Rebirth of the courtyard, the start is 80s

Chapter 385 Small profits but high sales make piracy unprofitable
In fact, Cao Zhiqiang had produced the music album "Life in Bloom" a long time ago, and he still paid out of his own pocket in advance to record a large number of records.

Because Li Youfu has already contacted many domestic tape factories and added a lot of tape manufacturers, plus the previous batch of tapes that were returned to the Beiping tape factory for reprocessing, the music album "Life in Bloom" has become a lot of stockpiles.

How many are there?

Let's put it this way, by the time Cao Zhiqiang officially took the college entrance examination, that is, on July 150th, Cao Zhiqiang had already hoarded more than [-] million audio tapes in the name of Huaxia Audiovisual Company, which is absolutely unprecedented.

Why is it unprecedented?
This is because before this, when audio tapes were released in China, there was no precedent for hoarding millions of tapes in advance before the records were on the market.

Under normal circumstances, domestic record companies first stock up on [-] to [-] tapes, and then choose whether to add or not to add tapes after they are released on the market. This is the safest way and the financial pressure is the least.

Before Cao Zhiqiang's new album was released, he mentioned the situation of hoarding millions of albums. Judging from the current situation in China, even the biggest singers do not have this kind of treatment.

For example, Teacher Li Guyi, she was considered the hottest inland singer in China at this time. She wanted to release a record, but she didn't stock up on millions of records in advance.

The reason why other record companies in China did not stock up on millions of records before the new albums were released was not that they couldn't do it, but that they couldn't do it.

Because the domestic record companies at this time are all state-owned enterprises, the procedures for releasing records are extremely cumbersome, especially when it comes to money matters, they are more concerned and require layers of approval.

Huaxia Audio-Visual Company is different. This company is nominally a joint venture company controlled by a state-owned enterprise, and it can be regarded as a state-owned enterprise, but in fact it is more like a leather bag company, or to be more precise, it is Cao Zhiqiang's words.

So what Cao Zhiqiang wants to do, as long as he is willing and willing to pay for it, then it is not a problem.

To put it bluntly, Huaxia Audiovisual Company is just a tool in Cao Zhiqiang's hands. It is a state-owned enterprise in name, but it is actually no different from Cao Zhiqiang's personal company.

Of course, the reason why Cao Zhiqiang is willing to spend a lot of money to hoard so many records in advance is because he has full confidence in his solo album.

This confidence is not only reflected in the confidence in the work itself, but also in Cao Zhiqiang's understanding of the current domestic music market.

Before that, Cao Zhiqiang hadn't carefully investigated the domestic record market, and always took it for granted that when his good songs were released, he would be shocked.

So in order to maximize his profits, he chose to release a single tape, and that single tape was undoubtedly "Red Flag Fluttering".

Not only that, but he also ingeniously cooperated with CCTV to set up a new column that is widely advertised, and the first program of the new column is the MTV of "Red Flag Fluttering" to promote his song.

There is no doubt that as far as the song "Red Flag Fluttering" is concerned, it is indeed famous. This song is being sung across the country, and even many elementary schools have begun to teach elementary school students to sing this song.

However, the sales volume of the single tape with the red flag fluttering was not satisfactory, or in other words, it did not meet Cao Zhiqiang's expectations.

Later, after some investigation, it was discovered that the poor sales of tapes was mainly due to the neglect of the age factor.

Because during this period, the most popular domestic tape recorder was actually the cassette tape recorder. Although the real record player appeared earlier, it was not popular in China due to the high price and the fact that the vinyl record itself was too expensive and recorded too few songs. , not many.

The so-called single generally refers to that kind of vinyl record. After all, the storage capacity of vinyl records is limited. Generally, one record can record two songs, that is, the front and back.

The new LPs, while capable of recording more songs, were prohibitively expensive.

An LP on the market now costs about 15 yuan, which is unbearable for an average family.

Therefore, cheap tape records are the most popular form of records in China, and there is no one.

However, the storage capacity of ordinary audio tapes is very large, generally more than ten songs can be stored.

So if you use a tape record to release a single, unless you set a very low price, which is similar to a blank tape, ordinary people will not buy it, because they think it is too foolish.

Cao Zhiqiang originally priced his first single tape at six yuan a box, which has exceeded the psychological expectations of most ordinary people.

In addition, tapes are easy to rip and pirate, so everyone would rather buy those cheap knockoffs, anyway, it sounds like there is no big difference.

Although domestic tape recorders cannot rip, imported dual-card recorders can easily rip.

Therefore, during this period, many self-employed people have already started to rip pop song tapes.

Self-employed dubbing with a dual-card recorder is not as fast as direct recording by a tape factory, and the quality and quantity are incomparable, but there are enough self-employed people who can't stand it.

As long as someone has a dual-card tape recorder that can rip tapes, buy some blank tapes, and buy a genuine tape of "Red Flag Fluttering", he can set up a small workshop to rip.

The ripped tapes are a collection, not only "Red Flag Fluttering", but also popular songs from Hong Kong and Taiwan, a tape with more than a dozen songs, and the price is only four yuan, which is the same as the price of an imported Panasonic tape.

In this way, everyone is of course willing to buy pirated copies, the price is cheap, it sounds the same, and you can listen to more than ten pop songs, what a bargain.

At this time, the common people in China are generally not rich. Although everyone has entertainment needs, they have to do what they can.

To put it bluntly, ordinary people in China are too sensitive to prices at this time and have high requirements for cost performance. For this, we can look at India in the early 21st century.

Regardless of the fact that six yuan is only two yuan more than four yuan, two yuan in this era is quite valuable.

In addition to your six yuan a box of tapes, there is only one song, which is roughly equivalent to a blank tape. Unless you like it very much, it is not bad for money, such as the unit that can be reimbursed, otherwise ordinary people, who Happy to be taken advantage of.

Therefore, before a detailed investigation, Cao Zhiqiang's first single was undefeated.

In fact, strictly speaking, Cao Zhiqiang's first single did not fail, but was a big success.

After all, the song "Red Flag Fluttering" is now a popular song in China, and many people have heard it.

Moreover, the sales of the original single tape of "Red Flag Fluttering" also exceeded [-] early, including the sales of vinyl records, which also exceeded [-] early. Compared with other records, the results are very good.

The so-called failure is just Cao Zhiqiang's own opinion, because this result looks good to outsiders, but in his own opinion, it is a failure.

Therefore, Cao Zhiqiang later learned from the painful experience, and after summing up the experience and lessons, he changed his original plan to continue to release a single, that is, "Blood-stained Style", and instead re-recorded an album that is more in line with this era-"Blood in Bloom" life"!
"Life in Bloom" is a rock style, no matter the style or the lyrics, it is very suitable for this era, and it can definitely touch people's hearts.

In this era, this album can definitely be said to be at the level of a nuclear explosion.

At the same time, Cao Zhiqiang also set the price of this album very humanely, no longer high on the top, but a unified price of 2.8 yuan.

That is to say, a piece of "Life in Bloom", with a total of twelve songs (including "Red Flag Fluttering"), is full of sincerity and weight, but the price is only two yuan and eighty-one.

At this price, many pirate peddlers can't do it directly.

You should know that the wholesale price of domestic blank tapes on the market is between 2.5 yuan and 3 yuan, and the retail price is between 3 yuan and 3.5 yuan, while imported tapes are generally more than 4 yuan.

Cao Zhiqiang directly set the retail price of the album at 2.8 yuan a disc, which almost cut off the piracy of all pirate peddlers.

Because piracy is unprofitable, you can't make money.

Think about it, pirate peddlers buy a domestic blank tape, at least 2.5 yuan a disk, which is still the wholesale price for buying in large quantities, and it is absolutely impossible to buy in small quantities.

Even if the minimum is 2.5 yuan a plate, plus all kinds of tossing, even if it is not labor, but you have to pay for packaging, right?

The additional cost of the packaging fee for a tape is at least [-] cents, and it is absolutely impossible to be more exquisite than regular manufacturers.

People's regular tape factories can pack in large quantities. If the quantity is large, the price can naturally be lowered.

You, a small street vendor, make a small amount, how can the packaging cost be lower than that of the tape factory?

To reduce the cost, we can only compress the quality, but the quality can be compressed again, and the cost cannot be lower than [-] cents, usually around [-] cents.

It's like it's cheap to buy a whole car, but if you buy exactly the same auto parts and install them yourself, the price is much higher than that of a whole car.

But if you take out pirated tapes, they can’t be more expensive than genuine ones at 2.8 yuan, right?
If the price of pirated goods is the same as genuine ones, why do people buy pirated goods?

Therefore, the retail price of 2.8 yuan directly makes the pirated books at this time want to cry without tears, and I can't pirate it because it's not worth it.

Unless an individual buys a blank tape, don't pack it and record it directly.

But blank tapes are not cheap either. If you buy them at the retail price, domestic blank tapes can’t be lower than [-] yuan a disc, so it’s better to buy genuine ones.

So, with the price of 2.8 yuan, does Cao Zhiqiang make a profit?

Of course there are.

Cao Zhiqiang got the goods at a cheap price.

His previous purchase price was 1.3 yuan for a tape, which was the price including packaging, and the tape alone was only [-] cents.

Now because he wants a larger quantity and pays cash in advance, the price can actually be cheaper. Even if the prices of different manufacturers are different, on average, the cost is 1.2 yuan per tape, which is also packaged together. never mind.

Calculated according to the price of 2.8 yuan, once a tape is sold, the gross profit is 1.6 yuan, which is [-] yuan.

Of course, it doesn't actually count that way.

Because the sale of audio tapes is divided into models.

At present, Cao Zhiqiang generally has two sales channels.

One is the formal distribution channel, that is, the channel of Xinhua Bookstore, supply and marketing cooperatives, and department stores.

As for this channel, half of the pricing is basically distributed to these publishers, which is 1.4 yuan per disc.

Calculated in this way, through formal distribution channels, units such as Xinhua Bookstore can only receive a payment of 1.4 yuan for each tape sold.

Subtracting the cost of 1.2 yuan, in theory, Huaxia Audio and Video Company can only earn 0.2 yuan, or [-] cents, for each tape.

Don't think too little, this is actually very good, who let Cao Zhiqiang set the price too low.

But there is no way, without such a low price, he can't prevent the army of pirates all over the country.

Moreover, small profits can lead to high sales, especially since this is Cao Zhiqiang's first album, the key is to gain fame.

As long as the reputation is established, it will naturally not be a problem to set the price a little higher in the future.

What's more, Cao Zhiqiang not only has a regular distribution channel, he also has his own distribution channel.

Strictly speaking, this own distribution channel is divided into two types, that is, the sales department of Hongguang Publishing House, and Hongguang Department Store.

Hongguang Department Store is actually a chain of convenience kiosks currently being piloted in Beijing.

Since the number of convenience kiosks is not enough at present, so far, there are only twelve convenience kiosks that are officially open.

Although a lot of new convenience kiosks have been built, they cannot be fully expanded until the government fully approves them. They can only operate the twelve pilot convenience kiosks first.

But no matter what, twelve pilot sites are equivalent to twelve sales points. For a city in the capital, the sales volume is still very objective, and it may not be worse than Xinhua Bookstore.

After all, the number of Xinhua Bookstores is limited, so they are not as flexible as convenience kiosks.

Among other things, the price of goods in Xinhua Bookstore is dead, you can’t bargain, but the convenience kiosks can.

In particular, the convenience kiosk project can also be said to be Cao Zhiqiang's own project, so it is natural to bargain for the sale of his manager's song album in his own convenience kiosk.

The sales model of the convenience kiosk is a consignment system, and it is also the first to sell the goods and then give the money.

The difference is that the album "Life in Bloom" sold in the convenience kiosk is priced at 2.5 yuan.

That is to say, for the "Life in Bloom" music album sold in the convenience kiosk, for each disc sold, only 2.5 yuan is required to be handed over to the headquarters, and the remaining [-] cents is considered as the convenience kiosk salesman's own redundancy.

In this way, the salesperson can sell at the original price of 2.8 yuan per plate, and earn the 2.7 cents for himself, or it can be slightly cheaper. For example, [-] yuan per plate, there is more or less room for two fluctuations.

After 2.5 yuan was handed over to the headquarters, 0.3 yuan was left for Hongguang Department Store, and the remaining 2.2 yuan was sent to Huaxia Audiovisual Company.

In this way, for every copy of "Life in Bloom" sold at the convenience kiosk, Huaxia Audiovisual Company can get 2.2 yuan in return, minus the cost of 1.2 yuan, the gross profit is 1 yuan, which is one yuan.

Of course, the convenience store is a trivial matter, and the real money maker is another one, that is, the sales department of Hongguang Publishing House.

The sales department of Hongguang Publishing House is managed by Li Youfu, but it is actually a collection of self-employed individuals.

It is not entirely correct to say that it is incorporated, it should be said that it is a cooperative relationship.

Li Youfu made friends with individual self-employed wholesalers, and then they could get the goods at a discounted price for whatever goods the Red Light Publishing House shipped.

For example, the original version of "Life in Bloom", those lower-level distributors under the jurisdiction of the sales department of Hongguang Publishing House, or franchised self-employed people, can buy the goods at a price of 2.3 yuan.

After these franchisees get the goods at a price of 2.3 yuan a plate, even if they sell at a price of 2.8 yuan, they can still make a profit of [-] cents, which is already quite considerable.

Not to mention, some franchised self-employed individuals who are a little farther away can ask the transportation team of Hongguang Machinery Factory to help deliver the tapes as long as they purchase more than [-] tapes at a time. The delivery fee is very cheap, and only need to pay the transportation cost price.

Don't underestimate this. Transportation is very troublesome during this period, and there are many checkpoints. Hongguang Machinery Factory is a state-owned enterprise and can be exempted from inspection. How much trouble can this save.

After Hongguang Publishing House received 2.3 yuan per disc, 0.3 yuan was left to Hongguang Publishing House, and the remaining 2 yuan was sent directly to Huaxia Audio-Visual Company.

The cost of 2 yuan minus 1.2 yuan is 0.8 yuan.

That is to say, the sales department of Red Light Publishing House, a self-employed channel, has a gross profit of [-] cents for every tape sold.

Although [-] cents is less than one yuan at the convenience kiosk, it can't hold up to the large amount.

Moreover, these franchised self-employed individuals purchase goods by paying in advance. In terms of profit alone, it is far more than the formal sales channels such as Xinhua Bookstore.

So the real question is how popular "Life in Bloom" will be and how high the sales will be.

After all, to say that ten thousand is ten thousand, Cao Zhiqiang's sales strategy this time is a simple one with small profits but high sales.

If the sales are not good, then everything is for nothing.

(End of this chapter)