---
title: "The Problem Is on the First Floor, the Answer Is on the Second"
description: "Author|Liu Chunxiong Source|Teacher Liu's Forum (ID: liuchunxiong1964) \"A local small factory, very low price, very powerful, what should we do?\" This question has been circulated many times in WeChat circles, and I have seen countless versions. It was a question posed to me by a salesperson while I accompanied a boss on a market inspection. Later, a disciple and I wrote an article titled \"Why High Prices Always Beat Low Prices.\" How to answer this question? It cannot be answered; it is even a trap. My answer was a counter-question..."
author: "刘春雄"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2017-04-17"
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---

# The Problem Is on the First Floor, the Answer Is on the Second

> Author|Liu Chunxiong Source|Teacher Liu's Forum (ID: liuchunxiong1964) "A local small factory, very low price, very powerful, what should we do?" This question has been circulated many times in WeChat circles, and I have seen countless versions. It was a question posed to me by a salesperson while I accompanied a boss on a market inspection. Later, a disciple and I wrote an article titled "Why High Prices Always Beat Low Prices." How to answer this question? It cannot be answered; it is even a trap. My answer was a counter-question...

Author|Liu Chunxiong
Source|Teacher Liu's Forum (ID: liuchunxiong1964)
> "A local small factory, very low price, very powerful, what should we do?"
>
This question has been circulated many times in WeChat circles, and I have seen countless versions. It was a question posed to me by a salesperson while I accompanied a boss on a market inspection. Later, a disciple and I wrote an article titled "Why High Prices Always Beat Low Prices."
How to answer this question? It cannot be answered; it is even a trap.
My answer was to counter-question him: "If that company is so powerful, why is it a small factory, and we are a big enterprise?"
The meaning of this sentence is that your question itself is problematic. Of course, later I also told him many principles about pricing.

**Cognitive Ability Determines the Question**
A person's question is actually determined by their cognitive ability. As soon as the questioner opens their mouth, you immediately know their cognitive level.
In training and communication, I like to let the other party ask questions. As soon as they ask, I know their level. Once I know their level, I know what to say.
From my observation, most questions themselves are problematic and cannot be answered. Even if you reluctantly answer, the other party will not be very satisfied. Therefore, answering the question is not important; **re-framing the other party's question with new cognition is the most important thing**.
How to re-frame? It is to re-raise the question with a higher level of cognition, and then give the answer.
"Low price, very powerful." This is the questioner's cognition. If you change the original cognition: "Why hasn't low price made it big? Because low price only disrupts others, it cannot achieve yourself." — This is new cognition.
What is a higher level of cognition? The questioner's cognition is the baseline; you need to be slightly higher than the questioner. Not too high, otherwise the other party won't understand, and communication will be difficult.
The title of the article "The Problem Is on the First Floor, the Answer Is on the Second" means: if the questioner's cognitive level is on the first floor, then your cognition must stand on the second floor, and only the second floor is enough. If it exceeds the second floor, it may become like talking to a wall. Some people have high levels, but the other party cannot understand because the cognitive gap is too large.

**A "Chestnut"**
"Recently there are many near-expiry products, and the rate of product returns is high. How can we control employee returns?" This is a question I encountered recently. Some have a return rate of over 10%, which seriously erodes profits. Therefore, the loss after returns exceeds 50%.
Following the questioner's cognitive level, the answers include:
1. Find places to digest returns and minimize losses from returns as much as possible;
2. Let employees strengthen management of small store warehouses;
3. Let salespeople take responsibility for the return rate, etc. These are all solving problems along the other party's cognition; they may be somewhat useful, but it is difficult to truly solve the problem.
To answer this question, you need to re-frame cognition.
**1. How are near-expiry products and returns generated? The answer is that they are generated by overstocking;**
**2. In the past, we also overstocked. Why weren't near-expiry products and return rates so high?**
The above process is re-framing cognition. So, the new cognition is: why does overstocking now produce such high near-expiry products and return rates?
The answer is simple, and anyone in marketing knows it. In the past, competition was not so fierce. After overstocking, the responsible party was the small store, and the store owner would actively manage near-expiry products. Now competition is fierce, and the responsibility for managing near-expiry products has shifted to the distributor.
This is the logic behind the new cognition. Then, new solutions immediately emerge.
First, the real purpose of overstocking is to occupy funds, so as long as you get the advance payment (the funds from promotional activities), there is no need to push the goods into the small store warehouse.
Second, in the past, goods occupying the warehouse could increase sales; now, goods not entering the warehouse can increase sales. As long as each delivery is either on the shelf or in the store, on the one hand, there are not many goods, so no near-expiry products will be generated; on the other hand, goods in the store are convenient for shelving, which actually increases sales.
So, the real solution emerges:
> **1. Stop overstocking, but still do promotional activities to occupy funds;**
>
> **2. Make distribution like public transportation (fixed-cycle delivery), small-batch delivery, ensuring goods do not enter the warehouse but all go to the store.**
This is a method that basically eliminates near-expiry products and returns. Of course, products with very short shelf life are exceptions.

**Cognition Determines Thinking Logic**
All answers must be logical. The questioner's cognitive level determines the logic behind it.
In the process of answering questions, I sometimes become a counter-questioner. After about three consecutive counter-questions, the other party may say the answer. So, a good answer is not profound knowledge, but the result of **logical reasoning**.
At a lower cognitive level, even logical thinking may not yield effective answers. **Raising the cognitive level will also raise the thinking logic to a new level.**
Many companies have recently encountered a problem: new product distribution basically fails—this is an old topic. More than ten years ago, we answered similar questions: We did everything we should, why do products still not sell?
In past answers, a classic one was: After the goods are distributed, have you done anything to promote sales? Or: If you think you have done everything, then there must be things that others have done that you don't think you should do.
Many years later, someone recently asked me this question again. Of course, the environment has changed, so the answer has changed. The biggest environmental change is that many companies are doing mainstream gear shifting and product upgrades.
Similarly, re-frame the question: Why does the distribution rate have to be so high?
In the past, when launching new products, we always emphasized the distribution rate first. Is high distribution rate wrong?
Of course it is wrong!
In the past, although products had differences, they were all "low-price, low-quality" products that met the needs of the masses, so high distribution rate was required. **Now, upgraded products must initially only meet the needs of a minority, but not a niche.** Because in China, niche is the prelude to conquering the mass market.
So, the re-framed question becomes:
**1. Since it is initially for a minority, how should distribution be done? The logic is simple, and the answer follows the logic: "targeted distribution";**
**2. Even if it is initially for a minority, how can we promote sales? The logic is not difficult either; niche promotions are hard to be effective, but you can use fan marketing.**

**Cognition Must Be Higher Than the Problem**
I met with distributors at a company, and one afternoon I answered their questions. Finally, the general manager summarized that I did not directly answer the questions, but re-framed them.
Regarding questions, I have always had two insights: First, the questions that are not raised are the most important. Once a question is raised, the answer is mostly already there; Second, questions raised at a low cognitive level also have answers, but they often cannot truly solve the problem.
There was a book called "The Art of Questioning," and what I am talking about today should be "The Art of Answering."
**One type of questioning is to ask about the problem itself; another type is to ask at a level higher than the problem's cognition.**
Direct questions may have solutions, but your solutions may not be known to others, and not all effective methods can be shared.
Thinking above cognition will form methodology, and there can also be typical methods.
Once methodology is formed, the questioner can find answers themselves. Typical methods are just to inspire thinking.
The question raised by others, and then letting the questioner find the correct answer—this is the most brilliant way to answer questions.
> **Summary:**
>
> **From the question, you can see cognitive ability. If you cannot solve the cognitive ability, you can only solve problems at a low level. So, re-frame cognition, re-raise the question, and solve the problem with new cognition.**
**The problem is on the first floor, cognition is on the second floor, cognition is higher than the problem, and the answer is on the second floor.**
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