Courtyard House: Starting with a 28-inch motorcycle

"Oh, what's up?" he asked casually, feigning ignorance.

"Factory manager, this foreign friend has taken a liking to our toys and wants to discuss purchasing them," the receptionist quickly interjected.

"Welcome! Welcome! A warm welcome to those who have traveled from afar!"

Han Chunming immediately put on a smiling face, his enthusiasm just right.

Upon seeing this, the foreign guest raised the corners of his mouth, a hint of satisfaction flashing in his eyes.

The staff member then introduced, "This is our factory director, Comrade Han Chunming. He is in charge of all matters, big and small, in the factory."

"Mr. Sam said, 'Thank you for your warm hospitality. The purpose of my trip is clear—I would like to place a bulk order for these toys and would like to discuss cooperation in detail.'"

At that time, foreigners who understood Chinese were extremely rare, and Chinese people who could speak English were even rarer. When Sam came to China this time, he specially brought overseas Chinese from New York to act as translators; almost every foreign businessman who came to discuss business did the same—after all, only they could truly understand the language of this land.

Having witnessed Chinese-made mobile phones enter the European market firsthand, Sam immediately sensed a business opportunity and rushed to China. Today, at the trade market, he spotted a toy co-developed by Han Chunming and a radio factory—a product with no similar offerings in Europe. He immediately recognized it as an untapped gold mine and knew he had to secure the deal.

"Business is business, of course we need to sit down and discuss it in detail." Han Chunming's gaze was calm. "But Mr. Sam, are you planning to buy a few to keep your kids entertained, or... are you planning a long-term partnership with our factory?"

The translation was sent word for word.

"Mr. Sam is the head of an import and export company in the United States. He has come here specifically for trade cooperation and hopes to establish a stable supply relationship with your factory."

"Since this is an export collaboration, you can rest assured—our toy has long been a hot commodity overseas. Currently, the factory has orders booked three months in advance, and even the inventory has been cleared out. However, since we are going to sell overseas, the quality control must be upgraded: we use imported ABS engineering plastics, a full inspection assembly line, and experienced craftsmen guiding apprentices to make adjustments step by step. The quality inspection process alone involves three more steps than for domestic sales."

"We currently have seven or eight new concept toys in the prototype stage. If we can establish a long-term partnership, we will prioritize providing samples, scheduling production, and reserving capacity. Of course, with rising costs, prices will inevitably increase. But rest assured, even at nine yuan each, we can still make double the profit when we ship them to your area—your market purchasing power is there, and we've already pushed our ex-factory price down to this level; we really don't have much room for maneuver."

The translator didn't even lift an eyelid after listening. Just now at the factory gate, the samples, which cost five yuan each, were still piled up in cardboard boxes. Now the price had doubled. He knew perfectly well that the other party held the technical bottlenecks, and naturally, they also held the power to charge a premium.

He immediately relayed Han Chunming's words to Sam verbatim.

"Mr. Han, Mr. Sam said the price is a bit high—the samples at the entrance are only five dollars, but the export price is double. What's his reasoning?"

"Upgraded materials, stricter processes, higher wages, and amortized R&D costs—all of these require significant financial investment. Exported products represent the nation's image; we'd rather earn less than ruin our reputation. Here's the deal: the five-yuan version will continue to be supplied, but the quality will be up to domestic standards. As for the 'international version' you requested, nine yuan is the bottom line—any further reductions won't even cover the mold maintenance costs."

Han Chunming spoke casually, a smile playing on his lips, but his eyes remained steady. In the business world, such words would easily inspire confidence.

Having worked in foreign trade for ten years, Sam knew the unwritten rules of the industry. When European and American clients inspected factories, the first thing they checked was the difference in materials used between export and domestic batches. He knew perfectly well that a toy that cost nine dollars, could pass CE certification, had silent gears, and included anti-swallowing parts, would cost at least fifteen dollars to manufacture in his home country.

He symbolically tried to lower the price, but the other party didn't budge, so he backed down—this result exceeded his expectations.

Actually, toys are just a stepping stone; the real goal is subsequent battery orders. Unfortunately, the production license is still pending at the provincial level, so we can't get involved for now.

The exchange rate is currently stable at 1:2, with one US dollar equaling two Chinese yuan.

"Mr. Han, Mr. Sam congratulates on the successful collaboration and hopes to sign the formal agreement as soon as possible. Please keep us informed about all new products immediately and prioritize Mr. Sam's exclusive distribution rights."

As soon as the translator finished speaking, Sam gestured for the signing.

Nine yuan? That's practically free!

Making the same product in our own factory would cost seven dollars just for skilled labor, not to mention mold amortization and environmental testing. Now, we offer a package deal that includes taxes, inspections, and exclusive regional distribution channels—the math is crystal clear.

Ultimately, a single toy sold for nine yuan.

The contract was signed on the spot, the delivery date for the first batch of 20,000 units was set, and Sam paid half of the prepayment on the spot.

Han Chunming wasn't worried at all—the toy had a simple structure, and 80% of the parts were directly sourced from the radio factory: miniature speakers, capacitors, circuit boards—all readily available. Assembly was a streamlined process, and delivery would be a breeze within twenty days.

The recruitment drive was immediately launched, and orders were simultaneously dumped into the radio factory.

Gu Mingfu, the radio factory owner, shook his head as he looked at the fax: his own radios had been piling up for six months and couldn't be sold, but by serving as a "parts warehouse" for a toy factory, he had managed to revitalize two idle production lines—a truly unexpected stroke of luck.

Han Chunming was overjoyed: How did Xiao Yao's brain work? He even figured out the logic behind embedding children's songs into chips. The baby walker will be off the production line next month; it can automatically sing along and stay in tune. Sam only needs to provide the song, and it can be burned into the motherboard on the same day.

"Quick! Put up a red banner at the factory gate—'Red Star Toy Factory (Export Only) is Hiring!' Tell Old Li, the gatekeeper, to keep watch and make sure no one gets missed!"

As soon as the red paper was pasted up, Han Chunming plunged into the workshop.

The twenty young people we hired a month ago are now engrossed in tightening screws, assembling speakers, and testing volume, their skills becoming increasingly proficient. Hearing that the first batch of goods has just been signed, everyone's faces are beaming with joy.

Although salaries haven't been paid yet, nobody's in a hurry—payday is this week, and the thought of going home for the New Year with money in hand has already filled their hearts.

As soon as Han Chunming entered the workshop, he clapped his hands and called out in a loud voice, "Comrades, good news! Starting next month, everyone will get a pay raise—the base salary for long-term employees will be increased to fifty yuan! Our Hongxing Toy Factory started late, but we will never forget our roots. Whoever works with me, Han Chunming, I will lead them to a better life!"

The crowd erupted in cheers.

These kids had just graduated high school, failed their college entrance exams, and didn't want to leave their hometowns, so they decided to try their luck at this small factory nearby. Compared to mobile phone factories where people often worked overtime until midnight, and dusty construction crews, this factory was bright and spacious, the work wasn't strenuous, the boss kept his word, and even the canteen food had an extra spoonful of meat compared to the factory next door. Who would have thought that this small factory near their homes could offer one of the highest salaries among their peers in the city?

Han Chunming's words were like a spark that ignited the entire workshop.

……

As soon as the radio factory finalized the cooperation, Gu Mingfu immediately allocated two dedicated lines to supply the toy factory. Now, Hongxing is the factory's largest external customer. According to Han Chunming, the initial cooperation period is two years or more, and there is room for negotiation on new molds, new materials, and new prices.

"Director Gu, it's a pleasure doing business with you!"

Han Chunming grasped Gu Mingfu's hands with both of them and shook them vigorously.

"You've got some nerve, kid—giving up a deputy section chief position at a state-owned factory to become the manager of a toy factory?"

Gu Mingfu shook his head with a smile, his tone containing three parts teasing and seven parts genuine admiration.

Han Chunming knew exactly what he was doing: the processing cost for each toy was less than three yuan. Although some parts were outsourced, the shipping and labor costs combined wouldn't exceed fifty cents; the first batch of trial production used scrap-grade raw materials, with a processing fee of just over one yuan per toy. Now, selling them for nine yuan, after deducting materials, labor, and management costs, the net profit was a solid one yuan and fifty cents.

The radio factory was on the verge of laying off all its employees when the Red Star brand color TV suddenly appeared, directly squeezing the radio into a mere decoration. Especially after the 19-inch color TV from the state-owned Chinese enterprise was launched, the price was reduced to five hundred yuan per unit, which was much cheaper than all imported products. The picture quality was more stable, the colors were more accurate, the signal was stronger, and even the remote control came with a neat and convenient design.

This wave of disruption not only overturned the foreign goods counters, but also completely relegated old relics like radios to the corners of history. Not to mention the newly launched Red Flag brand computer, whose salespeople's eyes lit up the moment they opened their mouths: full of functions, fast response, smooth operation, and the whole machine only costs 1,700 yuan, truly a palm-sized wonder.

These days, a radio that costs fifty yuan is no longer taken seriously; you wouldn't even take it if it were given away for free. An apprentice earns thirty-five yuan a month, while a master craftsman can carry home a large domestic color TV after three months of work—who still cares about that buzzing metal box?

If it weren't for Han Chunming's interference, the radio factory would have gone out of business long ago. After hearing his "rebirth through a shell company" idea, Gu Mingfu gritted his teeth and took a gamble: the factory wouldn't be dismantled; it would become a parts supplier for the toy factory. As long as the workers weren't laid off, he'd do whatever it took. This time, he made the right bet.

As soon as Gu Mingfu stepped into the house, his wife Liang Hongmei crossed the threshold carrying a Red Star brand color TV, her lips curled up so wide they could hang an oil bottle.

"You're so happy about buying a TV, outsiders would think you've won the lottery."

Gu Mingfu joked with a smile.

"What's the difference between this and getting it for free? Your sister-in-law was showing off right under my nose the other day! She spent 1200 yuan on a 14-inch imported black and white TV, and she was so smug, she practically had her face pressed against the glass cabinet. As soon as the Red Star color TV came out this week, I immediately borrowed money to buy one—it's miles better than hers! Let's see how she dares to flaunt it in front of me now!"

Before he could finish speaking, Gu Mingfu quickly shut up, turned around, and went into the kitchen to make tea. He couldn't be bothered with the constant comparisons between his sisters-in-law—his salary wasn't as high as his older brother's, but his life was much easier and more carefree, so why bother making trouble for himself?

Liang Hongmei called the installation technician in. After some wiring, frequency tuning, and calibration, the screen lit up with a "whoosh"—a vivid color picture appeared, with seventeen channels flashing in turn. Liang Hongmei felt as if she had been given a spoonful of chilled plum juice, which was both sour and sweet and refreshing. She felt so good that she wanted to hum a little tune.