Return to 88: Starting from Marrying My Sister-in-law

Wei Shu turned around and said to the secretary and the research manager: "You guys go out first."

Wait until they are all out.

The female CEO sat down on the sofa opposite Lu Yang. "Okay, let's talk about something serious. How are you going to deal with this?"

Lu Yang picked up the investigation material again and read it carefully.

Four or five minutes later.

He raised his head and said, "It's a bit troublesome. From this information, we can conclude that not only Mr. Duan is making VCDs, but also that BBK's VCDs will be launched at most one to two months later than our Little Prodigy's VCDs."

"But it's still not the biggest problem."

Lu Yang shook his head. "After all, Mr. Duan's BBK has no foundation. Switching from learning machines to VCDs, it's good enough to increase costs. If you want to reduce costs, forget it in the short term. I estimate that even if he launches BBK VCDs, the price should not be much lower. He will not be the biggest competitor of our little prodigy."

After Wei Shu pondered for a moment, he looked up at Lu Yang's face and said, "Then who do you think among so many competitors will be the first to compete fiercely with our little prodigy in terms of sales price?"

Lu Yang pointed to a line of words on the document in his hand and said, "It is this."

Wei Shu stood up and bent over, looking at the line of information he was pointing at, and asked in confusion: "Is it Xinke Electronics from Pengcheng?"

Lu Yang smelled a faint fragrance.

My eyes instantly and uncontrollably fell on Sister Wei Shu's chest. The white lining inside her blazer seemed to be a little wet.

A sentence flashed through my mind: "It seems that my godson is blessed, he has enough milk to drink."

He swallowed and his Adam's apple rolled twice.

Before Sister Wei Shu noticed, Lu Yang quickly leaned back, leaned back in the boss chair, and said attentively: "Yes, that's it."

"Xinke Electronics is not a small company. It was established earlier than us. As early as 1986, they had already started to engage in the manufacturing of CDs and LDs. They were also the first company in China to focus on laser storage technology and apply it to the field of civilian science and technology. They have a profound foundation!"

"Now they are also transforming into VCD audio-visual players. From a technical point of view, our little prodigy plus Mr. Duan's BBK, I'm afraid they can't even compare to them. Moreover, they have their own sales channels, their own marketing teams, and their own agents and distributors that have cooperated with them for many years all over the country. From transportation to supply to retail, we have no advantage at all!"

"Sister Wei Shu, I'm afraid I'll have to overturn the VCD shipping price I set for the little prodigy, as well as the retail price I set for the agent."

Lu Yang had heard of the name Xianke Electronics in his previous life. It could be said to be the killer in the price war after the new technology of VCD came out. It was also the first company to provoke crazy price cuts for VCD and fight with peers.

Lu Yang remembered that he worked on a construction site in Yangcheng in his previous life.

A group of workers wanted to save money at the time, so they teamed up to buy a VCD set, and placed it in the rental house with the large black-and-white TV they already had, so that everyone could watch pirated discs such as "Personal Sex and Zen" together to have some male fun.

But even with more than a dozen people working together, they could never save enough money. The VCRs were too big and the imported ones were expensive, so everyone gave up on it voluntarily. However, the brand VCDs on the market, led by Wanyan Company, were also not cheap. The retail price was more than 5000 yuan when they were first launched, then 5000 yuan, more than 4000 yuan, and then it was reduced to 4000 yuan, and it couldn't be reduced any further. The workers still felt that it was too expensive, and they thought that if everyone pooled the money together, it would be better for everyone to take their own money, and after moving the bricks, when they wanted to watch something, they could just go to a random video hall and go in. It wouldn't cost much for an entire night.

And seemed comfortable.

But since when did VCDs and black-and-white TVs suddenly appear in the work sheds?

It seemed that it started in 95 or 96. Suddenly, VCDs became free of charge, and the retail price dropped to less than 1000 yuan. Lu Yang and his co-workers each collected a few dozen yuan and picked up one. They paired it with the large black-and-white TV in the shed. When the disc was encoded and the play button was pressed, the TV showed the familiar and touching dialogues between men and women and the rotten pictures. All the workers stood up excitedly and couldn't help leaning forward.

Lu Yang remembered very clearly the brand of the VCD player that was moved back and placed in the shed, which made the workers excited. It was called Xianke Electronics.

Wei Shu was silent after hearing Lu Yang's words.

Then he said, "You instructed Mr. Xiao to set the factory ex-factory price of 2800 yuan for the upcoming Little Prodigy VCD. After handing it over to local agents, according to the agreement, the retail price of the agents must not exceed 3800 yuan per unit. That is to say, the retail profit is 1000 yuan, and our factory's profit is between 300 and 600 yuan, fluctuating up and down according to the yield rate. But Mr. Xiao also told me privately that we have just started, the workers are not familiar with it, and it is difficult to increase the yield rate. Therefore, our profit point per unit is probably more than 300 yuan but less than 400 yuan. Now you are talking about reducing it, doesn't that mean we will have no profit at all?"

After all, Wanyan Company can generate a profit of 1500 to 2000 yuan for each VCD sold. The sales strategy that Lu Yang set for the little prodigy is really not very high. He can only earn to yuan for each machine sold. Even if the workers become skilled and the yield rate is improved, the net profit will not exceed to yuan per machine. From this perspective, it is already very conscientious.

Lu Yang shook his head: "I also want to earn more, but we are the ones who play the cards first. Once we play the cards, the bottom cards are exposed, and then it is the other party's turn to play the cards. What do you think if we set the shipping price so high now, once the large quantities of goods are sent to the retail agents in various places, they have also paid, and then suddenly a factory is willing to ship them 200 to 300 yuan lower than us, and the goods they send are also newly launched VCDs. Except for the different LOGO, we may not have an advantage over them in quality. What will these retail agents choose at that time? Whose goods will they buy first?"

He's not exaggerating.

This kind of thing has happened in the real world. Wanyan Company's VCD was indeed more reliable in quality than other brand-name machines that copied it in the first few years after it was launched, but the price remained high. Most of the brand-name machines that copied it were of similar quality and had no high or low technical content. They were sold based on the price difference and who could brag more.

The cost price of assembling a VCD, from the outer shell to the core, is laid out here. Except for Wanyan Company which has huge R&D expenditure, other copycat manufacturers basically have no R&D expenditure. That is to say, at most they buy a few VCDs from Wanyan Company, take them back to disassemble them, assemble them again, and then continue to disassemble them until they are fully disassembled. If this can be counted as R&D expenditure.

The assembly cost of a VCD unit produced by Wanyan Company has been calculated before, and it is roughly 2200 yuan in total. The fluctuation range depends on the increase or decrease of the purchase price of parts, and will not exceed 10 yuan in a short period of time.

Lu Yang also asked Xiao Jun to give him a price list of the assembly cost of the Little Prodigy VCD, but guess what?
It’s actually lower than that of Wanyan Company.

Adding up the purchase price of all the parts and the workers' wages, if we don't consider the yield rate, it is actually less than 2000 yuan, close to 2100 yuan, but definitely not more than 2200 yuan.

That is to say, without considering the yield rate, the cost of producing the same VCD player with similar appearance in Pengcheng will be at least several dozen yuan lower than that in Xingsha City, the capital of Hunan Province.

The answer is obvious. Most of the parts used to assemble a VCD player are produced in the southern coastal areas, while a small number are imported. The cost of transportation alone saves a lot of money.

This is determined by the advanced conditions of Pengcheng. It is a window of reform and opening up, a cradle of private enterprises, and the Eastern Silicon Valley of scientific and technological innovation. It is surrounded by electronic industrial parts supply chain manufacturers with the most complete supporting facilities in the country. In addition, it is close to the coast and has its own deep-water container terminal.

For the VCD industry, which relies heavily on imported parts for product assembly, the conditions here are unmatched by other inland cities outside Guangdong Province. However, this advantage is not only available to Xiao Shentong, but also to Xinke Electronics!

The sales channels of Xiao Shentong rely on the original channels that were laid out across the country when Xiao Shentong learning machines were first produced.

The development of this channel was assisted by the head office.

Moreover, the shadow of Xiaotiancai was also involved here, because the two companies are twin brothers, both of which were founded and supported by Lu Yang. So when Xiaoshengtong learning machine was launched on the market, it was in the interest of Lu Yang to use the channel relationships that Xiaotiancai had already established to expand his own channel relationships.

But in general, although the Little Prodigy learning machine has been selling very well across the country this year, its channels have not been established for long.

On the other hand, Xinke Electronics has been producing CDs and LD large video discs since 1988. It has mature sales channels all over the country and is still doing well today.

Comparing the two, which one has the advantage?

Even if Lu Yang is not a reborn person, as long as he has a little understanding of the above data, he has to admit that Xianke Electronics is more ideal and has greater advantages than Xiao Shentong in producing VCDs, controlling their costs and selling them.

Combined with the memories of the previous life.

Lu Yang blurted out, "No, even if we don't make any money, we have to lower the factory price and retail price. I want to make newcomers feel that there is no profit to be made, so that they can't start a price war with us even if they want to."

The little prodigy has just gone through a round of financing and now has hundreds of millions of cash in his account.

This is also where Lu Yang’s confidence comes from.

"You are the chairman. Since you have made the decision, I will abide by it, but I reserve my opinion."

Wei Shu stood up and said.

Although she is talented, she is not a reborn person after all. She does not have Lu Yang's ability to predict the future. She cannot see the chaotic price war of VCDs a few years later before things happen.

I never expected that a decoding chip that currently costs 1200 yuan would become so cheap in a few years.

Lu Yang's purpose in doing this was entirely to seize the market first by using a low price. Fortunately, in the VCD price war a few years later, he had enough base and would not be the first to be swept out.

Soon, after Lu Yang set the tone of occupying the market first with extremely low prices, Wei Shu, who accepted Lu Yang's strategy, began to discuss with him the new factory shipment price and the retail price that middlemen should not exceed. The two argued over the price until they were red in the face, and finally they finally decided on the price.

However, once it is decided, it does not mean that it can be implemented immediately. If it were in the past, of course it would only need to be sent directly to the subsidiaries in the name of the president's office of the head office, and the subsidiaries would just have to follow it.

Now, after two rounds of financing and the private sale of 15% of the shares of Xiao Shentong, Lu Yang's shares in Xiao Shentong have dropped to less than 50%. Although he is still a major shareholder, he has long lost absolute control. Whether his words can be effective depends on whether the current head of Xiao Shentong stands on his side.

So that night, Lu Yang asked Xiao Jun and Mou Qizhong to go out for a midnight snack.

After arguing fiercely with his female CEO during the day, he had another fight at night. He and Xiao Jun also quarreled. Lu Yang turned into a lone wolf and argued with the heroes...

Not only is he better at drinking.

three days later.

In Beijing, Jiang Wanli, who had just participated in the CCTV Advertisers Autumn Recruitment Fair and won the highest bid of the day with a whopping 6500 million.

As soon as I walked out of the CCTV building, the smile on my face disappeared.

He clenched the phone in his hand and gritted his teeth, saying, "You son of a bitch, check their shipping prices right away, and then notify the dealers to lower our retail prices appropriately. Don't they make 1500 yuan for each unit they sell? Tell them to cut all their profits, and I'll give them an extra 500 yuan rebate for each unit they sell. Just do it, notify them right away."

After hanging up the phone, he continued to curse.

"You son of a bitch, Mr. Lu, don't let me find out that you were the one behind this, or I will never forgive you. And Mr. Xiao, Mr. Mou, the same goes for you, you are all bad guys."

It turned out that just now, the manager of the company's marketing department called and said that a new VCD had appeared on the market.

Brand name: Xiao Shentong, this is a company from Pengcheng, Guangdong Province. The Xiao Shentong learning machine, which won the bid last year and is a best-seller in the market this year, is produced by this company.

The key point is that these are not the most important things. The most important thing is that their VCDs are sold cheaply, much cheaper than their Wanyan brand VCDs.

The current retail price on the market is only 3200 yuan per unit.

In an instant it was as if the sky had fallen.

That’s right, for Wanyan Company, it was like the sky was falling.

After all, their product has only been on the market for less than three months, and the sales data is not ideal. But it is not ideal. With high profits, they can earn 1500 to 2000 yuan in net profit for each unit sold. There is no need to worry about not being able to recover the money earned from research and development products. Moreover, as long as they keep going, it is only a matter of time before they make a lot of money in less than two or three years.

But now...

Only three months have passed and substitutes have already appeared on the market, and they are sold at such low retail prices that it is almost like forcing the original manufacturer to death.

How to do?
(End of this chapter)