Hu Xueyan, following Fan Li (Tao Zhugong), is the most outstanding figure in Chinese business, hailed as the "Sage of Commerce" in Chinese business history. His merit lies not in his immense wealth, but in his assistance to Zuo Zongtang in recovering the Qing Dynasty and the legacy he left behind: Hu Qing Yu Tang (a traditional Chinese medicine museum located at the foot of Wushan Mountain in Dajing Lane, Hangzhou, is China's only national-level professional museum of traditional Chinese medicine. It was built on the foundation of the century-old Hu Qing Yu Tang architectural complex, forming a north-south parallel with Tongrentang in Beijing).
All of this vanished with the collapse of the Qing Dynasty. His official hat and plume may have been stripped, his yellow jacket may have been removed. But Hu Qing Yu Tang in Hangzhou remained, and his business spirit endured. Despite its mere eight characters, "Honest and fair to all," and "Single price," these eight characters have sustained it for over a century.
These eight characters are inscribed on two plaques, one facing inwards and the other outwards. The inward-facing plaques are for employees, the outward-facing plaques are for customers. If you were the boss, how would you hang these eight characters on the plaques? The premise is that one faces inward, and the other outward. Because the inward-facing plaque represents a company's policy, while the outward-facing plaque represents its corporate culture. Let's look at how Hu Xueyan did it. He hung up "Honest and Fair Treatment for All" as a company policy and "Fixed Price" as a company culture.
Now let's briefly analyze the meaning of these eight characters on the plaques. "Honest and Fair Treatment for All" is a business attitude, a kind of integrity, a kind of fairness. It is the capital for a businessman to develop in the long term, and also the foundation for his livelihood. "Fixed Price" is the sum of the value of service and the value of the product. This is the fundamental point I need to explain in this article. Because under the premise of honesty and fairness, we are providing high-quality service to our customers. Since we are in business, for any businessman in any era, maximizing profits is fundamental. When we sell products, our service is usually measured by market value; it is the tangible form of an intangible product. If I provide high-quality service and sell products that have withstood the test of the market, products that are unparalleled in the industry, or products that have not yet been developed in the market, then the combined tangible and intangible value of these products forms a price. This price, after market research, will be unique and even unchangeable. This is because such products meet the criteria of refined processing, reputation for superior use value, and enjoyment of high-quality service. This is the meaning of "fixed price."
I think this is what makes Hu Xueyan so remarkable; he set such a standard for our business world in the agrarian society of a century ago. Think about it: in today's technologically advanced, commodity-saturated new era, how many private enterprises can survive for decades? Hu Qing Yu Tang survived after Hu Xueyan's decline, becoming a century-old establishment. What has sustained it through an extraordinary century? I think it's not the result of a manager's shrewd management, but rather a spirit of perseverance, a sound and rational system, a legacy of high-quality service, and a continuous cycle of product quality assurance. With all this, no matter the era or the person running the business, as long as they uphold these principles, it will surely move from the past to the future.
In his later years, Hu Xueyan, like the dynasty he lived in, was teetering on the brink of collapse. Like most successful people, he watched helplessly as his life's work vanished. His money shop and other businesses vanished. I will not delve into the reasons for his downfall here, as that is not my focus. Later, through his tireless efforts, Hu Qing Yu Tang was preserved. Thus, the business spirit of this legendary merchant was passed down through his only business.
A century later, he is long gone. But his image and voice remain in the annals of history, his Hu Qing Yu Tang remains, his business spirit remains, even though he did not have the peaceful end of Tao Zhu Gong (Fan Li). Perhaps for a particular era, you can take a person's life, but you cannot take away that person's achievements in that era or in later generations, much less the remembrance that remains in people's hearts.
The principle of "fixed price" has become a standard in today's business world, especially favored by entrepreneurs with a long-term vision. Their superior processing and excellent service have made their products brands. Their strong capabilities and rapid development have established them as industry leaders and pioneers. At this point, "fixed price" has become a core value, representing the best time to reap profits. It is also a continuation of Hu Xueyan's business spirit.
"Fixed price" is not simply a value; it should be a service provided to customers in a paid manner, ensuring honesty and integrity. If honesty and integrity are the prelude, then fixed price is the main theme. When you are honest, fair, offer genuine products at fair prices, and provide excellent service, price will no longer be an obstacle to your success or a stumbling block to your future. For people today, price is no longer an issue. As long as your product is good, your service is excellent, and customers approve of you and your product, they are willing to pay a little more. In this way, your product price becomes the foundation for your survival in the industry, and your price also becomes a characteristic of your product.
Understanding the principle of "fixed price" allows us to operate our businesses under the guidance of this business spirit. If you were a business manager, and you were to plan the ex-factory price of a bottle of cosmetics, how would you do it? You have 100 yuan. Some might do this: one bottle of cosmetics (cost price 30 yuan), packaging (cost price 50 yuan), advertising (20 yuan). But others might do this: one bottle of cosmetics (cost price 10 yuan), packaging (cost price 30 yuan), advertising (60 yuan).
These are perhaps two common operating methods today. But how can we integrate the essence of "fixed price" into this production and sales chain? I think we can only operate smoothly and go further if we understand the principle of "fixed price"!
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