My rebirth is different.

Chapter 713 The Price Butcher
"Cousin... No, Mr. Fei, if the price is lowered, the profit of the distributor will not be guaranteed!" Wang Jinbao blurted out.

The price of the product is not set randomly, and enough profit margin must be left, because the ex-factory price of the mobile phone is not the whole cost.

There are also product promotion costs, channel business profits, and after-sales service costs...

Among them, channel business profits accounted for the bulk.

The obvious reason is, take Gome mobile phone counters as an example, they may sell more than a dozen brands of mobile phones at the same time.

Among them, if Amoi sells one mobile phone, Gome may have a profit of 300 yuan, while selling a Legendary mobile phone only makes a profit of 100 yuan. It is conceivable which brand Gome will mainly promote.

In that era, the propaganda was "channel is king"!
If retailers put your mobile phone in the corner and don’t bother to hang up promotional posters for you, when a customer wants to buy a mobile phone, they won’t recommend your brand at all.

So, no matter how good a mobile phone is, it is difficult to sell it.

Because consumers at that time really didn’t know much about mobile phones, and there were too many various mobile phone brands on the market.

When they choose a mobile phone, they rely more on on-site comparison and sales recommendations.

Wang Jinbao set the price at 300 yuan, which is a bit risky, because the profit reserved for the big distributors is yuan.

The cost of the mobile phone is close to 1000 yuan, and the two add up to yuan.

This has not included the cost of publicity and distribution, and has not considered their own profits and after-sales costs. It can be said that channel operators earn more than brand owners.

Yu Wenfei smiled slightly, and asked back: "Why do you want to give profit to the channel business?"

Wang Jinbao was tongue-tied, and replied subconsciously: "If you don't give them profits, who will help us sell mobile phones..."

"Sell it yourself! There is no middleman to make the difference!" Yu Wenfei joked.

Seeing Wang Jinbao puzzled, wanting to ask but not daring to ask, he explained with a smile: "The traditional sales model will gradually be eliminated. Have you seen Lenovo's Huimin computer?"

"I see, but that... Huimin Computer lost a lot of money, right? The New Lenovo Group has money, and my legendary mobile phone company doesn't have that much money to burn. Even if Mr. Fei agrees to sell it at a loss, isn't that right? Are there still two shareholders?" Wang Jinbao said with a wry smile.

Of course, Wang Jinbao has paid attention to the grand launch of Lenovo's Huimin computer, and even wanted to imitate that model.

However, after a lot of news in the newspapers revealed that the cost of Lenovo Group's Huimin computers was higher than the selling price, and it was much higher, Wang Jinbao suddenly withered.

My cousin has the confidence to play like that, and he can afford to lose money, but the legendary mobile phone company can't afford it. The company doesn't have much liquidity in the first place, so my cousin doesn't care about it.

That is, Mr. Hu just bought a share and brought a sum of money. Otherwise, the first batch of CQ 1 mobile phones will not dare to produce too much this time.

Therefore, he gave up the idea of ​​selling on the Internet and continued to do offline channels instead.

He also understands that these days, if you want to sell this kind of "precious commodity" on the Internet, you must have enough brand awareness, and then the price must be lower than everyone expected!

These two conditions are indispensable!

As for the legendary mobile phone, it obviously has neither...

…………

In fact, Yu Wenfei has never paid much attention to the legendary mobile phone company, which can be regarded as a stocking attitude.

Originally, according to his thinking, this was just a favor made by the way. After buying it, he threw it to his cousin Crow and the others to exercise.

The company's production line technicians and the like are not in his eyes, because when he really wants to start making mobile phones, the starting point must be much higher than this.

The establishment of the new Lenovo Group and the acquisition of IBM's personal computer business unit are the real foundation for making mobile phones.

Compared with the new Lenovo Group, the Legend Mobile Company is not enough, no matter how you look at it.

Unexpectedly, Wang Jinbao actually came up with something, and took out a good cheap mobile phone, which can be considered unintentional.

This aroused his interest, and he was going to give Wang Jinbao some advice. Before the high-end brand started, it would be good to make a low-end brand to occupy the market.

In the dream, Yu Wenfei also started with cheap mobile phones, and has always been making low-end mobile phones. There is no way to do it, because the high-end market simply cannot be squeezed in.

Anyone who makes a mobile phone brand, no one wants to be like Apple. Although Apple's sales volume often ranks third in the world, it doesn't seem to be very powerful.

But you have to know that Apple alone accounts for more than % of the total profit of the global mobile phone market, close to %!

At the peak, even the profit accounted for more than %!

This includes all mobile phone brands, regardless of high-end, high-end and low-end mobile phones.

When other mobile phone companies looked at Apple's financial statements, they were drooling with envy...

This time, because of the very good basic conditions, Yu Wenfei is going to personally create a high-end mobile phone brand. Of course, he doesn't like mid-to-low-end mobile phones.

But since Wang Jinbao is so competitive, he is not hesitant to give pointers.

…………

"Huimin Computer doesn't lose as much as the rumors on the Internet, and your mobile phone can actually learn from that model." Yu Wenfei smiled.

"How to learn from it? Could it be that we also make a Huimin mobile phone?" Wang Jinbao was a little confused about the situation, and smiled wryly.

"Why can't it? Since we want to be a low-end brand, we need to rely on volume to do it. If you want to increase volume, look at the sales volume of Huimin Computer. Are you tempted?" Yu Wenfei said.

Of course, Wang Jinbao was moved, Huimin Computer is now on the line and will be wiped out in seconds.

Lenovo’s official flagship store on Taobao has Huimin Computer with two products, high and low, and has been “out of stock” for a long time.

Lenovo launches hundreds of thousands of units every ten days, and then sells out in a few minutes.

It has only been a month since the entire computer brand complete machine market has been basically occupied by Lenovo.

Many consumers, if they can’t grab Lenovo’s Huimin computers, would rather wait for the next batch, or even buy them from “scalpers” for a few hundred dollars, rather than buy complete machines from other brands.

Because the price of other brands of complete machines is much higher than Lenovo's!
Yuwenfei has integrated many resources, purchased in huge quantities, and raised funds to subsidize it, so that it has a low-priced Huimin computer. Other companies do not have the courage, let alone the ability.

"Of course I'm moved. If it can sell well like Huimin Computer, I'll accept it even if it doesn't make money. The problem is... the company doesn't need to make money, but the distributors always want to make profits." Wang Jinbao blurted out.

"Go online on Taobao, open an official flagship store, abandon all offline channels, and only conduct online sales. In this way, there is no need to consider the dealer's profit." Yu Wenfei replied.

"Then... our popularity is not enough. Before Lenovo Huimin Computer was launched, it was featured on CCTV news, and Mr. Fei, you also helped to promote it on Facebook. Could it be that this time, you also want to help Legend Mobile? Propaganda?" Wang Jinbao asked hastily as his heart moved.

"No, as long as Legendary Mobile and Lenovo Computer's Taobao stores are placed side by side, and you can name Huimin Mobile and set a super low price, consumers will spontaneously help you promote it." Yu Wenfei laughed.

"Super low price? How low is it?"

"Only 998 yuan!"

Wang Jinbao was dumbfounded all of a sudden, nine hundred and ninety-eight?
this price……

It's almost the price of a copycat phone, and the quality of my legendary CQ1 mobile phone is much better than that of a copycat phone. The cost of the phone case alone is tens of dollars more!
Not to mention a carefully optimized and customized system.

"This... this is almost the ex-factory price. If you calculate it carefully, you will still lose money. It is a bit difficult to convince the other two shareholders to estimate..." Wang Jinbao said awkwardly.

Legend Mobile Company, although Yu Wenfei is the major shareholder, Wang Jinbao will definitely listen to what he says, but don't forget that there are two other small shareholders.

The rights and interests of minority shareholders must also be guaranteed. Yu Wenfei doesn't need to care about the little money, or even lose some money.

But minority shareholders may not be happy about it.

"The two of them should know how to choose between making a small profit and occupying the market. Tell them when you go back. If you follow my plan, the sales of Legendary mobile phones this year will exceed 3000 million!
In fact, if the annual sales volume reaches 3000 million, the cost can be further reduced, and some money can still be made. "Yu Wenfei said confidently.

"3000 million? It can't be that much!" Wang Jinbao said in surprise.

Although he is quite confident in the mobile phone that Legendary Company took half a year to build, Wang Jinbao's best expectation is that it can sell 200 million units a year.

This model can be sold for two to three years. In the entire life cycle, it can be considered a big success if it can sell 500 million units.

In that year, the replacement of mobile phones was not so fast, and it was normal for a relatively popular model to sell for several years.

Just like Amoi and Bird, they all started with a best-selling model.

"Then let me ask you, if you were a consumer, would you want to buy such a mobile phone for only 998 yuan?" Yu Wenfei asked Wang Jinbao with a smile.

"Of course I want to buy it."

Having said that, Wang Jinbao has almost figured it out.

Because Yu Wenfei helped him solve two key problems in online sales, brand awareness and ultra-low prices...

If according to what Yu Wenfei said, on Taobao.com, the flagship store of Legendary mobile phone and the flagship store of Lenovo Computer are listed side by side, and the name of "Huimin Mobile Phone" is added, and "Lenovo Group Brother Company" is indicated on the company introduction...

There is no element of false advertising.

But the majority of consumers saw that it was as famous as Lenovo Group, and the legendary team just won the runner-up in the WCG finals a few days ago. This is definitely a big company!

As for the ultra-low price, this is even simpler. In terms of the appearance and configuration of the legendary CQ1, it is normal to sell one or two thousand, but now it only sells for 998!

Directly break through the market base price and bring surprises to consumers.

Yu Wenfei, who was called "industry destroyer" or "price butcher" by many colleagues, finally began to raise his "butcher knife" to the mobile phone industry.

Although he didn't directly "hold the knife", according to Legend Mobile Company, it is also a subsidiary of Star Technology Holdings, and it is absolutely inseparable from him.

He is not saying that he wants to crush the mobile phone industry, nor does he deliberately not leave a way for domestic mobile phone manufacturers to survive.

It's because he knows too much about the development of the mobile phone industry. Even if he doesn't do it this year, the spring of domestic mobile phone brands will pass this year.

As mentioned earlier, the period from 2001 to 2003 was a period of rapid development of domestic mobile phone brands, and reached its peak in 2003. The sales volume of domestic mobile phones in the mainland market even surpassed that of foreign brands, with a market share of more than 50.00%!

However, the domestic mobile phone brand manufacturers have not come out of the excitement, and the counterattack of those foreign mobile phone giants has arrived.

Large foreign brands such as Nokia, Motorola, and Samsung have launched mid-to-low-end products one after another, from the original price of more than 3000 yuan to around yuan.

In the past two years, many domestic mobile phones sold for two to three thousand, but now the situation is very embarrassing.

Moreover, because they do not have their own research and development technology, they cannot keep up with the pace of those big manufacturers in product upgrading, and product upgrading cannot keep up.

In the first half of 2004, the decline of domestic mobile phones has been revealed. With the start of the price war, the high profits of domestic mobile phone manufacturers no longer exist.

If they compete on price, they are indeed incomparable with foreign mobile phone giants, because all components are purchased, and the cost is already higher than others.

In addition, the large-scale emergence of counterfeit mobile phones is a pinch from inside and outside. Domestic mobile phone manufacturers have come directly from spring to winter...

According to what Yu Wenfei knew, in 2004 in the suburbs of Pengcheng, tens of thousands of mobile phone workshops appeared almost overnight, and the surrounding industries were also booming. They could be called to provide molds, printed circuit boards and various The service provider provides door-to-door service.

At that time, the salesmen of MediaTek were very conscientious. As long as you bought their solution, they could even help you train R&D engineers and update the chip for free.

At that time in Pengcheng, there were even more than manufacturers of 'cottage phones', and there were three to four thousand manufacturers just on a large scale!
In Huaqiangbei, among the ten merchants, at least five are in mobile phones, and the other five are in related peripheral industries.

The emergence of counterfeit mobile phones has allowed mobile phones to enter the lives of low-income groups, and mobile phones have become popular in China.

Relying on its astonishing response speed and simulation ability to the market, copycat phones caused panic among many domestic and foreign mobile phone brands.It is said that within three days after a new product was released, there would be an identical counterfeit machine on the market, and the price was only a few hundred yuan.

In less than a year, counterfeit mobile phones have disturbed the "mobile phone arena".

2004年，山寨机占领了国内手机销量的10%。在其影响下，原本风光无限的国产手机品牌不同程度地开始亏损。夏新手机亏损1.35亿元、TCL亏损4.6亿港元、波导亏损2.8亿元、海尔亏损1.39亿元。

In February of the same year, the mobile phone production license, which had been dusty for six years, was finally issued a new license.Enterprises such as Huawei, Gionee, and BBK have also entered the market with low-end products, further intensifying competition in the low-end market.

Since a price war is inevitable, Yu Wenfei doesn't mind firing the "first shot"!
　If you have something to do today, let’s add a big chapter, and pay off a chapter tomorrow.

　　
　
(End of this chapter)