Rebirth of the 1980s: The Military Industry Empire
#151 - Chapter 151: Getting something for nothing and still feeling justified?
For a long time, China didn't really value the Type 56 assault rifle. After all, it wasted too many bullets. For an army that had come from hardship and hoped to eliminate an enemy with a single shot, it wouldn't be extravagant enough to equip the Type 56 assault rifle in large quantities.
You can tell from the name that it was initially called a submachine gun. It wasn't until the Type 81 that it was called an automatic rifle.
Therefore, the Type 56 assault rifle was initially produced in the little-known Factory 626. This factory was located on the northern border, almost right under the noses of the Soviets. Therefore, the higher-ups also wanted to change the production site. After the war in the south broke out, when China needed a large number of Type 56 assault rifles, the higher-ups finally decided to modify a Type 56 semi-automatic rifle production line at Factory 296 to switch to producing Type 56 assault rifles.
In other words, Factory 296 didn't have a long history of producing Type 56 assault rifles. Of course, the advantages of a large factory were still very obvious. They produced 20,000 Type 56 assault rifles that year, strongly supporting the war in the south.
The biggest confidence of the people from Factory 296 was that they were the largest production unit of Type 56 assault rifles in China. But now, Qin Yang's words shattered their illusion. They weren't the only ones who could produce Type 56 assault rifles; there were other factories too!
Besides Factory 626, Factory 386 had also produced Type 56 assault rifles. If Qin Yang took the order there, would they, like Factory 296, ask the foreign businessmen for whatever they wanted?
"Considering our factory's production costs and profits, each one would be about 300 yuan," Luo Jianshe said after a simple calculation. "President Qin, how about transferring the order for 50,000 to our factory at 300 yuan each?"
"Three hundred? I still have things to do at the Capital Agricultural Tool Factory, so I'll leave first. Chairman, take these guests out for lunch at the company's expense," Qin Yang said, standing up.
"President Qin, don't be so hasty. How about 290?" Old Wang saw through it at a glance and quickly reduced the price by ten yuan.
"Actually, I really have something to do..."
"President Qin, today I, Lao Wang, am putting my reputation on the line. Give me a bottom price!"
"Alright, then I won't beat around the bush. The quote from Factory 626 is 260 yuan," Qin Yang said. "Your price is too high, which puts me in a difficult position."
"Two hundred and sixty yuan? How is that possible? Can they even make a profit?"
"That's the advantage of a small factory. Factory 626 isn't as large as yours, and their expenses are also lower. Moreover, the workers are skilled," Qin Yang said. "Anyway, you mainly take domestic military trade and don't care about these small profits."
"Then let's set it at 280 yuan," Luo Jianshe said. "President Qin, our Factory 296 is a large factory, and the quality of our products is definitely better than that of Factory 626. It's normal for the price to be a bit higher."
"Ah, this puts me in a difficult position. However, since you've come all the way here, I'll take a step back. Two hundred and seventy yuan, and I'll give you an order for 30,000. The remaining 20,000, I'll give to other factories."
"Two hundred and seventy yuan? This..." Luo Jianshe began to frown. At this price, could they still make a profit?
"Since the brother factory can take orders at 260 yuan and still make a profit, then we can too! This is a good opportunity to launch reforms in our factory, reduce costs, and increase efficiency!" Old Wang said. "However, President Qin, can you give us the entire order for 50,000?"
"Old Wang, we went through thick and thin together at the national shooting range. Now that you've come, what else can I say? I'll give you the order for 50,000! However, I have to say the ugly things first. You must guarantee the quality. If it's not up to standard, we have the right to refuse acceptance. This is an export product. If substandard Type 56 assault rifles reach the international market, it will be a disgrace to Chinese military workers!"
"Of course."
"The entire production cycle is ten months. Our Capital Agricultural Tool Factory will give you 20% of the payment in advance. For the specific contract details, go to the Sales Section of the Capital Agricultural Tool Factory next door to negotiate with Section Chief Zhang, and then have our Factory Director Zhu sign it. I won't get involved. I still have a lot of work to do."
"Okay, I'll see you out," Director Dong knew that Qin Yang was going to call Zhang Chao to arrange things. He stood up and escorted the group out the door.
When he came back, Qin Yang had just finished the call. Director Dong looked at Qin Yang with a complex expression: "Have you contacted Factory 626?"
"Does that matter?" A sly smile appeared on Qin Yang's face: "I'm also helping Factory 296. Next, we will unswervingly take the path of a market economy. Their factory is too big to fail, and they will definitely be eliminated by the market in the end. From now on, they have to consider how to reduce costs and increase efficiency in order to adapt to future competition."
In fact, when he signed the order for 50,000 Type 56 assault rifles, Qin Yang didn't plan to produce them in his own factory. After all, this kind of gun was already outdated. If they were to produce them, they would produce the new 5.8mm caliber rifles.
This order would be subcontracted to others sooner or later. The Capital Agricultural Tool Factory would just earn a bit of subcontracting fee.
"Engineer Qin, you're really amazing. With this one transaction, you've earned half the profit. You're getting something for nothing and playing it well. Aren't you afraid that someone will report you?"
Qin Yang continued to drink a few sips of tea: "Uncle Dong, in your impression, only working hard with sweat and soil is called creating value? Then our Fangbei Industrial Company is only helping to bring in business, so they should be charged a commission. Will they also be reported? Since we're going to engage in a market economy, then we should know that information is also wealth. Our factory has the ability to receive orders and subcontract them to other factories after they can't complete them. They still have to earn this information fee, right? Besides, this money won't go into my pocket. It will continue to be invested in the construction of our Capital Agricultural Tool Factory. With my million-dollar annual salary, do you think I care about this little bit of money?"
Director Dong was rendered speechless by Qin Yang's sophistry. However, after thinking about it carefully, what Qin Yang said seemed to make some sense. If this free money was invested in the subsequent construction of the Capital Agricultural Tool Factory, then it would be difficult to find fault with it.
Qin Yang stood up suddenly: "Uncle Dong, why didn't you say so earlier? Then the tea I drank..."
There was no way. The teacups in this era were all the same! Iron enamel cups with red artistic characters on the outside, either souvenirs or factory names. Sometimes, in order to avoid confusion, they might also be sprayed with numbers.
At this moment, footsteps came from outside.
"Teacher Nie, I haven't memorized the last few sentences yet. Can you say them to me again?"
"Oh, these are all on the tape. Haven't you already received them? You have to read more and practice more when you go back..."
Creak... Qin Yang opened the window and fled in panic.
Of course, women in this era wouldn't be as delicate as those in later generations. It was nothing for two people to drink from the same cup, but... Qin Yang still felt a little embarrassed.
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