’t do this job.