Rent-to-sale ratio is the ratio of the lease price to the sales price

BUSINESS MODEL IS SHARED CHARGING

There are some special categories in business, that is, the price of the product itself is not high, but the frequency of use is particularly high.

Then, the single use price × frequency of use, the rental income will be particularly high, which achieves a “super rent-to-sale ratio.”

For these special categories, the cost can be recovered within a short period of time.

For example, such as the power bank we mentioned. the business model is shared charging.

The cost of the power bank is very low, plus the operating cost is about 100 yuan each.

If it can be used 4 times a day, and the fee is 1 yuan for each use, then you can earn 4 yuan per day.

The cost of this power bank can be recovered within 25 days.

The service life of the power bank is at least 1 year, so it has a “super rent-to-sale ratio”

What determines the rent-to-sale ratio of the industry?

There are probably three factors.

First, the cost of ownership.

The cost of ownership of a shared power bank is about 50 yuan. If it is wholesaled in large quantities, it may be as long as 40 yuan.

Second, the service life.

The service life of the power bank is about 3 years. To put it worse, it can be used for one or two years.

Third, frequency of use.

The number of times the power bank is used is about 2-3 times a day, and the worst should be once.

In fact, in every industry and industry, because the cost of ownership, service life, and the number of times of use are different, there will be a specific rent-to-sale ratio for this industry.