Return to 1958 and build a century-old giant

Chapter 52: Cooperation Negotiated (Seeking Follow-up Reading)

"Well, okay." Yang Wendong nodded. Generally speaking, although dealers and suppliers are cooperating, they are usually wary of each other. After all, each has its own dependence.

It's enough for you to know the other party's general situation. They won't be able to tell you the details.

Besides, it’s useless even if you know it yourself. In this era, many people make money by relying on various relationships. It’s useless even if outsiders know it.

After taking a sip of tea, Yang Wendong continued, "You two, during this period of time, I have analyzed the subsequent production capacity costs and market demand, so I set the price at 4 cents per piece."

“4 cents?” An Yongqiang and Zhao Chengguang looked at each other, and then Zhao Chengguang said, “Mr. Yang, this price is still a bit too high.

4 cents is just your factory price. If we take into account our channel costs and profits, the price at the terminal will be at least or cents. This price is not competitive at all.”

An Yongqiang also said: "Yes, the average salary in Hong Kong is only 80 yuan, but this is just an average. Most people may only earn one or two yuan a day. The price is too high, which is not conducive to our market expansion."

Yang Wendong shook his head and said, "Compared to the price of rat cages, which require manual handling of rat carcasses or even live rats, our price is absolutely acceptable.

Besides, the first batch of users of any new product will definitely be wealthy groups. We sell to people with some money first. They are not very sensitive to price and only care about effect and convenience. These people will be our first batch of users. "

If compared with the prices in the mainland in later generations, anyone would think that the price of this mouse trap is too high.

But in later generations, the mainland is the world's largest industrial country. With convenient express logistics and complete transportation infrastructure, the prices of various industrial products are ridiculously cheap. This is why when global inflation occurs after 2020, deflation will occur in China.

Today, Hong Kong's industry has just begun to develop, and various industrial products are dependent on imports and are expensive. Even if Hong Kong can produce a few industrial products, the pricing will definitely follow the market rather than its own costs.

In other words, the price of a rat cage determines the upper limit of the price of mouse stickers. Unfortunately, in Hong Kong, a country that does not produce iron, the price of a rat cage is also very high.

Zhao Chengguang nodded and said, "Mr. Yang's idea is a good one. We can sell it at a higher price first to screen the wealthy people, and then lower the price when the demand is good enough."

Yang Wendong said: "Yes, it just so happens that my initial production capacity is not enough. If I sell it cheaply, it will definitely not meet the demand. Once it cannot meet the demand, other factories may copy it, and then it will be troublesome."

Zhao Chengguang said with a smile: "Don't worry, I still have some resources in Hong Kong. I'm not very strong, and there are many people who are stronger than me, but these people don't think highly of this market."

Yang Wendong added: “That’s naturally better, but from the perspective of maximizing profits, we don’t need to set a low price in the early stages. We should start from a high price and then gradually reduce it.

In addition to production capacity, I also have to consider the initial investment costs of equipment and fixed assets.”

The pricing of most commodities involves a process of testing the market.

For example, in the automobile industry of later generations, the most common practice is to set a high price and then look at market conditions. If sales are good, the price will be raised, or additional equipment will be added, loans will be required, etc. If sales are not good, the price will be lowered.

Although consumers don't like it, this is business. As long as it is not a daily necessities product related to survival, it is understandable that everyone does it for profit.

"That makes some sense." After listening, An Yongqiang also said, "But if sales are not good in the future, Mr. Yang will have to make some changes."

Yang Wendong nodded and said, "Don't worry. For me, the most important thing for a factory is the production capacity. The quantity is definitely more important than the price." Zhao Chengguang smiled and said to An Yongqiang, "Ansheng, your channels are sold to cargo ships. Those people don't care about this little money."

An Yongqiang said: "That being said, there are too many people to take care of. If the final price is too high, then we can't compete with other methods of extermination. Others also have some connections."

Yang Wendong then said: "What we pursue is profit. I have patents and factories, and you have channels. We can all profit together. Who knows, the Hong Kong market may even be in short supply.

When Li Jiacheng launched the plastic flowers last year, weren’t they also snapped up by countless people? "

Zhao Chengguang smiled and said, "Yes, there are still many wealthy people in Hong Kong. As long as our products can meet their needs, maybe they will be in short supply as well."

"Then we will raise the price." Yang Wendong said calmly.

As long as he did not monopolize daily necessities such as food, cold-proof clothing, etc., he would naturally do business as business, which was also his business philosophy for countless years in later generations.

Of course, in his previous life, his business was not that big, and in that era when the average annual income of Douyin users was one million, it was nothing.

Zhao Chengguang nodded and said, "Okay, let's try it this way first. If there are any problems, we can change it. After all, it's a new product, and no one knows if the price will be right now."

"That's right." An Yongqiang said, "It's normal to have different prices for the same product. We can set high prices in places with strong purchasing power and high demand. If it's not suitable in other places, we can just lower the price."

"Yes." Zhao Chengguang also said: "Then, Mr. Yang, let's try to cooperate first. The price will be what you said. We will decide the specific price based on the market feedback later.

However, as a channel, we must also have interests, and you can't give it to others."

Yang Wendong nodded and said, "Okay, but you also have to ensure that my products can enter many areas of Hong Kong."

"Of course." Zhao Chengguang added, "How about we follow the normal trade and factory cooperation model and set a one-month adjustment period so that we can see market feedback and then finalize the cooperation matters?"

"Okay." Yang Wendong agreed. As long as there are no major problems during this adjustment period, they can basically become long-term partners.

"When can we get the first batch of goods?" An Yongqiang seemed a little impatient.

Yang Wendong said with a smile: "In these two days, once my staff become more skilled, the production capacity will increase faster and faster."

The labor cost in Hong Kong is very low. In addition, mousetrap is relatively simple to make and can be done entirely by humans. It can also drive employment. As long as there are many people, there will be more production capacity, avoiding the huge equipment investment in the early stages.

"That's good." An Yongqiang nodded, and then suddenly asked: "Mr. Yang, will you export your mouse traps in the future?"

……

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(End of this chapter)