Chapter 1282 Longer-Term Considerations
With the gradual fermentation of public opinion, while the reputation of CSC club is constantly improving, the image in the eyes of ordinary people has not changed. For ordinary people, the best attitude is not to recognize CSC club, but to have no feel.
Except for some people who are indifferent to it, more people are more or less resistant to it, and Li Mu, who is in the middle of this vortex, has not taken the initiative to pay attention to public opinion, but has focused on two things First, to sort out the follow-up operations of the CSC club, and second, to prepare for the next press conference.
Compared with other clubs, the operating cost of the CSC club is very high, and other clubs can rent a venue to open, but the CSC club has invested hundreds of millions of funds to build its high-standard hardware facilities.
Therefore, the operation of the CSC club in the future will not only maintain the operation of the entire racing track and other hardware facilities, but also support a growing team.
The current membership fee of 40 to 50 million in the first year, if all of it is used to put into operation, can cover the cost, but the 40 to 50 million membership fee must correspond to providing services worth 40 to 50 million to members, even if the profit margin is set If it is set higher, at least half of it will be deducted. It is very difficult to maintain the overall operation and development of the club with the remaining money.
So what Li Mu has always emphasized is to provide high-end products and services for his members in the club, do business for members, and earn out the insufficient part of the cost.
Cai Zhengmao's car import business has been merged into the CSC club, and 30% of the net sales profit is reserved for himself, and the remaining 70% of the profit is used as the club's revenue and rushed into the club's flow. There are over a hundred cars. If all the cars are delivered, the profit will exceed 20 million, and the profit left to the club will be around 15 million.
If the CSC club continues to develop, it shouldn't be a big problem to sell another 100 cars this year. That is to say, at least 15 million profits will be gradually paid in the following six months.
Although the income from this area is considerable, Li Mu knows very well that the overall market of this business must be going down. Originally, the reason why Cai Zhengmao's import and export business is good is because many high-end car brands have not officially entered the Chinese market. With the development of time, after more and more brands have established branches in China and expanded their sales channels, this business has no room for imagination.
The CSC club has just exploded into popularity. It has collected more than 40 million yuan in membership fees, sold more than 100 million yuan in cars, and collected more than 80 million yuan in donations. Although there are some criticisms from the society, it can be regarded as an extremely successful club on the whole. The business case came up, but Li Mu didn't enjoy the status quo. Instead, he called Chen Ze and Cai Zhengmao together to discuss the subsequent profitability of the CSC club.
Both Chen Ze and Cai Zhengmao didn't quite understand why Li Mu was so anxious about the follow-up profits when the current income was so good that it greatly exceeded expectations.
Li Mu said to the two of them unabashedly: "You must not think that we are already very successful. The paper income during this period is pretty good, but don't forget, we are living on our own."
"Eating more than enough food, in other words, overdrafting the profits in the later period in advance, our CSC club suddenly became popular in the circle, which indeed stimulated a large number of users who do not have sports cars to invest in buying sports cars in a short period of time, but this is only equivalent to us spending money on sports cars in the future. The market is abruptly ahead of schedule. This year, taking advantage of the fire at the club, it is not a problem to sell 100 or 200 cars. What about next year? How much will there be next year? I am afraid there will not be many left in the year after. "
Chen Ze nodded and said, "You're right, but don't we still want to sell high-end products and services? This business will also bring us a good income in the future."
Li Mu said: "Old Chen, I have to think about the longer term now. If the club wants to maintain an upward trend, the more income the better, don't forget that we have such a huge investment in hardware.
The maintenance cost of this part is also very high, not to mention you still want to maintain your own kart team? This requires greater investment, and relatively, greater profits are required. "
Chen Ze said seriously: "To be honest, the team itself is a money-burning thing. It is impossible to expect it to make money, and it will definitely lose money. Besides, this thing is one of my ideals. I can't ask everyone to help me pay the bill. So I have considered the team's affairs very clearly before, and the team's expenses are borne by me personally."
Li Mu waved his hand and said, "Don't talk about these useless things. When you said you wanted to build a racing track and a racing team, I suggested building a club based on this. These projects are one thing in themselves. You still want to take them apart now?"
Chen Ze said: "The team business itself is a burden..."
Li Mu interrupted him and said: "Not all projects that cannot be profitable in the short term are cumbersome. The three of us are working together as a CSC club. The structure should be bigger. We can't think that the team is not profitable, so we have to remove the team from this club. Instead, we have to think about how to make more and more funds in our big plate. What we want to pursue now is to improve the profitability of the club, and then allow the club to incubate more related companies. projects, the fleet is just one of them."
Chen Ze hesitated for a moment, seeing Li Mu's resolute attitude, knowing that he was unwilling to let himself bear all the risks, he felt full of warmth in his heart, so he gave up the idea of taking out the team alone and investing in it himself, and asked Li Mu: "What do you think?" Now, where are we going to work hard?"
Li Mu said: "In addition to the sales of high-end products and services, I want to do something deeper. After all, this cooperation method of consignment sales has no technical content."
Chen Ze and Cai Zhengmao asked curiously: "What are the deeper ones?"
Li Mu smiled and said: "It's like when you see a beautiful woman, the most superficial idea is to sleep with her, and on a deeper level, you will want to fall in love with her, or even marry her, have children, and stay together for the rest of your life. What we have to do now , is such a deep plan.”
As he said that, Li Mu said to Cai Zhengmao: "Zhengmao, Maserati is a very good opportunity. You take time to have a good chat with Maserati's interface person, and talk about deeper things. I don't want to just help them sell cars. I want to give They do promotion in the Chinese market! Let them allocate at least 50% of the brand promotion and promotion expenses in the Chinese market to the club!"
Cai Zhengmao was stunned, and asked Li Mu after a long while: "Mr. Li, we are not an advertising company, how can we promote them?"
Li Mu said: "The promotion of real high-end brands is different from the promotion of ordinary brands, especially the promotion of high-end brands with high customer unit price is even more difficult to do. The promotion of ordinary brands with low customer unit price is easy to do. It can be like melatonin, which is pure and brainwashing advertising bombing. After all, the unit price of the product is only one or two hundred yuan, which is affordable for most audiences, but sports cars, which cost more than one million yuan, are different. Take Maserati as an example, do you think Maserati will be able to build up the brand by advertising on TV every day and directly bring considerable sales?"
Cai Zhengmao thought for a moment and said, "That's true. It must be more difficult to promote high-end brands."
Li Mudao: "In fact, if you look at the development history of these high-end brands around the world, you can find that many high-end brands have actually made themselves into a situation where "ordinary people can't afford it, and rich people don't want to buy it" because of improper marketing and positioning. Maserati wants to develop in China, how many people in the country know about it is the second, and how many people are really willing to spend millions of dollars to buy it is the fundamental."
"On this point, 4A advertising companies may not be able to guarantee it, and the same is true for those companies that specialize in planning for the high-end market. Their things are very good in form, but it is difficult to implement or produce actual effects. Simple: They really have no real influence on high-end consumers, and high-end consumers will not be led by them, just like those fashion magazines, they are just a group of editors with a monthly salary of 5,000, telling people with a monthly salary of less than 3,000 How do people with a daily salary of 30,000 yuan live, but think about it, will people with a real daily salary of 30,000 yuan be led by the nose by these editors?"
Cai Zhengmao rubbed his nose and said with a smile: "That's right, my girlfriend doesn't like fashion magazines very much. She always said that the editors of most fashion magazines are actually very ordinary. Those who can afford luxury goods are basically Not swayed by these editors."
Li Mu nodded: "This is the crux of the problem. Advertising companies and planning companies can't deeply influence high-end consumers, but we are different. You can see our attraction and influence on high-end consumers by looking at our registration status. No matter how powerful they are, if we do marketing for them, we can largely ensure their actual conversion rate in the Chinese market in the future, which is unmatched by any advertising company or planning company.”
"For a new brand to enter a new market, especially a new market with a country as the unit, it is like fighting a transnational war. Sufficient funds must be prepared, so we can imagine that Maserati will need to prepare at least thousands of dollars in the next step to enter China. The publicity budget of more than 10,000 yuan is used to quickly increase brand awareness, so Zhengmao, your task is to make Maserati realize this, and as I said, allocate at least half of their promotion budget in China to us."
Li Mu thinks that Maserati is an opportunity for CSC to show its muscles to high-end product suppliers all over the world in the future. If it can win Maserati and then help Maserati make a good landing in China, it is very likely that most luxury car brands will , must carry out in-depth cooperation with the CSC club, which will also become an important part of the CSC club's profits in the future.
Cai Zhengmao said: "Mr. Li, I will communicate with Maserati's contact person as soon as possible, but to be honest, I have no idea whether this brand can gain a firm foothold in China and be accepted by Chinese people."
Li Mu suddenly thought of a brand, and asked him with interest: "Zhengmao, do you think the Land Rover brand will have a future in China?"