Hardware companies earn money from consumers by selling products and services

Hardware enterprises selling products and services are a form of operating efficiency is not too high, relatively speaking, selling services than buy products operating efficiency is higher.

The disadvantage of selling products is that the cost of raw materials accounts for a large proportion of the cost of finished products, so the profit margin is relatively low.The input of production equipment is large, which affects the turnover of funds;The products are directly supplied to the end consumers, and the capital and energy of after-sales service are relatively large.Large number of customers, higher marketing costs;Consumers' individual needs are strong, and it is difficult for enterprises to meet their needs.Similar competition is more intense, the market space is narrow;A variety of laws and regulations have been introduced to protect the rights and interests of consumers.Counterfeit products continue to be banned;The whole society has been quite transparent about the business model and industrial rules of products, and the regulations on operation have been very standardized. Therefore, differentiated operation is quite difficult.All these problems hinder the operation efficiency of enterprises.

Compared with selling products, the model of selling services has no other advantages except high profit margin. Both of them earn money from consumers' low-level demands by selling products and services.The most common result of such competition is to fight a price war, which is neither a win-win situation nor a win-lose situation, but a lose-lose situation, which is bad for both sides of the enterprise and the development of the society.

Sanliu hardware enterprises rely on hard work to earn their employees' money

Sanliu hardware enterprises work hard, as we say daily "processing" enterprises, they do not have any competitive advantage, rely on other enterprises to give "quota", roughly belong to the "contractor team" level of enterprise.Due to too many competitors, their own strength is not good, can only rely on selling their own labor to earn some labor fees, earn the average profit of the whole industry.This management mode of hardware enterprises is a disguised way to earn the hard work of enterprise employees, is the lowest level of a variety of ways of survival, but it is the largest number of enterprises in China a kind of management mode, in which township enterprises, old heavy industry base of small and medium-sized state-owned enterprises and small private enterprises.

In essence, as long as the core competitiveness of armed products and services with added value, is a higher operating model, live more comfortable.