As the saying goes: The wool comes from the sheep.

This is the most basic business rule. After all, buyers are not as smart as sellers.

‘"The wool comes out of the dog" is a higher-level business rule. This kind of business behavior is very common in modern society, such as navigation map software.

In the eyes of ordinary people, navigation map software seems to have no technical content, and they are accustomed to using it for free. They have never delved into the issue of how navigation map software can make money.

Even if some people are aware of the problem of how to make profits from navigation maps, they will simply think that the huge user group is the source of profit for navigation map software.

For example, advertisements in navigation map software include marketing and promotion of various restaurants and hotels, etc.

But compared with the operating expenses of navigation map software, these advertising revenues are simply a drop in the bucket and cannot cover the operating costs of navigation map software.

However, why is the navigation map software still alive and well?

This is a classic case of wool out of a dog!

Take Gaode Map as an example. There was a time when Gaode Map was beaten by Bear Map and almost disappeared, only surviving in the automotive field.

That's because the original Gaode Maps still adhered to the concept of charging for map navigation services, which made the free Bear Paw Maps lose ground.

Later, Ali Group acquired Gaode Maps and started the trick of making Gaode Maps completely free. Only then did Gaode Maps come back to life.

To this day, the Ali Group is still continuously transfusing blood to Gaode Map to ensure that Gaode Map can survive.

In fact, Ali Group did not expect Gaode Map to be profitable at all. When Ali Group bought Gaode Map, it did not rely on Gaode Map itself to make profits, but to expand the group's business territory to achieve complementary effects.

For example, Gaode Maps cooperates with e-commerce services to provide positioning services for e-commerce express delivery. This service has allowed Ali Group to almost dominate the express delivery field.

For another example, with the help of map navigation services, Gaode Maps directly aggregates online car-hailing platforms and aggregates dozens of online car-hailing platforms, thus becoming the traffic portal for online car-hailing platforms, which is equivalent to becoming a leader in the online car-hailing field. The new overlord.

It is precisely because similar industrial services complement each other that although Gaode Map is losing money, other industries can make money, thus making up for Gaode Map's losses.

That’s why it’s said that the wool comes from the dog, and the pig ultimately pays the bill

"Do you mean that Australia is planning to take action in other areas?"An Liang asked

"Yes. Huang Guoxiang said without concealment,"Da'ao is our most important partner in iron ore.""

"Taking last year as an example, in 2020, we imported 1.17 billion tons of iron ore throughout the year, 66% of which came from Australia."Huang Guoxiang explained with data

"The country of Australia actually accounts for such a large proportion?"An Liang was surprised.

The ratio of 66% is indeed very high!

"It’s not just the problem of high proportions, there’s also the problem of irreplaceability."Huang Guoxiang sighed.

Huang Guoxiang continued,"Take wine as an example. We can reject the wine from Great Australia and replace it with wine from the Western Hemisphere, but we have no way to reject the iron ore from Great Australia because Globally, there is currently no country that can replace Australia to provide us with iron ore."

"This year has just begun, and Da'ao has already conspired to increase the price of iron ore, and has carried out a substantial price increase through secret operations! Huang Guoxiang said with a sigh.

An Liang frowned,"How much has it increased?""

"you guess? Huang Guoxiang asked back

"Twenty percent?"An Liang casually guessed a relatively high figure.

Huang Guoxiang laughed helplessly,"In 2020, we imported approximately 772.2 million tons of iron ore from Australia, and the average price for the year was US$80 per ton."

An Liang took out his mobile phone and did a quick calculation. 772.2 million tons of iron ore, at US$80 per ton, would be US$61.776 billion. According to the US dollar exchange rate in 2020, it is equivalent to more than 400 billion Xia Guoyuan.

If the price increases by 100%, At 20, Da'ao Country will make a net profit of more than 80 billion Xia Guoyuan, which is more than 200 million Xia Guoyuan every day!

Logically speaking, this kind of profit is a bit excessive.

However, An Liang can hear Huang Guoxiang's helplessness. It seems that Da'ao Country has risen even more. ?

"Australia has just made a decision to raise the price of iron ore to US$160 per ton."Huang Guoxiang gave the answer

"What the hell? An Liang looked at Huang Guoxiang in surprise,"Are you sure Da'aoguo is not joking?""

"not at all!"Huang Guoxiang sighed,"Da'ao has clearly issued a letter of intention to adjust the price. If we continue to purchase Da'ao's iron ore, we will do so at a price of US$160 per ton."

"Is Australia crazy?"An Liang was a little speechless.

An Liang never thought that the Great Australia Congress would directly raise the price of iron ore by 100%.

This represents a blatant provocation from the Great Australian Country, showing that they can manipulate the Platts pricing of iron ore.

If the country's decision from Great Australia last summer was followed, Calculated by the scale of the iron ore imported by Australia, the country will forcibly harvest more than 400 billion yuan from Xia.

It has to be said that the plan of the country is really loud, and it shows that the country is blatantly, He didn't care about Xia Guo's feelings at all!

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