Reborn in Hong Kong as a Tycoon

Chapter 441 Host Pricing
"Next, let's discuss the pricing for the Xingyue console."

Lin Baicheng said something, and then continued: "Let me talk about my thoughts first. If you feel that it is inappropriate or there is something wrong, feel free to point it out, don't hide it."

"Chairman, don't worry, our duty is to correct your mistakes and provide you with better suggestions."

After hearing this, Isabella said, after following Lin Baicheng for so long, they have already seen clearly that their boss is a person who can listen to opinions, and will not yell at the assistants because they object to his ideas, and will not give the assistants Wearing small shoes or something, so they will actively express their views.

"Ok!"

Nodding his head, Lin Baicheng said: "First of all, let's talk about the cost of the Xingyue mainframe. The mainframe is divided into ordinary models and high-end models. Let's talk about the high-end models first. The high-end models are mainly sold to wealthy people who are not short of money. The sales volume will not be large, and the quantity produced by the company will not be large, and the selling price must be higher than the cost."

"The company will only produce 290 high-end Xingyue hosts at the beginning, and the production cost of each host will be 300 US dollars. If labor, freight and other costs are included, the cost of each host will not be less than [-] US dollars."

"What I mean is, since the cost is already so high, the price should be set a little higher, priced at $399 a unit, what do you think?"

"Chairman."

After hearing this, Isabella asked, "What is the price of the normal model? Is it much different from the high-end model? Also, how is the high-end model better than the ordinary model?"

Lin Baicheng said: "The price of the ordinary model will not exceed 200 US dollars, and we will discuss the specific price later. As for the difference between the high-end model and the ordinary model, the image quality and running speed of the mainframe will be better than the ordinary model. The difference is visible to the naked eye. .”

Haruko Mori couldn't help but frowned slightly: "The price of the high-end model is about twice as high as that of the ordinary model. Is this too high?"

Bill Harveys said: "If you are someone who likes video games and has decent family conditions, I think there will still be many people who don't mind the price difference. Besides, the production cost of high-end models is 300 yuan. If you want to make a profit, the selling price of each unit is at least 350 US dollars, and since the price is already so high, it is not bad at 49 US dollars.”

Eric Davis also said: "Since the production is small, then simply set a high price, sell some if you can, and let the unsold ones be sold slowly."

"Bella, what do you say?"

Lin Baicheng looked at Isabella who hadn't made a statement yet.

Isabella heard the words and said: "It is good to set a high price for the high-end model, so that the price difference between the ordinary model and the high-end model is greater, and the acceptance of the ordinary model will be higher, and the price of the ordinary model will not be counted. Too high a mentality."

"In this case, the high-end model should be priced at $399."

Seeing that three of the four had similar ideas to his own, Lin Baicheng made a decision, and then said: "Next, let's talk about the ordinary model of the Xingyue mainframe. If the production cost of the ordinary model is calculated as 100 million units, the cost is 212 US dollars a set, if you include artificial water and electricity, transportation, publicity and other expenses, the cost of each set is probably not less than 230 US dollars. If you include more than 1 million US dollars in research and development costs, the cost will be even higher. I don’t know where to go.”

"When it comes to the pricing of the normal Xingyue mainframe, I have to mention the price of the Atari VCS. Although our normal mainframe is slightly better than the Atari VCS, the Atari VCS is the originator of the mainframe. Yada Li is also more famous, so when the price of the Atari VCS is 199 US dollars, the price of the Xingyue console must not be higher than this price, otherwise I am worried that it will be used for comparison, causing people to be more confused. Willing to buy Atari VCS instead of our Xingyue mainframe, what do you think?"

"Boss, I totally agree with this."

Bill Harveys agreed: "Now the technology of the United States is stronger than other countries in the world. Our Xingyue console is produced in Xiangjiang. Americans have never heard of it at all, and only think it is a small place. Therefore, in the case of Atari VCS for comparison, people will naturally think that the technical content of Atari VCS is higher than that of Xingyue mainframe Even higher, once the Xingyue mainframe is priced higher than the Atari VCS, many people may not understand it, and go directly to buy the Atari VCS."

Isabella also said: "Chinese people do have such a mentality, but for all technological products, even Japanese products need time to ferment if they want to enter the domestic market."

"I agree with both of you."

Eric Davis first expressed his agreement, and then said: "However, the cost of Xingyue consoles is not low. If the price is too low, it can be said that every console is sold at a loss. The cost cannot be recovered, and even if the cost can be recovered, it will take a long time."

"The mainframe is selling at a loss, and the money depends on the cassette."

Lin Baicheng listened and said: "In terms of cassettes, Atari's cassettes are priced at 45 US dollars. Since the company's mainframe is sold at a lower price than Atari VCS, the price of cassettes is naturally lower, so 40 US dollars is fine. However, the cost of cassettes will not be higher than 20 US dollars, and the profit of each cassette can reach 20 US dollars. As long as the sales of cassettes and consoles are not too different, the company can still make a profit.”

"One game and one cassette. The company has developed nine console games and is still developing them. So as long as the sales of the console are not bad, people will definitely buy cassettes after buying the console. At that time, they will lose money on the console. You can earn it back from the cassette.”

"Let me talk about my thoughts. The price of Atari VCS is 199 US dollars. In order to attract people, the difference between the price of Xingyue mainframe and the price of Atari VCS must not be low, so I think 179 The US dollar is more suitable, and 20 US dollars cheaper is not too little."

Such a pricing means that Xingyue Electronic Game Company will lose almost US$50 for each console it produces, and a loss of US$100 million for one million units. This is not counting the R&D cost of more than US$5000 million, which is equivalent to a loss of nearly US$1 million. .

If a cassette earns 20 dollars, it takes 1000 million cassettes to make [-] million dollars, which is only a literal payback.

After all, the company will have to pay taxes at that time, so Xingyue consoles must sell more, and cassettes must also be sold more in order for Xingyue Electronic Game Company to make money.

If it weren't for Lin Baicheng's strong capital now, he really wouldn't dare to play like this. He would rather produce a small amount and slowly test the market at a higher price, so that even if the sales volume is not good, the loss will not be too much.

(End of this chapter)