Thoughts On Optimizing Trade Methods For Copper Processing Products
Recently, I have been focusing on exploring ways to optimize the trading methods of copper processing products, aiming to fully tap and leverage the advantages of my own products, thereby achieving mutual benefit and win-win results with customers.
At present, there are two main product sales models for copper processing companies: one is regular product sales, where customers purchase products directly from the company, revenue is usually recognized when the products are delivered, and customers need to pay the full payment; the other is the commissioned processing model. The customer provides the main raw materials and entrusts the copper processing company to process them into products as required, and the company charges a processing fee. These two models are widely used in the industry.
However, after reading a book about business models, I couldn't help but think, in addition to the traditional models mentioned above, are there other innovative business models? If so, what are the requirements and potential drawbacks?
1. Innovate sales settlement model>
Today it suddenly occurred to me: Since most copper processing products are customized for customers, if our products are of excellent quality and better than those of our peers, and can significantly improve the customer's yield rate, can we calculate the unit revenue? Based on the yield rate of the customer's product, calculate the unit revenue of the company's products? What should customers do with settlement after use?
For this innovative business model, copper processing companies need to have the following resource capabilities: First, the product quality must be excellent and the yield rate among customers’ suppliers is high; secondly, the company needs to be able to cope with the increase in inventory occupancy; in addition, it also needs Have waste recycling and processing capabilities.
This model can bring many positive effects: on the one hand, customers can reduce capital occupation and outflow; on the other hand, copper processing companies can further consolidate orders and enhance customer stickiness. If we can negotiate with customers to shorten the account period or obtain part of the advance payment, it will also speed up the company's capital turnover and improve the efficiency of capital operations.
Of course, this model also has certain limitations: first, it may lead to reduced sales revenue and increased inventory pressure; second, how to accurately determine the customer's rate of return and ensure the fairness and accuracy of settlement is a difficult problem; third, inventory risk management and control The system needs to be rebuilt and improved.
2. Deepen the cooperation model with downstream customers>
Another potential business model direction is to establish closer and in-depth cooperative relationships with downstream customers, such as equity cooperation, revenue sharing, etc., to achieve complementary advantages and build a more stable and mutually beneficial industrial chain ecosystem.
To implement this business model, copper processing companies first need to have strong and professional capital operation capabilities, including accurate investment assessment, reasonable equity allocation and risk control capabilities, to ensure that they can participate in the investment of downstream customers. Enterprises can achieve effective integration of resources and maximize value. At the same time, it is also crucial for plastic cnc machining to accurately find suitable downstream customers who have high synergy with its own business, great development potential, and consistent values. This not only requires in-depth understanding and insight into the downstream industry, but also requires detailed market research, industry analysis, and corporate on-site inspections to screen out partners that can truly form a close complementary relationship with itself, so as to achieve multiple goals in technology, market, production, etc. Dimensional collaborative progress.
However, there are also some problems that cannot be ignored during the actual implementation of this model. On the one hand, downstream customers are basically small and medium-sized enterprises, which generally face higher operational and financial risks. Small and medium-sized enterprises are often relatively weak in terms of financial strength, technical reserves, and market risk resistance capabilities, which undoubtedly increases the difficulty of risk management for copper processing enterprises in the cooperation process. For example, they may face capital chain problems caused by market fluctuations or poor management by downstream companies. Risks such as damage and reduced orders will further affect your own investment returns and business stability. On the other hand, the property rights relationships of small and medium-sized enterprises are usually more complicated, and the business dealings between enterprises are also characterized by diversity and complexity. This may lead to issues such as property rights disputes and high business coordination costs during the cooperation process, which require more energy and resources to be sorted out and resolved to ensure the smooth progress of the cooperation and the legitimate rights and interests of both parties.
To sum up, in the current context of fierce competition among copper processing enterprises and a complex and ever-changing market environment, it is difficult to adapt to the needs of market development simply by relying on the existing traditional business model, and it is also difficult to stand out in the fierce competition. Only by boldly innovating and actively exploring and practicing the above-mentioned new business models can we overcome difficulties, find a development path with unique competitive advantages in the market, and achieve sustainable development and long-term value enhancement of enterprises.