Chapter 205: Simple Business War

In addition to defeating rivals like Shell, Wang Yuanchao can also research new types of electric fans and have suppliers customize exclusive parts according to his requirements.

When conditions permit in the future, we will study core components such as motors and move from OEM to independent research and development.

He knows these advanced models very well.

It's just that this matter requires more effort, and he was unwilling to go through the trouble before.

The speed at which industry makes money is far slower than that of finance.

Once he makes the money in November, he will have plenty of time to slowly develop his business.

Anyway, he has decided to do this thing. There is no need to rush. He can plan it slowly, but he must push it forward with force.

Several bearded men also helped to keep watch. The fierce woman Shi Zhen could read and write, but as she was injured, it was inconvenient for her to run around outside, so she became his secretary. Every night he would gather everyone together to summarize the day's work results, and the fierce woman was responsible for recording and organizing them.

According to the production standards of small factories like Longsheng, Wang Yuanchao carefully investigated and calculated the procurement and processing costs of various parts and components to see where there was room for further reduction in management and procurement.

Soon, most of the suppliers and sales companies were contacted, and Wang Yuanchao drove there to inspect and negotiate.

He has a car, and his temperament from decades in his previous life is still very convincing.

The embarrassing thing is that, for example, for fan blades, people only provide aluminum alloy plates, and the fan factory needs to use a hydraulic press to press the aluminum plates into the shape of fan blades, and then cut, polish, paint, and other operations.

The motor is a product from Japan that was purchased entirely from a trading company. You should produce this core component yourself!

It turns out that Shell is just a large assembly plant that produces its own non-core components!

It's the same with Longsheng. They have a hydraulic press, which slowly produces fan blades, and then buys motors and other accessories and assembles them, but the scale is much smaller than that of Shell.

The number of workers and factories of Shell are dozens of times that of Longsheng.

Of course, we have to admit that Shell’s technology is incomparable to Longsheng’s.

There is also a difference between assembly plants and assembly plants.

Wang Yuanchao negotiated with the aluminum plate supplier, but the supplier was unwilling to add equipment and manpower to help make fan blades.

Otherwise, they can just produce and assemble electric fans themselves.

Stupid! Short-sighted!
So he tried to talk to Longsheng’s boss and asked if he was willing to help with OEM and only produce fan blades.

The sample he took was the fan blade of a disassembled clam shell.

But the price is kept very low.

Through Wang Yuanchao's careful calculations, it was found that for each fan blade that met Wang Yuanchao's requirements, Longsheng could only make 5 cents! (Hao = Jiao, Xian = Fen)
Of course the boss of Longsheng is willing. The factory has to be parked there and rent has to be paid! Isn't a mosquito leg meat?

He even said that he had stock of those fan blades, and if Wang Yuanchao was willing to accept them, he could sell them directly to him.

But Wang Yuanchao said that his demand was a bit large and Longsheng might not be able to meet it.

The boss of Longsheng was delighted when he heard this. He asked how much it would cost. As long as he paid the deposit, he would definitely have no problem with it.

Longsheng thought, as long as you pay the deposit, I can't produce it myself, I will find colleagues to help, who wouldn't be happy to make money? I will take 1 cent from them, even 5 cents, and I will be happy!
If Longsheng only produces fan blades, 2000 pieces a month is not a problem. If it hires more workers and works overtime as before, 3000 pieces is not impossible.

When I think about it, if I can earn 5 cents from a leaf, it seems like a decent profit!

Is Longsheng afraid that he won’t be able to produce?

What Longsheng is afraid of is that after production, he won’t be able to sell the products!
But Wang Yuanchao still shook his head and was about to leave.

The boss of Longsheng thought this guy was interesting? Was he playing a trick on me?

However, Xiao Qi, an old employee, whispered to him that what Boss Wang wanted was really a lot, 10 leaves a month!

Boss Longsheng took a deep breath. Damn it, he actually missed out on a business that could earn him 5 yuan a month?

God gave him the opportunity to make a fortune, but he couldn't seize it!

He was so anxious that he scratched his head and rushed to Wang Yuanchao's car, hoping that Boss Wang would give him some time. He calculated carefully that as long as Boss Wang paid the deposit, he would get the equipment, manpower and materials even if he had to take out a loan!
Wang Yuanchao thought about it and said that he could give him a month.

Everyone knows this.

Wang Yuanchao knew that the other party could not possibly get all the production capacity in such a short time, and might even go to other peers for cooperation, but as long as the product met his requirements, he didn't care whether Longsheng produced it by itself or found other factories and workshops to produce it. It doesn't matter who you find to do the OEM? He just wanted the boss of Longsheng to gather people, so that he wouldn't have to look for them one by one!

Longsheng also knew that Boss Wang knew he didn't have the ability, but he had to try his best. Even if he had to share the profits, as long as he could complete the project with guaranteed quality, he would be very happy to earn 10,000 or 20,000 yuan a month!
One day, he will earn back the 5 yuan, as long as the cooperation with Boss Wang goes smoothly.

Wang Yuanchao's claim of 10 fan blades is not nonsense. According to the raw materials, Shell's current monthly output is 1 to 2 sets, part of which are exported to trading companies and part to local agents in Hong Kong.

Shell's shipping price is about 165, leaving a space of 15 yuan for agents and retailers.

Small workshops and factories like Longsheng have to lower their prices to around 160, barely making a little money. Their production and sales volume are not competitive with Shell, so Shell naturally ignores them.

So, Wang Yuanchao said 10 pieces. If each company can finally gather together a production capacity of 5 pieces, he can also produce 1 to 2 sets per month, which is comparable to Shell.

He just wanted to gain a firm foothold and didn't expect to make much money through industry. Wang Yuanchao visited all the suppliers and made a preliminary judgment on cost reduction. After the volume increased, many purchase prices were indeed lower, and he could even control the total cost to around 125.

Unfortunately, if there is no quantity, the cost will increase a lot, to around 135, which is only 15 yuan less than that of a small factory like Longsheng.

Without volume, he invested in venues, equipment, and manpower, and spent a lot of time and effort, but ended up earning only this little. He might as well buy a house and wait for the price to go up.

Then go to foreign trade companies to promote your products.

The foreign trade company was not easy to talk to at first, as they had been cooperating with Shell for a long time. But when they heard that the product was the same as Shell's, but 5 yuan cheaper, they immediately became easy to talk to.

The wholesale price of the shell is 155, which is 5 yuan cheaper, to only 150 yuan. The foreign trade company purchases about 10 sets a year, which means saving 50!
How the hell is it possible not to be moved?
Foreign trade companies rely on large volumes of goods and wholesale prices, which is a stable component of Shell's sales.

But they said they have to inspect the product. As long as there is no problem with the product, there is no problem with cooperation.

The foreign trade company is not afraid of offending Shell. At worst, Shell will also reduce the price by 5 yuan. It will not do any harm to him!

Wang Yuanchao also visited other trading companies and agents, and told them that the price was cheaper than that of Shell. No one was very resistant, but they just said they wanted to see the goods first.

He can't just tell everyone how much cheaper the product is. What if some of these salesmen have a close relationship with Shell and tell them, and Shell will also lower its prices?
If we really compare prices, he can reduce the price by more than just 5 yuan.
Well, what Wang Yuanchao has in front of him now is to create his first sample.
-
Everyone got their ID cards.

The woman who was waiting for her uncle was also waiting for everyone at the police station.

The woman's name is Shen Yue. In her words, although her uncle works at a radio station, it is still difficult for him to support the family.

I want to follow the captain and everyone.

Wang Yuanchao thought that the other party ran away because he was being bullied by his aunt or someone else, and was unhappy and had difficulty finding a job.

He felt that the business he was about to start would require manpower, and since he knew these women well, he brought them back together.

As a result, the tough girl Shi Zhen quickly figured out Shen Yue's background and found out that Shen Yue's uncle wanted her to marry her demented cousin. She had been pretending to agree with it, and then she took the opportunity to get her ID card and ran away.

The cousin with a big beard and a dark face is much more reliable than Shen Yue's cousin. This really makes Wang Yuanchao sigh.

The next morning, everyone prepared to continue to Longsheng to make samples.

Longsheng had no objection to this. People brought their own materials and borrowed the venue and equipment under his control. What was the big deal?

Wang Yuanchao was originally planning to replicate and reverse engineer the shell's blueprints, but the boss of Longsheng enthusiastically said that he would volunteer to help!
The boss of Longsheng originally obtained a complete set of drawings directly from Shell.

It's just a fan, not a rocket.

Many small factories do this. They spend a little money to get a copy from a large factory. How much easier is that? Then they make some minor changes, or even no changes at all, and directly start construction according to the drawings.

Damn, their ideas are the same as Wang Yuanchao’s!
Is the reality of business war so plain and without any technical content?

This is even better!
But as soon as they went out, they saw a surging crowd outside, holding up portraits, banners, posters, and shouting slogans. Wang Yuanchao was shocked, this is Hong Kong!!!

How come it is the same as in the mainland???

The crowd was overwhelming, so they retreated back to the hotel.

Everyone came from the mainland and was a little scared. Wang Yuanchao comforted everyone and said that everything would be fine.

After all, what happens here has nothing to do with him, right?

It’s not even in history books, so it must be a small matter.

More importantly, is it because of this activity that everyone was scared and ran away? Then, does it mean that Hong Kong assets can be bought at a low price?

As long as the problem is not caused by his butterfly wings, he has an optimistic and firm belief that nothing will happen!

So he asked everyone to stay in the hotel for a day while he went out to see the situation.

Little Black-Faced Li Zhong wanted to go with them so that he could be taken care of in case anything happened.

Bearded Qiu Dahai also said: Yes, there is strength in numbers, and we have experience in sports!

They soon followed the team.

Listen more and talk less, and you will soon know the whole story:
The day before yesterday, a labor dispute broke out at the flower factory in San Po Kong, Kowloon. Yesterday, May 5, workers in Xiangjiang launched an action against John Colony. The workers who surrounded the factory clashed with the police officers who came. 6 workers were arrested by the police, and many workers were injured. The union representative who went to the police station was also detained. Today, more workers and other supporters took to the streets to assemble and demonstrate, demanding the release of their co-workers and an apology from the police.

Some people even used small loudspeakers to promote the example of neighboring Aomen to encourage everyone!

On December 12 last year, a conflict between police and citizens occurred in Macau, prompting the people of Macau to demonstrate at the Governor's Palace, demanding that the police apologize and step down.

The Austrian and Portuguese governments dispatched military and police to suppress the riots, resulting in more than ten deaths and more than a hundred injuries.

In early January this year, workers in Macau launched a strike. The Portuguese government finally capitulated, accepted the workers' demands, and even proposed to return Macau immediately.

Therefore, the workers in Hong Kong can learn from Macau’s experience in struggle and let the workers be the masters of their own affairs.

(End of this chapter)