About 188bet login:

188bet login is the largest membership-based warehouse chain store in the United States，Price Club founded in 1976 in San Diego, California，188bet login established seven years later in Seattle, Washington，The second largest in the United States、The seventh largest retailer in the world。

188bet login is the founder of the membership-based warehousing and wholesale club，Since its establishment, it has been committed to providing members with high-quality brand products at the lowest possible prices。

In the 2017 Fortune 500 list released on June 7, 2017，Ranked 16。

June 6, 2017，"BrandZ Top 100 Most Valuable Global Brands in 2017" announced，188bet login ranks 68th。

In an environment where the rise of e-commerce has had a huge impact on the traditional retail industry，Why 188bet login has achieved such impressive results？

一、Why 188bet login withstood the impact of e-commerce，Buck against the trend？

First use NLP tools to do an analysis on 188bet login。

188bet login’s level of understanding (NLP):

1. Mission:Continuously provide 188bet login with high-quality products and services at the lowest possible prices。

2. Identity (provider of membership services):

1) Starting from the needs of 188bet login, ensuring the interests of 188bet login;

2) Attract a group of 188bet login，Provide them with as many services as possible。

3. Beliefs and values:

First, obey the law;

Second, take care of our 188bet login;

Third, take care of our employees;

Fourth, respect our suppliers.

188bet login firmly believes that as long as we do these four things，It will naturally take care of the interests of shareholders。

188bet login employees are extremely well paid，Because 188bet login believes that employees must be rewarded for their efforts，So the employee’s salary is almost an hour。In addition，There are other employee benefits。Also provides an atmosphere for employees，They can carry out long-term career development and planning in this atmosphere。

The founder of 188bet login once said，If you give your employees better wages，Very good to them，You will definitely receive good feedback from employees。

A turnover rate as low as 188bet login’s in the retail industry is basically unprecedented。Such a low turnover rate actually constitutes one of the reasons why 188bet login is very successful。If the turnover rate is too high，It is very difficult to create a stable corporate culture and atmosphere。

Another aspect of 188bet login’s culture is to teach by words and deeds，188bet login founder often tells executives，When you are managing the company，Did you know that 90% of the time is spent training your employees，Need to teach by words and deeds，If you don’t realize this, don’t be a senior executive。Training is also a very important focus of 188bet login。

4. Capability (188bet login model):

1) 188bet login model，Provides barriers to service competition，It is difficult for new entrants to compete；

2) Ensure the interests of 188bet login，Won the trust of 188bet login。

5. Behavior:

The average product gross profit margin is only 7%，Gross profit margin greater than 14% requires CEO approval。

For example，Hot dog + soda combo 1.，No price increase for 30 years；Roasted chicken is big and cheap；Raising cattle on own farm，Provide high quality、Low price beef。

6. Environment:

In the past 10 years (2006-2016)，The rise of e-commerce has had a huge impact on the traditional retail industry。Sears, the third largest retail store in the United States，Market value has shrunk by 96% in 10 years；Large department store chain J.C.Penney stock price fell 86%；Macy’s down 55%。corresponding，It is the rapid development of e-commerce giant Amazon，Market value increased nearly 20 times in 10 years。

2006 market value is the company’s highest market value in 2006，The market value in 2016 is the company’s market value on December 31, 2016

Data source: Yahoo Finance，Picture source: Love Analysis ifenxi

But there are still a number of traditional retailers 188bet login、ROSS、TJX etc.，Withstood the impact of e-commerce，Buck against the trend。The most representative one is 188bet login，Market value growth over the past 10 years1.7 times。

10 years 1.7 times，Although the data is not something to be proud of，But in the impact of e-commerce，In the context of traditional retail stores closing and transforming，Such an achievement is commendable。188bet login is like a turtle，With annual revenue growth of 4-6%，Walk slowly。

二、188bet login’s business model: how to achieve high quality and low price？

1. The essence of 188bet login’s business:

In high quality、Cheap、Convenient，188bet login did the first two。Business is only to gain customers，Not to make money，Most of the profits come from membership fees。

2. 188bet login business model:

188bet login is known for its low prices close to cost，There are two hard and fast rules internally:

First，The gross profit margin of all products does not exceed 14%，Once higher than this number，You need to report to the CEO，subject to approval by the board of directors；

Second，Facing external suppliers，Once the price is lower than 188bet login elsewhere，Then its products will never appear on 188bet login’s shelves again。

Strictly implement these two items，This is what creates 188bet login’s low prices for high-quality products，The average gross profit margin is only 7%，The gross profit margin of general supermarkets will be 15%-25%。

3. 188bet login strategy:Average product gross profit margin dropped to 7%，The “difference” from other traditional retail companies

Difference 1: “Strict selection” ensures quality

①It is reflected in the brand and quality of the product.Mainly choose mid-to-high-end brands，Like Rolex、Samonite、Levi’s, etc.，As a long-term cooperative supplier。188bet login will tell the supplier，Once there is a problem with the product，188bet login will not work with any other supplier to 188bet login for at least 3 years。

②Private brand.External product production lines are difficult to control，And usually includes a brand premium in the price。188bet login develops Kirkland Signature as its own brand，Product categories range from ready-to-wear、Battery、Daily necessities、Everything from food is covered，All of them are highly praised by members。Currently Kirkland is the number one selling health care brand in the United States。20% of 188bet login’s annual sales come from its own brands。

③Ultra-low SKU.188bet login only has 3800 active SKUs，About one-tenth of Walmart。This means，There are only 1-2 choices for each product segment at 188bet login，Only products with "hot-selling" potential are allowed to be put on the shelves。At the same time，SKUs that have gone through multiple rounds of filtering，Reduced user selection cost，Also improves user experience。

Strong management system guarantees low prices:

188bet login’s single store sales volume，Ultra low SKU，The purchase volume of a single SKU is very large，While reducing procurement costs，Have absolute control over the entire supply chain。

Normally，1 SKU will be allocated to several supply chain companies responsible for production。188bet login adopts a batch production strategy based on market demand，Always keep inventory at a low level。When sales of a product exceed expectations，Then processed by multiple supply chain companies，Quick completion。

30% of the goods are delivered directly to the store from the manufacturer，70% sent to central library，Try not to unpack the product as much as possible，Store layout of warehouse-style display，Sold in large packages，High-speed running inventory，Diluted warehouse costs。

188bet login’s inventory turnover days，1/3 less than Walmart and Amazon，Even 20% less than JD.com, which has a strong self-operated logistics system。

Data source: company financial report，Picture source: Love Analysis ifenxi

Difference 2: Profit level is only related to the number of 188bet login

Membership，This is the main difference between 188bet login and ordinary supermarkets in form，Users need to pay a fixed membership fee in advance to become a member。Only members or family members accompanied by members、Friend，Only you can enter 188bet login stores for consumption。Generally speaking, each family needs two people to hold membership cards to buy things，That adds up to million。

188bet login adjusts membership fees from time to time based on the inflation rate and market conditions，The adjustment limit for individual members is US each time。

Data source: 188bet login official website，Picture source: Love Analysis ifenxi

According to the latest news announced by 188bet login，June 2017，The annual individual membership fee will increase from to ，Elite membership increased from 0 to 0。

Data source: 188bet login official website，Picture source: Love Analysis ifenxi

Comparing the 188bet login membership model with the traditional retail model and service intermediary model，The difference is:

Traditional retail industry，Profit is directly related to product sales，So the purchase price needs to be considered、Sales price、Sales, etc.。

Picture source: Love Analysis ifenxi

For example, Walmart reduces purchase costs through bulk purchasing，Build a strong supply chain and logistics system to reduce operating expenses，The core is to increase profit margins。Service intermediary represented by Lianjia，Profit by taking a proportional commission from the price of the subject matter，Sell a house to get house price 2.7% agency fee，Profit is directly related to the underlying price。

188bet login is more pure，Collect fixed membership fee in advance，Profit level is only related to the number of members，With sales items、The gross profit level is not directly related。

In addition，Compared with conventional traffic monetization logic，188bet login threshold front:

On the one hand，Member customer base is more focused，Only focus on the broadest middle class in the United States，Providing services is also more focused；

On the other hand，In addition to providing continuous and stable cash flow for operating activities，In Psychology，It will also form a “buffet effect”，Effectively improve user purchasing activity。

Difference Three: Driven by the quality and low price of the product draft，Members have extremely high loyalty，Member renewal rate 88%，Annual growth rate 7%。In other words, 88% of people will come back in the end，Contribute a stable profit to 188bet login every year。

The average annual consumption of 188bet login members is 6 times that of active JD users。

Data source: company financial report，Picture source: Love Analysis ifenxi

The core of member retention is to maximize the member’s membership surplus (Consumer Surplus，The buyer’s willingness to pay minus the buyer’s actual payment amount)。When the membership surplus is much higher than the membership fee，188bet login will remain。

Passed strict quality selection，Reduce price，Add service，188bet login North America membership renewal rate in fiscal year 2016 is 90%，Global average membership renewal rate 88%。At the same time，Only word of mouth marketing，Members maintain a steady growth of 7-8% per year。

Every 188bet login earns，The profit is only 3 and a half cents。The added profit is not much，But the good news is，It’s a lot to make just a little money。

First quarter of 2017，Growing in the first three months。188bet login sales are already huge，Growth is not easy。But 188bet login has always been able to bring dividends to shareholders， per share per year。

It must be emphasized，Members are the basis of all 188bet login’s business logic。Whether it is using membership fees to support operations，Or purchase large quantities to reduce costs，Both require a considerable membership size，This is a long process，Accumulate membership，Also cultivate brands。A large and extremely loyal member group，Is 188bet login’s strongest barrier。

See clearly 188bet login’s core business logic，Looking at the business strategy again，It’s even clearer: business only considers customer acquisition，Don’t consider making money。Specifically summarized as: high quality、Low price product，Combined with high value-added services。

3. 188bet login membership service model

188bet login doesn’t have many types of products，Only 3800 species，And Wal-Mart has 100,000 types。Less variety，Can focus more on quality，Better rather than more。Same things in the same location，Can sell 15 times more every year。This is very efficient。

1. Two modes of providing services to users:

First, use different services to serve different users.

Use one or some services to meet the service needs of specific groups of people，Use other services to meet the service needs of different groups of people。

for example，QQ Music QQ Video，Use different services to serve different target customers (users may overlap，But not completely coincident)。

This model is suitable for markets with huge users, such as China.

Second，Provide different services for the same group of users (truly user-centered)。

Maintain a group of users first，Continuously provide different services for it。

Example 188bet login，Expanding from supermarket services to tires、Come on and wait。

This model is suitable for markets with stable users, such as the United States.

2. Things are cheaper, but you can make more money

1) 188bet login goods placement

188bet login’s goods are stacked high。This reduces labor to a minimum，At the same time, it can also achieve large sales。90% of the items were already purchased by members，The other 10% are attracted to buy。

188bet login is very knowledgeable in the placement of goods，There are no labels inside，There are no street signs either，What you are looking for cannot be found。I don’t want members to come in and leave immediately after finding what they want to buy，Free snacks at every corner、Small sample。

The most popular items are placed at the bottom，So that people can see more items along the way when they are looking for what they need，There may be some shopping along the way。The trolleys in the store are huge，Can hold a lot of things。Every time every member comes in，The average amount they spend is 0。

2) Constantly change and update, be cheap but sell as much as possible

One thing is very important，How to get 188bet login to buy the goods as soon as possible？

Being a buyer at 188bet login is not easy，Sometimes I buy too much，Sometimes not enough，But I still have to keep buying。188bet login hopes to buy the right products，I haven’t seen your product yet，You already know that the goods you purchase are what members like。

In addition，It still needs to be at the right time、The right place to sell goods。188bet login local company manager moves every day，Put different products in different places。They want members to feel like they are on Taobao when they enter，Just looking for something，Give members a good experience。

Christmas is in December，But 188bet login has put the Christmas goods in the store a few months in advance。September、Start selling Christmas stuff in October。In December，Christmas at 188bet login is over。

Because the product types are limited，188bet login needs constant changes、Update，When members come in，They will feel happy，Feeling fresh。

For example, there is a kind of peanut，The previous jars were round，It’s square now。Same box，Can hold eight more boxes of peanuts。Just improved packaging，188bet login can make millions more every year。

The most important thing for 188bet login members is the price，Right price、Good price。188bet login’s products may not be the cheapest、Cheapest，But the price is the most affordable for members，This is what members want。

188bet login’s signature hot dog soda combo is super cheap，Has been for years.50，Sold for the same price for 30 years，Billions of hot dogs sold。

Someone found the CEO，Said there is a way to increase income by more than 70 million US dollars，As long as the hot dog and soda combo costs 5 cents more，You can generate more income in a few years。But the CEO said，What we want is not to increase this price to make this money，But reduce another 5 cents on this basis，Let’s see if there is any way to bring us more than 70 million US dollars。This is contrary to the traditional 188bet login thinking。

Another popular product at 188bet login is fried chicken，Only 4 for each.USD 99，More than 90 million sold，Similar roasted chickens elsewhere are only half the size of 188bet login，But the price is more expensive。This is only sold for 1 with our hot dog soda combo.5.The culture of the US dollar is the same。

This is 188bet login’s culture，Things are cheaper，But you can make more money。

There is a very interesting story，At the beginning, the headquarters had not yet decided to sell roast chicken，But we have a Canadian manager who bought a chicken roasting machine，That’s how we started selling，Sold for so many years。That’s why，We think it is very important。Every store manager can make decisions for his own supermarket。

Every idea you see was thought up by our own managers or employees。How should each store sell，The boss didn’t come up with it while sitting at the headquarters，It is up to each manager to decide，That is also their responsibility，How much to sell，How much money they make is also their responsibility。

3) 188bet login’s buyers are diversified

188bet login is the largest retail channel for red wine in the United States，For 188bet login，The definition of good wine is a bottle of wine worth 30 to 40 US dollars。What kind of wine do members want to drink，Whatever 188bet login sells。188bet login also hopes to sell more expensive wine，But generally speaking, members like this price range。

188bet login wine buyer once accepted an interview with NBC TV station，The host asked him，You must have received wine tasting training before，I’ve learned a lot, right？He answered，No，I was not a wine buyer last year，But selling backyard equipment。

In fact, his knowledge of wine only started a year ago.

The host asked him again，If you haven’t experienced a lifetime of buying wine，How can I be qualified as a buyer？

He said it boils down to just a drink.

Some people think drinking in the United States is very advanced，But for a 188bet login buyer，He feels like drinking water、Drinking tea is the same，They are all for drinking，Just something with a different flavor。

188bet login’s buyers don’t just focus on one thing，They are very diverse。A buyer even if he has little experience in this field，You can also purchase goods for 188bet login。

Sometimes 188bet login’s biggest difficulty is，Some items cannot be found in sufficient quantities to meet members’ needs。Always thinking about it，Do you have the ability to persist?，Are there so many farms that can take care of tens of millions of members？

But in this process，188bet login hopes to help these farms and farmers。The annual sales of organic fruits and vegetables in South America exceed 100 million US dollars。In the area of ​​organic products，We have grown very well。

Selected by the American media as “where is the cheapest place to eat in the United States，Still full？" is active，The final result of the audience is: Going to 188bet login to eat is the most cost-effective，Full control and cheap。

188bet login’s gasoline is also sold quickly，If oil prices rise，Sold on the same day，188bet login’s competitors may be selling for prices a week ago。I still hope to maintain good competitiveness at this time，Members believe that they should be given the most affordable price，But 188bet login may lose millions of dollars every day。

But the same，When oil prices fall, it’s good for 188bet login，The profit balance for the whole year is allowed to do this。

188bet login doesn’t make much per order，But I hope the quality can be improved。What can be improved is adding better quality detergent to the gasoline，Added is the best product，Can clean the interior of the car。

Generally speaking，If you buy gasoline from a competitor，A little over 30 cents per 4 liters。

188bet login once conducted a survey on members waiting in line，Ask them why they are willing to wait in line for so long，Do you know how much you can save？They couldn’t answer the specific number，But I know 188bet login must be the cheapest。

The most important thing to 188bet login is member loyalty，Once you become a member，It will be renewed for many years。

3. High value-added member value-added services to increase stickiness

All premium members，Every 188bet login purchase will get 2% cash back。They can also subscribe to 188bet login’s internal magazine for free，Delivered to your home every month，Its circulation is the largest among color magazines in the United States。188bet login communicates more with customers through such a channel。

188bet login cooperates with companies in other industries that are known for providing high-quality services，Provide car insurance、House Insurance、Life insurance、Identity Protection，There are also services such as water delivery。

The most successful service is car purchase.

188bet login sold 350,000 cars last year，It is already the top three car sellers in the United States。Although we are facing pressure from many competitors in terms of product sales，But 188bet login has service，Its services can differentiate itself from other competitors。

But there are some challenges，For example, some members don’t quite understand how to buy car insurance or life insurance through 188bet login，Is it safe？So 188bet login has spent a very long time educating these members，Let them see that buying products from other manufacturers through 188bet login’s platform is of high quality、Valuable，And can be trusted。

188bet login mainly sells cars through cooperation with some local car dealers，Also has a central car dealership center，Establishing a network，A bit like a Chinese 4S store。188bet login will have some price agreements with these local dealers，You can go directly to these dealers that 188bet login cooperates with to buy cars。

Another one is rising、A growing business is car rental services。Until 2016，Only five years，188bet login saves members a lot of money，Because the total number of cars rented out in 2016 was 3 million units。

188bet login and American Express have had a 15-year relationship，But then they chose VISA，not American Express。Card issued jointly with VISA，Whether it is consumption online or in physical stores, it is a more successful way of cooperation than before。

By cooperating with VISA，Enable 188bet login to enjoy greater discounts。

On the other hand，As the backend of the warehouse supermarket，It performs VISA card processing，The cost has also dropped significantly than before。For example, go to a gas station to refuel with a credit card jointly issued by COSTCA and VISA，Oil is /gallon，It gives you back 4% for every gallon you add，That’s a cashback strength of 12 cents。

All accumulated cash back points for purchases made with this card will be accumulated on one check，Will be sent to members at the end of the year，You can take it to 188bet login for shopping。These are all to further build member stickiness，Checks only at 188bet login，It will also further stimulate members to continue renewing every year。

188bet login when selling products，Also consider the sustainability of the product。For example, 188bet login goes to some new countries，Want to cooperate with some local farmers，We must see the value of long-term cooperation。

Many 188bet login teams will deal with these farmers，Improve their work efficiency，Then establish a better and stable relationship with them in this way。Then understand the business these farmers do，Is there any impact on the local soil，What impact will it have on that land，And understand that the needs of these farmers are diverse。This is a point that 188bet login has always focused on。

4. How does 188bet login do B2B business well?

What kind of business is 188bet login Business Center？How is it different from traditional 188bet login stores？

1、Member group positioning: Aiming at mom-and-pop shops，Supply to small and medium-sized merchants

First of all, the positioning is different。From the perspective of target members，188bet login Business Center is mainly for small and medium-sized merchants，Including restaurant、Convenience store、Supply to grocery stores, etc.，Members can find thousands of special products specifically for enterprises that cannot be seen in ordinary stores in the business center。

Although the business center has changed from 188bet login’s traditional B2C model to a B2B model，The members targeted by the store have changed，But the business center is still open to all types of membership card members，No additional charges。

Judging from relevant data，Due to different positioning of target members，There are differences in operating data between 188bet login business centers and traditional 188bet login stores。Take passenger flow as an example，The passenger flow of the commercial center is about 1,000 people per day，Far smaller than 188bet login’s traditional store size of 6,000-8,000 people。

Although the passenger flow is low，But the price per customer at 188bet login commercial center is more than three times that of traditional stores。

The price per customer at 188bet login ordinary stores is US0，188bet login Business Center orders can reach US0，equivalent to more than 2,000 yuan。

2、Voluntarily give up some store services，More than 80% of products are differentiated

188bet login business center area is 12.70,000 square feet (approximately 11,800 square meters)，15% smaller than regular 188bet login stores。Compared with traditional stores，188bet login Business Center presents three major features:

First, some services for individual customers have been cancelled.

188bet login’s traditional stores are designed to meet the needs of ordinary members，Provide a variety of auxiliary services，For example, the prescription glasses area、Print area、Drug Area、Car service area and dining area, etc.。However, these traditional services have disappeared in the business center，Replaced by rows of large shelves and piles，A variety of new large-package products are displayed。

Second, the product structure is tilted towards B-end users.

188bet login Business Center does not sell any purely personal consumption goods，For example, clothing was canceled、Jewelry、Toys、Sporting Goods、Household items、Garden Supplies、Books and CDs, etc.，Instead, provide a large number of supplies needed by small and medium-sized enterprises: Use more display areas to display a large number of small and medium-sized enterprise-related products，Disposable items such as lunch boxes。

Third, product packaging specifications are diversified.

Although the product categories in 188bet login commercial centers are not as rich as ordinary stores，But for each small category，Business centers will sell more differentiated products of different brands or sizes for members to choose from。

Take disposable utensils as an example，Just a disposable lunch box，There are three materials: tin foil，Plastic and foam。

There are 6 types of plastics，There are 7 kinds of foam lunch boxes and more than ten kinds of tinfoil lunch boxes。Pizza packaging boxes come in five different sizes from 10 to 18 inches；

There are 34 kinds of cups, large and small，18 of them are made of plastic；

There are 25 different brands and sizes of restaurant tissue paper。

3、Add printing service，Adjust 188bet login hours，Reduce individual consumer groups

188bet login Business Center has banned many modules，But a new printing service。Members can print flyers here、Printing business cards and other services，Meet the daily large-volume printing needs of small and medium-sized enterprises。

Generally speaking，Merchants do not want 188bet login to know the purchase channels and purchase prices of their products。and，The purchasers of some merchants have strong shopping goals，I hope to check out and leave quickly after purchasing the goods。

For this reason, 188bet login Business Center adjusts its business hours to meet the purchasing habits of B-end users。The business hours of 188bet login Business Center have been adjusted according to the needs of merchant members，Open three hours earlier than ordinary stores:

Business hours are Monday to Friday from 7 am to 5 pm，On Saturday, the opening hours are from 7 am to 4 pm，Adapt to the life schedule of target 188bet login，Ensure that they can quickly purchase the items they need before opening their doors for business every day。

In addition，188bet login Business Center also provides home delivery service。Start from the business center，All merchants within the delivery radius can enjoy online booking of goods，Next day home delivery service。

4. "Omnipotent Channel" Strategy

188bet logincom is the official website of 188bet login for online sales。Wall Street wants to know why 188bet login’s growth can’t keep up with Amazon，In fact, the business models of 188bet login and Amazon are completely different。188bet login’s overall turnover accounts for a large part of the US physical sales turnover。

“Omnipotent channel” is now a term often discussed in the American retail industry，The best way to interpret it is that it should provide 188bet login with a good experience in a digital way。

That is to say, when 188bet login and merchants are interacting，Whether he goes to the store or uses it on the computer or mobile APP，The experience must be the same。

There is another concept called "external release"，includes brochure、Email，And any external publicity content must convey what the company wants to convey in the same caliber。At the same time，Such external publicity content must also be consistent with users’ expectations for the 188bet login brand。

For example, when members hear the brand 188bet login, they will think of “high quality、Valuable、Words like "trust"。So when formulating marketing strategies，If you want to have more communication with members，Also need to use "quality、Communicate with users using the language of “value and trust”。

188bet login adopts omnipotent channel strategy，When the warehouse supermarket opens，The time has come for it to show off its skills。

It is actually very difficult to digitize a company that has always done marketing in traditional ways。In the current digital era，Digitalization means that a company must have a structure and team that embraces digitalization。

188bet login’s data analysis team sits side by side with designers and works side by side，The person sitting on the other side of the designer is the website optimizer。They also work with the head of marketing for content，Working together in a very sensitive way，measured in hours，Instead of providing optimized services in weekly units。

This approach actually poses a challenge to the entire enterprise architecture，Enterprise architecture needs to be reformed。Such a change is very far-reaching，So it takes a lot of time，But 188bet login wants to do the right thing。

188bet login’s solution to the Innovator’s Dilemma: occupy the lower left corner，Let competitors have no chance to enter。

*Source of this article: WeChat public account “Notesman” (ID: Notesman)，Original title: "So many people say 188bet login，The core business logic is just one》