Chapter 255 Nuclear Bomb Level Pricing
"Mr. Soul, you didn't keep your promise!"
"Mr. Oda, please forgive us if we haven't been hospitable enough during this period. Don't worry, we will definitely improve the food!" Ron pretended to be dumb.
When it comes to food, Xiaotian gets even more angry. Fortunately for him, the two of them just flew to Mumbai.
However, the Japanese colleagues who were in charge of technical assistance suffered a miserable fate. After not seeing each other for only two months, they all became visibly thinner.
He came to Mumbai yesterday and did nothing but listen to his colleagues complain about the harsh conditions in India.
The biggest pain point is diarrhea. There are still two colleagues in the hotel, lying on the bed and wailing weakly.
Oda even suspected that Sur Electric had deliberately withheld the food allowance, otherwise the probability of diarrhea would be too high.
"We'll discuss the food issue later. As agreed, you should have settled the balance after NEC's production line was delivered. A month has already passed, why is this matter being delayed?"
"NEC's production line didn't arrive within the agreed timeframe?" Ron spread his hands, expressing his helplessness.
"That was a special case. The sea transportation conditions did not allow it." Oda lowered his voice slightly.
"You see, there are always unexpected things."
"I'm sorry for the previous delay. We will make up for it in future cooperation. Now a month has passed, right?"
"Mr. Oda, according to international practice, delivery includes all services, including installation and commissioning. It means the user doesn't need to worry about anything else and can be used at any time. Is the color TV production line ready to go into production now?"
"NEC employees are doing their best," Oda explained.
"That's it. The progress of the project is entirely under your control. We can't do anything about it." Ron said louder.
"The production line will be adjusted to optimal condition within two weeks at the earliest."
"Okay, I'll wait for your good news."
Ron nodded and walked away.
He walked away with his hands behind his back in front of Oda.
Oh, that's not right. It was clearly him who came here to call for punishment.
Oda wanted to say something, but Ron had already gotten into the car and drove away.
Cunning Indian! But Xiaotian was not too angry. He still had the trump card in his hand. He was sure that Ron would come to him for help later.
Ron got into the car and secretly curled his lips, thinking that he was being taken advantage of these days.
The production line hasn't even been debugged yet, and you're already thinking about asking for money. What will happen in the future?
Core parts, repairs, upgrades. Ron could almost imagine that there were countless levels waiting for him.
Life is so bad!
If he doesn't have some evidence in his hand, the NEC custodian will always be able to control him.
Well, the final payment of $1.2 million is the bargaining chip.
Want to get more money than the deposit? Sorry, there is no such tradition in India.
Back in the north workshop, Ron and Ashish discussed the next production plan for black and white televisions.
Strangely enough, the fact that two TV production lines were being built simultaneously within the Sur campus was unknown to Todai and NEC.
According to the agreement with NEC, the land south of the Sur Park will be reserved for use by Sur-NEC Electric Company.
It was normal to have multiple companies within the industrial park, and Oda and the others didn't think much about it.
The people from Dongda University don't care about anything else around them. They are too cautious and don't go anywhere else except the workshop in the north during working hours.
So the two parties were more than one kilometer apart, located in the same park, but were unaware of each other's existence.
This is perfect, Ron can make a fortune quietly, but there are some things that Xiao Ri can't know too early.
After some discussion, Ron decided to stock 10,000 14-inch televisions in the first batch.
This was a very bold decision, with the production cost alone being Rs 16 million.
When we first decided to produce water air conditioners, we only stocked a thousand units.
In less than two years, Ron's steps became bigger and bigger.
In fact, he was not satisfied with even ten thousand units. If the core component cathode ray tubes had not only been ordered in such a small number at the beginning, he would have wanted twenty thousand units.
It’s simple, it’s just too cheap.
Sur Electric received payment for a 14-inch black and white TV set, which Ron planned to price at 4,000 rupees per set.
In the Indian domestic market, how much do two other black and white TVs of the same size sell for?
The cheapest one is 8,000 rupees, and that's a branded one. If it's imported, the price won't be less than 12,000 rupees.
High import tariffs mean that imported electrical appliances in the Indian market are generally more than twice as expensive as those overseas.
This move by Sur Electric is equivalent to cutting the market price in half.
That's crazy, that's not how it works.
Taking the cost-effective route does not mean directly offering discounts.
Ashish and his colleagues suggested setting the retail price at 6,000 rupees, which is 25% cheaper than the market price and a lot of people will buy it.
No, Ron wasn't after that little profit.
He wants to take over the market share from two local manufacturers, Onida and Videocon, as well as other imported brands.
Taking it step by step is too slow; a nuclear-level killer weapon is the most useful.
Besides, is there no profit to be made at a price of 4,000 rupees?
Ron said he would become the richest man if he lost money.
The total cost is only 1,600 rupees, and this is just the beginning. It will be no problem to reduce it by 20%-30% after the scale is achieved in the future.
After deducting the 15% profit left to the dealer, Ron made a net profit of 1,800 rupees for each TV.
Profit margins exceeding 100 percent are crazy.
Another advantage of low pricing is that the market will be expanded, and people who previously thought televisions were too expensive will also be attracted to them.
This is an incremental market, and Sur Electric will have no competitors in the next few years.
In order to ensure sufficient supply when the product was launched, Ron placed an order for 20,000 sets of cathode ray tubes with Dongda.
There is no other way. When the technical strength is insufficient, we can only rely on imports.
If the profit from Sur TV is sufficient, Ron is ready to talk to Dongda about introducing a cathode ray tube production line.
But that’s a story for later. The most important thing now is to take people to see Xiao Rizi’s color TV production line.
The workers had already left work, and Xiao Ri left an hour earlier.
They spend less than six hours a day here, including some slacking off.
The workshop was quiet, but when the lights were turned on, the entire scene was visible.
I have to say, because the products we bought were brand new, the color TV workshop looked much more upscale than the black and white workshop.
The people from the University of Tokyo were amazed at the brand new equipment. This was beyond their expectations.
You said you would make black and white TVs, but you secretly set up a color TV production line.
Judging from the situation, the project is almost complete.
"Gentlemen, how about it? Can you make color tubes that match this production line?"
"Is this a production line from Japan?" The technical staff of Todai are very experienced and can tell its details at a glance.
"NEC assembly line, new stuff."
"Not bad, very good."
Even the masters of Dong were a little envious of this thing.
Their domestic color TV technology also relies heavily on cooperation with Japan.
For example, core components such as chips and color tubes were previously basically all in the hands of the Japanese.
It was only in the past two years that local accessory manufacturers gradually mastered those technologies.
But precisely because of this, Todai’s technology and daily life are following the same path.
"There are no domestic manufacturers cooperating with NEC, but the technology in Japan is generally similar, and there are at least three color tube factories that can match the production lines here."
"Are you sure?" Ron was delighted.
"Of course, if you need it, we can contact them and ask them to send someone over to do the technical adaptation."
"Oh, that's great. But there's no rush for now. Let's wait until the production line is adjusted."
Ron was secretly proud that his plan of living a good life was going to be shattered.
Do you really think that Soul Electric will not be able to make color TVs without you NEC?
Naive! You have no idea about the bottom line of Indians.
In order to thank Mr. Dong for his help, Ron took them to the Taj Mahal Hotel for dinner in the evening.
This made them very happy. It was a five-star hotel. They couldn't get such treatment in the country.
After eating and drinking, Ron was about to go back, but Ashish stopped him.
"Boss, can you give me your invoice?"
"Why? You don't want to take it back for reimbursement?" Ron looked at him with amusement.
"Of course not, I just want to collect it."
"Um?"
"When I told people I had dinner at the Taj Mahal Hotel, they didn't believe me. They thought it was impossible to spend tens of thousands of rupees on a single meal."
Ashish is also temporarily living in Kama compound, which is full of poor people.
Ordinary Indians can only admire the Taj Mahal Hotel, a fortress that symbolizes majesty.
Anyone who has eaten there is a sign of being a successful person and a self-reliant person.
Ashish is ready to show off this time and is sure to leave his neighbors jaws dropping.
Having said that, Ashish actually didn't plan to stay in Kama Compound for long.
He bought a house on Mira Road, not far from his sister Laju's apartment and close to the Sur Industrial Park.
The house was very cheap and I bought it in full for less than 100,000 rupees.
Of course, he could continue to wait for the staff dormitory of Sur Electric Appliances to be built, but a dormitory is just a dormitory, and there is no way to give you a sense of belonging as easily as buying a house yourself.
Ashish is also planning to buy a Sur TV, which will make everything perfect.
"By the way, boss, when will our TV be launched on the market?"
"Both production lines will be fully operational starting tomorrow, with people working non-stop in two shifts to stock up for a month."
"No problem, we have experience." Ashish agreed quickly.
This is how the production capacity of water air conditioners was increased. The system of Sur Electric Appliances has been operating quite maturely.
"By the way, what about publicity?"
"We'll start warming up next week, and this time we're going to run a unique ad."
"What do you mean?" Ashish's eyes lit up.
"You'll know soon." Ron smiled mysteriously.
He is already in contact with All India Television, several well-established private television stations, and major newspapers and magazines.
He wanted to flood the screen with Sur TV advertisements and control the entire Indian media for a week.
The most direct and effective means of advertising is indiscriminate carpet bombing.
No matter what, as long as you read the newspaper or watch TV, you will never miss the advertisement of Sur TV.
Of course, to be effective, ads also have to be eye-catching.
Well, Ron prepared something simple this time.
There is no need to shoot commercials, let alone invite Bollywood stars.
One picture and one sentence is enough.
(End of this chapter)
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