An industry insider admits that the old-for-new subsidy that companies need to pay is directly proportional to sales. The better the sales of the merchants, the higher the amount of subsidies that the store will pay. "But the company needs to pay for it. If the company can afford it, I am currently living in Beijing for a month of furniture renewal. In all the participating stores, the red banner and the yellow promotional color page are hung in The eye-catching position. However, the sales companies involved in the trade-in are as good as the ones agreed, and they have not publicized the event in a big way, and even sneaked a sigh of relief. What is wrong with this? How much more to sell? In the home industry, booth rents remain the main source of income for the store. Founded in 2000, Jiahe Jiamei is regarded as the “old name†of the home circle, and has always used the traditional business model of booth leasing. “When the bidding announcement of the Municipal Commercial Committee came out this year, the company’s leaders let me prepare the relevant materials as soon as possible to carry out the bidding work.†Wang Hongkai, the director of Jiahe Jiamei’s business, said, “At the beginning, many merchants said that they did not understand and believed that the old-for-new rules were too much. Many sales behaviors will be limited. The most obvious change is that merchants have to give up the bargain-selling model that they have been using, but in fact, customers who come home and shop in the US have become accustomed to bargaining and even enjoy the process. Merchants are very puzzled, why the store has to find trouble for themselves." However, the attitude of the family and the US-based leadership is very persistent. They believe that the trade-in of furniture is an opportunity for enterprises. "What we can do is to persuade the merchants to actively participate." Wang Hongkai said, "We have repeatedly mobilized the merchants to publicize the furniture and trade the old ones to drive sales. When we buy new furniture, we can receive subsidies when we deliver old furniture as required. This is still very attractive to consumers." The furniture trade-in policy stipulates that consumers can receive a subsidy equivalent to 10% of the actual sales price of new furniture, which is 5% of the government and furniture sales companies. Wang Hongkai said: "At present, more than half of the merchants in the family and the home are involved in the trade-in." 5% of the subsidy is paid out by the store. For home and home beauty stores that rely solely on booth rental income, will they face the dilemma of selling more and more compensation in the long run? 5% of the advantages and disadvantages of each An industry insider admits that the old-for-new subsidy that companies need to pay is directly proportional to sales. The better the sales of the merchants, the higher the amount of subsidies that the store will pay. "But the company needs to pay for it, and whether the company can afford it, I can't predict it now," he said. In fact, this concern is widespread in home-based stores that rely solely on rental income. In the home industry, there are many stores like Home and Home, which use the traditional booth leasing model to charge merchants a certain amount of store rent each year. Since then, regardless of the merchant's sales, they are not directly related to the store. At the same time, however, there are some home stores that use the sales commission model. Consumers will deliver the goods to the cashier at the store, and the store will return the money to the merchants on a regular basis. In this process, the store will charge the merchant a 1% - 3% management fee. The better the sales volume of the merchant, the more management fees are charged by the selling place. It is not difficult to see that for a store that does not receive merchant sales commissions, the pressure on the funds to pay for the old-for-new subsidy is greater. "We can afford it in a short time, but if the sales flow is large in the future, it will inevitably encounter some new problems." Liu Chengkuan, the general manager of Chengwai Chengjia Plaza, said, "The old-fashioned renewal pilot lasted for a month, if you refer to the sales flow at that time. It will be extended to half a year to calculate, the store needs to provide a large amount of funds to subsidize consumers. The actual sales during the trade-in period this year will not only be six times the sales of the pilot last year, it should be far beyond this value. How to solve the funds at that time? Problems, companies need to explore in the process of practice." “It’s not how much compensation the company has to pay, it depends on how to convert it.†Shen Yaojun, vice president of Jimei Home Furnishing, believes that “the store has paid 5% subsidies, but if the old trades bring more sales to the company, Still worth it." “The old-for-new policy is a policy of benefiting the people promoted by the government.†Wang Hongkai said, “On the surface, it seems that the family and the family have lost 5%, which seems to be a loss, but it is precisely because the company participates in the trade-in activities, the image of the store and Brand awareness has been greatly improved. Overall, the value!" Liu Chen, secretary-general of the Beijing Market Association Home Market Branch, said that this year's furniture trade-in policy is more rigorous and allows consumers to enjoy the benefits. The trade-in for the first half of the year, giving consumers enough time to consider furniture replacement, can effectively stimulate the growth of the furniture industry, which will drive the development of the furniture industry. Compared with these, the difficulties faced by enterprises are temporary and can be found in the process of practice. Make sure your home stays clean and fresh by regularly using Household Cleaning Products. We carry many types of cleaners for different areas of your home,including bathroom and kitchen. 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