Countercurrent 1982

Chapter 1702 The First Batch of VCD Orders
That night, Duan Yun invited all the dealer members to hold a dinner in the restaurant of the hotel.

Until this time, Duan Yun gave the VCD factory quotation, the price of each set was 4800 yuan.

As soon as the price was released, all the dealer members present showed joy. Obviously, the quotation Duan Yun gave was much lower than many people's psychological predictions. This price still has a high profit margin.

Because in the eyes of these dealers, the Tianyin brand VCD’s target product is the imported laser disc player, and the current price of imported laser disc players is generally around 9000 to 1 yuan. Duan Yun directly cut the price in half , in the case of the same performance and quality, the cost price is half as low, which is a considerable profit margin.

In fact, the cost price of the VCD produced by Telling Group is only more than 3000 yuan, and with the improvement and upgrading of equipment in the future, as well as the increase in production, the cost of research and development will gradually be evened out. It will be further reduced, and may eventually reach a cost of around 2000 yuan.

The reason why Duan Yun set the price like this is actually referring to the pricing of Wanyan Group in his previous life. When they produced the first batch of Wanyan VCDs, the ex-factory price was 1 yuan. The price of Taiwan's VCD has even dropped to around 5000 yuan or even 3000 yuan. It can be seen that in terms of production costs, Tianyin Group is actually much lower than the original Wanyan Company. In terms of advanced equipment, it is much better than Wanyan, and it is equipped with related anti-theft chips and electronic components. Otherwise, the price of Tianyin brand VCD will be even lower.

However, the price of Tianyin brand VCDs has not yet formed a tendency to crush video recorders. At present, the price of old domestic video recorders is generally around 4500 yuan, which is cheaper than Tianyin brand VCDs. Therefore, in the short term, old-fashioned video recorders are still with living space.

In fact, it was when a large number of cheap pirated discs flooded the mainland market that VCDs completely replaced the old-fashioned video recorders. At that time, because of the high production cost of video tapes, there were relatively few ripped contents, while VCD discs were cheap, only 1/3 of the cost of video tapes. Moreover, the content of pirated versions is far richer than that of videos, which enables VCDs to be promoted rapidly.

Duan Yun can now set the price of VCD even lower to form a price advantage over old-fashioned video recorders, but he will not do so for the time being, because according to the release rules of products, high-performance new products will have a high-profit period for a period of time After all, many consumers like to try new products, and Tianyin's brand is strong, so there is no need to worry about sales in the early stage. Duan Yun can enjoy a period of high profit for the product.

And when there are similar competing products on the market, or when sales start to weaken, Duan Yun can further use promotional methods such as flexible price reductions to increase the sales of VCDs.

However, such things as price cuts are generally step-by-step price cuts. It should be lowered slightly according to the market conditions and cost control level at the time. It is absolutely impossible to have that kind of cliff-like price drop. In addition, the timing of price cuts is also controlled within a certain period. 3 ~5 months or even half a year, a small price reduction once a year, always reducing the price of the product while maximizing the profit, this is the most mature commercial sales method.

As long as the sales volume is stable, Duan Yun will definitely not choose to sell at a lower price. In this regard, the company has a mature sales team. Over the years, Tianyin Group has always maintained a very keen sense of the electronic market. Market assessment, and then the final decision is made by Duan Yun.

That night, Duan Yun received a total of 68 VCD orders, with a total order value of 000 million yuan. According to the profit of more than 3.4 yuan per VCD, Tianyin Group will be able to obtain a profit of 1700 million yuan.

In fact, the 68 sets of VCD orders, based on the current production capacity of Tianyin Group, will probably take less than two months to deliver all of them. The production capacity of the factory is still very strong. In addition, Tianyin Group also has many subordinate electronics factories. If Duan Yun is willing to subcontract part of the assembly work, then 000 VCDs can be produced in less than a month.

In fact, in Duan Yun’s view, the order quantity of 68 VCDs is still too small. The main reason is that before a new product has not been verified by the market, these member dealers dare not order in large quantities. Buy hundreds to more than 000 units in batches to see how the sales are. If the sales are considerable, subsequent orders will definitely increase gradually.

In fact, when Wanyan produced the first batch of VCDs in 1993, it only sold less than 1 units that year, but in 3, the second year, the sales volume of VCDs increased to 2 units. In 1994, it became 25 units. In 1995, it soared to more than 60 million units. In 1996, the sales volume reached an astonishing 600 million units. In just 1997 years, the cumulative sales of VCD players have reached There are 1 million units, and it has become a large industry with an annual sales revenue of more than 000 billion yuan.

However, with Duan Yun's technical strength and sales channels, he is confident that in 2 to 3 years, the sales volume of VCDs will be pushed down to 800 million to 1 million units. It is estimated that the sales volume of brand VCD will definitely reach a big explosion in the next two years.

High-profit industries will definitely be coveted by all parties. Although Duan Yun equips his VCD with perfect anti-piracy chips and components, under the lure of huge profits, some people will definitely try to pirate and imitate VCD. It may be difficult to break through the anti-piracy technology threshold set by Duan Yun, but within two or three years, domestic and foreign manufacturers will definitely complete the cracking and start mass-producing similar products, forming fierce competition with Tianyin VCD.

In response to this inevitable situation, Duan Yun’s countermeasure is to continuously upgrade the performance and technology of his own VCD products on the one hand, and on the other hand, he can squeeze the profit margins of potential competitors through price cuts, so that even if they imitate the same product, It is also difficult to make a profit.

However, as an electronic fast-moving consumer product, the most effective way to deal with pirated products is to upgrade the product, so after the successful release of VCD, the plan to study DVD players has already been put on the agenda by Duan Yun.

Compared with VCD, DVD has better playback quality and storage capacity. His image definition can reach an astonishing 720 lines, which is almost three times the quality of VCD and VCR. Until later generations, although Blu-ray disc products It has begun to appear on the market one after another, but DVD discs are still the main products in most markets, which is a huge leap forward for audio-visual products.

(End of this chapter)