Chapter 1546: The “Lights” at 3:00 a.m.
Xiao Zhang worked overtime until 3:00 a.m. When he came downstairs, he found the convenience store next to the company was still open. He bought a bottle of water and a box of instant noodles. At checkout, he asked the clerk, “Are you open 24 hours? Is there someone here at night?” The clerk said, “Yes—people like you.” Xiao Zhang asked, “What kind of people?” The clerk replied, “Overtime dogs, ride-hailing drivers, night-shift nurses, and also insomniacs who can’t sleep and go out for a stroll.” Xiao Zhang said, “Don’t you lose money then?” The clerk said, “We break even during the day, and make money at night. There are fewer customers at night, but the profit margin is higher—because nobody shops around for price.”
Chapter 1547: The Convenience Store’s “Cost Structure”
Lin Feng studied the financial model for convenience stores: during the day, they attract customers with “fresh food,” with a gross margin of 30%; at night, they make money with “emergency products,” with a gross margin of 50%. The 24-hour operating costs are mainly night-shift labor and electricity costs, but the higher gross margin at night can cover them. Lin Feng said, “This is ‘time arbitrage’. Sell traffic in the daytime, sell a premium at night. Whoever can figure out the 24-hour cost model clearly can make money in the late night.” He found a company that does “convenience store digital operations.” Its core business is helping convenience stores implement “time-based pricing” and “dynamic inventory.” The stock price is still at the bottom.
Chapter 1548: “Instant Demand” in the Late Night
Lin Feng found that the late-night consumption scenarios for convenience stores are completely different from daytime. In the daytime it’s a “buy-while-passing-by” purchase; at night it’s a “must-buy.” Xiao Zhang said, “What do you mean?” Lin Feng said, “In the day, you pass by, see discounted cola, and buy a bottle. At night, you’re thirsty, can’t find any other store, so you have to buy cola at full price—no discount. This is ‘instant demand’: the more immediate the demand, the lower the price elasticity. The lower the price elasticity, the higher the profit.”
Chapter 1549: The Convenience Store's “Night Data”
That “convenience store digital operations” company recently released a “late-night consumption report”: from 1:00 to 5:00 a.m., the average basket size is 1.8 times that of daytime. Among them, “emergency medicines” and “charging devices” are growing the fastest. Lin Feng said, “This is the ‘night data’. The more granular the data, the more precise the operations. The more precise the operations, the higher the profit.” The stock price jumped 15%.
Chapter 1550: The Convenience Store’s “Long Runway”
Lin Feng held the company, with only a modest position. He said, “Convenience stores are a ‘long runway’. Because cities don’t sleep, and people returning late won’t disappear. As long as someone needs a bottle of water in the middle of the night, convenience stores have value. Where there is value, there is business.”
