Siheyuan: Starting from 1958

Facing the worried gazes of Qin Huairu, Jia Zhangshi, and Bang Geng, he thought for a long time before speaking: "Although it's a little little, I will definitely find a way to make this happen."

"Although I am no longer an employee of the steel mill, I was once an eighth-level fitter. I remember that I taught the son of the head of the housing management department the fitter technique."

"With this favor, I should be able to take over the East Wing."

"If the money is not enough, I will pay for the rest. After all, I am a member of the family now."

The next morning, Yi Zhonghai followed Banggeng to the steel rolling mill.

He returned to the courtyard at noon with a smile on his face, and it was obvious that he had settled the house issue.

Not only that, he also earned 100 yuan from the 200 yuan red envelope Qin Huairu gave him.

After learning that the east wing of the central courtyard had completely belonged to the Jia family, just as Yi Zhonghai had predicted, his status in the Jia family directly rose to the level second only to Bang Geng.

Whenever there were any meat dishes on the table, Banggeng and Yi Zhonghai would usually eat them first.

Jia Zhang, who used to grab the meat from the dishes, now has to depend on Yi Zhonghai's mood to eat meat because her pension money has been emptied. She has become a coward in front of Yi Zhonghai...

But these are all things for later.

…………

Half a year passed in a flash.

Wang Dong welcomed his second child, also a son. His father-in-law and mother-in-law were very happy. They took their little grandson out with them and had smiles on their faces every day. They were obviously very satisfied with their current life.

My daughter-in-law Chen Jun is also developing very rapidly. Because she is educated and knows technical skills, she was promoted to a director-level cadre three months ago. She is specifically responsible for coordinating and managing the production of several steel mills in Sijiu City. The Red Star Steel Mill that Wang Dong has his eyes on is also within her management scope.

This means that Wang Dong can know the current operating status of the Red Star Steel Rolling Mill without leaving his home.

Dongjun Hotel is also expanding very rapidly.

In less than half a year, all three branches were opened. After deducting the bonuses given to employees, the average operating profit that fell into his hands every month was nearly 150,000.

Up to now, Wang Dong’s savings have exceeded 400,000.

At the current growth rate, we might be able to buy the steel mill in another two years.

After hearing about her husband's plan to acquire a steel mill in two years, Chen Jun, the daughter-in-law, didn't want to pour cold water on him, but she couldn't help but remind him...

"husband……"

"I think we need to change our plan to acquire the steel mill in two years..."

"The steel mill has changed a lot in the past six months. It was originally losing money, but after Director Yang's reforms, it turned from loss to profit again."

"Although the income is not much, it is enough to cover the wages and benefits of all workers..."

"If nothing unexpected happens, the steel mill will not be insolvent even in ten years, let alone two years."

Wang Dong didn't take his wife's reminder too seriously, but smiled and continued: "You must be referring to the steel mill's dismissal of apprentices and some regular workers to reduce production costs, right?"

When this matter was mentioned, his wife Chen Jun couldn't help but show a trace of admiration on her face, and then continued: "It's this matter..."

"After the steel mill set a precedent, other steel mills in the city followed suit and achieved good results." "But the best result is still the steel mill..."

"By stopping regularization and promotion, within a month, the number of apprentices in the steel mill dropped by more than 90%, and the number of regular workers without a grade dropped by more than 40%, a total of more than 4,000 people. The monthly salary and bonus alone will be reduced by 100,000 yuan."

"After the cost was reduced, the steel mills lowered their product prices and won back many orders from private steel mills."

"After all, under the same price conditions, buyers will definitely trust the powerful state-owned steel mills more."

"The current steel mills are thriving, so it won't be a problem to go there first."

"I think we should buy from another factory."

Faced with his wife's repeated reminder, the confident expression on Wang Dong's face did not change at all, and he continued with a smile on his face.

"Wife... the news you told me is outdated..."

"When several steel mills submit their production and sales data for this month, you will find that the advantages they have gained through cost reduction are now gone."

Chen Jun frowned and asked quickly, "What's going on... Did you get any gossip?"

Wang Dong did not deny it. He thought for a while before speaking: "Do you know what the real production cost of those private steel mills out there is?"

“It’s shocking to hear that…it’s only half of the steel mill’s previous production cost.”

"Even if the steel mills have reduced their production costs by 20%, their production costs are still 30% lower than those of the steel mills."

"The original sales price was only 20% lower than that of the steel mills, not because they dared not lower the price, but because they wanted to make more money."

"The scale of those private steel mills is much smaller than that of steel mills, and their output is limited. If we continue to lower prices, even if we snatch all the customers of steel mills, they will not be able to produce."

"Instead of doing this, it is better to snatch some customers first and make more money by selling at a high price."

"Now the steel mills have snatched away many of their customers by reducing costs, causing their products to start to accumulate. They will definitely continue to cut prices to win back the customers snatched away by the steel mills."

"The current selling price of the steel mill's products is already very low, which is only a little more than the production cost."

"If they follow the private steel mills outside and lower their prices, the steel mills will lose as much as they sell..."

"Do you think the mill could have taken more than two years to do this in this case?"

The daughter-in-law Chen Jun took a deep breath and asked, "How can their production cost be so low?"

"Three aspects..." Wang Dong continued, facing his wife's worried gaze.

"On the one hand, it's because of the equipment... The equipment in the steel mill was bought 20 or 30 years ago. Many of them have been repaired over and over again, and are still in use despite problems. Not only is the production efficiency low, but the processing accuracy of the products is also low, and the scrap rate is very high."

"The equipment of private steel mills is basically the latest products, with high production precision, high efficiency and low scrap rate, which directly reduces production costs by almost 10%."

"The second aspect is the labor cost..."

"Although the steel mill has managed to dismiss a large number of apprentices and regular workers without grades, the remaining workers are still filled with many sly and dishonest people who occupy the toilet without doing anything."

"It's different in private steel mills. Workers' wages are completely tied to their production targets. The more qualified products they produce, the higher their wages. In a factory with hundreds of people, it's almost impossible to find a few workers who cheat or act slyly." (End of this chapter)