Traversing the courtyard

Chapter 460 The Price War Begins

Now that Wei Dong is sitting on the wax, he thought that every day would be safe and sound, and he would talk about it after Ruan Tao gave birth to the child. Who knew that the child, Ruan Mi, had revealed his address. If Ah Zhen went to London to visit Ruan Tao during the summer vacation, Seeing that she is pregnant, isn't it going to reveal her secret sooner or later?

"I'm not allowed to go during the summer vacation. I'm worried about handing over the company to outsiders. I need you to help me manage the company."

Ah Zhen pouted her mouth, looked at Wei Dong suspiciously, made Wei Dong feel hairy, and asked, "Is the meal ready? Let's eat first."

Ah Zhen had no choice but to get up and go to the kitchen to order dinner, and had to wait until the evening to play.

After dinner, we went upstairs to exercise together. A Zhen first did push-ups with her. After three consecutive sets, Wei Dong asked A Zhen to sit on her legs and practice sit-ups.

Only then did Ah Zhen ask quietly: "A Wei, I have lived with you regardless of my status, why do you still keep it from me?" '

Wei Dong almost didn't bring it up in one breath, and said angrily, "I'm exercising, I'll talk about it after exercising."

Ah Zhen said: "I'm going to say it now, or I'll get up if you don't."

Wei Dong was in high spirits, how could Ah Zhen just leave like this, but now is not the time to expose himself, so he said helplessly: "Then I will accompany you to visit Sister Taozi during the summer vacation, is it okay now?"

Ah Zhen still suspected that there was something she didn't know, and just about to ask, Wei Dong quickened the steps, making Ah Zhen speechless with joy.

Wei Dong let out a deep cry, announcing that today's exercise was over, he took a short rest and became lively again, he smiled, and walked into the bathroom holding Ah Zhen who was covered in water.

He appeased Ah Zhen and promised to see Ruan Tao together during the summer vacation. Wei Dong had no choice but to take one step at a time. By then, Ruan Tao's stomach would be full.

It was Ruan Mi, the little girl who wrote the letter blindly, and called the next day. The housekeeper took it and handed it to Ruan Tao, and then heard a familiar voice: "Awei, I miss you so much."

"Me too"

They chatted with each other for half an hour, and when Weidong put down the phone, he realized that he forgot to criticize that little girl, Ami.

Forget it, so be it.

Weidong's recent focus is still on the sale of radios. He occasionally goes to some vacated warehouses to release some radios, and then arranges for the docks to pick up the goods and sell them directly. Berkeley has never found any problems in this process.

Until Mi Xiaozhou reported to Weidong that the production capacity of each Neon company had increased, so how should we deal with it now?

Wei Dongdao: "Mi Xiaozhou, are you stupid? Their production capacity has increased, so of course we will start to lower the price. We will notify Yan Li and start selling at a lower price as planned."

Mi Xiaozhou resisted the urge to complain face to face, the boss is too annoying, I'm just a secretary so I can't be the owner of this house to adjust the price.

I could only agree, and went out pouted to inform Yan Li. The next day, the wholesale price and retail price of the Qiuyu radio were 5 dollars cheaper.

A small price cut, others didn't feel anything, but Neon quickly reacted, and directly followed up and dropped an extra two dollars.

Now Wei Dong can't follow up, and if the drop is too fast, it will have a bad impact on the international market. Angrily, Wei Dong scolded: "These devils are really fucking insidious."

Mi Xiaozhou persuaded: "Boss, we have made a lot of money before, and now their production is still small, and they can only meet the domestic demand of Neon."

Wei Dongdao: "Now their production capacity is a bit low, but you can't underestimate them. Keep an eye on them. If they expand their production capacity and want to enter the international market, please notify me immediately."

"Okay, boss."

Half a month later, I stayed at Mi Xiaozhou's house at night, and reported that Suomu Company was expanding the production line, and it was about to be commissioned and put into production.

Wei Dongdao: "Then let's put the second version of the radio on the market, and I'll see how those companies respond."

When the radio was first put into production, Weidong proposed to combine the electronic watch with the radio, that is, install the electronic watch in a suitable place, and add a timing function by the way, using the speaker that comes with the radio. Multiple functions of a timepiece.

Before, there were radios on both sides, but now Weidong has upgraded the radios, which makes Qiuyu’s radios look more upscale. Weidong holds related patents, and Suoni Company can’t follow up and upgrade now.

The new radio was quietly put on the shelves the next day. Although the product was upgraded and new functions were added, the wholesale price was reduced by ten dollars to only $78. At the same time, the old model was also reduced to this level.

When the product was shipped to Neon, Mr. Sota Itai, director of the Radio Business Department of Suoni Company, immediately got the radio with the electronic watch. After a simple test, it was found that the patent of the electronic watch was owned by the Qiuyu Group. hand.

Kanata Itai said in a long voice: "Damn Qiuyu Group, isn't this trying to kill us? The new radio only sells for 88 US dollars, so the retail price of our radio without an electronic watch must be at least 10 US dollars lower."

The secretary also worried: "Yes, we have recently added a new production line, and our production cost has piled up to 65 US dollars. If Qiuyu Group wants to lower the wholesale price again, we will sell at a loss."

The corresponding cost of the newly expanded production line has also increased a lot. From the production of chips to the assembly of radios, Soni has spent a lot of money on the radio industry. Will he face the situation of not making money in a blink of an eye?
If the huge investment of Suoni Company ends up being unprofitable, then I have done my job well.

Itai Kanata thought about it and said: "You can contact Qiuyu Group, and make an appointment for a time when I will come to visit and try to see if the radio business unit can be acquired."

Weidong soon received someone from Suoni Company to come to discuss matters. Such trivial matters are unnecessary for him to deal with. He just discussed with Yan Li once, and then let Yan Li deal with it.

Seeing that Yan Li came forward to receive him, Director Banjing Sota was still a little disappointed, so he calmed down and said, "Mr. Yan, this time I represent Suoni Company and want to ask if you have any plans to sell the radio business unit?"

Yan Li thought to herself, sure enough, the boss has already concluded that Suo Ni's people want to buy the radio department of the Qiuyu Group first, and then gradually increase the wholesale price and monopolize the radio market.

Yan Li smiled and said, "The Autumn Rain Group has no plans to sell the radio department. Can the chips of the Suoni Company be sold?"

It will take about half a year for re-development. Of course, when the acquisition is made, an agreement prohibiting entry into the radio market must be signed. Otherwise, if I just acquired you and then re-produced chips, wouldn’t I have bought it for nothing?
Of course, Minister Kanata Itai refused, and it is not up to him to decide whether to sell it. It needs to be researched by the company headquarters.

Yan Li said: "That's a pity, we won't be interested in buying after a while."

Weidong has already calculated that if it is a reasonable price to buy the radio business unit of Suo Ni, it will be more cost-effective than fighting a price war. He wants to make money and not die with Suo Ni, but Suo Ni The probability of selling is also relatively low.

Minister Sota Itai said: "We want to form a price alliance with the Autumn Rain Group to regulate the radio market. I wonder if the Autumn Rain Group is interested?"

Yan Li asked: "It was Qiuyu and Suoni who formed a price alliance. Will other Panasonic companies and Hitachi also join?"

Mr. Banjing Sota said: "Of course, we have a total of eight companies, each of which sells at the same price, and then adopts a quota method. As the pioneer, Qiuyu Group occupies one-third of the output, and the seven of us suffer some losses. , occupy the remaining production, so that everyone can make money.”

Yan Li was laughed out of anger, why is this bullying so obvious, even half of the market feels disadvantaged, and Suo Ni only gave one-third of the market.

"We, the Early Rain Group, are the first movers and must occupy at least [-]% of the market share. Isn't it a joke to only give one-third?"

Minister Kanata Itai shook his head and said, "But we have seven radio companies."

Yan Li smiled and said, "If you count by the number of companies, there will be hundreds of radio companies in Xiangjiang after two days."

Minister Kanata Itai said anxiously: "If you spread technology like this, the radio market will soon be unable to make money."

Yan Li said: "Then, where did Panasonic, Hitachi and other companies obtain the technology?"

Minister Itai Sota had nothing to say, and Suomu Company first licensed the technology to other companies. Although it was a small-scale diffusion, Suomu Company took the first action.

Minister Sota Itai also wanted to establish a price alliance, but after negotiating for a long time, there was a huge difference in the market share between the two parties. Suomu Company was not even willing to give half of the market to the Qiuyu Group. After two hours of negotiation, it finally Still broke up.

When Weidong returned to the townhouse after class, he saw Yan Li coming to report on his work. Mi Xiaozhou made tea for him, and Yan Li talked about the process of today's negotiation.

Wei Dong said: "These Neon people have a good idea. They want to use a price alliance to ensure stable income. It seems that our strategy has to be changed."

It is too passive to fight the price war by yourself. In order to seize the opportunity, a lot of manpower and material resources were spent before, and three industrial buildings were freed up for the production of related products. From capacitors and resistors to housing antennas, all accessories are organized by ourselves. Production, and a large number of welding workers to carry out welding.

Due to technical limitations, the chip still needs skilled workers to manually solder it to the circuit board. Not only does it take a long time to process, but the solder joints on the circuit board are also very ugly. Weidong has long been determined to carry out reforms.

Yan Li asked: "Boss, how do you want to change?"

Wei Dong asked, "How many workers are there in the factory where we assemble radios?"

Yan Li said: "There are now 1200 assembly lines with about [-] workers."

Wei Dongdao: "If we fight a price war, we will bear all the stigma. Now we have to step back and become a second-tier supplier."

"A second-tier supplier?" It was the first time Yan Li heard such a statement, and she didn't understand what it meant.

Weidong explained: "We only do the supply of core components. The core of the radio is the production of four chips. We can't hand over this. We will transfer the production line of the radio first."

In later generations, although the four-star mobile phones in Bangziguo were driven out of the land of China, four-star still provided important spare parts such as screens and chips to mobile phone manufacturers. Although four-star mobile phones could not be bought, four-star companies only I took a half step back and transformed from a manufacturer of consumer goods to a supplier of core components. I did not lose money. Chinese people thought that the other party could not earn their own money, but many accessories in the mobile phone are made by four-star, just changed the layer. It's just a coat.

Yan Li thought about it and said, "You mean we want to produce OEM?"

Wei Dongdao: "That's fine too. If someone buys the production line, we will sell it. Except for the chip production line and technology, we will sell everything else."

Seeing that the number of employees in his company will soon reach 3, Weidong is very disturbed. Ninety-nine percent of them are industrial workers. With such a large manpower, there is also a very large management team and a large number of employees. In the logistics management center, various internal power struggles often occur, and there are also some violations of regulations and laws.

Yan Li asked: "Then we only provide chips?"

Wei Dongdao: "We have to keep a part of the production of various parts, which are also very needed in other home appliances."

Almost all the parts used in the radio can be used in the TV. Of course, Weidong will not sell all the production lines of the parts. As for whether it is cheaper to make it yourself or buy it, we will wait for a while to calculate.

Yan Li said: "I understand what you mean, I will make a plan and send it to you later."

Then he handed over a document and said: "On June [-]st, the authorities will hold a land auction, and there is a piece of land in Wanchai that is more suitable for building a hotel."

Wei Dong usually doesn't show up at land auctions like this. The company's top management makes a plan, sets a purchase range, and then Yan Li comes forward to take the auction.

Weidong took over the materials and began to flip through them at random. He didn't expect one of the land to make Weidong interested, and said, "Why is there a 53-square-foot piece of land in Central that is going to be auctioned?"

Yan Li said: "This is a part of the Central Reclamation Area. The company is studying whether to buy this land."

Wei Dong said directly: "There is no need to study, how much cash is there in the company's account recently?"

Yan Li said: "It's more than 3 million."

Wei Dongdao: "Keep the money recently, we are bound to get this piece of land."

Now that the land in Central has been divided up long ago, there is finally a large piece of land for auction. Of course, Wei Dong is unwilling to miss it like this. Wei Dong is not familiar with other places, but the headquarters of Jardine Matheson is built on this land. The building will be the tallest building in Xiangjiang after its completion. This building can be seen in many Xiangjiang movie series. Even if it costs one billion, Weidong will receive it in his own hands.

Yan Li said: "The transfer price of this piece of land is 5000 million. Even if there is a premium, it won't cost more than [-] million, right?"

(End of this chapter)