Shenhao started after the college entrance examination

The statement that the profit of a small noodle shop exceeds that of Anxin Investment Company seems scary, right?

However, the facts are always contrary to common sense!

As of now, the Life Winner System level is Lv7, and the annual rate of return of Anxin Investment Company is 20%. Under the rationalization and coordination of the Life Winner System, this profit rate will fluctuate randomly between 20.00% and 20.99%.

If compared within the financial industry, Anxin Investment's profit margins are among the best in the world.

But compared with the profit margin of Anxin Investment Company and that of a small noodle shop, it is simply incomparable.

Taking Beiyu District of Shengqing as an example, in most small noodle shops, the price of 2 taels of small noodles is 6 yuan, the wholesale price of standard noodles is 2 yuan per catty, and the material cost of small noodles is 0.4 yuan.

The cost of various condiments is about 0.5 yuan, and the cost of vegetables in small noodles is about 0.3 yuan. The cost of human resources is floating. Small shops with few people are cheaper, while large shops with many people are slightly more expensive.

Taking a small shop with two people as an example, the sales volume per day is 300 bowls, and the total salary of the two people is 9,000 yuan. The daily labor cost is 300 yuan, and the human resource cost of each bowl of noodles is 1 yuan.

In addition to the cost of store rental, water and electricity costs, as well as the cost of food waste, etc., if you calculate it a little more generously, the comprehensive cost is counted as 2 yuan. This cost is enough to open a store in a relatively prosperous location.

The final cost of a bowl of noodles was 4.2 yuan.

Calculated based on a bowl of noodles costing 6 yuan, the profit is 1.8 yuan. This profit rate is already 30%.

More importantly, the cost calculations of Anliang's assumptions are all calculated to sell high!

The true cost must not be so high.

However, even so, such profit margins are already terrifying.

Maybe some people think there is something scary about a 30% profit margin?

The profit rate of Anxin Investment Company has also reached 20%, which is only 10% short of the profit rate. What is so scary?

If you think so, there must be something wrong with your thinking.

Because the time for both parties to make profits is different.

The profit rate of Anxin Investment Company is an annual profit rate, which is equivalent to one year to earn a 20% profit rate, but the profit rate of a small noodle shop is a single day profit!

Noodle shops are terminal sales. The production time of each small noodle is extremely short, the sales time is extremely short, and the time for funds to arrive is also extremely short. The net sales profit on a single trading day is 30%.

How terrifying is the net profit for one year?

Calculated based on 365 days in a year, the single-day profit is 30%, and the annual profit is 10950%, which is almost 110 times the profit!

So why do you look down on small noodle shops?

An Liang once analyzed why Internet giants entered the vegetable market and why they competed with small traders for trivial 'small business'. Could it be for harvesting?

An Liang said at the beginning that it was simply impossible for the giants to harvest this market.

Ordinary people think that the method of Internet giants is to first use low prices to defeat small merchants and hawkers, and then raise prices to harvest users, right?

The result of An Liang's analysis is that the giants simply don't bother to do this, because as long as the giants raise prices, small traders and hawkers will reappear. After all, it is a small business with low costs and low barriers to entry, and anyone can enter.

If Internet giants want to play tricks, they will inevitably play tricks on themselves.

Internet giants set up vegetable markets and create community group buying. The real purpose is to see a profit rate as terrifying as that of a small noodle shop.

The trivial vendors are actually no different from small noodle shops.

Take a pork dealer as an example. They buy pork every morning, sell it during the day, and almost sell it out in the evening. This forms a closed sales loop, which is a complete sales cycle. The profit rate in a single day is about 15%.

The situation is the same for vegetable vendors. It is also a closed loop of single-day sales. Purchase in the early morning, sell in a single day, and close the stall in the evening. The net profit margin is about 15%.

At first glance, this profit margin is very low, but if this profit margin is created on one sales day, it is very scary, right?

How can the Internet giants not see this?

According to estimates, the market economy nationwide is close to 6 trillion!

What is the concept of this market size?

Xia Guo's overall clothing market is 2.2 trillion, including men's clothing, women's clothing, children's clothing, accessories, etc. combined.

Liquor is hot enough, right?

But Xia's liquor market is only 0.58 trillion.

The size of the home appliance market is only 0.78 trillion, including TVs, refrigerators, air conditioners, washing machines, etc.

The mobile phone market can be said to be turbulent, but in 2019, the total volume of Xia Guo’s mobile phone market was only 0.75 trillion.

The combined total of these familiar markets is not as large as the wet market economy!

With such a huge volume and a closed loop of single-day sales, how can the Internet giants not compete?

Calculated based on a single day profit of 15%, the monthly profit is 450%, and the annual profit is close to 5500%, okay?

Compared with the profit rate of the main industry of the Internet giants and the profit rate of the wet market economy, it is just begging, okay?