retailers<\/a> and distributors have to pay high shipping cost, rents, and then, add the costs to the price, making the price less competitive, in addition, they need to pay a lot for stock in traditional business models as per the manufacturers\u2019 policies. In the end, discounts in shops and stores make reduce the profit dramatically. Less discount, less sales.<\/p>\nWhat makes the traditional business model unsustainable?<\/strong> \n\u201cStock\u201d and \u201cdiscount\u201d lead to this problem. Stocks cause low efficiency use of funds and discounts reduce the profit.<\/p>\nWhy traditional business model needs stock<\/strong> \nTo be short, if someone needs to order some products, he have or some certain quantity so he can enjoy a lower price. Then, his retailer and distributor have to follow suit. This is why stock is important in the traditional business model.<\/p>\nWhy discount is necessary in traditional business model<\/strong> \nStock affects the return and use efficiency of funds, so, everyone has stock want to get them money back soon. Then, discounts start between all the sellers. And therefore, the prices become lower and lower, the profit become less and less.<\/p>\nHow to solve these problems<\/strong> \nThe ideal new business model is to let the manufacturer to give a fixed price, and ship all products to the customers, all the retailers and distributors only need to promote and sell the products. In this way, they do not need to spend money in stock, or discount the product to lower the price.<\/p>\n","protected":false},"excerpt":{"rendered":"During the recent years especially the recent two years, there […]<\/p>\n","protected":false},"author":5,"featured_media":8332,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-release"],"acf":[],"yoast_head":"\n
Why You Need A New Bussiness Model<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n