Is it possible to do business with generic brand tires?

A dealer friend who specializes in selling miscellaneous brands has been looked down upon by big companies and peers for many years, but after only ten years of dealer business, he has accumulated more than 10 million yuan in cash deposits from a poor secondary school student who started from scratch.

In today's situation where all major dealers are losing money, he can make millions a month. His dealer business is very simple. Because he did not have enough funds to represent big brands at the beginning, he only sold miscellaneous brand tires, and then combined them. Unexpectedly, he could make a profit of nearly 1 million yuan a month.

Later, when he had strength, big manufacturers came to him for cooperation, but he still insisted on distributing third- and fourth-tier or even unknown "miscellaneous brands" as the main goal, which was to have pure profits every month, without the "false profits" of reputation and inventory. So what is this approach like? Big brands have sales but no profits

A considerable number of big dealers have more and more big brands, and the sales of tires are getting bigger and bigger, but the funds and costs that come with it are also getting bigger and bigger, and the profit margins of the offline tire industry are getting smaller and smaller. Therefore, low-cost, high-profit small brands are both a need for profit and a need for a change in their operating model.

Big brands have less profit but more systems
No matter how big the tire dealer is, it is always weak in front of big brand manufacturers and must follow the "baton" of the manufacturer. If the dealer is not careful and makes the manufacturer dissatisfied, the manufacturer may tell him to "bye". Considering the sales volume and influence of big brand products, dealers are reluctant to give up easily.

The contradictory mood of "love and hate" makes them suffer and torture. Every dealer has experienced this feeling personally, but in the eyes of "unknown" tire manufacturers, big dealers are the boss!

Therefore, dealers can use the existing favorable conditions to choose small brands with development prospects in the same category, and consciously cultivate small brands into "reserve brands" to replace big brands, and use this as a "killer" to talk to big brand manufacturers.

If you advance, you can counter the "dominance" of big brand manufacturers and make them look at you differently from now on; if you retreat, you can let small brands smoothly take over the position of "leading brand" when breaking up with big brand manufacturers, so as not to affect their overall sales.

Large distributors acting as agents for small brands are often the strong party and have a certain say in cooperation with manufacturers, so it is easy for them to obtain more preferential policies from manufacturers, which is conducive to market operations.

Adjust product structure and ease financial pressure
No matter how big the distributor is, there is a certain limit to its funds. Since large brand products require a lot of funds, small brand agents are a good choice that does not take up too much funds and can make reasonable adjustments to the product structure.

Large brand products often require hundreds of thousands or even millions of yuan in payment, and some manufacturers even "force" distributors to prepay the goods and pay a deposit. The huge financial pressure often makes distributors feel "suffocated". Small brand products will not occupy too much of the distributor's funds.