Reborn in Hong Kong as a Tycoon

Chapter 148 Sales of Rubik's Cube

"As a new distributor, we have never cooperated with those toy companies before, so the cost of purchasing goods from toy companies is higher than that of other distributors. Fortunately, our stores are in good locations, so the business is good. Not much in terms of profit though.”

Eric answered in more detail.

Isabella said more specifically: "Generally speaking, the profit of the channel business is between 10% and 20%. Like the popular and long-lasting products, the profit of the channel business is usually only 10%; the vast majority The profit of product distributors is 15%; for a few products that are generally sold or have been popular for many years and have not been sold well, channel distributors have a 20% profit.”

"Because we are a newly established channel, we have never cooperated with other companies, so our profit will be reduced by 3% for all products. For the same product, other channel providers can earn 15%, then we can only earn 12% profit .”

"As for the specific profit, January is temporarily excluded because it only operates for about ten days. The total revenue in February was 240 million US dollars, of which the popular products accounted for 60% of the revenue, and 12% of the profit accounted for the total. 25% of the total revenue, and the remaining toys with average sales accounted for 15% of the total revenue.”

"In terms of profit, the total profit is about 24 US dollars. There are a total of 40 employees in 160 stores. Small stores are equipped with a store manager and two ordinary employees, and large stores are equipped with a store manager and four employees. The monthly salary of each ordinary employee is 260 US dollars, and the store manager is 350 US dollars per month, adding up to a monthly salary of about 4.5 US dollars."

"This is just the monthly salary of the employees in the store. There are also dozens of employees in the company, such as salespersons and front desks, as well as Eric, the manager with the highest salary. The salary of all employees has reached 10 US dollars. "

"In addition to employee salaries, there are additional expenses such as water and electricity, which are about [-] to [-] U.S. dollars, so the real profit last month was only about [-] U.S. dollars."

"Although due to the fact that it just opened last month, the monthly operating income will increase and the profit will also increase, but in terms of your investment in BOSS, it will take at least several years to recover the cost. "

Don’t look at the fact that you can earn $200 a month now, plus the monthly profit will be even more in the future. There may still be a profit of $150 million in a year, but this does not include other expenses throughout the year. As well as the most important tax, whether you can earn [-] million US dollars a year is a question mark.

And Lin Baicheng's investment is 800 million US dollars, even if he can earn 150 million US dollars a year, it will take 5 years to earn back the cost.This is still the case that the business is not bad every year. If the business is not good for one year, it will take longer to earn back the cost.

However, Lin Baicheng is mentally prepared for this. It is not bad to be able to earn employees' salaries without selling his own products.What's more, the current channel profit is still 3% lower than that of other channel operators. Over time, this 3% profit will definitely recover, and you can earn more.

Lin Baicheng said: "Jupiter Toys has stockpiled a large number of Rubik's Cube toys, and now is the time to sell them. The focus of Rubik's Cube promotion is wisdom and environmental protection. Wisdom means that playing Rubik's Cube can help children develop their intelligence. "Smart" hook, I believe parents are willing to pay for it. In terms of environmental protection, it is the materials used to make the Rubik's Cube. We use environmentally friendly materials that will not cause health damage to children, so parents can buy with more confidence."

"I plan to promote it through TV stations and newspapers. The United States, Japan, and Xiangjiang will be held at the same time, and related competitions will be held in the three places to cause a greater sensation."

"What I said, do you have any suggestions?"

"BOSS!"

Isabella listened and said: "As for publicity, I don't think it is necessary to spend too much money. After all, the profit we can make from the Rubik's Cube is limited. I remember you mentioned, BOSS, that the price of the Rubik's Cube is $9.9 , In this way, even if we can sell 100 million units, the revenue is only 1000 million US dollars. After deducting costs, deducting labor costs, etc., if we spend too much on publicity, we may not make much money .”

Eric also said: "A certain amount of publicity is still necessary, so that the public can know about this toy, but as Assistant Kent said, you can't spend too much money, or it won't be worth it."

"So, there is no need to hold a competition?"

Lin Baicheng nodded thoughtfully, feeling that what the two of them said was not unreasonable.After all, Lin Baicheng sells the Rubik's Cube to make money. If he doesn't make money, it doesn't make sense to sell more Rubik's Cubes.

Isabella said: "For now, it's not necessary. But after the Rubik's Cube becomes popular, we can hold related competitions and push it to add fuel to the fire."

"Then what about the pricing? How much do you think is more appropriate?"

Lin Baicheng asked aloud, he thought it would be better not to be self-righteous.He is not an American, so it is better to listen to the opinions of Isabella and Eric about the price of Rubik's Cube toys.

"In fact, the initial price can be set higher, and after half a year or a year later, the price can be lowered, which can actually win the favor of customers."

Eric said aloud that in terms of sales, he still has more experience.

"The initial price, $20, is this too high?"

Isabella asked Eric, obviously she also thought that the initial price could be set higher.

"can!"

After thinking for a while, Eric nodded and said: "The Rubik's Cube is an educational toy after all, which helps children's intellectual development. We are not lying about this. At most, it is a little exaggerated. Therefore, there is no problem in setting the price higher. "

"Since you think the price of $20 is more appropriate, let's start selling at the unit price of $20."

Lin Baicheng clicked his tongue. These two people were darker than him, but since the two Americans felt appropriate, he naturally obeyed.The cost of Rubik's Cube, even if environmentally friendly materials are used, is only 100 Hong Kong dollars for each 5 million pieces of production, which is 1.2 US dollars in US dollars.

Lin Baicheng originally sold each for US$9.9, and he could earn US$8.7 each. Even after deducting shipping costs, labor costs, publicity fees, taxes, etc., on average, as long as the sales volume exceeds one million, he can earn US$5 each. .In this way, Lin Baicheng felt that he was quite dark, after all, the cost of each piece was only 1.2 US dollars.

Now that one sells for 20 dollars, the profit of each Rubik's Cube is not to mention.

Lin Baicheng asked Isabella and Eric to plan a publicity plan, and after he checked that there was no problem, he could sell the Rubik's Cube.

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(End of this chapter)