Taobao is now almost completed and will be online in June. If MP3 cannot catch up, the launch time of Taobao will have to be postponed to accommodate production capacity.

In fact, Taobao could have been launched first, but Zhou Hao felt that if he launched on Taobao first, he would not have any gimmicks to show off. Taobao would be difficult to promote in its early stages, and just inviting the current small sellers would take up a lot of manpower and resources. Instead of doing this, it would be better to directly come up with a benchmark product and boost Taobao's popularity as soon as it was launched.

If Taobao is online, and you use PP, Tieba, Wangwa.com, Alipay and other platforms to roughly divert traffic to Taobao, it will be meaningless. There will be no eye-catching points, which will result in a very low user conversion rate. If the first time user comes in and takes a look, and feels it is not attractive, it will be difficult to attract him to come in again next time.

Therefore, in Zhou Hao's mind, he wanted the release of the MP3 to coincide with the launch time of Taobao, so as to maximize the effect.

Faced with the two OEM manufacturers' inability to provide services, Zhou Hao thought again and again and decided to let the two companies do the OEM together.

In the name of Wangwa Technology, it signed OEM contracts with two manufacturers, ordering 4.5 units from the Taiwan OEM factory and 5.5 units from the Shenzhen OEM factory in the first batch, and paid 30% of the fee in advance.

When Wangwa Technology was split, it didn't have much money on its books, so it borrowed money from Haobo Technology's account and would repay it after the batch of MP3s were sold.

The construction period of the two OEM factories is 27 days. With the mode of 30%+30%+40%, machines will be shipped in three phases. The fastest batch of units can be produced in two weeks, which can be launched simultaneously with Taobao.

The first batch of goods will arrive in early June, and the first batch will arrive every week thereafter. In this way, Zhou Hao will have the confidence to go online on Taobao in early June and directly launch the promotion and purchase of MP3s. At that time, the delivery cycle can be postponed by one week. After all, there is a price advantage. In addition, there is no practice of shipping within 24 hours in the future, so users can easily accept this clause.

All the key details had been thought through. Just before signing the contract, Zhou Hao suddenly had an idea and called the person in charge of the front-end early in the evening to pressure him not to sign the contract the next day. Then he found Lu Yatong and discussed a more important and urgent issue with her.

The two agreed to meet at a coffee shop in Zhongguancun. After Zhou Hao ordered a latte for each of them, he told Lu Yatong about his concerns.

"Just now it occurred to me that no matter which OEM factory we cooperate with, we are a small customer. Most of their production capacity is given to those big customers. Of course, big customers also bring them great profits. If our MP3 is launched on Taobao, according to the zero-profit sales strategy I formulated before, it will be a huge impact on all current MP3 brands. At that time, we will become the public enemy of all MP3 brands. If they put pressure on the OEM factory and ask the OEM factory to stop producing for us, what should we do?"

Zhou Hao's worries are not unreasonable. Once a disruptor appears in the industry, no matter how fierce the competition in this industry was before, this disruptor will become the target of public criticism.

Zhou Hao didn't mean to think that the domestic MP3 manufacturers were so petty, but he had to be on guard against others. If he wanted to disrupt other people's livelihood, they would definitely fight with him.

It was only when Lu Yatong heard Zhou Hao talk about this issue that she thought of the threat.

If what Zhou Hao said is true, and the entire MP3 industry is angered, there is a high possibility that many manufacturers will unite to put pressure on the OEM manufacturers. At that time, the OEM manufacturers may give up manufacturing for Wangwa.com due to pressure from multiple parties.

Lu Yatong looked worried: "Mr. Zhou, if we put aside the OEM manufacturers, if our MP3 players are put on the market, how many can we sell in a year if there is sufficient supply?"

Zhou Hao smiled and said, "It is conservatively estimated that the sales volume of the MP3 market this year will be close to million units. If we disrupt the market with an unprofitable model and have sufficient supply, it will be no problem to sell million units."

Lu Yatong said: "Three million units means sales of almost 1 billion yuan. If the market space is really that big, can we invest in building a factory ourselves, or directly acquire one?"

Zhou Hao shook his head. "I don't want to get involved in hardware production. Once it involves production, it will add a lot of trouble."

Lu Yatong was very curious: "Most hardware manufacturers have their own production lines? Some big brands only outsource some small-scale products to OEM factories."

Zhou Hao smiled and said, "If we produce it ourselves, the troubles involved are unimaginable. Apart from other things, the factory needs to pile up hardware and manpower, the production line needs to be designed, customized, built, maintained, and frequently upgraded, the huge team of workers also needs complex management, and there are too many shady dealings in the procurement of spare parts and raw materials, and it is inevitable to cut corners. In comparison, I would rather pay a little more and let the OEM manufacturer do these for me. I only need to make requirements and give him money, and he will solve all the links such as production, quality control, and after-sales for me. It is clearly written in black and white in the contract that if you do a good job, I will pay, and if you don't do a good job, I will settle the account at any time. How simple and easy it is."

Lu Yatong's beautiful eyes sparkled with a different kind of brilliance, and she said in surprise: "Boss Zhou, I have an idea, do you think it can be used?"

Zhou Hao nodded, and Lu Yatong sat up straight, saying excitedly, "You just said that it's clearly written in black and white in the contract, so I was wondering if we can sign a big contract with the OEM in advance. Although we're ordering 120 units in the early stage, we can set the contract at million units."

Zhou Hao was just about to say that if he paid a deposit for 120 million units according to the normal process, the amount of money would be huge.

Lu Yatong added: "We split the big contract into two parts. One is a direct order of 30 units. We follow the normal process and pay 110% of the payment first, and then they will start production. For the remaining 3 million units, we signed a letter of intent with them. We promised to order an additional million MP players from them this year. For this, we can pay a deposit of or yuan per unit. If we breach the contract, the deposit will belong to them. If they breach the contract and fail to deliver the goods on time, they will have to compensate us five or ten times the liquidated damages."

Zhou Hao was stunned. "You mean to set up a contract trap?"

Lu Yatong nodded repeatedly: "That's what I mean. The factory is definitely not opposed to orders. As long as their production capacity can handle it, they will accept the order without hesitation. If their production capacity cannot handle it, I think they will take it first and then subcontract it to others, because every order is profitable for them."

"The two OEMs only give us a production quota of about 100,000 units per month. We can sign a letter of intent for 1.1 million units based on the production capacity they provide, on the grounds that we are worried that they will adjust the quota. The factory will definitely agree without hesitation, because this letter of intent for 1.1 million units will benefit them in every way. First, we will give them a deposit, and second, they can lock in the profit of 1.1 million units in advance. Moreover, the manufacturer cannot imagine what will happen in the future, so they will be very happy."

When Zhou Hao heard this, he suddenly understood.

Lu Yatong just wanted to set a trap for the manufacturers. Now the production capacity of these two OEM factories is still sufficient. Sufficient production capacity means less money for them, so they will naturally want to run production at full capacity. They got so many orders at one time, and they are orders that they can completely take up. The other party also gave them an intention deposit first, which is simply a great thing for them. Even if they breach the contract and have to pay ten times the intention deposit as compensation, they should not refuse, because they know that the possibility of them paying ten times the compensation is almost zero.

But in this case, as long as the manufacturer has signed the contract, if you are under external pressure and don’t want to produce for me, you will have to compensate me ten times, otherwise there will be no room for negotiation.

Thinking of this, Zhou Hao also became excited. "Yatong, your idea is great. This matter is of great importance. You should meet with the legal department tomorrow and draft a new contract for the foundry manufacturer as soon as possible according to your method. But you must remember that in the one-year contract, it is necessary to specify that the foundry price will be adjusted once a month according to the market price of storage chips. This manufacturer should agree. Now that the hardware is updated so quickly, other brands will definitely consider this issue when signing contracts with manufacturers. The price will definitely be adjusted frequently in the short term."

Lu Yatong nodded, "Then I will start doing it tomorrow."

Zhou Hao said: "It would be best if we could induce them to sign a contract with more production capacity. It would be even better if we could sign a contract with 2 million units."

Lu Yatong thought for a moment and said, "It depends on their current order volume, but I believe their orders for the second half of the year should still be pending. If we place the order first and pay the deposit, they will definitely give us priority."

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