Take the supermarket back to the times

Chapter 939 Production Cost
Huo Yunting looked at Factory Director Liu like this, and felt that this was really useless!

Su Xiaoruan explained patiently: "Yes, Director Liu, you see, most people want to choose an affordable one, as long as it can be used, so they will choose the cheapest one. And like me People with better conditions will choose the most expensive one. Then the question arises, your towels are not cheap, and the quality is not particularly good, who are you going to sell them to?"

Director Liu was dumbfounded.

This time Zhao Qingyun also understood.

When people buy things, they either want something that is useful and durable, or they want it to be cheap.

You talk about whether the products you produce are high or low. Isn’t the decline in sales obvious?
Su Xiaoruan saw that Director Liu had reacted, and said again: "The towels you produce now have a market, but the market is already very small, and there are other state-owned factories competing with them. This means that the output has not changed, but the sales volume has changed, so you will naturally have a backlog of inventory."

Factory Manager Liu scratched his head, with an eager look on his face, it seemed that he was really worried about sales.

Although Zhao Qingyun didn't understand these things, he also knew that problems had to be solved.

"Xiao Su, I can understand what you said. But the problem is that now that these things have been produced, what do you want them to do?"

Director Liu seemed to have found a savior, and nodded again and again: "That's right, Comrade Su, please give us an idea."

Su Xiaoruan smiled: "Actually, if you simply clear the inventory, the method you want to find companies to buy in large quantities and then distribute benefits is naturally available. And as long as you can find enough big customers, then these inventories will be It’s not a problem anymore. But the key is, after that? Will the remanufactured towels continue to be backlogged?”

Director Liu choked, then looked down at the few towels in front of him.

In addition to the few pieces that Zhao Qingyun took just now, look at the few pieces on the coffee table. The quality can be said to be comparable, and the patterns are also very similar, but the sales volume is obviously declining.

When Su Xiaoruan said this, he stopped worrying. If he wanted to help them, he had to see if they could understand it.

After Zhao Qingyun noticed Su Xiaoruan's calm expression, she knew that she must have a solution, it was just a question of whether she was willing to talk.

"Comrade Su, I still have to ask for your help. All I can think of now is to keep the cost down as much as possible. But the raw materials are stuck, and the cost we can save is limited."

Su Xiaoruan sighed, as expected, she was used to staying in a state-owned factory, her brain just didn't know how to turn.

"Director Liu, tell me first, what is production cost?"

Director Liu was questioned.

He is a factory manager who started as an ordinary worker. Although he also went to night school later, he really doesn't understand anything that is too professional.

Moreover, it used to be a planned economy. They produced as much as the top asked them to produce, and generally there was never any surplus.

This is the first time he has encountered such a situation.

Therefore, I don't know how to answer Su Xiaoruan's question at all.

Zhao Qingyun also stared at Su Xiaoruan with burning eyes, waiting for her to give an answer.

Seeing Director Liu's reaction, Su Xiaoruan knew that he was not professional enough.

"Production cost, that is, manufacturing cost, is the various production expenses incurred by the production unit for the production of products or the provision of labor services, including various direct expenditures and manufacturing expenses. To put it more simply, it includes all the way to the sale. Here All the expenses are production costs. I say that, can Director Liu understand?"

Director Liu nodded this time: "Understood. I know it in my heart, but I just might not be able to say such professional words."

Su Xiaoruan smiled: "It's good that you understand, the professional term is not important, what is important is that you should now realize that saving costs is not just about raw materials."

Zhao Qingyun nodded: "Xiao Su is talking about labor costs?"

Su Xiaoruan shook his head: "Not all. Let's put it this way, direct expenses include direct materials, that is, raw materials, auxiliary materials, spare parts, fuel and power, etc. Of course, it also includes direct wages, that is, production personnel's expenses. Salaries, subsidies, and other direct expenses such as welfare fees. Just think about it, how many links can we find ways to save?"

Director Liu originally thought that the production of towels was very simple, the process was simple, and the employment was simple.

Listening to what she said now, it seems that there are indeed many links that can be controlled.

For example, electricity bills, wages, etc.

Under Zhao Qingyun's hint, Su Xiaoruan continued: "Manufacturing expenses refer to various expenses incurred by the branch factories and workshops in the enterprise to organize and manage production, including the salaries of branch factories and workshop managers, depreciation expenses, and Other manufacturing expenses, which include office expenses, travel expenses, labor insurance fees, etc. So, have you ever thought about how to save this part of the expenses?"

Director Liu suddenly slapped his forehead.

"Oh, it has to be Comrade Xiao Su! Thanks to you, otherwise I wouldn't have thought of so much! It's really like this. There are so many places to save money. It's because my brain is not working well. It's really too much." Thank you."

Seeing Director Liu's reaction, Zhao Qingyun knew he understood.

Huo Yunting's attitude was much gentler than before: "It's good that Director Liu is aware of this. After all, such a large factory supports hundreds of employees. It's a lot of hard work."

Zhao Qingyun was stunned for a moment, always felt that when Huo Yunting mentioned hundreds of employees, his tone seemed to be a bit serious. Is this implying something else?

Su Xiaoruan looked at Huo Yunting with a smile, and it was still her man who understood her.

Su Xiaoruan took the cheapest towel again and said: "Director Liu, I'm not afraid of your anger. Even if you control the cost of raw materials, if you produce such a towel, your cost will still be very high. For example, if this towel sells for [-] cents, then your production cost alone is probably at least [-] cents to one yuan."

Zhao Qingyun was stunned: "Xiao Su, how do you know?"

Factory Manager Liu was much silent at this time.

Su Xiaoruan was not in a hurry to speak, but just looked at Director Liu quietly.

Zhao Qingyun looked at Su Xiaoruan, then at Director Liu, and felt that he didn't understand.

Director Liu sighed and said: "There is no way. I now understand Comrade Su's meaning. Those small factories employ fewer people, especially the management. There are not so many people to dictate, so they don't have such high wages. Oh, it's hard for me too!"

(End of this chapter)