Reborn since 1993

Chapter 749 It’s easy to add icing on the cake, but it’s difficult to provide help when it’s time

On the phone, Zhou Hualiang briefly reported to Li Dongling the first-day sales of the stargazing video recorder in America.

The sales were mainly concentrated in two major cities, New York and Los Angeles. The sales in these two cities accounted for about 60% of the sales on the first day, which also proved that these two cities are indeed the places with the largest number of middle-class families in America.

Compared with Dongling Hi-Tech's previous products, the first-day sales of the Stargazing Video Recorder cannot be compared with those of the Shenzhou Repeater and Shenzhou Electronic Dictionary.

But the difference can only be seen by comparing the product prices. The price of the stargazing video recorder is 320 US dollars, which is equivalent to RMB . It is the second most expensive product after Xiaolingtong since the establishment of Dongling Hi-Tech!

With such a unit price, nearly 7,500 machines were sold overseas on the first day, which is a very impressive performance, otherwise it would not have attracted the attention of Wall Street.

To put it bluntly, even if you want to hype something, you have to find a reason to do it. Otherwise, even if you want to hype it, you won’t be able to do it!

"I will go to the production department and increase the production capacity as soon as possible. America's promotion of the stargazing video recorder cannot be stopped either!

Also, tell Microsoft to start promoting in Canada and old Europe as soon as possible!"

Judging from Guanxing's current performance, Li Dongling expected that Microsoft would be much more proactive. Anyway, in Canada, old Europe and other places, the money for market development and advertising would definitely have to be paid by Microsoft.

The more advertising Microsoft puts out, the bigger the market for video recorders will be. In the future, the more Microsoft will have to spend to acquire the video recorder project from Dongling Hi-Tech.

Does this... count as Microsoft digging a big hole for itself?

After hanging up the phone, Li Dongling looked at Ren Yuefeng and others in the office, "The Stargazing Video Recorder got a good start in America!"

Hearing this, Ren Yuefeng and the others couldn't help but smile. They knew how much money Dongling Hi-Tech could make for each stargazing video recorder sold.

It’s hard to say whether Microsoft makes money or not, but for Dongling Hi-Tech, for every machine sold, the profit from parts and components, OEM, plus the profit sharing after the sale, is about US$79!

In other words, for every machine sold, Dongling Hi-Tech made a net profit of 640 RMB. This is also the second highest unit-price profit product in the history of Dongling Hi-Tech. Not to mention, Guanxing now makes money in US dollars!
If the stargazing video recorder can sell as well as Dongling Hi-Tech's previous products, then Dongling Hi-Tech will definitely make a fortune with this project.

Unfortunately, Li Dongling knew that digital video recorders would only be useful in the next three to five years. Once the Internet video era arrived, all videos, songs, TV series, and movie resources could be found on the Internet.

Even though video recorders have kept up with the times by adding functions such as connecting to the Internet and automatically recording TV programs, compared to high-definition videos that can be retrieved with just a search on video websites, who still uses such outdated products? Is it based on sentimentality?
If sentiments were useful, then Nokia, Kodak, IBM computers and other products of the past would not have been swept into the dustbin of history.

Sometimes, sentiment is indeed the biggest killer. An unintentional memory can make people obsessed with it. But sometimes, this thing is worthless. Who would spend a lot of money to buy a bunch of junk just because of sentiment?
"Tell Duan Youli's production department to increase the production line of stargazing video recorders, and notify the parts supply department to increase the supply of parts for stargazing video recorders as well!"

Li Dongling explained to Ren Yuefeng and others that increasing production capacity is not just empty talk. After Dongling Hi-Tech headquarters starts, suppliers of the entire parts production line will also increase their efforts.

"In addition, we have announced that Dongling Hi-Tech has shortened its settlement period with parts suppliers to 60 days, and will further shorten the settlement period in the future!"

Turning his head to look at Gao Peng from the Logistics Department, Li Dongling spoke.

“You also want to shorten the checkout cycle?”

Hearing this, the one who couldn't help but speak was Hu Zixian, who was in charge of finances.

The settlement period for major domestic companies with parts suppliers is generally more than half a year, that is, six months, 180 days, or even more than a year.

Dongling Hi-Tech is a hot commodity for all parts suppliers. Its average settlement period is only 90 days, making it the company with the shortest settlement period for suppliers among all domestic technology companies.

The reason why domestic and even some overseas parts suppliers are now trying their best to join Dongling Hi-Tech's list of parts suppliers.

It's not just because by joining, you can get big orders and increase your fame, but also the probability of approval of listing applications is higher than other companies and the review time is shorter.

More importantly, Dongling Hi-Tech has never defaulted on any of its suppliers so far. Even those companies that have been kicked out of Dongling Hi-Tech's parts industry chain supplier list due to quality issues or production capacity performance have never resented Dongling Hi-Tech.

Because before kicking them out, Dongling Hi-Tech will settle all payments for the goods and will never argue about a single penny.

Therefore, those companies that were kicked out of the supply chain only blamed themselves for being inferior in technology and unable to meet Dongling Hi-Tech's requirements, but they could not blame Dongling Hi-Tech at all.

The original 90-day payment settlement period was already outstanding, but Hu Zixian did not expect that Li Dongling would actually shorten the payment settlement period. This was not as simple as just a few days in advance.

The entire production and sales model, as well as the capital chain of Dongling Hi-Tech will have to change accordingly, and the capital chain will definitely be very tight in the short term.

"Publish the announcement!"

Li Dongling just said to Hu Zixian that this was to prepare for the upcoming Soros and the vultures.

It is impossible for a person to live alone in the world, and the same is true for Dongling Hi-Tech. Now Dongling Hi-Tech is not the only company that makes up the system, but also a long list of concept stock companies behind it, which are also part of Dongling Hi-Tech. Shortening the settlement cycle is also to allow these parts suppliers to survive better. It is possible that a company's survival may be affected by a few days of payment.

Dongling Hi-Tech spent a huge amount of money to build this industrial chain, which has been under construction since its establishment and has now begun to take shape.

If it is destroyed like this, not only will it never be rebuilt, but it will also be a huge blow to the entire Dongling Hi-Tech!

To put it another way, there was a famous overlord in ancient history who refused to return to Jiangdong, and there was also Xu Chu who cried bitterly after the Battle of Red Cliff.

Why was the King of Chu unwilling to go back to see his fellow villagers, and why did Xu Chu cry bitterly? Because their relatives had all died in the war, and they were too embarrassed to go back.

On the other hand, the soldiers who can fight and the people who can be trusted are all gone, so what’s the point of going back?

If Dongling Hi-Tech loses the spare parts industry chain that it has worked so hard to build, even if it survives the crisis in Southeast Asia, it will still be seriously damaged.

Therefore, Dongling Hi-Tech must retain a number of Dongling parts suppliers including BYD, Hanxi New Materials, BOE, and Chuanrong Electronics.

After that, Li Dongling said to Ren Yuefeng, "The main market for stargazing recorders is overseas. For Dongling Hi-Tech, the most important thing is the Shenzhou computer project!

Now let the media build momentum and announce the time of the product launch!"

……

At the same time, Duan Youli, general manager of Dongling Hi-Tech's production department, who had just finished production in the workshop, had only one word in his mind when he heard the news from the headquarters.

"The sky is falling!"

Tao Zhiliang, the production supervisor of Dongling Electronic Industrial Park, saw Duan Youli's face after he answered a phone call. Complex expressions such as surprise, confusion, and depression appeared on his face, and his face even turned a little paler.

At this moment, Duan Youli wanted to curse. That was 320 US dollars for a machine. Do Americans really not regard US dollars as money? They bought up almost all of his monthly supply in one day!

Because the stargazing video recorders are sold overseas, the marketing department cannot make an accurate estimate, so the production department does not dare to produce too many. If they are piled up in the warehouse, it will be a disaster.

Not to mention, the cost of stargazing recorders is so high. Even if there is a stock of 1,000 machines, the production cost is two to three million. If it becomes a bad debt, it will have to be charged to the production department.

But now, what bothers Duan Youli the most is not the issue of increasing Guanxing's production capacity, but his feeling that even if all the prepared production lines are turned on, the production capacity may not be enough!

The production department has planned to produce a maximum annual production capacity of 400,000 stargazing recorders. That means if all the reserved production capacity is utilized and the staff is fully staffed, the production capacity that can be increased in the short term is only 400,000 machines!
But can these 400,000 machines last a year in America?

"Notify all technicians to work overtime today to set up the Stargazing Video Recorder production line. Put all newly trained employees on the Stargazing Video Recorder production line and start three shifts of production!"

Without bothering to think about those things anymore, Duan Youli knew that if he didn't increase the production capacity and airlift the machines over, Zhou Hualiang or even that foreign guy Ed Fleiss from Microsoft would come to kill him.

……

On the first day of sales, the Stargazing video recorder sold 7,450 units. On the next morning, the Stargazing video recorder sold over 5,000 units again.

According to this expectation, the sales volume of Stargazing in America today is likely to exceed 10,000 units, setting a new sales record.

Even the news of the hot sales of StarGuan caused the share prices of Feiyan Technology, Yahoo, and IBM, which provided the hard drives for StarGuan, to surge again.

However, the Stargazing sales that Wall Street institutions had expected to exceed 10,000 did not come true. It was not because they could not sell well, but because... they were out of stock!

All the stargazing video recorders shipped to America have been sold out.

When the news that the first batch of stargazing machines were sold out came out, the enthusiasm for stargazing not only did not decrease, but instead soared.

Because a rumor began to spread in America that whoever owned a stargazing video recorder was from a middle class or above family.

This rumor is very naive and is obviously a gimmick made up by stargazing advertisers or sellers, but middle-class families in America just fall for it!
This is like the rumor that those who buy hamburgers at high prices from a fast food restaurant and go shopping in a shopping mall are all middle class or wealthy people.

The outside world may feel that this is just news, but there are indeed many middle-class people who take these rumors as true and buy those products to show that they are a member of a middle-class family. This is a sense of identity for many American middle-class families.

The fact that stargazing video recorders are sold out seems to prove this point. After all, the price of $320 is not something that homeless people and American families receiving food relief can afford!

(End of this chapter)