Reborn Xiangjiang as a Tycoon

Chapter 148 Sales of Rubik’s Cube

"As a new channel dealer, we have never cooperated with those toy companies before, so the cost price of purchasing goods from toy companies is higher than that of other channel dealers. Fortunately, our store locations are very good, so business is good.

But not much in terms of profit.”

Eric's more detailed answer.

Isabella was more specific: "Generally speaking, channel dealers' profits are between 10% and 20%. For popular and long-lasting products, channel dealers usually only have 10% of profits; most of them

The profit of product distributors is 15%; for a few products that have average sales or have been popular for many years and have not sold well, the distributors have 20% profit."

"Because we are a newly established channel and have never cooperated with other companies, our profits for all products will be reduced by 3%. For the same product, other channel operators can earn 15%, so we can only earn 12% of the profits.

.”

"As for the specific profits, January is not included for the time being because it only operated for about ten days. The total revenue in February was US$2.4 million, of which popular products accounted for 60% of the revenue and 12% of the total profit.

25% of the revenue, and the remaining toys with average sales account for 15% of the total revenue.”

"In terms of profit, the total profit is about US$240,000. There are 160 employees in 40 stores. Small stores are equipped with one store manager and two ordinary employees, and large stores are equipped with one store manager and four employees. The monthly salary of each ordinary employee is

260 US dollars per month, and the store manager’s monthly salary is 350 US dollars, which adds up to a monthly salary of about 45,000 US dollars.”

"This is only the monthly salary of the employees at the store. There are dozens of employees in the company including salesmen, front desk staff, and the highest-paid manager, Eric. The combined salary of all employees has reached 100,000 US dollars.

"

"In addition to employee salaries, there are also additional expenses such as water and electricity, which are about US$30,000 to US$40,000. Therefore, the real profit last month was only about US$100,000."

"Although because we just opened the business last month, the monthly operating income will increase and the profits will also increase in the future, but based on your investment in BOSS, it will take at least several years to recover the cost.

"

Regardless of the fact that you can make one hundred thousand US dollars per month now, and the monthly profits will be even more in the future, you may still have a profit of two million US dollars in a year, but this does not include other expenses throughout the year.

, and the most important tax, whether you can earn 1.5 million US dollars in a year is a question mark.

Lin Baicheng's investment is US$8 million. Even if he can earn US$1.5 million a year, it will take 5 years to recover the cost. This is when the business is not bad every year. If the business is not good one year, then what will happen?

It will take longer to earn back the cost.

However, Lin Baicheng is mentally prepared for this. Without selling his own products, it is already good to be able to earn employee salaries. What's more, the current channel profits are still 3% lower than other channel operators. Over time, these 3% profits will definitely

It will recover and you can make more money.

Lin Baicheng said: "Jupiter Toys Company has now stocked a large number of Rubik's Cube toys, and now it is time to sell them. The focus of the Rubik's Cube promotion is wisdom and environmental protection. The aspect of wisdom means that playing with the Rubik's Cube can be beneficial to the development of children's intelligence. Combining the Rubik's Cube with

With the 'smart' hook, I believe parents are willing to pay for it. In terms of environmental protection, the materials used to make the Rubik's Cube are environmentally friendly and will not cause health damage to children, allowing parents to buy with more confidence."

"I plan to promote it through TV stations and newspapers. It will be held in the United States, Japan, and Hong Kong at the same time, and relevant competitions will be held in the three places to cause a greater sensation."

"What I said, do you have any suggestions?"

"BOSS!"

Isabella listened and said: "As for publicity, I don't think it is necessary to spend too much money. After all, the profit we can make from the Rubik's Cube is limited. I remember you mentioned, BOSS, that the Rubik's Cube sells for US$9.9

, in this way, even if we can sell 1 million units, the revenue will only be 10 million US dollars. After deducting costs, labor and other expenses, if we spend too much on publicity, we may not make much money.

.”

Eric also said: "A certain amount of publicity is still necessary to let the public know about this toy, but as Assistant Kent said, you can't spend too much money, otherwise it will not be cost-effective."

"So, there is no need to hold competitions?"

Lin Baicheng nodded thoughtfully, feeling that what the two of them said was not unreasonable. In the final analysis, Lin Baicheng sold the Rubik's Cube to make money. If he didn't make money, there would be no point in selling more Rubik's Cubes.

Isabella said: "For now, it is not necessary. But after the Rubik's Cube becomes popular, we can hold relevant competitions and push it further to make it more popular."

"So what about pricing? What do you think is more appropriate?"

Lin Baicheng asked aloud. He felt that it was better not to be self-righteous. He was not an American. As for the price of the Rubik's Cube toy, it would be better to listen to the opinions of Isabella and Eric.

"In fact, the price can be set higher at the beginning, and then lowered after the first half of the year or a year. This will win the favor of customers."

Eric said aloud that he is quite experienced in sales.

"The initial price, $20, is that too high?"

Isabella asked Eric. Apparently she also thought that the initial selling price could be set higher.

"Can!"

After thinking for a while, Eric nodded and said: "The Rubik's Cube is an educational toy after all, which helps children's intellectual development. We are not lying about this, it is just a bit of exaggeration, so there is no problem in setting the price a little higher.

"

"Since you think the price of $20 is more appropriate, let's sell it at the unit price of $20 first."

Lin Baicheng clicked his tongue. These two people were darker than him, but since the two Americans thought it was suitable, he naturally obeyed. The cost of the Rubik's Cube, even if environmentally friendly materials are used, can be produced in one million units.

In terms of quantity, each one only costs 5 Hong Kong dollars, which is 1.2 U.S. dollars when converted into U.S. dollars.

Lin Baicheng originally sold each one for US$9.9, and could earn US$8.7 per item. Even after deducting shipping costs, labor costs, publicity fees, taxes, etc., on average, as long as the sales volume is more than one million US dollars, he would definitely earn US$5 per item.

.In this way, Lin Baicheng felt that he was quite shameless. After all, the cost of each one was only 1.2 US dollars.

Nowadays, each one sells for 20 US dollars, so the profit of each Rubik's cube is not to mention.

Lin Baicheng asked Isabella and Eric to plan a publicity plan. After he reviewed it and found that there were no problems, he could sell the Rubik's Cube.

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(End of chapter)