The concepts in the textbooks are all wrong. Textbooks say that the essence of finance is value circulation. There are many types of financial products, including banks, insurance, trusts, etc. Finance involves a wide range of academic fields, including accounting, finance, investment, banking, insurance, trust and so on.When it comes to finance, many people will think that this is a lofty word, and image combinations such as "luxury suits", "luxury cars" and "ultra-luxury office buildings" will immediately come to mind.
But in fact, these are essentially "financial" minions, and even prey.
Why are they also prey? This needs to start from the two links of commodity cost and circulation.
Removing non-financial influencing factors such as technology and scale, the cost and premium of a commodity are ultimately composed of the cost and premium and profit of merchants and distributors at all levels, brand premium, advertising premium, circulation premium and brand profit.
For example, let's say a BMW car costs 750,000 yuan (excluding the tax part), where:
The cost and premium (including design fee) of dealers at all levels of raw materials such as steel, rubber, and plastics account for a total of 100,000 yuan.
Brand value, an intangible asset, accounts for 200,000 yuan.
The manufacturer spends 50 million yuan on advertising, assuming that the annual plan is **500 vehicles, which is equivalent to the cost of each car is 100,000 yuan.
The cost and profit of each stage of the circulation process of the car is 50,000 yuan.
The cost and profit of the brand owner is 300,000 yuan.
In the end, the total cost of this car may be less than 300,000 yuan, but consumers need to buy it with 250% of the cost price.
This is the case for large items such as automobiles, but why not the daily necessities in daily life?
Everyday products and electronic products also have similar properties, such as mobile phones, computers, and clothing.
Different brands of mobile phones, even if the user positioning and software and hardware configuration are exactly the same, but due to different brands, ** is different. The iPhone and the Xiaomi phone are a good example.
When it comes to daily necessities, such as clothing, bedding, etc. The low cost of mass textiles is obvious to all, but due to the existence of virtual values such as marketing and branding, the original cheap ** has become excessively noble, resulting in textiles becoming naked financial products from a daily product.
Finance should be defined as a product that is virtual and has no real value, but has a very good quality.
People's daily consumption is much higher than that of the commodity body, and the second-hand business has eliminated most of the financial premium components, so that the goods return to the essence to a greater extent, which is also one of the reasons for the development of the second-hand market in developed countries.
Here, Mr. Brain calls on everyone to work together, consume rationally, eliminate bubbles, and create a beautiful new market! The instructor said that a spark can start a prairie fire! Come on, everyone!