industrial overlord

Chapter 145 The cheating exchange rate (seeking monthly ticket recommendation ticket)
It took more than ten days to process the mold, and Lin Zhenhua didn't have time to stay in Shanghai for a long time. He handed over the matter to Peng Gang and others, and then left alone.

Before leaving Shanghai, Lin Zhenhua went to the Shanghai distribution office of Hanhua Company.After more than half a year of operation, the dealership looks decent.The four employees brought from Fenghua have also lost the rustic style of Fenghua people, and dressed in a lot of foreign style, looking a bit like Shanghainese.

"Manager Lin, you're here, please take a seat." Ren Yunzhu, who was in charge of the receptionist, hurried forward to greet Lin Zhenhua when she saw Lin Zhenhua. She knew that Lin Zhenhua was the biggest boss of the dealership, and her current boss was all for Manager Lin. Worker.

"Zhenhua is here, why didn't you tell me in advance? Lijun went out to meet a client, and he will be back in a while." Tao Hui also came out of the room to welcome Lin Zhenhua, smiling all over his face.She does not call Lin Zhenhua "Manager Lin", but uses the more affectionate "Zhenhua", which is also to reflect the closeness of the relationship between them.

Lin Zhenhua also joked with a smile: "Hey, isn't this my sister-in-law? At first glance, I thought it was my sister. Why haven't I seen her for a few months? My sister-in-law is ten years younger."

"Really?" Tao Hui smiled happily, "Zhenhua can really talk. By the way, why did you come to Shanghai?"

Lin Zhenhua briefly told Tao Hui about opening the mold, and Tao Hui said fascinatedly: "My God, this is a fan designed by Director Liu himself. Why don't you sell that one for 800 yuan?"

Lin Zhenhua said: "I can't sell it for 800 yuan. I mainly want to earn money from foreigners for this kind of five-blade fan. It's too early to enter the domestic market."

"What, our fan is about to be exported?" Tao Hui asked with wide-eyed eyes.

"Yes, of course we have to export. Exporting is the right way." Lin Zhenhua said.

Tao Hui asked, "Then, aren't we going to build a dealership in the United States?"

Lin Zhenhua teased her and said, "Yes, I'm here to discuss this matter with Lao Xiong. Is my sister-in-law interested in following Lao Xiong to the United States to become a proprietress?"

"But, I can't speak English either." Tao Hui took it seriously and worried very seriously.

Lin Zhenhua laughed: "Haha, my sister-in-law should take the time to learn English. After she finishes her studies, I guess our American distribution office will be built, and I have to invite you to sit in the town at that time."

"Great, I'll start learning tomorrow." Tao Hui promised.

The two of them were chatting when Xiong Lijun came back from the outside. He asked Tao Hui to prepare lunch and told Ren Yunzhu to go out and buy some stewed vegetables. He then dragged Lin Zhenhua into the office and closed the door behind him.

"Zhenhua, when did you come to Shanghai?" Xiong Lijun asked.

Lin Zhenhua said: "I arrived the day before yesterday. I told you about the mold opening of the five-bladed fan last time. We went to the Hudong factory yesterday. Liu Xianghai helped to contact us. Now the mold has been forged. Peng Gang and the others stay there, waiting to be machined."

Xiong Lijun nodded: "Zhenhua, I really have you. Back then, everyone didn't think there was anything special about Populus euphratica. It was you who saw it and became such a good friend with him. Now it's come in handy."

Lin Zhenhua said with a smile: "At that time, everyone didn't think you were anything special, but now you look at it, and you are also the boss Xiong on the beach."

Xiong Lijun waved his hands again and again: "Zhenhua, please don't say that. If you hadn't asked me to resign and dragged me into business, I wouldn't be where I am today. I've always told Xiaotao that Zhenhua is me. Best buddy, I will never betray you wherever I go."

Lin Zhenhua said: "Old Xiong, don't you want to drive me away? Why does this sound so awkward to me?"

"What I said is true." Xiong Lijun said, "Forget it, there is no need to say this. Let me first report to you the situation of the dealership during this period."

Then, he took out a ledger and made a detailed report to Lin Zhenhua on the recent business development.In the past six months, the Shanghai distribution office has sold more than 8000 electric fans, and has received orders for another 5 sets, which will be put on the market as soon as summer arrives.In the past six months, after deducting various expenses, the dealership has earned a total of nearly 20 yuan. According to the shareholding relationship, half of the 20 yuan belongs to Xiong Lijun, and the other half belongs to Lin Zhenhua.

Judging from the profits so far, the income of the Shanghai distribution office is not much different from that of the Xinxin store in those years, but Xiong Lijun knows that this is only because winter is the off-season for electric fan sales. The sales volume of water lily electric fans in the market is expected to reach 10 units, and the profit can reach more than 200 million at that time, which cannot be compared with opening a small shop.

"I'll keep this part of my money with you first." Lin Zhenhua said, "If you need money for any occasion, you can withdraw it at any time, just let me know later."

"I understand." Xiong Lijun replied.

"Also, take some time to visit Lao Liu. If he is short of money, try to help him. He is doing a big business. We can't help you. It's good to help him financially. .”

Xiong Lijun smiled and said: "If there is such an opportunity, I would be very willing. Don't look at me as a 10 yuan household now, but when I go to Xiaotao's house, I still have no status. People think I am a second-class dealer. Maybe I will be arrested when I make a speculative crime. If we can help the country's cutting-edge technology, we will be honored, right?"

"Bullshit, what's so shameful about being a second-hand dealer." Lin Zhenhua said, "In developed countries, the status of marketing is much higher than that of production."

"By the way, Zhenhua, I have something to tell you. When I went to visit customers, they told me that some factories in Zhejiang and Guangdong have launched products that imitate the appearance of our water lily fans. We want 50 yuan lower, and I am worried that this summer's wave of sales will encounter obstacles."

"How is the quality of their products?" Lin Zhenhua asked.

Xiong Lijun said: "It is said that the quality is not as good as ours. My customers have said that they will try their best to recommend our products. Manager Le of Red Star Department Store promised to give us a special counter at that time, indicating that this is an authentic water lily electric fan. Others All of them are counterfeit famous brands. However, even so, he is still worried that our sales will be greatly affected.”

"This is also expected." Lin Zhenhua sighed, "Our products are selling well, and others will naturally imitate them."

Xiong Lijun said: "Well, now that I think about it, if we didn't sell it at the beginning and launched it suddenly in summer, it would be too late for others to imitate it. We started selling it in winter, but we didn't sell many units, and instead leaked our technology."

Lin Zhenhua said: "Why don't I know this, but I can't afford to wait. This summer, our goal is to sell 20 units, but relying on the four acres of land in the Hanhua factory, we can't afford it at all." Such a large production capacity. If we don’t sell 20 units and get back the funds, how can I sell the Xunyang Bicycle Factory’s workshop? Another point is that I paid tens of thousands of yuan in profits to Hanhua Factory. In exchange for the Department of Light and Chemical Industry, I applied for [-] sets of raw materials from the Department of Materials."

"That's true." Xiong Lijun nodded, "We can't take all the good things in the world."

Lin Zhenhua said: "Old Xiong, don't worry, we already have a plan for this summer's sales. One is that the original fan will be greatly reduced in price. After our production line is completed, the production cost of each unit can be reduced by at least 20%. Let’s lower the retail price from the current 248 to 218, and I think we will be able to create competitive pressure on those counterfeiters.”

Xiong Lijun said: "We can only lower the price a little bit. Our fans use a lot of materials, unlike their small factories in small towns and towns, who can save as much as they can. The customers are all ghosts and ghosts. How much material you use can be picked up by them." You know. Even if we pay 20 yuan more, customers will definitely choose us.”

Lin Zhenhua went on to say: "The second point is that we are going to launch two other varieties, namely the children's fan and the variable speed fan. The prototypes have been made now. Shaozhe and Mr. Wei are currently testing. So far, the effect is very good. good."

Xiong Lijun flattered: "That's for sure, the things you made, boss, can still be bad."

Lin Zhenhua said: "I didn't make this. Teacher Wei led everyone to make it. Our technicians are really lacking. Fortunately, we are only making fans now. If the things we make are complicated, I will I don’t know who to ask to help design it.”

Xiong Lijun said: "Well, after these two products come out, you hurry up and send them to Shanghai. I have to show them to some big customers. These old businesses have very poisonous eyes, and you can see a Is there a market for the product?"

Lin Zhenhua said: "Keep an eye on these people. If anyone can't get along in the system, or is going to retire, you can quickly recruit him. People who get out of this business system are priceless treasures." ah."

"I have already said hello." Xiong Lijun said proudly, "Now I have nothing to talk to these old guys. They say that I am their old friend. During the Chinese New Year, I collected hundreds of dollars from my family at a high price. Jin tea oil was brought to Shanghai and delivered door to door, which made these people very happy. Although they are in the commercial system, it is too difficult to get some tea oil squeezed from the soil in Jiangnan Province. Now everyone eats It’s better than in the past, they’re more particular about it, they say tea oil doesn’t contain any cholesterol, and they say it’s healthier to eat.”

Lin Zhenhua said with a smile: "It's really the other way around. In the countryside, tea oil is not considered oil, and lard is the only way to enjoy it."

The two chatted a few more gossiping words, and then entered another topic.Xiong Lijun said: "Zhenhua, I have also inquired about the sales of five-blade fans abroad these days. You refer to the prices of foreign electric fans and think that the sales price of our five-blade fans is around 45 US dollars. It's more reasonable."

"$45." Lin Zhenhua replied, "That's not bad. It's almost 360 yuan. Our cost can be controlled within 80 yuan, and we're making a lot of money."

Xiong Lijun looked at Lin Zhenhua with strange eyes, and asked, "Zhenhua, can you do multiplication?"

"how?"

"U.S. dollar to RMB is one seven, 45 dollars, how did you calculate 360 ​​yuan?"

"One yuan and seven!" Lin Zhenhua woke up like a dream. In fact, he had always known the RMB exchange rate at that time. It was just that when he talked about exporting, somehow, he automatically converted it to 8 yuan per US dollar according to the level of later generations.He has participated in some conferences discussing export trade policy, and the experts at the meeting calculated this way.

"If it's one yuan seven, 45 dollars is less than 80 dollars?" Lin Zhenhua panicked, "No, 45 dollars is just the retail price, counting the circulation cost, and then counting the difference between wholesale and retail, we don't lose money when we produce one Taiwan?"

Xiong Lijun said: "When I heard this price at first, I also thought it was a bit strange. Then I thought about it, isn't it so? The electrical appliances made abroad are already cheaper than our domestic ones. Of course, exporting electrical appliances will lose money."

"It's impossible!" Lin Zhenhua felt that it was impossible to imagine. Who doesn't know that Chinese manufacturing is a representative of high quality and low price. How could the domestic production cost be lower than the foreign sales price?
"Let me think about it, what is the problem?" Lin Zhenhua held his head and began to think hard.

Labor costs are undoubtedly very low in China, so there is no need to argue.In fact, among the production costs of Hanhua Industrial Co., Ltd., labor costs are also the smallest piece.

In addition to labor costs, there are raw material costs.At that time, China's raw material production capacity was very weak, and the domestic prices of spring steel, silicon steel sheets, enameled wires, electronic components, etc. required for the production of electric fans were higher than those in the international market.This is also the reason for the high cost of electric fans.

But the reason for raw materials is not the most critical. After all, foreign electric fan manufacturers have to make profits and have other expenses. How can the sales price be higher than the production cost of Hanhua Company?

80 yuan, 45 dollars, what's the problem?
Understood!It's the exchange rate!
Lin Zhenhua's mind suddenly cleared up, and he had grasped the key to the problem.

In the final analysis, the reason for the high cost of Chinese products lies in the unreasonable exchange rate.According to the official price, one dollar can be exchanged for 1.7 yuan, but in fact, one dollar can buy more things in the United States than 1.7 yuan can buy in China, especially in the price of industrial products superior.

It becomes clear when you think about it the other way around.The cost of a five-blade fan produced by Hanhua Industrial Company is 80 yuan, which is equivalent to 1.7 US dollars at an exchange rate of 47. At this price, it is not competitive in the international market at all.But if the renminbi depreciates by half to 3.4 yuan per dollar, the same cost of 80 yuan is equivalent to 24 dollars.

And if the RMB exchange rate is lowered to a low level of 8.3, then the cost of 80 yuan is equivalent to less than 10 US dollars. This is simply selling electric fans at the price of cabbage. No wonder after the 21st century, the US Congress is itching Forcing the appreciation of the renminbi.The severely undervalued renminbi is really a scam for American manufacturers.

"The exchange rate is cheating." Lin Zhenhua sighed.The current exchange rate is the father of Chinese manufacturers.

"Zhenhua, what do you think about this matter?" Xiong Lijun asked.

Lin Zhenhua shook his head: "I miscalculated, I didn't expect the current exchange rate to be so high. I was still counting on the five-leaf fan to make me a lot of money. Now it seems that it is completely a chicken rib."

(End of this chapter)