"The entry threshold for these electronics stores is so expensive, 30%? Isn't the profit margin for retail items very low? Siemens products are priced like this too?" Lu Feng complained.
"No! Siemens' entry barrier to these two companies is that they offer less than 10% profit margin to end-users. After all, they are big brands, and we are foreign brands that rely on their channels for sales. Moreover, we are expected to need to pay a deposit of ten million pounds when signing the contract." The high-nosed man next to Lu Feng stared at him and said, "These are basic business rules in the industry. Don't you understand?"
"Ten million pounds? That's equivalent to over one hundred million RMB? My light assets have been turned into heavy assets? This plan is unacceptable." Lu Feng's face was very unpleasant. Good heavens, after all this calculation, I have to invest several hundred million RMB first. Whether I can make money or not is unknown, but at least I'll spend it first.
When Sean saw that Lu Feng did not accept the plan, his face turned somewhat ugly. In his opinion, this should be the safest plan. As long as it is steadily promoted, Jiafeng Electronics may really be able to gain a foothold in the European market in the next three to five years. As long as they find a space to survive and use time to exchange for the market, they will eventually succeed.
The blond-haired guy next to him was a little annoyed and said, "Don't you understand business?"
"Do you even know what a poor family is?" Lu Feng snapped at him. "I came from a poor third-world country to a developed country and started throwing money around. Am I out of my mind? You can't just study the market and your competitors. When you're making a plan, you have to consider Jiafeng's actual situation."
"So you mean we should create a business plan with no cost and only profit?" The blond-haired man scoffed dismissively. "Are you kidding me? Don't you understand the basic rules of business?"
"Do you even understand Jiafeng?" Lu Feng asked, his brow furrowed. "What's the next plan?"
Sean was so angry that he didn't want to talk anymore. He kept waving his hands at Li Xiaosi, signaling her to stop translating because he didn't want to listen.
Generally, there will be two such plans: a main plan and a secondary plan. The secondary plan is simply made up to make the other party feel that the money was well spent.
"The other option is the high-end route. Simply put, it's to exceed Siemens' pricing and market it at a higher price. I won't go into details, you can see for yourself." The blond-haired man impatiently handed over the copy and leaned back in his chair without saying a word.
Lu Feng glanced at the folder and closed it, saying, "Neither of the two plans will work. Your main task is to prepare a local market research report. You don't need to do anything else. I can see that you'll never make any money in your lifetime relying on your plans."
This sentence directly angered Sean. As someone who had spent most of his life in the European business world, how dare a young upstart say such a thing in front of him?
Yellow Hair and Big Nose were instantly displeased, staring at Lu Feng and scolding, "Do you know what you're saying? Do you know who's sitting in front of you? He once did international market planning for Siemens, product line planning for Philips, and was the global chief planning consultant for Volkswagen Group. He's known as the boning knife of the European business world!"
Lu Feng rolled his eyes upon hearing this. You talk to him about the front gate tower, and he talks to you about the hip shaft. He said, "You say he's the boning knife of the European business world, then I'm the cleaver of the Eastern business world. You don't need to do any planning. I'll handle it myself. Just do the relevant data collection, market intelligence, and interpersonal relationships. I'm very tired right now. This plan isn't without value. It serves as a negative example for companies from third-world countries entering developed countries, so it's very meaningful."
Lu Feng's words were like adding fuel to the fire. Huang Mao couldn't take it anymore and slammed his hand on the table, shouting, "This is the best plan, and the most feasible one. Let me tell you, if we follow this plan, this company still has a chance to survive. If you mess things up, it's definitely a dead end."
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