I asked you to save a bankrupt factory and you became the richest man in the world.
Chapter 32 Chapter 032: Are you sure about this price?
Chapter 32 Chapter 032: Are you sure about this price?
"How much do you think the price should be?" Gao Huaijun tossed the MP3 and asked the three people next to him.
When he was making this product, he was thinking about this issue, because this issue is very important. It is related to how much this product can sell and how much profit it can make!
In order to embrace the mainstream customer group, he did not choose 64M and 256M memory, but chose 128M, which is mainstream in the market!
This determines that this product must be benchmarked against the strongest competitors in the MP3 market.
Sansang YP-55H, aigo luminous MP3 F007, and BEST Mh-6618, these three products are the three MP3 players that attract the most attention from users.
Among these three products, except that Sansang is a foreign brand with a slightly higher price of 1200 yuan/unit, the aigo luminous MP3 F007 only costs 790 yuan/unit, and the BEST Mh-6618 is the cheapest, costing only 500 yuan/unit. .
The key point now is, at which price will this MP3 be most suitable?
How to cut in?
"Our cost for this thing is not low. The cost of a single battery is close to 200 yuan. And the overall design is very strong. I think it is not an exaggeration to sell it for 1000 yuan, right?" Min Weiguo first said .
"We are a new brand. The price is too expensive and no one may want it. We are just a little bit smaller and a little bit bigger. It feels a bit deceptive to sell it for 1000 yuan. Let's make it cheaper, 800 yuan, which is a little more expensive than the aigo luminous MP3 F007. It should not be a big problem, and it should be possible to adjust the quantity!" Ning Yuan then expressed his opinion.
"800 yuan is still too expensive! I think it's just over 700 yuan! It's a little more expensive than the cost. We are a small brand and can't sell it at too expensive a price!" Zhu Yunlai, who was standing aside, quickly added.
Gao Huaijun shook his head.
According to CCID data, in the first half of 2004 alone, MP3 market sales reached 141 million units, sales reached 11.3 billion yuan, and the average selling price was 800 yuan.
Among the three of them, the highest price only dared to quote 1000 yuan, and the lowest one didn't even reach the average price. They really didn't have much confidence in this MP3!
"If you play like this, you'll get kicked in any company!"
"This MP3 sells for 1000 yuan, and we don't make any profit at all!"
"You know, because we are a small brand, the prices for various raw materials are very high, and like the Sansang YP-55H, we can also record and playback functions, so the cost price of this MP3 alone will reach 600 Taxes, channel incentives, etc. are not included, and there are also price discounts required for promotions, which are not included. After these are taken into account, do we have to sell at the cost price?"
"The other two are not in the habit of settling big accounts. As the director of the factory, Ning Yuan, don't you have the habit of settling big accounts? If you play like this, we will lose as much as we sell!"
“Pingguo’s iPod also uses lithium batteries, and it’s priced at 2880 yuan!”
"So, for this product that is very important to us, I have decided to set the retail price at 1200 yuan! It will directly compete with Sansang YP-55H!"
Gao Huaijun said directly.
What?
1200 yuan?
Directly benchmark Sansan YP-55H?
Ning Yuan took three deep breaths in a row before he suppressed his shock and confusion. He raised his hand and pinched his arm, and found that he was not dreaming.
The other two people standing aside were also a little confused after hearing this!
They didn't know if they worked overtime all night last night and ate too much roasted kidneys and roasted lamb whip, which made their kidney fire too strong and caused auditory hallucinations.
This. . .
As a small brand that just started making MP3 players, they wanted to sell it at such a high price. Is that right?
This is 3 yuan higher than the average MP400 market price in the first half of the year. It definitely belongs to the high-end market of MP3!
Consumers who can afford this price, coupled with the cute product design of this Hillhouse brand MP3, must be mainly middle-class young women, there is no need to say.
However, is this customer base large enough?
Moreover, will such a customer group definitely pay the bill?
The three of them all had huge doubts in their hearts, thinking that Gao Huaijun was crazy!
Oh no, they think they are going crazy too!
This is a bit subversive of the three views.
Is this Mr. Gao really trying to defy heaven?
"In addition, I saw the production list that Lao Zhuqian gave me, and the quantity is insufficient!"
"What, trial production of 2000 units first."
"According to this volume, we won't even be able to make back the R&D expenses. We will suffer real losses. If you do this, we will go bankrupt." "To increase the product, we must pre-produce 10000 units, and these [-] units, Be sure to sell it within this year!”
Gao Huaijun drank the strong tea in front of him and said decisively.
Ning Yuan looked at him dumbfounded, with only one thought in his mind, "As long as you are happy!"
You should know that among the attention paid to MP3 players at different price points, those with the highest demand are those priced between 700-1000 yuan, accounting for 35%, followed by those priced between 400-700 yuan, accounting for 25%. Added together, it reached more than 60%.
At a price point above 1200 yuan, less than 25% of the national sales volume was achieved in the first half of the year.
This means that Hillhouse Technology’s MP3 can only be sold in the market with less than 70 units per year, and it has torn a hole in the mouths of big brands like Sansang.
Now, we are planning to start with 1 units, and pre-production will also take time. Calculating it this way, we will reach New Year’s Day in more than a month.
Are you sure, can you sell 1 units before New Year's Day?
This MP3, no matter how powerful it is, cannot be so confident!
Before they could react, Gao Huaijun continued.
"With a volume of 1200 units, the sales volume is only 200 million. Calculating the entire profit, a conservative estimate is only around [-] million."
"If this product cannot be sold in sufficient quantities within a year, our investment will definitely be in vain, not to mention that there are banks chasing debts. Where will their 500 million money be repaid? ?”
"So, it's all up to you now, Director Ning!"
After saying that, he patted Ning Yuan's shoulders heavily with both hands.
Ning Yuan put away the shocked look on his face and nodded solemnly.
Now is the time to fight the tough battle.
Due to insufficient mass production of this product, the cost is high.
In order to ensure profit margins and not carry out cheap promotions, Gao Huaijun set such a price.
However, it can be sold in this way, but the requirements for promotional methods are very high, otherwise it will be very easy to lose money.
Everyone really doesn’t have much confidence.
"If you want to succeed, go crazy first and rush for money at all costs! If you work hard once, you will be rich for three generations. Only by working hard can you not fail!"
"Come on, everybody!"
Gao Huaijun shouted passionately.
"come on!"
"come on!"
"come on!"
The three of them were also affected by Gao Huaijun's emotions and shouted loudly from the side.
After the three people left, Gao Huaijun meditated for a long time in front of his desk, then stood up slowly, walked to Manjushri Bodhisattva on the side, carefully laid 9 sticks of incense, and then kowtowed 9 times, "Please bless the Bodhisattva, Help me get through this!"
Many business people actually like to worship gods.
Gao Huaijun, the atheist in his previous life, was he worshiping God or his own desires?
(End of this chapter)
"How much do you think the price should be?" Gao Huaijun tossed the MP3 and asked the three people next to him.
When he was making this product, he was thinking about this issue, because this issue is very important. It is related to how much this product can sell and how much profit it can make!
In order to embrace the mainstream customer group, he did not choose 64M and 256M memory, but chose 128M, which is mainstream in the market!
This determines that this product must be benchmarked against the strongest competitors in the MP3 market.
Sansang YP-55H, aigo luminous MP3 F007, and BEST Mh-6618, these three products are the three MP3 players that attract the most attention from users.
Among these three products, except that Sansang is a foreign brand with a slightly higher price of 1200 yuan/unit, the aigo luminous MP3 F007 only costs 790 yuan/unit, and the BEST Mh-6618 is the cheapest, costing only 500 yuan/unit. .
The key point now is, at which price will this MP3 be most suitable?
How to cut in?
"Our cost for this thing is not low. The cost of a single battery is close to 200 yuan. And the overall design is very strong. I think it is not an exaggeration to sell it for 1000 yuan, right?" Min Weiguo first said .
"We are a new brand. The price is too expensive and no one may want it. We are just a little bit smaller and a little bit bigger. It feels a bit deceptive to sell it for 1000 yuan. Let's make it cheaper, 800 yuan, which is a little more expensive than the aigo luminous MP3 F007. It should not be a big problem, and it should be possible to adjust the quantity!" Ning Yuan then expressed his opinion.
"800 yuan is still too expensive! I think it's just over 700 yuan! It's a little more expensive than the cost. We are a small brand and can't sell it at too expensive a price!" Zhu Yunlai, who was standing aside, quickly added.
Gao Huaijun shook his head.
According to CCID data, in the first half of 2004 alone, MP3 market sales reached 141 million units, sales reached 11.3 billion yuan, and the average selling price was 800 yuan.
Among the three of them, the highest price only dared to quote 1000 yuan, and the lowest one didn't even reach the average price. They really didn't have much confidence in this MP3!
"If you play like this, you'll get kicked in any company!"
"This MP3 sells for 1000 yuan, and we don't make any profit at all!"
"You know, because we are a small brand, the prices for various raw materials are very high, and like the Sansang YP-55H, we can also record and playback functions, so the cost price of this MP3 alone will reach 600 Taxes, channel incentives, etc. are not included, and there are also price discounts required for promotions, which are not included. After these are taken into account, do we have to sell at the cost price?"
"The other two are not in the habit of settling big accounts. As the director of the factory, Ning Yuan, don't you have the habit of settling big accounts? If you play like this, we will lose as much as we sell!"
“Pingguo’s iPod also uses lithium batteries, and it’s priced at 2880 yuan!”
"So, for this product that is very important to us, I have decided to set the retail price at 1200 yuan! It will directly compete with Sansang YP-55H!"
Gao Huaijun said directly.
What?
1200 yuan?
Directly benchmark Sansan YP-55H?
Ning Yuan took three deep breaths in a row before he suppressed his shock and confusion. He raised his hand and pinched his arm, and found that he was not dreaming.
The other two people standing aside were also a little confused after hearing this!
They didn't know if they worked overtime all night last night and ate too much roasted kidneys and roasted lamb whip, which made their kidney fire too strong and caused auditory hallucinations.
This. . .
As a small brand that just started making MP3 players, they wanted to sell it at such a high price. Is that right?
This is 3 yuan higher than the average MP400 market price in the first half of the year. It definitely belongs to the high-end market of MP3!
Consumers who can afford this price, coupled with the cute product design of this Hillhouse brand MP3, must be mainly middle-class young women, there is no need to say.
However, is this customer base large enough?
Moreover, will such a customer group definitely pay the bill?
The three of them all had huge doubts in their hearts, thinking that Gao Huaijun was crazy!
Oh no, they think they are going crazy too!
This is a bit subversive of the three views.
Is this Mr. Gao really trying to defy heaven?
"In addition, I saw the production list that Lao Zhuqian gave me, and the quantity is insufficient!"
"What, trial production of 2000 units first."
"According to this volume, we won't even be able to make back the R&D expenses. We will suffer real losses. If you do this, we will go bankrupt." "To increase the product, we must pre-produce 10000 units, and these [-] units, Be sure to sell it within this year!”
Gao Huaijun drank the strong tea in front of him and said decisively.
Ning Yuan looked at him dumbfounded, with only one thought in his mind, "As long as you are happy!"
You should know that among the attention paid to MP3 players at different price points, those with the highest demand are those priced between 700-1000 yuan, accounting for 35%, followed by those priced between 400-700 yuan, accounting for 25%. Added together, it reached more than 60%.
At a price point above 1200 yuan, less than 25% of the national sales volume was achieved in the first half of the year.
This means that Hillhouse Technology’s MP3 can only be sold in the market with less than 70 units per year, and it has torn a hole in the mouths of big brands like Sansang.
Now, we are planning to start with 1 units, and pre-production will also take time. Calculating it this way, we will reach New Year’s Day in more than a month.
Are you sure, can you sell 1 units before New Year's Day?
This MP3, no matter how powerful it is, cannot be so confident!
Before they could react, Gao Huaijun continued.
"With a volume of 1200 units, the sales volume is only 200 million. Calculating the entire profit, a conservative estimate is only around [-] million."
"If this product cannot be sold in sufficient quantities within a year, our investment will definitely be in vain, not to mention that there are banks chasing debts. Where will their 500 million money be repaid? ?”
"So, it's all up to you now, Director Ning!"
After saying that, he patted Ning Yuan's shoulders heavily with both hands.
Ning Yuan put away the shocked look on his face and nodded solemnly.
Now is the time to fight the tough battle.
Due to insufficient mass production of this product, the cost is high.
In order to ensure profit margins and not carry out cheap promotions, Gao Huaijun set such a price.
However, it can be sold in this way, but the requirements for promotional methods are very high, otherwise it will be very easy to lose money.
Everyone really doesn’t have much confidence.
"If you want to succeed, go crazy first and rush for money at all costs! If you work hard once, you will be rich for three generations. Only by working hard can you not fail!"
"Come on, everybody!"
Gao Huaijun shouted passionately.
"come on!"
"come on!"
"come on!"
The three of them were also affected by Gao Huaijun's emotions and shouted loudly from the side.
After the three people left, Gao Huaijun meditated for a long time in front of his desk, then stood up slowly, walked to Manjushri Bodhisattva on the side, carefully laid 9 sticks of incense, and then kowtowed 9 times, "Please bless the Bodhisattva, Help me get through this!"
Many business people actually like to worship gods.
Gao Huaijun, the atheist in his previous life, was he worshiping God or his own desires?
(End of this chapter)
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