All the heavens begin with the love in the courtyard.

If a quality problem occurs within three years, the electric fan will be replaced free of charge.

Is this for real?

Indeed, Lei Dongbao was thinking about how to revive the Jinzhou Second Machinery Factory and quickly raise funds. After much deliberation, he finally came up with this idea.

Trade in your old car for a new one!

This kind of tactic, which was overused in later generations, is a killer weapon in this era. Of course, this is different from the matryoshka doll-like trade-in program of later generations. Lei Dongbao is genuinely doing this activity. As for whether he will really lose money?

Ha ha!

Lei Dongbao had only one goal in doing this: to quickly amass enough funds to undertake larger projects. As long as he could make money fast enough, he didn't care about this small amount of money.

What is the biggest problem facing Jinzhou Second Machinery Factory right now?

"funds!"

Lei Dongbao's move was unstoppable; starting from May 1st, the Peak brand electric fan completely and rapidly occupied the entire Anhui Province electric fan market.

None of the other manufacturers dared to follow suit this time, because in their view, Lei Dongbao's behavior simply did not conform to business logic. The other manufacturers did the math for Jinzhou Second Machinery Factory.

A 129-yuan electric fan has a factory price of around 75 yuan. Given the profit margin of Jinzhou Second Machinery Factory (which produces and sells its own products), it should be around 30 yuan. Even if it's 30 yuan, how can it support the trade-in program?

The rule that if quality problems occur within three years, only replacements will be provided, not repairs, is considered nonsense by industry peers. Although the probability of quality problems occurring in this type of metal aluminum blade electric fan within three years is not high, there are too many unexpected events in three years. Even a 5% replacement rate is something that Jinzhou Second Machinery Factory cannot afford.

After their peers did a detailed accounting of Jinzhou Second Machinery Factory's finances, they concluded that no matter how they calculated it, the factory would ultimately end up going bankrupt with losses.

It might go bankrupt next year, but at least this year, it's doing very well, so well that it's squeezing out other competitors and leaving them with no room to survive.

The province of Anyun sold 147,400 units in May, breaking all records. If it weren't for insufficient production capacity, sales would have increased even more.

Without hesitation, Lei Dongbao began to renovate more workshops to produce electric fans to meet the upcoming peak sales season!

Lei Dongbao's madness and the sales of the Peak brand electric fans shocked everyone. Peak brand, as expected, is a force to be reckoned with.

His activity was somewhat outrageous. In everyone's eyes, the more Peak brand electric fans sold now, the more money they would lose in the end. How would they clean up this mess?

The way the Pinnacle card made its domineering entrance is just like that saying!

Walk your own path, and leave others with nowhere to walk.

By the end of May, many of their competitors had gradually realized that if they continued to let Peak brand electric fans continue down this path, their own factories would go bankrupt before the competitor did.

As a result, countless letters of complaint and phone calls poured onto the desks of the leaders of Anyun Province. Anyun Province quickly established an investigation team and stationed it at Jinzhou Second Machinery Factory to investigate whether the matter was in compliance with regulations.

Before the event, the leaders in Jinzhou had some doubts about Lei Dongbao's plan, as it was considered too bold. However, Lei Dongbao also explained the costs and benefits to the leaders.

After receiving the calculations from Lei Dongbao, the leaders were all beaming with joy!

This campaign will only last for four months. During these four months, Lei Dongbao set a sales target of one million units for the Dianfeng brand electric fans. Let's say one million units.

From table fans to floor fans, the product categories differ, and the ex-factory prices vary, ranging from 75 to 115 yuan, with sales amounting to around 100 million yuan.

The three-year trade-in program is in its first year next year. In the first year, the depreciation rate for trade-ins is 10%, which is the most disadvantageous, so there will definitely not be many people trading in. Even if 10% of customers do trade in, if a customer buys an electric fan for 129 yuan, they will have to pay the store 12.9 yuan to get a new electric fan in the second year.

Jinzhou Second Machinery Factory will not receive a single penny of this 12.9 yuan, because it goes to the shopping mall. The shopping mall has two obligations after receiving this money: first, to help replace it for free; and second, to help sell the used electric fan that was replaced.

After collecting the used electric fans, Jinzhou Second Machinery Factory will set up a special workshop for trade-in to process these used fans. They will be disassembled, repainted, and repackaged. In short, the recycled used electric fans will be carefully arranged for you. The processing cost of each electric fan is no more than 5 yuan.

The used electric fans that have been recycled and processed are repackaged and sold in stores. Because they are used electric fans, the original price of 129 yuan will be sold for 99 yuan. This price is still very cost-effective for an electric fan that has only been used for a year.

Of the 99 yuan, the shopping mall had to give 80 yuan to Jinzhou Second Machinery Factory, and the remaining 19 yuan was the mall's profit. After earning 12.9 yuan from the customer's replacement, the mall also got 19 yuan in profit from the used electric fan, so it agreed to the plan.

The price paid by Jinzhou No. 2 Machinery Factory was that the first batch of electric fans sold had to be replaced with one electric fan the second time.

The cost of two new electric fans and recycling is reduced to the initial factory price of 75 yuan, plus a profit of 80 yuan from the sale of the used electric fans, totaling 155 yuan.

The following year, 30% of customers exchanged their fans. After paying 19.35 yuan, they received a new electric fan. The Jinzhou Second Machinery Factory recycled and processed the fan, and then resold it for 79 yuan.

The current allocation plan remains the same: the shopping mall receives 12.9 yuan for the trade-in program plus 19 yuan for the sale of used appliances.

This time, Jinzhou Second Machinery Factory paid for two new electric fans and the cost of recycling and processing them, and received 75 + 60 + 6.45 yuan, which equals 141.45 yuan.

In the third year, the number of people who replaced their phones reached almost 40%, compared to 10% in the first year, 30% in the second year, and 40% in the third year, totaling 80%. The remaining 20% ​​did not replace their phones for various reasons, such as forgetting the date or feeling that the quality was still good and not wanting to replace them.

In the third year, the customer paid 24.51 yuan and received a new electric fan. After recycling, the secondhand selling price is 59 yuan.

The shopping mall will still receive a fixed income of 12.9 + 19 yuan. The shopping mall's income will not change, so they will cooperate with you.

Jinzhou Second Machinery Factory received 75 + 11.61 + 40 yuan, which equals 126.61 yuan.

Don't underestimate the thrifty people of this era. Second-hand electric fans at this price will be snapped up as soon as they are put on the market. Did Jinzhou Second Machinery Factory lose money?

Losing money is pointless, but making so much money you can't even fill your pockets. As for the policy of only replacing and not repairing for three years, it's actually a false proposition. A single rule can reduce the number of people affected.

"Damage caused by human error is not eligible for replacement!!"

The Anyun Provincial Investigation Team returned to Jinzhou No. 2 Machinery Factory without a word the day after they arrived. They later issued a statement saying that this was a normal sales transaction and there was no deception involved.

All his colleagues were stunned. After this incident, nothing stays secret forever. No one knows whether it was the investigation team or the leaders of Jinzhou who leaked Lei Dongbao's calculations. All his colleagues slapped their thighs and exclaimed, "Damn, he's a genius!"

So in June, all the electric fan factories in Anyun Province followed suit. However, the Peak brand electric fan, which had already occupied a sufficient market share, had become an unstoppable force and began to sweep across the entire Anyun Province electric fan market.

The entire electric fan market is like a cake. Peak brand has taken the biggest slice, so naturally, everyone will fight even more fiercely for the remaining share. At this time, everyone seems to have vaguely forgotten the king that once dominated Anyun Province, Thunder Electric Fan!

Chapter 54: Lei Dongbao Taken Away for Investigation

The Heavens Begin with Love in the Courtyard, Volume 54: Lei Dongbao is taken away for investigation. Throughout May, in the electric fan market of Anyun Province, only Dianfeng Electric Fan stood out, while hundreds of other brands were competing on the same stage.

Last year's champion, Thunder Fan, has been submerged in the sea of ​​fan brands from the very beginning this year.

There are several reasons why this is happening.

First, last year, Thunder Electric Fans made a big splash, setting an example of a township enterprise with an annual output value of over 50 million yuan, which inspired more electric fan factories to join the battle.

The Chinese people's ability to learn and imitate is first-rate. According to incomplete statistics this year, there are dozens of electric fan brands on the market that start with the character "雷" (lei), and they are very similar in terms of brand and style.

Secondly, last year's advertising campaign by Thunder Fans showed everyone how advertising works, so this year, major newspapers in Anyun Province are filled with fan advertisements, while Thunder Fans has significantly reduced its advertising investment this year and has been squeezed into a corner.

In addition, since the beginning of May this year, Peak brand electric fans have monopolized nine-tenths of the electric fan sales. The remaining small portion was fought over by hundreds of electric fan brands like vicious dogs, and Thunder electric fans only managed to grab a few scraps.

Since mid-May, Lei Dongbao has received countless phone calls, from Lei Shigen to various leaders in Jinling County, all of whom are talking about Xiao Leijia.

"Xiao Leijia is in a terrible state right now. The factory has stopped production, and other projects have also stopped one after another. Even the Xiao Leijia New Village has been forced to stop construction because there is no money for renovations. The Angora rabbit breeding base has been built, but there is no money to buy rabbits. Many people are begging Lei Dongbao to give them a way out!"

How could Xiao Leijia not be in a terrible situation?

Throughout May, sales in Anyun Province reached 779 units, breaking the historical low. This sales figure stunned everyone. Leiting Electric Appliances still has more than 100,000 electric fans in stock!

Starting around mid-May, Leiting Electric Factory completely shut down. At first, they were just like everyone else, waiting to see Lei Dongbao's Peak brand electric fans fail. But the more they watched, the more something seemed wrong. Peak brand sales were getting higher and higher, while their own Leiting brand was almost being squeezed out of business.

With the peak sales season in June fast approaching, sales were stagnant. The leaders were getting anxious and, in desperation, many called Lei Dongbao, hoping he would reduce the sales of Dianfeng electric fans so that Leiting electric fans could have a chance to survive.

Isn't this a joke?

Naturally, those people soon realized that they were a joke from the very beginning.

From the very beginning, Peak brand electric fans have never made a loss-making business. Their so-called trade-in program is actually quite profitable!

The leaders of Leiting Electric Factory had to realize this and hurriedly follow suit, but it was too late. Their limited advertising budget meant they were destined to lose this year.

Should we increase the budget at this point?

It was too late, because Xiao Lei's family had no money left in their accounts.

Besides the depletion of cash flow, Xiao Lei's family currently owes the bank tens of millions of yuan in loans. In the past few months, Xiao Lei's family has been spending money like water, slowly creating a hole that is now only going out and not coming in, and there is no way to plug the hole.

Everyone is now in a panic. If things continue like this, Leiting Electric Factory will go bankrupt in their hands, and then they will be in trouble. Last year, Xiaoleijia was even featured in the China Daily. This year, it is going bankrupt. Who will take the blame?

In short, someone has to take the blame. Of course, before that person takes the blame, if there's any way to salvage the situation, then we should definitely try to salvage it.

Originally, Xiao Lei's family wouldn't have fared so badly this year. If the Peak brand electric fan hadn't made such a domineering debut this year, then with the reputation that Lei Ting electric fan had accumulated over the past two years, it wouldn't be a huge success, but at least maintaining its existing market position in Anhui Province would definitely not have been a problem.

However, this year, the Peak Electric Fan suddenly appeared and completely snatched away those customers with its absolute advantage. By the time they realized what was happening, the Thunder Electric Fan had no place in the market.

Sales in other provinces are also embarrassing. The advertising expenditure didn't even make a ripple. According to incomplete statistics, the total sales in the other provinces in May were less than 500 units, which is very embarrassing for them now.

By June, they knew the secret of the trade-in program and wanted to increase advertising investment to revive Thunder Fans, but at this point, they were simply out of money.

The leaders of Jinling County also contacted the bank to try to get a loan of several million yuan. With the money, they could try to promote the brand through advertising and leverage the reputation of the Thunder brand, which would at least help them save face.

But at this point, Xiao Lei's family had been out of work for more than half a month, and they still wanted to take out a loan of several million.

That sounds wonderful!

The banks had already joined forces and started discussing how to ensure their interests were not harmed, so that those assets could be quickly realized should the Thunder Electric Factory fail.

Originally, Xiao Lei's family had another powerful weapon, namely the plastic lucky fan. However, due to the lack of leaders who were optimistic about the lucky fan project, only 5,000 units have been produced so far this year, and all of them have been deployed for sale in Anyun Province.

Because of the lack of advertising and outdated design, the plastic "Lucky Fan" priced at 59 yuan had zero sales throughout May—yes, not a single one was sold.

The project, which cost tens of millions of yuan, yielded this result. This has enraged certain officials in Jinling County, who know that their political careers will soon be over along with that of Xiaolei Village.

Like a group of gamblers who lost their bets, at this moment, they are all trying to find excuses to shirk their responsibilities. The reason why Leiting Electric Factory is in its current state is all Lei Dongbao's fault. If he hadn't taken it upon himself to purchase so many injection molding machines and spent tens of millions of yuan on the Hongyun Fan project, Leiting Electric Factory wouldn't be in this situation today.

If we had tens of millions of yuan now, Xiao Leijia would definitely be able to revive and achieve new glory.

In fact, the current situation in Xiaoleijia has already made the employees of Leiting Electric Appliance Factory very dissatisfied. In early June, they were informed that the May wages would be suspended and that more than 300 workers hired in April would be laid off.

Soon, all sorts of rumors spread, and even ordinary villagers in Xiaolei Village heard the news that Leiting Electric Factory was very likely to go bankrupt because it owed the bank tens of millions of yuan and was penniless.

As a result, a flood of complaint letters arrived on the desks of county and city leaders, demanding severe punishment for these incompetent managers.

The public's complaints have attracted the attention of the city and even the province. People have already received information that the investigation team will be stationed in Xiaolei Village as early as the end of June.

The reason for waiting until the end of June was naturally to see if Xiaolei Village could come back to life in June. If it was still so lifeless at the end of June, then when the investigation team entered the village, they would definitely have to find a scapegoat.

The leaders in charge of Leiting Electric Factory are now filled with regret. They thought Leiting Electric Factory was a golden opportunity, but in less than half a year, it has turned into a cesspool.

The people who jumped in not only didn't get to eat the excrement, but they also ended up smelling terrible. Everyone suspected them of stealing and eating the excrement, but they had no way to explain themselves; they really didn't steal any!

Since I'm going to be unlucky, I have to drag someone down with me no matter what. Who should I drag down?

It's Lei Dongbao, of course!

Lei Dongbao built Leiting Electric Factory from scratch. Last year, he made tens of millions of yuan in profit, which he then channeled into that "Lucky Fan" product. As a result, Xiaolei Village is now in this terrible state, and Lei Dongbao bears an unshirkable responsibility for it.

Although Lei Dongbao did not embezzle a single penny on paper, at this point, these people had to find a way to shift the blame onto Lei Dongbao, for one reason only.

This reason is readily available and quite sufficient!

Lei Dongbao, acting in concert with outsiders, transferred tens of millions of yuan in assets from Leiting Electric Factory through the Hongyun Fan project. He must be severely punished. After some maneuvering, the investigation team, before even entering Xiaolei Village, arrived at Jinzhou Second Machinery Factory in mid-June and took Lei Dongbao away for investigation.

Lei Dongbao was taken away for investigation, and the resulting uproar was like a powder keg that had already been lit. Countless people were waiting to see how much power this powder keg would explode!