In the chairman's office at Jiafeng Electronics factory, the desk was covered with blueprints, which several construction engineers carefully examined. After half an hour, they all nodded in approval.
"Production can begin tomorrow. The production line doesn't need much debugging. Its standard is basically based on last year's technology. If it were the new standard for this year, it would take more than half a month to debug."
"Then start production as soon as possible. Keep the blueprints safe!" Lu Feng instructed.
Everyone stood up and left. Zhang Fengxia watched them go and said, "So it's already in production? Our sales channels haven't even been established yet."
"Hasn't it already been rolled out in this city?"
“But it’s only in this city; there are a few agents in the counties below!” Zhang Fengxia said.
"That's enough. Let's take this place first and set an example for the others." Lu Feng picked up the internal phone on the table to dial a number, but suddenly realized he didn't know the internal numbers. He asked, "What are the phone numbers for the Marketing Department and the Business Department?"
"Number nine and number seventeen!"
Lu Feng pressed the button on number nine and said, "Have your manager go to the chairman's office and have him bring the local market research report."
After hanging up the phone, he called Number Seventeen again, gave him instructions, and then asked Lu Feng, "He'll be here in a bit. Let's have a quick meeting. Cost is a big issue. To win a price war, we must take control of the pricing power in the supply chain. Do you have any questions?"
"What should we do with that General Manager Zhu?"
"President Zhu?" Lu Feng looked up, somewhat confused, and asked, "What President Zhu?"
"It's Zhu Lidong who came to see you, haven't you forgotten?"
Lu Feng slapped his forehead, realizing he'd been so busy these past few days that he'd completely forgotten about him. He asked, "He's here?"
"Yes, I arranged for you to stay in a hotel. They even called me this morning to ask if you were back yet."
"Then let's meet with him this afternoon and get him on the job as soon as possible. At the same time, we'll draft a contract this afternoon regarding management shareholding, and start implementing it in the next day or two."
As Lu Feng was speaking, there was a knock on the door.
"Come in!"
"A man and a woman walked in. The man was about thirty-five or thirty-six years old, with a buzz cut, giving off a steady feeling. The woman was about forty years old, very tall, with a strong build, and long hair."
"Hello, Mr. Lu! Hello, Mr. Zhang!"
"Please have a seat." Lu Feng looked at the two of them, who seemed a little confused, and asked, "Who's in charge of the business department?"
"Zhao Li, Manager Zhao," Zhang Fengxia said hurriedly.
If it weren't for the fact that he knew Lu Feng was pregnant during the last meeting, Manager Zhao would definitely have thought that some spoiled rich kid had descended to earth.
"The suppliers' prices are very high. The copper, tin, aluminum, and raw materials for electron tubes that we purchase are about 10% more expensive than those of other companies."
"Mr. Lu, we don't need a large quantity, and they won't lower their prices. We only managed to negotiate this price with the bosses I know. Also, Mr. Hong's price is too high; he told me he's your friend," Manager Zhao said, sounding troubled.
"What's wrong with my friend? You really worked in purchasing?" Lu Feng stared at her, making a clanging sound as he tapped the table with his hand, and shouted, "Don't even mention my friend, even if my own father came, it wouldn't work. Don't you understand this principle? If he says anything more, just say it's a matter of procedure. You pass the buck to me, I pass it to you, and that's the end of it, isn't it?"
"Yes, yes, yes!" Manager Zhao nodded repeatedly.
“Raw material prices must be reduced by another 20%, but the quality cannot be changed. We can do it this way: sign large contracts, for example, buy the same quantity as other factories, but not all at once. The money will be paid in stages, exchanging contracts for prices.”
"Twenty percent is a hard target. If you can't meet it, you should resign!" Lu Feng gave the final approval and said, "I only care about the results. I don't care if your methods are dirty or the process is disgusting."
Manager Zhao nodded without saying anything, her face looking rather grim; it was clear that this matter was very difficult for her.
"And the marketing department, the sales terminals in the city, have all been connected in the last three days. The city mainly transports finished products, so the service needs to be good. We made a big splash. Now, tell me about the situation in the local market."
"There are more than a dozen brands in the city now. The most popular is the 29-inch color TV, commonly known as a large color TV. The price is around 5,000 yuan. According to incomplete statistics, the daily sales volume should be around 10,000 units, and it is still rising. From the daily sales of 3,000 units last year, it has been climbing continuously, and it is indeed showing a booming sales situation."
Ten thousand units per day!
Lu Feng felt that this number was not much for a city as populous as Suzhou. He set a small goal: to crush all TV brands in the city within a month.
"A new president in charge of the market will be arriving in a few days. I hope you will cooperate well. My requirement is that within one month, our brand's sales in the local market should account for more than 50%, and at the same time, in our external market expansion, we must minimize transportation costs and losses."
Lu Feng sighed, feeling helpless about the current transportation system. He said, "If possible, start by waterway, such as cities and provinces near the sea like Tianjin and Shandong. Prioritize waterways, and then use these cities as starting points to expand outwards, capture the market, and reduce costs first!"
"OK!"
Everyone present could tell that Lu Feng was now preparing to wage a fierce price war and was willing to cut costs at all costs.
As the price list was gradually reduced, the final cost was calculated to be 3,1045.7 yuan. After adding the distributor's commission, the terminal selling price could be effectively controlled within 3,500 yuan.
There's even a 10% profit margin involved, making it highly feasible.
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