Reborn America, this is my time

Chapter 228: Your territory is mine!
"The history of Wal-Mart can be traced back to four or five years ago, when Sam Walton opened a store in Bentonville, Arkansas, to do some small business. Later, when Sam Walton found that normal operations could not allow them to After gaining an absolute competitive advantage, they began to use low-price strategies to seize the market and gain more sales by discounting products. When they started doing this, they achieved great success in a short period of time, with skyrocketing sales. The customer traffic prompted them to open a branch.”

"Because at the beginning of his business, Sam Walton did not want to absorb external funds and only used its own assets to expand, so their development was very slow. It was only in [-] years that they truly dominated Arkansas after they were established in four or five years. state. But doing business is like a snowball. After taking the first step of starting a business, the subsequent expansion was very simple. Starting in [-], they began to invade foreign countries and entered Missouri and Oklahoma. Homer State, and by [-], they extended their tentacles to Louisiana and Kansas. Perhaps because the expansion of their territory gave them hope of becoming bigger, that year they also chose We went public and started financing.”

"In [-], they entered Tennessee. In [-], they expanded to Kentucky and Mississippi. In [-], they began to occupy Texas. Last year, they made their first acquisition since the company was founded. Bought the largest mall chain in Illinois.”

“So far, they have completely occupied eleven states in northeastern America, with 270 six super stores, and according to their announced plans, they are preparing to enter Alabama, Georgia in the next three years. and South Carolina, into Florida and Nebraska within five years, to Indiana, Iowa, New Mexico and North Carolina within seven years, and within the next ten years..."

"Spread the Walmart name throughout America."

Steve Ballmer closed the document in his hand.

His report also made Ethan nod.

To be honest, when Ethan learned that the guy who wanted to get the Johnson Home Console Store franchise was Wal-Mart, he almost jumped out of his seat!
No way, who made the name Wal-Mart too loud?
If Bill Gates is the king of the computer age, and the Microsoft he founded is the Roman Empire in the IT field, then Wal-Mart is the god in the department store chain field!
They are the largest superstore in the world!

There are more than 5000 stores in America alone!
And such a guy wants to cooperate with their Destiny Game?

Oh No!

Doesn’t this mean that their Destiny Games can sell home consoles all over the United States in a short period of time?

This fact makes Ethan very excited!

If Wal-Mart is very interested in their products, why would it build its own sales channels?Even if they spend more money and negotiate from house to house, they still won’t be as happy as selling directly through Wal-Mart!
However, before Ethan was happy for long, he noticed something was wrong.

Think about it for a moment, if he were Sam Walton, the founder of Wal-Mart, when his business has spread all over the United States, he may indeed go to negotiate business in person for the exclusive franchise of a hot product, but there is a high probability that he will not Will show eagerness to partners by going through the back door.

Since for target customers, putting products into America's largest retail store is the best choice, then in this case, Wal-Mart, which takes the initiative, should maintain its own identity.

Because only in this way can they get more sales commissions during negotiations.

Thinking of this, Ethan, who smelled something strange, called the bald Ballmer.

Let Ballmer collect information on Wal-Mart.

Then, he learned about Wal-Mart's current operating status.

When the pattern of 270 six super stores in eleven states across the United States emerged, Ethan knew that Sam Walton was eager to find him because he wanted to take advantage of his popularity!
They want to get more customers by introducing Johnson home console!

They want to directly crush the surrounding competitors by obtaining the exclusive franchise rights of Johnson's home console!
And this idea——

"Why is our host so popular?"

Ethan asked knowingly.

Because when he discovered that in his previous life, the giant in global business wanted to lick his shoes at this moment, a proud smile immediately filled his face.

"Yes." At this moment, Ballmer fully demonstrated what it means to be an excellent subordinate.

The bald man pretended not to understand and explained to Ethan: "After the live broadcast ended, major media in America conducted comprehensive reports on our home console products, including Post-launch sales forecast.”

“According to estimates by the Wall Street Journal, in the past three years, approximately 4000 million Americans have spent money on our electronic arcades each year, with an average annual consumption of fifteen US dollars per person. The average number of visits per person is sixty.”

"When our fan base reaches 4000 million and the per capita consumption is 500 US dollars, even if it decreases in the same proportion, the number of people willing to spend money to buy a console will exceed [-] million."

"Coupled with the excellent gameplay of "Starry Sky", after our console is launched, at least 1000 to [-] million people across America will pay for it."

"Although this number is not enough compared with the annual passenger flow of all shopping malls, no merchant can refuse the sudden surge of tens of millions of customers."

"Because they came for home consoles and didn't want to leave empty-handed."

"As long as there is a conversion rate of 5.00%, [-]%, or even [-]%, it will put them a big step ahead of their opponents! At the same time, these customer flows will also make their expansion easier!"

"Oh——" Ethan suddenly realized.

But the big tail behind him popped out, wagging happily.

Although when Ethan was developing a home console, what he thought most about was making money, but could he gain huge commercial influence while making money?Wouldn't that be better!

No one can refuse praise from the outside world!

And if the guy you're after is a top player in another industry...

That would make people even happier!

"Cough cough cough-"

After laughing for a while, Ethan, who was in a comfortable mood, cleared his throat, "So——"

"How do you feel about this matter?"

He wanted to know what this guy Steve Ballmer had in mind.

As he stared, Ballmer also said: "Boss, we can cooperate with Wal-Mart, but they can't take the North American franchise rights of our home console."

"I think they understand that too."

"So the words they're sending through the governor of Arkansas mean something."

"In my opinion, Wal-Mart wants to reach a long-term cooperation with us and obtain the exclusive franchise rights of our home consoles in places where they have opened super stores. In places where they are not involved, we can still cooperate with other stores. Butt.”

"And once they open their stores to cities that they have never touched before one day in the future, they may ask us to supply them separately."

"This approach can allow their newly opened stores to gain huge customer flow in a short period of time."

"It can also have a huge impact on local shopping malls."

This idea made Ethan's eyes light up, and he asked curiously: "Are you really studying mathematics?"

"Of course!" Steve Ballmer nodded.

"But you are very sensitive to business performance." Ethan said.

"Oh - maybe this has something to do with my parents?" Ballmer smiled and said: "After all, they gave me a very generous living environment, and our family has never been short of money."

Since Ballmer felt that Wal-Mart was unable to acquire the exclusive rights to the home console of their Destiny game, inviting Mr. Walton to come to Palo Alto was what Ethan wanted to do most.In other words, if we can connect with the growing Wal-Mart, our future business will be better.

After all, before the birth of e-commerce fostered by the Internet, Wal-Mart's channels were invincible.

After Ethan told Michael Blanco that he could meet with Walton, Sam Walton, who got the news, took a special plane overnight from Little Rock, Arkansas to San Jose, California.

When Ethan walked into his company on the morning of December [-], he was surprised by the gray-haired figure waiting in a suit and tie.

Before he could say hello, Sam Walton, who was over sixty years old, had already reached out and greeted him, "Mr. Jones, it is really an honor to receive your invitation."

"Thank you for taking time out of your busy schedule to meet with me."

'Hey - you're very polite -' Ethan smiled and shook hands with him, "Mr. Walton, please come from Arkansas. It's really hard work."

"For the sake of living, you should." The old man shook his head and smiled to show that it was not hard.

This action also made Ethan laugh loudly, "For life? Oh - that's great. Since everyone is busy to live, there is no need to talk about hard work."

After a few words of courtesy, Ethan led the other party upstairs, got into the reception room and sat down, and the two people, who didn't have much friendship, started talking about business directly.

Just as Steve Ballmer guessed, what Sam Walton wants is indeed a business exclusivity clause. They want to obtain the exclusive rights to operate home consoles within the reach of Wal-Mart. In the future, After they open up new shopping malls in unradiated areas when the contract was signed, they will also automatically obtain the exclusive right to sell Destiny Games’ home consoles. Destiny Games needs to terminate cooperation with other shopping malls within six to twelve months. For this reason , they are willing to bear all the costs associated with it.

In order to get this project, they were willing to pay the lowest commission rate in the industry. Sam Walton was willing to pay a commission price of [-]% in exchange for a ten-year cooperation contract.

To be honest, from the perspective of future generations, the terms proposed by Sam Walton are already full of sincerity, because Wal-Mart does not charge any display rack fees, monthly fees, or hidden fees for cooperative brands, but only charges based on product category and sales unit price. Different from taking commission directly after each transaction.

According to the reports Ethan saw in his previous life, when the price of the product exceeds a thousand, Walmart has the lowest commission rate of 15.00%, while for general products, they can get [-]%.

Now, Sam Walton quoted [-]%, which is basically no money.

But this price...

"Mr. Walton, I don't see any sincerity in your offer." Ethan shook his head.

"Why?" Sam Walton was a little surprised. "The four percent commission is the greatest sincerity we have shown." He said: "This price is actually equivalent to renting a venue yourself and asking someone to sell it. We at Walmart cannot make any profit from this.”

"But the problem is, our destiny game is more famous in America than your Walmart." Ethan leaned lazily on the sofa and said with a smile: "Now, no one in the entire America does not know the name of our company. There’s no one who doesn’t know my game.”

“When Snake, Pac-Man, and Star Wars set off screams over and over again in America, everyone knew that games of destiny could bring happiness to people.”

"Under such circumstances, putting our products for sale in your shopping malls is actually diverting traffic to you. It should be me who collects the head fee from you, rather than you asking us for management fees."

That's right!

When Ethan discovered that there was no monopoly in the department store industry in America, he was not going to pay any shopping mall management fees to these people!
According to normal business processes, if a merchant wants to push his products to more people, he must use multiple platforms to make money by using the flow of people in major shopping malls and stores to sell goods.

But now?

He doesn’t have to worry about selling Ethan Jones’s goods at all!
Their game is unique!

Let alone the entire industry, there are no similar competing products in the entire world!

In this case, he is the one giving traffic!
And when a product seller can in turn bring traffic to major stores...

Your business wants to charge me venue fees?

nonexistent!

Unless there is a merchant who monopolizes the entire store industry, I have to go through you to sell goods!Otherwise you have to pay me!
"Mr. Jones, your idea-" Sam Walton laughed.

He wanted to refute, but Ethan didn't give him a chance to refute.

"Mr. Walton, if you think my idea is outrageous, then please listen to the next two reasons." Ethan held out two fingers.

“First of all, what I want to say is that when your Walmart cooperates with us, the first reaction of people in the area controlled by your Walmart is that they can only buy our games by entering your Walmart. This is not good for your brand. It is an excellent value maintenance.”

"Secondly, in areas that Walmart does not control, when you enter those cities and obtain our exclusive supply, the public's response will change dramatically."

"Previously, their impression was that they could buy our games in a certain mall in their city, but with your appearance, they can only enter Walmart to buy our games. This not only hints to the public from the side, but Your strength is also a huge promotion for your brand.”

"If you think all this is wrong, then I can only regretfully tell you -"

"See, goodbye."

"And if it all makes sense to you, then we can continue talking."

"My requirements are not high. You give me fifty cents for each transaction."

"can you accept?"

When Ethan offered this price, Sam Walton smiled and said that he needed to think about it.

Ethan expressed his understanding for this behavior, shook hands with him, and sent him away.

After waiting for Sam Walton to leave in the car, Steve Ballmer, who witnessed all this, said cautiously: "Boss, is your idea a little too bold?"

The question made Ethan grin.

Turning to look at the bald man who was learning humbly, he shook his head and said: "The development of all companies is inseparable from advertising. TV, newspapers, radio, magazines... these media are their preferred publicity channels. At the same time, word-of-mouth, activities, discounts Vouchers, that’s a way to acquire customers that they can’t give up.”

"Since they can get more customers by paying the media and giving profits to the public, why can't they pay head fees to merchants with unique products?"

"I dare to charge them money, not only because I am famous enough, but also because my products are strong enough. When the opponents you can beat cannot keep up with you, then you can set the rules of the game for the entire industry!"

"!" Steve Ballmer's eyes were dull.

Ethan smiled and patted his shoulder, asking him to pay more attention to the company's phone calls.

because--

"Sam Walton is a smart guy."

"Since he dares to plan for the full-scale operation of our console while only controlling eleven states, it means that he has the courage to accept all my conditions."

"In other words, he will discuss the matter with his family immediately."

Ethan guessed right. When Sam Walton ambitiously wanted to win the exclusive rights to the Destiny game home console, he was already prepared for Ethan to speak like a lion.

After leaving the Destiny Game, he immediately flew back to Arkansas on a special plane to discuss the franchise with his brother Bud Walton.

After listening to Sam Walton's narration, Bud Walton's brows frowned for a moment.

"Sam, are you saying that Ethan Jones regards his product as a kind of alternative advertising? He thinks that placing the home console in our mall is advertising for us?"

"Yes." Sam Walton nodded.

At the same time, he asked: "Do you think this idea is reasonable?"

"Uh-" Bud Walton pondered for a while, then shook his head and said, "I think..."

"Not very reasonable."

"If placing goods in department stores was a kind of advertising, then there would be no department store industry in the world, right?"

Bud Walton expressed his opinion, "Ethan Jones said their products are famous? Coca-Cola is even more famous! If he wants a head fee, what will Coca-Cola think?"

Bud Walton spread his hands.

His attitude is very clear.

Sam Walton smiled and nodded, seeming to agree with what he said, but he also seemed to find this line of thinking a bit funny, "Coca-Cola has competing products, and Pepsi-Cola will compete with them for the market." He said: "In this case Under such circumstances, Coca-Cola would not dare to ask the merchant for a head fee."

"But the thing is, Pepsi tastes as bad as piss, doesn't it?"

Bud Walton asked rhetorically.

"Yes." Sam Walton nodded. He admitted that his brother was right, but the next second he said: "But are there any competing products between Johnson's home console and "Starry Sky"?"

"Mirovian Apollo and Atari New Generation?"

Bud Walton immediately named two names.

"Their stuff is worse than piss." Sam Walton shrugged.

When these words appeared, Bud Walton's expression suddenly froze.

The fact that there was no opponent in the game of destiny made him take a deep breath.

After a while, Bud Walton spoke again, "Isn't he a monopoly?"

"He didn't even start selling machines."

"But he is already using his industry leadership to influence other companies to make choices!"

"Oh - let's take this matter to the Ministry of Justice? Do you think they will accept it?"

Sam Walton said: "Don't say that Destiny Game has anything to do with the Department of Justice. Even if it doesn't, the people in the Justice Department will think we are fools! Because everyone in America knows that Destiny Game's enemies include Philips, Warner Communications, Paramount, MGM and Disney!”

"We're saying Ethan Jones is using his industry leadership to influence the department store industry when they're already fighting it out in the video game market?"

"If this kind of industry advantage obtained through natural competition cannot be used, then who else in the world is willing to innovate? You? Or me?"

Bud Walton was a little discouraged by his brother's attitude.

"So you want to work with him?"

"Didn't we go there for his influence in the first place?"

"But fifty cents per order is a bit too much!"

"I think it's okay, because based on the customer acquisition volume of 1000 million, we only need to pay him 500 million, and this price is far lower than the discounts we usually do."

"..." Bud Walton was silent.

Because their current annual net profit of Wal-Mart is only 3000 million.

Give a sixth to Ethan Jones?
This special code——

"Oh! Sxxt! He's already so rich! Why is he still making money from us!"

Bud Walton waved his fist angrily.

But the next second he also made a decision, "Let's cooperate! Let's cooperate!"

"When we open Wal-Marts all over the United States—"

"We can collect money from him in turn!"

This decision made Sam Walton look happy.

The old man sighed softly, then put his hands on the table, stood up, and walked towards the door.

"What are you doing?" Bud Walton was a little surprised.

"Going home?" he asked.

"No, I'm going to California overnight."

"Why? Are you in such a hurry?" Bud Walton was a little surprised.

Sam Walton raised his right hand and said with ease, "I'm going to negotiate the contract, because I have a hunch that "Starry Sky", which is expected by the whole United States, will be a good opportunity for our expansion."

Perhaps because this statement was too far-fetched, before leaving, Sam Walton leaned on the door frame again and said with a smile: "You may think my idea is a bit outrageous, but I want to say, Ethan Jones It’s been won numerous times over the past three years.”

"He's probably made more cash in three years than we've had in decades."

"I can't think of any words to describe this miracle other than the coming of God."

"so--"

"Seize the moment and seize the opportunity."

Sam Walton clenched his right fist and waved it at his brother.

Then he turned around gracefully and left with a quick stride.

　Note: ① The query results on major search engines for which company was the first to monetize traffic are basically Google. Because the word traffic was born in the Internet era, the definition of monetization related to it is in the Internet age. But before the birth of traffic, there were actually many people who made money through traffic, such as Ray Kroc, the father of McDonald's. The milkshake mixer business he did before running McDonald's was based on the sales of paper cups from an earlier job. Traffic was monetized, but people at the time called it influence. ② Wal-Mart did not monopolize the U.S. store industry in the 70s. It was not until 1990 that they opened the company to California and became the largest retailer in the United States.During the expansion period in the 80s, they did spend money to buy volume. In other words, Wal-Mart made its fortune through low-price promotions.For example, he negotiates with a company for a ten-point sales commission, and then gives two points to consumers to attract people to buy. ③Before 1980, Wal-Mart's influence was indeed not good.They offer discounts every day and are synonymous with low prices. They can't even get into real large cities.Although their revenue is good, the official website states that it exceeded one billion in 40, making it the fastest company in the United States to break one billion at that time. However, this record only lasted for two years. It is recorded in the archives of UPI that in 12, Warner's operating income exceeded [-] billion, of which [-] billion was contributed by Atari. Atari became the fastest company to exceed [-] billion in revenue at that time. Video games are so abnormal.

　　
　
(End of this chapter)