"Dividends?" Lu Feng remembered that the VCD factory still had half of the shares held by Jiafeng Electronics, but these shares were dividend-paying shares, and the controlling stake was still in Jiafeng Electronics' hands.
“I will definitely give him the dividends. It’s not that I’m ignoring his calls, I’m just busy. You should talk to him nicely. We won’t give him dividends this year, mainly because the funds are needed for development. If he asks again, just say that we will definitely give him dividends next year, no less than 50 million.”
Liu Cheng felt somewhat helpless. Jiafeng Electronics was making a fortune from VCDs, so it wasn't appropriate for him to give them an empty promise.
"How about a percentage?" Liu Cheng said with difficulty, "Now many people are saying that they were fooled by you back then. If you had given them the technology rights, they would have received hundreds of millions."
Lu Feng sighed. The company was really in trouble. If they were to open a new factory, it would be another investment. The situation in China was different from a few years ago, and the scale of investment was definitely not as large.
Unless it's going to some small places, but Lu Feng doesn't want to go to small places.
"Then after the finance department resumes work after the New Year, give him a sum of money according to a certain profit-sharing ratio, but it can't exceed 20 million, understand?" Lu Feng asked Liu Cheng; "What is the cost price of our pagers after they're taken off the production line?"
"The price of the product itself isn't actually that high. Although some of the raw materials are of slightly higher quality than those used in televisions, not counting the technological investment and network access fees, the product only costs a few dozen yuan," Liu Cheng said with a smile. "What's the value in a pile of plastic sheets? It's the technological investment that's valuable."
"How much is the network access fee for manufacturers now?" Lu Feng asked.
“The prices of paging services vary from one paging station to another. I estimate it would cost several million, for numbers like 198/199/126/127.” Liu Cheng pondered for a moment and said, “I was talking to them about pricing a few days ago. Bird’s current price in the terminal market seems to be 2,800, right?”
“Two thousand nine hundred and ninety,” Zhu Lidong said.
"If there were no technological barriers, this would be the most profitable thing in the world," Lu Feng exclaimed with a smile.
“Our biggest investment right now is how to recoup that 400 million yuan. Pricing is also a problem. I think that if we price it the same as Bird, we will have an advantage in sales channels.” Zhu Lidong thought for a while and said, “I think that with the same price, we can quickly penetrate the market and recover our funds faster.”
Lu Feng somewhat agreed with his statement and looked at Du Guoying beside him, asking, "What are your thoughts? Tell me."
"I don't know if what I said is right or wrong. These are just my own thoughts, and I can't compare them to those of you CEOs," Du Guoying said rather tactfully.
"It's alright, just say it. It's not like we're officially starting work today. We're just sitting here chatting." Lu Feng leaned back in his chair, picked up a cigarette from the table, offered one to each person, and crossed his legs, saying, "There's no right or wrong here."
"Then let me share my thoughts. Mr. Liu just said that apart from the technology cost, the physical cost is very cheap, which means there is still room for reduction. We spent 400 million yuan to buy the technology, which is really too much. In any product competition, the price war is definitely the first priority. Since the physical cost is low and our technology cost is high, I think we will be very passive in the subsequent price war."
"Therefore, a product can no longer stand alone. If you want to keep the price from being too affected by competition from the same industry, you need to give the product other aspects to differentiate it, just like steamed buns and bread."
“I don’t know if what I’m saying is right or wrong. My idea is that going public will bring an impact and drive down prices, but we need to stabilize prices, for example, at 2,600. Even if prices drop, we can’t let people think we’re cheap or low-quality. Instead, we need to tell the market that this is the price, and those people are lying to you.”
"Next, we need to add some other aspects to the product, focusing on the characteristics of the target audience." Du Guoying pondered for a while before saying, "It's about what makes them want to buy this product."
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