Chapter 376 No Resistance
Li Hanqian took a deep breath and buried his head in calculations: "Your costs are fixed, so these installation fees and cable TV fees can be considered as spreading the costs and making a profit."
“Yes, in order to better control the effectiveness of the publicity, I asked Manager Hunter.
In a Canadian community with 500 households, the installation fee is 125 Canadian dollars per household, and the monthly charge is 3.5 Canadian dollars, which can pay back the investment in less than two years.
This is what he is willing to show us, but the actual cost should be even lower than this.
Let's assume that we charge 200 yuan for installation and 3 yuan for monthly fee. As long as there are enough households in the area, we can get our investment back in two years." An Zhixia nodded.
Li Hanqian was stunned. "So if the number of TVs sold is enough, the cost of one TV is about 278 yuan? We have discounts when selling home appliances. The internal price is 20% off, and the ordinary people are 10% off. If it is 20% off, the profit of the four TVs is only 240, 300, 360 and 420 yuan."
It can be said that according to the bundled sales of the three costs mentioned by An Zhixia, the nine-inch black and white TV will still lose money. Although the rest is profitable, it is shared by the supply and marketing cooperative and the TV station, which is not much.
He shook his head and said, "There is no room for this method to be implemented. When we usually sell TVs at 20% and 10% discounts, the fluctuation in TV sales is very small. 70% of the TVs people buy are for weddings. Who would be willing to buy them on ordinary days?"
An Zhixia chuckled and asked, "Actually, the main problem lies with the TV manufacturers. How much do they supply? If we buy TVs in large quantities, what is the lowest profit they can give us?"
"I really haven't understood this," Li Hanqian pondered, "Wait a minute, I'll make a phone call." As he said that, he took the phone book from the desk and went to the living room to dial a number.
Fang Yuan walked up to An Zhixia and asked, "Has the matter not been settled yet?"
"Well, Brother Qian, ask the TV factory if the supply is sufficient," she had already revealed the matter to him before. She was not afraid of Fang Yuan guessing her identity.
This marketing method is not difficult. If you want to make huge profits from cable TV networks, you must ensure that there are enough TV sets. And users who buy TV sets may not choose to open an account to join the network, so bundling sales is the most appropriate, which is almost equivalent to mandatory network access.
The big expense of the 200 yuan account opening fee is paid, and the 3 yuan monthly cable TV fee is the small expense. People who can afford a TV will naturally be willing to enjoy the clear viewing mode.
Li Hanqian made several calls in a row, recording data with his other hand. Not long after, he hung up the phone with a smile on his face, calling An Zhixia to go to the study.
This time Fang Yuan also came in.
"We have many TV manufacturers in Xiahua. The one I asked about is the Kyoto TV Factory in Jinshi. Their annual output is 200,000 sets. Although their factory was able to produce color TVs three years ago, some important components of the TVs still need to be imported, so the number of color TVs is not large. The annual output is only 70,000 sets, and the total is 270,000 sets.
However," Li Hanqian said with a smile, "TVs are not small items. The production quantity is supplemented according to sales. In other words, as long as there is a license, the factory should be able to produce as much as you can sell."
"What about the issue of concessions?"
"The factory manager said that if we buy 1,000 TV sets at one time, we will get a 50% discount. 3,000 sets will get a 45% discount, 5,000 sets will get a 40% discount, and 10,000 sets will get a 35% discount. If we buy more than 10,000 sets, we will pay a 50% deposit in advance. They will introduce three new black-and-white TV production lines and two color TV production lines for us. We will also enjoy a 70% discount for purchases of more than 50,000 sets!"
The effort is quite strong, but the quantity required is also quite high.”
An Zhixia picked up a pen and paper and started to calculate. After a 30% discount, the cost of the four types of TVs were two hundred and forty, three hundred, three hundred and sixty, and four hundred and twenty. Adding the two hundred and eighty yuan cost of the cable TV network, the total cost would be five hundred and two, five hundred and eight, six hundred and four hundred, and seven hundred yuan!
She kept circling the five hundred and eighty and seven hundred yuan, and after a long while she suddenly stopped and asked, "What do you think? If we sell a 14-inch black-and-white TV for seven hundred yuan, and give away two hundred yuan for cable TV subscription, will many people rush to buy it?"
"It's 100 yuan cheaper than the 800 yuan after the 20% discount. It should be able to promote sales." They both nodded. 100 yuan is equivalent to two or three months' salary for many workers! The problem is that there is still a profit margin of 200 yuan at this price.
"The original price of a 14-inch color TV is 1,400 yuan, but we sell it for 1,000 yuan, and give away 200 yuan for cable TV access. This is 120 yuan cheaper than the 1,120 yuan after a 20% discount!" Their profit margin has reached 380 yuan.
"If you buy it, you earn money," Li Hanqian could not help but nod and said, "The people of Xiahua have no resistance to such preferential policies, and they want to take advantage of it even if they have to borrow money from everywhere.
But we can’t estimate how many units ordinary people can buy.”
"So what? We bought 50,000 TV sets at once. The purchase price is low, so we won't lose money. But we have to ensure the quality," An Zhixia said with a smile. "Our overseas channel's monthly advertising revenue has reached 10 million yuan. We can pay for the 50,000 TV sets in two months."
Li Hanqian gritted his teeth and said, "The supply and marketing cooperative can't afford so much money, but we can get you approval slips and persuade the organization to fully support and provide convenient conditions."
An Zhixia smiled and nodded. In fact, all the units were state-owned, which was a great advantage at this time, because she didn't have to worry about the sudden drop in TV prices affecting the market order. At most, the main venue for TV sales would be moved to the supply and marketing cooperatives.
Department stores and other shopping malls will also have to cooperate with TV stations for sales in the future.
With the direction in mind, the two discussed a lot and finalized every detail. As a future business tycoon, Fang Yuan naturally said a few words from time to time to help them improve it.
For example, in order to avoid the imbalance of people who bought TVs recently, they had to give everyone a transition period, just when the cable TV system had just been installed. They advertised on TV, radio and newspapers, and as long as they deposited 200 yuan in the supply and marketing cooperative in the city where the cable TV network was located, they could enjoy the lowest discount price, get 200 yuan for network access and one year's cable TV fee.
They build momentum for cable TV networks, gradually changing people's consumption concepts and making everyone aware of the magnitude of the discounts, thus achieving the purpose of promotion.
To this end, they have also proposed a number of promotional methods, such as on-site raffles, charity performances, etc.
The three of them talked until after ten o'clock, before they sorted out their thoughts and adjourned the meeting.
It’s a bit late today~ I feel like I can update one more chapter...
Happy Mid-Autumn Festival!
I want to set a flag! Tomorrow there will be four chapters, and I will make up for today's. I hope I don't slap my face~~ Aaaaa
(End of this chapter)
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