BYD's entry into the net, low-million-guarantee bargaining

The relationship between automobile manufacturers and car dealers is inevitably complicated. They have both common interest pursuits and contradictions between their profit distribution. A good deal and a win-win situation will cause both parties to be filled with pride; and if handled improperly, they will often end up in an embarrassing situation. As one of the representative enterprises of Shenzhen Special Economic Zone in the past 30 years of reform and opening up, BYD has achieved rapid development in the past few years and even left its eyes on the international financial oligopoly. However, the disadvantage of excessively rapid development is that the management level is often unable to keep pace with the expansion of business. So there was a farce at a car show in Zhengzhou a few days ago.

Event Review: August 27, 2010, Zhengzhou Dahe autumn auto show the next day, at the auto show site, there were several black bars on the white background extravaganza, "By car fraud dealers," the large-character banners are displayed in front of all . At 11 am, suddenly a group of children held a white banner in front of the BYD booth. When they were trying to pull the banner away, more than a dozen people in overalls by the booth immediately surrounded them and snatched banners. As the two sides compete for each other, the confusion may last for more than ten minutes.

Retreat from the incident is not just a one-by-one

In fact, since May of this year, BYD dealers in Chengdu, Beijing, Zhejiang, Shandong, Henan and other places have appeared on the "back network" situation. Before the Henan dealers expressed strong dissatisfaction with BYD's manufacturers, there was the former BYD F0 sales champion in the South - BYD Ping-Tong Chengdu Airport flagship store turned to rival Geely, becoming a member of its "Shanghai Yinglun" brand.

The author interviewed the manager of the marketing department of a dealer in Shanghai, although the respondents stated that due to the different regional managerial capabilities of each region, the current sales situation in Shanghai is relatively stable, and there are no businesses that will join the army of the withdrawal network. , but the language reveals hidden concerns about internal competition. According to the network distribution structure of the current BYD dealers, BYD's distribution network is divided into A1, A2, A3, and A4, of which A4 network currently has fewer models to sell, and the main business products are the M6 ​​just listed. The other three networks have more than 20 cumulative distributors in the Shanghai area. For the Shanghai market, which does not accept low-end models, there is indeed an imagination that dealers are saturated and internal losses are greater than external competition.

Development seeks only speed and scale Millions of guarantees can be bargained

In order to find out the root cause of BYD dealers' withdrawal, the author specifically interviewed a friend who once intended to join the team of BYD dealers. In the interview process, it can be seen that this friend is also thankful for not joining BYD. According to reports, BYD will have a development channel specialist in areas where dealers are needed. Through the introduction of the commissioner, the businessmen who intend to join will fly to BYD’s headquarters in Shenzhen, the hexagonal building. Here we can see BYD’s introduction room and negotiation room (for a total of no less than 40 rooms) specially prepared for the intentional distributors who come to cooperate. This negotiating space means that BYD needs to receive many intentional distributors from all over the country each day. Did BYD really need to use this speed to develop a dealer team?

The interview also learned that every company that joined BYD would pay a deposit to BYD. Under normal circumstances, each application dealer needs to pay a deposit of 1 million. However, in order to attract new dealers to join, BYD will even loosen the margin to a minimum of 500,000 yuan. Loose policies have greatly reduced the entry threshold for dealers and also increased BYD's difficulty in managing sales networks.

Rapidly and massively expanding the scale of dealerships makes it difficult to match the relevant management system with the rapidly expanding dealer team. Therefore, there are many problems in the communication between the factory and distributors, such as the inability to implement rebates and hurt the core interests of dealers. The phenomenon has emerged in an endless stream, and the withdrawal of the network has become inevitable.

The quality of dealers in the network is facing difficulties due to uneven quality

It is also due to dealers into the network is too low, resulting in different quality of distributors, in the face of a large number of pressure on the factory, the ordinary business will face the risk of capital chain fracture business. According to Shanghai dealers, each merchant’s inventory is generally between 100 and 150 vehicles. Nearly 10 million funds have been frozen and it is difficult to imagine how difficult it is to operate.

The long-term development plan, the implementation principle of good faith, and the excellent product quality are all things that BYD, who imitated the start, needed to work hard to do. There is too much in the way of the past, and excessive expansion will only lead to a loss. At the moment, BYD really needs to calm down to see itself first, knowing oneself and knowing the other to embark on the path of sound development.