Countercurrent 1982

Chapter 925 Vicious Competition

Riding a motorcycle with Xiao Qiang, the two came to a restaurant called the Special Zone Restaurant in downtown SZ, found a private room and sat down.

Chinese people like to go to restaurants to make friends and discuss business, and it happened to be meal time, so the two ordered some small dishes, a bottle of wine, and sat together facing each other.

"Drink less today, and I will go back by motorcycle later." Duan Yun reminded after seeing Xiaoqiang unscrew the bottle cap to fill himself and his glass.

"What's this little wine? A few years ago, I would blow it out of the bottle." Xiao Qiang patted his plump belly, and said to Duan Yun with a smile.

Xiao Qiang belongs to the kind of very experienced social businessman, especially those who do business like him. He has practiced his drinking capacity, and this year, if he doesn't drink much, he can't negotiate a lot of business. If he drinks less, people will I think you are insincere, but my body can't stand it after drinking too much, there is actually a limit to this.

It stands to reason that Xiao Qiang is almost 20 years older than Duan Yun, and Duan Yun should pour wine for him, but in the business field, rankings are never based on age. Compared to Duan Yun, who is worth tens of millions, Xiao Qiang, the boss whose factory capital and equipment are much larger than him, must show some respect to Duan Yun.

"How's Boss Xiao's business recently?" Duan Yun raised his wine glass and asked after touching Xiao Qiang.

"Just like that, you won't make a fortune, and you won't starve to death." Xiao Qiang drank the wine in the wine cup and replied.

"It's really difficult to expand the business." Duan Yun took a sip and said with some emotion.

"I can't compare with you, Boss Duan..." Xiao Qiang picked up a peanut, threw it into his mouth, and said, "The profit of processing supplied materials is too thin, and you have to pay taxes to the country and support No. 80 people, plus water and electricity bills, food for workers, and various expenses, there is not much money left in a month..."

"Yeah, it's not easy being a boss."

"If you want me to say that the bosses of those big factories are all bastards! The processing fee is lower for each batch. Last year, our factory processed a batch of circuit boards and could earn about three yuan each. But this year, even You can’t earn two yuan, the problem is that if you don’t do it, there are a lot of manufacturers willing to do it, and you have to thank them for giving you a bite of food, sometimes the more you think about it, the more aggrieved you become!” Xiao Qiang spoke again. Clinked the wine glass with Duan Yun, drank it down and said, "Boss Duan, I'll do it, you can do whatever you want."

"Is the competition among your processing factories so fierce now?" Duan Yunwen asked.

Duan Yun actually doesn’t know much about the current operating conditions of these small private workshops in Shenzhen, because at present, Duan Yun’s factories have always been very profitable, because they have their own brands, and under the effect of CCTV advertisements, the sales volume is also very high. So he never felt the pressure of survival faced by a small factory like Xiao Qiang.

"You don't know. When I first came to Shenzhen two years ago, there were not a few small private factories in the Shangbu Industrial Zone. At that time, business was relatively easy, as long as the processing fee was cheaper than other large state-owned enterprises and the quality was good. If you can guarantee it to others, you won’t have to worry about taking the order..." Xiao Qiang paused, and then said: "But in the past two years, especially since the end of last year, a few more bosses came from Fujian, and here in Shenzhen While building a factory and investing, our factory originally had old customers, and the business relationship has always been stable. As a result, when they came, they desperately lowered the price in order to grab business. The gross profit margin of the processing fee has been around 3%~5% in the past. , they directly reduce the price to 1%~2%, and the price is always cheaper than those of our veteran processing factories. We cut the price and they also cut the price. Even if they lose money, they will take away the order. , isn't this fucking just eating and smashing the pot?"

When he said this, Xiao Qiang obviously accumulated too much anger, and his fat face suddenly flushed.

In fact, what Xiao Qiang said was very common in Shenzhen at that time. As more and more electronics factories invested in Shenzhen, these electronic processing factories at the bottom were also facing a very vicious competition. They did not have strong capital and technology. And equipment, can only rely on some low-tech processing to maintain profitability.

The low technical threshold of the industry means that there must be a river of blood in the spirit. At present, the most indispensable thing in China is labor. In industries with intensive manpower demand, these low-threshold low-tech enterprises, to put it bluntly, rely on a large amount of labor exploitation to make money. There is no technical added value at all. It is at the lowest end of the entire industrial chain and has little or no voice at all. In order to maintain profits, it can only extend the working hours of workers and reduce wages to maintain unsustainable wages. If it continues, it can only go bankrupt, and there will be many sweatshops like this until later generations.

"Manager Xiao, how is the quality of your factory's processed products?" Duan Yun asked.

"It must be no problem. The qualification rate of the circuit boards processed by our factory has been controlled at 98%~99%. This level is already very high, that is, because the quality of the finished products is good. Otherwise, the orders of our factory would have been robbed long ago. Xiao Qiang curled his lips, and continued: "Let me tell you, Manager Duan, our factory has been in the business of circuit board processing for several years, and this business is really difficult to do. A set of equipment costs tens of thousands, and a lot of manpower and material resources have to be invested. The profit is already very meager. If we do it this way, we can’t make money, so we can only deal with it now, but no matter what, we It is absolutely no problem that the factory’s products are the brightest.”

"That's it." Duan Yun was suddenly stunned when he heard this.

Duan Yun also did circuit board processing when he was in Daxing in the early days. He knew that circuit board processing was indeed seriously polluted. The circuit board workshop that was established in Majunying Village discharged a large amount of waste liquid every day, resulting in serious pollution of the river in his village. , although Xu Fugui built a sedimentation tank at the suggestion of Duan Yun later, but the discharged waste liquid still has a certain degree of pollution.

The major electronics factories in Shenzhen also know that this link is very polluting. If they process the circuit boards themselves, they also need to invest a lot of money, manpower and equipment to treat the sewage, which will greatly increase the cost of the product. Outsource this highly polluting and low-tech link to these small private companies in Shenzhen, and let them do the dirty work, which will avoid a lot of capital investment and trouble, and the cost and price of outsourcing will be kept very low , and as more and more private electronics factories enter Shenzhen, the situation of Xiao Qiang's small electronics factory will become more and more difficult, and he will have less bargaining power in the face of large factories.

(End of this chapter)