Chapter 36 Factories with Numbers



"Damn, so expensive?" said Zhang Taoming, the chubby boy.

"This is just the cost of materials; I haven't even included labor costs," Xing Baohua said.

"How much do you make a month? 50 yuan at most. And you're asking for labor costs?" the chubby boy said disdainfully.

Liu Haibo waved his hand to stop Zhang Taoming from speaking, and asked Xing Baohua, "I'll give you ten thousand yuan. Tell me what you need, and I'll get it for you. The things I get are cheaper than yours."

Upon hearing this, Xing Baohua picked up the wine on the table, raised it to the other party, and said, "Alright, I'll give you a referral order, and you get me one. Let's be honest and straightforward, you send the money to my shop, I'll give you the referral order, and I'll make the equipment for you two as soon as possible."

Xing Baohua tried his best to maintain an expression that seemed like he was at a disadvantage, but in reality, he was overjoyed. Sun Changjie, as he raised his glass, also glanced at Xing Baohua, wondering if he had overpaid by offering three thousand yuan.

Then the three of them whispered among themselves, and Xing Baohua, with his sharp ears, overheard something about permits and such. A huge wave of turmoil surged within him; these days, nothing was more lucrative than dealing in permits. Was 20,000 yuan too little? They weren't in the same circle, and everyone was wary of each other. Integrating into this circle was incredibly difficult.

Entering this circle can grant him access to a multitude of resources he desires, but the risks are also immense. One wrong move and he could be devoured without a trace.

What can we play with them? We can't rely on our parents' connections anymore, so it's better to stay away.

After the dinner, Liu Haibo arranged to meet Xing Baohua the next day, but since Xing Baohua had something to do the next morning, they changed it to the afternoon.

On the way back, Xing Baohua said to Su Ya, "Don't invite him to any more gatherings like this."

Did he want to spend the 1980s quietly?

I rushed back to the factory, took the materials, and went to the factory manager's office. I waited in line for half an hour before I could even see him.

This time, Director Li didn't let Xing Baohua sit at the reception table. Instead, he sat at his desk, looking at the draft drawings that Xing Baohua had submitted.

He asked, "Have the raw materials been verified?"

"No, I've only designed the appearance first. I know the prices of a few electronic components, but I don't know the prices of the others," Xing Baohua said.

"You used engineering plastics for the outer shell?" Factory Director Li asked, looking up at Xing Baohua.

“Yes, at least the texture needs to stand out significantly. Other materials will take time to compare. And I need some funds for modeling right now,” Xing Baohua replied.

Factory Director Li didn't speak, but thought for a moment. He picked up a cigarette from the table, but put it down again just as he was about to light it. Instead, he picked up the telephone on his desk, pressed a couple of buttons, and said to the operator, "Tell Shen Jie to come to my office."

However, seeing the phone number made Xing Baohua's eyes light up.

Program-controlled exchange?

This is something we could try to work on. However, it would likely lead to the factory's telephone operators losing their jobs, which would be a terrible thing!

As for the PBX, let's put that aside for now. Let's get the calculator out of the way first.

He didn't know who Shen Jie, the factory manager had mentioned, was, but he guessed he might meet him after they met.

After waiting for about ten minutes, a middle-aged or elderly man knocked on the factory manager's door and came in.

He glanced at Xing Baohua first, then said to Factory Director Li, "Factory Director..."

"Old Shen, take a look at this drawing first. Can you estimate how much material is needed and calculate the cost?" Factory Director Li handed Xing Baohua's sketch to Shen Jie.

The diagram shows important components and material specifications. This allows you to visually visualize what the product will look like.

Shen Jie looked at it carefully for a few moments, then took out a thick little notebook from his pocket, which was filled with phone numbers.

He casually flipped through a few pages and said to Director Li, "I'm going to make a few phone calls."

"Hello, is this Factory 742? Is Old Li from the sales department there? Please have him answer the phone..."

At this moment, Xing Baohua's mind was in turmoil. He never expected that there would be such a big shot in the machinery factory.

Moreover, the mention of Factory 742 reminded him of something he hadn't thought of at all.

Then, Shen Jie received a series of phone calls, starting with, "Hello, is this Factory 718?"

Hello, is this Factory 798?

Hello, is this Beijing 878 Factory?

The giants that survived in later generations changed their company names, always adding numbers to the beginning of the name.

Xing Baohua was shocked, and her back was covered in cold sweat.

If I worked for myself, would I have access to these factories with digital infrastructure? Would I be able to get the components I needed? This was the planned economy era!

To get the goods, you need approval from the State Planning Commission, and even then, it's limited.

When will we be able to place orders freely? It seems like it will be after the loan is approved. That means we'll have to wait a few more years.

Previously, the government would approve and allocate funds to enterprises as working capital or for technological upgrading. After the enterprises made profits, they would hand over the profits to the national treasury, thus forming a virtuous cycle.

Later, the country encountered some economic difficulties. In fact, there were many enterprises waiting for approval from higher authorities. There was only so much money, and the approval process varied, with some receiving more and others less.

During the meeting, someone came up with a solution: not approve it. Aren't there banks? Let's leverage the banks' role and let the companies apply for loans themselves.

The business model has changed, and companies now have to pay high interest rates after taking out loans.

On the other hand, the company's profits still had to be handed over to the treasury. In this way, the higher-level leadership not only did not invest a single penny, but also withheld most of the company's revenue as before, causing the company to quickly fall into a loss-making predicament.

The businesses were already struggling and short of funds, forcing them to find their own solutions. Therefore, the planned economy model was no longer viable for these distressed companies; it became a matter of whoever paid first received the goods. Sometimes, even after payment, the goods might not be delivered.

What surprised Xing Baohua was that this Shen Jie was very familiar with many electronics factories! He had to curry favor with him.

My dear reader, there's more to this chapter! Please click the next page to continue reading—even more exciting content awaits!

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