We have entered an era of small profits

I remember reading an article before saying that from now on, all business is worth doing again. It is also a paragraph in the circle of friends shared yesterday. The opportunity to make money is gone forever, and it will be more and more difficult to make money in the future. I believe most people should feel the same.

I am in the traditional condiment industry. The situation is similar to what I said above. It has large investment, low gross profit, high cost, complicated management, and the seniors have made good money. Now it is difficult to make a fortune in this business. But the advantages are fast turnover, long-term consumption, and stable channels. However, the profit is gradually diluted. The era of opening a store in the wholesale market and earning hundreds of thousands a year has passed, and now all that is earned is hard-earned money.

We sell branded edible oil, and the profit of the manufacturer is really good. Like the soy sauce I made before, the gross profit is 50%. The oil product follows the market, but the profit of the manufacturer is also acceptable. Distributors earn 5 points, wholesalers earn about 2-3 points, and unpopular products earn a little more. It seems that the end retailer can make a profit, but it is not enough. All in all, it's low profit. We sell a piece of oil to the wholesaler for 280 yuan, and they will sell it for 3-5 yuan. A pack of rice is 130 yuan, and you earn 2 yuan in wholesale. You have to unload the car, load it for delivery, hire people, car oil, warehousing, stores, workers, and taxes. Although the tax can be ignored, it is all hard-earned money.

It has been three years since the epidemic, community group buying is booming, and supermarket specials are almost free of money. Business has never been so difficult this year. Because the gross profit is low, everyone fights for the amount, and because of the amount, the gross profit of everyone is lower, which leads to a vicious circle. Many stores don't make money for the large barrels of soybean oil in order to attract customers, but the cost, labor, oil, and living costs are increasing year by year, which seems unsolved.