"Manager Wang, I think you might have overlooked an important issue. That is the cost of manpower. SF Logistics has been developing with low basic salaries and high piecework salaries. This is why there are so many deliverymen earning more than 10,000 RMB in SF Logistics. "
"But Hua Xia is very different from the US. In Hua Xia, you only need to have basic social insurance, such as pension, medical, and unemployment insurance. The contributions are based on your basic salary, and the contribution is very low."
"The US is different. They will require you to pay based on your overall income, and the contribution ratio is much higher than here. How are you going to ensure your company's profits?"
Li Shiqiang's question is very sharp. He had considered setting up a branch in the US. But after he and Wu Chih-gang analyzed, they realized Hua Xia's model cannot be used in the US. The differences between the two countries are too big.
Feng Yu wants to know how Wang Wei will solve this problem.
Li Shiqiang's problem is also Feng Yu and Kirilenko's biggest concern. Their deliverymen's salaries in the US can be solved, but the benefits are too high, and they will not be able to make any money.
Unless you have a good logistics channel and can lower the cost effectively. These are what Feng Yu and Kirilenko lack.
Wang Wei had thought about this and quickly replied. "This is easy to solve. Our fees will be higher, and our service will be better."
UPS is the world's number one express delivery company. Their fees are higher, and their service quality is better. At the same time, they have the best logistics channels, including international and inter-state logistics.
"I had done some research. Many people in the US do not like express delivery. This is because when the couriers deliver the packages, they are at work and no one is home."
"Then the couriers have a few options. The first option is to leave the packages in the yard. This way, no one will sign the package, and if the package is lost or damaged, the company will have to compensate them."
"The second option is to wait until there is someone at home to deliver the packages. This way, the couriers will have to work overtime. Not many people like to work overtime at night, especially for express delivery. Those couriers might choose to deliver packages on the weekends, and many people will receive their packages a few days late."
"As for us, we can provide a third option, which is to build an organization similar to a post office in a community. We can inform the customers to pick up their packages here. They can also open the packages and sign on the spot. Furthermore, the customers can get the packages as soon as possible.
Feng Yu's eyes lit up as a name popped into his mind — Rookie Courier Station!
Isn't this the courier station that Ma Yun built? Wang Wei didn't expect Wang Wei to have already thought of it. If that was the case, then many problems could indeed be easily solved. This courier station could even accept parcels from other express delivery companies. It might even be more profitable than pure logistics.
However, in this way, they would have to invest a lot more money. Each station couldn't be too small, and there had to be a few staff members. Moreover, the staff's working hours had to exceed the normal working hours because they had to wait for many people to get off work to pick up their parcels.
Moreover, he had to hire a lot more people. There were pros and cons to this.
The cons were that the cost and expenses would increase a lot. The pros were that they could negotiate with the US government again. They had increased the employment opportunities for the Americans, so they should be able to enjoy some preferential policies, such as tax breaks.
Li Shiqiang, Wu Chih-gang, and the rest were interested and admired Wang Wei. They had also seen a post office before. Li Shiqiang had even worked in a post office before. Why didn't they think of this idea?
"With this agency, our income will increase a lot. Because our service quality is better, we can charge more. So, although the cost in the US is high, it is not a problem for us. "
Feng Yu thought for a while and asked. "Will our insurance and benefits be the same as UPS? Also, I need to make one thing clear. We will be hiring Americans, and we will be giving priority to the dockworkers. "
Dockworkers?
Wang Wei frowned. Those people were strong. They were suitable to deliver large parcels. But if they were to deliver small parcels, they would not have any advantage.
Also, these strong people had a bad habit. They liked to throw parcels. If they were not careful, the items in the parcels might be damaged.
If the items in the parcels were damaged when the parcels were delivered to the customer, the courier company will have to compensate the customer. Most of the time, the company's reputation will be affected.
Wang Wei remembered that Feng Yu had invested in the banking industry in the US. There were also insurance companies under him. Moreover, every deliveryman had to pay for accident insurance. Otherwise, if any accidents happened to the deliveryman during work, the company would have to pay for it.
Based on this calculation, the insurance cost for each courier was not a small amount. If the subsidies for rainy days, windy days, snowy days, high temperature, cold days, and so on were added, the cost would be even higher.
Wang Wei had consulted relevant companies in the United States and knew about the existence of labor unions here. He also knew that the United States would increase the income or benefits of workers in various ways. Many workers in the United States who did manual labor earned more than those who did mental labor.
"Our insurance and benefits must not be worse than other logistics companies. Even if they are the world's number one logistics company. At the same time, we must highlight our specialties. We must deliver parcels faster and have better service attitude. We even have strict requirements for the courier's attire. "
The same uniforms, the same vehicles, smiling service, clear pricing, etc.
"Another important point. Amazon and eBay's logistics are free, and the companies will bear the costs. You want us to charge higher fees and provide better service. This will increase Amazon and eBay's cost, and they might suffer losses. Will they agree? "
How did Amazon expand in the beginning? They had waived their logistics fees, and many customers saw the benefits. They had treated waiving their logistics fees as a promotional tactic, and the results were good.
"I will discuss this with Amazon and eBay. We will find a mutually agreeable internal price. Also, we must install the latest equipment to sort parcels. This will ensure the highest efficiency and lowest cost. "
"Fine. It's fine as long as you are clear about this. But according to our budget, each of us will be investing a significant amount. Are the both of you facing any difficulties?" Feng Yu looked at Li Shiqiang and Wang Wei.
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