Over the past two years, many agents have seen me most greeting is "you are the most relaxed." Zhejiang Liyang is one of the two agents of the Volvo building equipment that did not use the rehabilitation program. There is no arrears. We have no arrears in the mountain. We have a small amount of arrears in the mountain. All the brands and product occupancy rates of the company have rebounded obviously in the two years. All management and core staff are not lost. At present, the 24 managers above the deputy manager of the company are 14 years on average and 9 senior executives, with an average service of 17 years.
In the 25 years of acting career, I experienced three rounds of big regulation and control. In the 2004-2005 years, this round of macroeconomic regulation and control has brought me a lot of valuable experience. In October 2015, I announced in the company that the Zhejiang ocean was advanced to the recovery period in the industry rate; at the end of 2016, we announced that we could overtake the curve in 2017, and at the end of 2017, we decided to take the peak season model in 2018. In 2017, there were more than more than 70 agents to exchange learning.
However, we have also suffered a certain number of injuries, and the relationship with the "fifty steps" and "one hundred steps"; today I look back and analyze the great impact of the last round of market volatility on the industry, the enterprise, and our coping strategies.
The industry status and honor of the Zhejiang ocean
Zhejiang Liyang, founded in 1992, is one of the earliest agents in China. It is a comprehensive multi product agent in Zhejiang province. It represents Volvo building equipment, Volvo road machinery, mountain whole series engineering machinery, mountain reconstruction machine, Atlas Copco, thrux mobile crushing and screening equipment, and de base asphalt mixing building. Three li road maintenance machinery and other 10 brands.
Zhejiang Liyang is the largest and most influential engineering machinery agent in Zhejiang province. It is the founding vice president of the working committee of China's engineering machinery agent, the four consecutive vice president, the 2016/2017 rotating president and the secretaries of the joint meeting of the Zhejiang province industry joint meeting.
Zhejiang Liyang is the best management company in the industry. Including all brands and local branches, the total number of employees is 199, with a maximum of 468 employees in 2011, at least 170. Marketing personnel accounted for 28%, maintenance service personnel accounted for 35%, accessories personnel accounted for 21%, financial risk control accounted for 10%, management personnel accounted for 7%.
Problems and crises directly caused by macroeconomic regulation and control, as well as our countermeasures and experiences.
One of the typical problems is the loss. Profit = income - cost (three big expenses) tax. Market demand has declined sharply, and revenue has decreased drastically. From the perspective of "per capita sales revenue", the adjustment of scale (cost) is not in place.
The main expenses of the agent include the person's expenses (wages, five risks, one gold, travel expenses, etc.), capital cost (receivables, whole stock, two mobile phone stock), car fee / freight (no way down).
We took the following ways to reduce the cost: deleveraging, reduced occupancy (receivables, inventory, two mobile phone stock); reduction of staff; spare houses for rent, bus stop renting, staff carpooling to work; stop all fixed assets for six years (car, computer, decoration, office furniture renewal), this year only resumed Fixed assets update.
Loss caused by bad debt losses is a major reason in the regulation stage, similar to natural disasters in earthquakes. The two of the typical problems is the risk of credit sales. Under the influence of many factors such as macro regulation, market downlink and lack of construction, customers can not repay the goods according to the contract, resulting in arrears, overdue repayment, trailer price loss, even man machine loss and bad debt loss.
Finance Companies needs customers to pay for the overdue payment. Such a large amount of "blood loss" is the agent's inability to bear. We must establish a clear "threshold" and do not leave "door gap". Many companies require that the approval and consent of the general manager can be lower than certain business conditions. I suggest not. With this sentence, the door is sew up, so long as there is a gap, it is difficult for the general manager to guard against risks, sales share and sales profits. We should focus not only on our own cash flow, but also on the cash flow of upstream customers.
The three of the typical problems is the cash flow problem. As a result of losses, bad debts, increased occupancy (receivables, inventory, two mobile phone stock), overdue and overdue payment, the cash flow problem is caused by these reasons, and the cash shortage of agents caused by these reasons is not likely to be borne by the agent's investment ability.
Our response at the time: a monthly cash flow meeting, predicting possible overdue payments and early communication; maximizing the compression of funds (and reducing the cost); full credit, full credit; employees (lower costs than banks, and more importantly, banks have no money at all). My most painful experience is to be cautious in using leverage, and I should always tighten my life and live a hard life at any time.
The following problems
One of the problems of extension is the claim of creditor rights. The creditors of agents have two main aspects, one is Brand Company, the other two are banks, financial leasing companies and so on. It is from the creditor's claim that the creditor's claim leads to the breakage of the cash flow of the agent and the risk of the failure of the company, which is both the duty of the creditor and the abnormal behavior before the bankruptcy of the creditors who have lost confidence in the industry. Therefore, when undertaking new business with creditors, it must be agreed to avoid risks caused by force majeure (non agent cause).
The two of the extension problem is the problem of employee turnover. This is a common problem in the industry, and it is very serious. There are big environmental reasons and agents' decision-making reasons. Our strategy is to introduce performance appraisal B in the downside of the market. The original A scheme is 40% fixed income, 60% is performance linked, while B scheme is the opposite. For managers, the B scheme is 70% fixed income and 30% performance linked.
B scheme to a great extent ensured the safety of employees' income. In 2016, our employees' income did not decline. In 2017, we had increased substantially. At the beginning of 2017, the total salary per person was 1000 yuan per month. The annual health care and other welfare of all staff did not stop, and the standard of travel expenses was raised in 2018. This year, Zhejiang has held the second continuous training class of reserve managers (the second session of the Zhejiang EMBA class in Zhejiang) to provide professional staff with the opportunity for professional training.
The three of the extension problem is investor confidence. The boss's strategy and vision are different, and the understanding of the change of the big environment is different. Agent bosses are not just for making money, but for career and long-term strategy. The vision of Li Yang is to dedicate the famous brand of international and domestic engineering machinery, to make it difficult for the engineering machinery users to worry, and to become the model of the spirit of excellence and care in the agency industry of China's engineering machinery. Long-term focus on the engineering machinery agent industry, always maintain the core competitiveness, establish a good reputation and industry influence, become a valuable partner to the Brand Company and users. To become a professional health company, a home that can support the good life and development of foreigners.
The four extension of the problem is the cancellation of the agency. In addition to cash flow, loss and bankruptcy risk, there is a risk of cancellation of agency authorization, which is decided by the special attributes of agents. Brand and product are the core resources and core competitiveness of agents. Win win is the basic rule. Useless friends will be abandoned eventually. Manufacturers, agents and customers are all like that.
I have some thinking and understanding about the core resources and the existence value of the agent. For the Brand Company, the agent needs to participate and cover the ability, the influence of the market word of mouth, the service ability; for the user, the agent needs to provide the famous brand, the comprehensive set of Solutions, the problems to solve the problem; for the employees, the agent is its The development platform of the workplace and the best employer in the industry.
Understanding and thinking of the fundamental reasons
One of the fundamental problems is the basic decision-making and management capabilities of agents. The agent has gone through a problem and found the reason from management. Today, there was a problem. A mature company, which should be refined and efficient, has a process control system and a process control KPI, which can predict early warning; there is room for space and guard intervals. The time of making money by extensive and how to do is gone forever. We must be meticulous and efficient to survive and develop.
Two of the fundamental problems is to manage the company with financial awareness and ability. The core decision-maker and manager of an agent must manage the company with financial awareness and ability rather than just a marketing company. The ultimate target of a company is ROI and sustained healthy development.
The three of the fundamental problems is the right management is not a view. The agent is a completely independent business entity. The only accurate one is the right or wrong view from the angle of the company or the boss. It can not be viewed unilaterally as the right and wrong view of customers, employees and manufacturers. Of course, the company and the boss must take into account the three parties' interests and ensure that the three parties win each other is the right one, which is in line with the objective economic law and the classic western market management rules.
The four of the fundamental problems is to build the core competitiveness. Although the agency model is a proven business model, it will continue to develop healthfully in the next few years. Ask yourself: what are your core resources, core strengths and core competitiveness? Area, brand and product, talent, management, maintenance service capability, capital and customer relationship? What competitiveness do we have to win in a competitive environment?
I advocate integrity, practice basic skills, write calligraphy, must write 30 years of regular script, in order to write other personal things.
