Dealer_Kaifeng Jidian FAW_0303.docVIP免费

HenanZhongyuanAutoTradingGroupINTERVIEWDATE:March3rd,2000INTERVIEWERNAME:AnneWangIntervieweeNameMr.ShiPositionGeneralManager,FAWSideCompanyandAddressHenanZhongyuanAutoTradingGroupZhengzhou450000Telephone/FaxBackgroundKeyIssuesBackground.TheFAWAutoTradingCo.isonesubsidiaryofHenanZhongyuanAutoTradingGroup.ZhongyuanalsoownsoneSAWsubsidiaryonly300metersaway.ThesubsidiaryiscalledFAWKaifeng.Lastyear,thedealersoldout3200trucksandwonagoldenprizefromFAW.SalesvolumeforFAWKaifenginsixyears:941,000953,000964,000974,000-5,000985,000993,200Thesharpdropin1999isbecauseFAWregionalisedtrucksalesintoeveryprovince.FAWKaifengwasforcedtoretreatfromnationalmarketandrebuilditsnetworkinHenanprovince.FAWKaifengnowhas17outletsinHenanprovinces.Thoughlastyear'ssalesdroppeddown,FAWincreaseditssalesinHenan.Mr.Shithinksit'sgookforFAWKaifeng'slong-termdevelopment.AmongFAWtrucks,Mediumtruck(esp.2-TonKing)isthebestsellerforitsover-capacityfeatures.Mr.Shidoesn'tthinkFAWheavytrucksaspotentialmarket,forthoseheavytrucks'internalqualityisunsatisfactory.Mr.Shigivesregularteststoits30salesmen.Currently10%oftrucksaresoldthroughinstalment.Frominstalment,FAWKaifengcangain1.5%incomeand180/unitprocedurefee.1KeyIssuesProfitmarginforFAWtrucksellingisaslowas100-200perunit,includingrebate.Amongthe1.2%rebate,atleast0.5%issacrificedformoresales.Salesexpenseisashighas200-300RMBperunits,whichmeansnetprofitforFAWtrucksalmostequalstozero.Mr.ShiisworryingaboutFAWtrucksales'profit.Accordingtohim,areasonableprofitratioshouldbearound2-3%,whichis2000-3000RMBperunit.CurrentlyMr.Shidoesn'thavesparepartsstore.Thereisaservicestationbutisnotoperationalsofar.Mr.ShiisplanningtobuildaFAWpartsstore,butisafraidofthereturnofinvestment.2