"General Manager Feng, how can you guarantee that the pagers you produce will be sold? Based on our market research, Motorola is the world leader in the pager industry. Last year, their sales in Hua Xia were only about 500,000 pagers, and this includes Chinese and digital pagers. Furthermore, Panasonic, NEC, etc. are still selling Chinese pagers in the market. Don't you think your production is too much? "Director Fan looked at Feng Yu and asked.
"Director Fan, there is no need for us to test each other. We had also done market research. From the user demand, income growth, and many other aspects of research and analysis, I can confirm that although there are only slightly more than three million users in the country now, it will definitely exceed ten million next year. In another year, it will exceed twenty million! "
Director Fan raised his brows. He was shocked. Aiwa Electronics' analysis was about the same as them. They also felt that Hua Xia's pager demand was increasing. From the number of pager companies applying to set up pager companies, they could tell that the pager market was booming!
Director Fan had these data as the basis for his analysis. But how did Aiwa Electronics analyze this? Through random market research? Or was there some other way?
Director Fan did not know that Feng Yu had not done any market research. It was only Sun Lijie who did some simple research in Zhejiang Province. The results were the same as Feng Yu's previous life. The pager market was booming.
Feng Yu remembered in his previous life, after Hong Kong's return to China, Hua Xia had become the world's number one pager company. It had more than 80 million users! After that, it started to go downhill. It was mainly because of mobile phones!
The real boom period was in 1994 and 1995. During these two years, there were more than 10 pager brands popping up all over the country. Most of them were small enterprises under the municipal government. But with the support of the government and low prices, they were able to make a lot of money in these two years.
But in this life, those small factories will not survive. At the end of this year, Feng Yu will invest in a third factory. Next year, the actual production capacity will be more than 5 million! However, he was afraid that Director Fan would think that he was exaggerating if he said such a high output.
Feng Yu was very clear that even if he gave up the digital pager market and focused on Chinese pagers, the current production would not be able to satisfy the market. There would definitely not be a situation of excess production.
Master Lu was also shocked. Feng Yu had so many profits from this venture? Originally, he thought that ten yuan per unit was not a lot. However, when he heard about the production, he realized that the price was shocking!
Director Fan was still worried. He was afraid that Aiwa pagers would not sell well.
"General Manager Feng, why don't we change the calculation method to how many units you produce and how much you pay us?"
"Director Fan, are you worried that we won't be able to sell our products?" Feng Yu smiled and shook his head. If they still couldn't get into the market with the help of the Post Office's strong marketing and sales channels, then there must be a problem with the quality of the products!
"I can't help but worry."
"But Director Fan, not all of our products will be sold in the Post Office. There are still some shopping malls, pager companies, and even some stores that specialize in telecommunication products. You all might not be able to take care of all these places. Also, we also have our concerns. If there is a backlog of our products, we cannot afford to pay more. If we must pay you according to the production volume, you must agree to let us add that sentence in our advertisements. "
Director Fan shook his head firmly. How can we add that sentence? This was not a factory under the Ministry!
"Impossible! Then let's do what you said just now. Let's calculate based on the sales volume. But isn't ten yuan a little too low for one? I think 20 RMB is more suitable! "
"20 RMB? Director Fan, you are too greedy. Actually, I can also work with the Post and Telecommunications Department. I think they will be satisfied if I can pay them 5 RMB per unit. "Feng Yu smiled and said.
Damn! If it wasn't for the fact that I want to build a good relationship with the Post Office, I will not have to pay you all so much!
"Then can you guarantee that the Post Office's sales volume will be at least 50%?" Director Fan asked.
"Based on our market research, 60% of the pager sales are provided by the Post Office. The Post Office has a unique advantage. They have access to every county in Hua Xia! This network is unparalleled. That's why I am willing to pay. "
Feng Yu was right. In another two years, the number of pager users in the City will reach a saturation point, and the new areas for pager users will be the counties or even the villages. But by that time, most of the counties will have shops that specialize in pager sales!
Feng Yu estimated that the Ministry of Telecommunications would only get around 10 million RMB a year. Although the sales volume was increasing, there will be more outlets, and the Post Office's sales volume will decrease.
"Ok. That's settled. I will report to the Leader tomorrow and give you an accurate answer!"
Then, everyone started to eat. After dinner, Master Lu sent Director Fan home.
The next afternoon, Feng Yu received a call telling him to go to the Ministry of Telecommunications. The Leader wants to meet him.
"You are Aiwa Electronics' General Manager Feng? You are young and promising. I think we can do what you told Xiao Fan yesterday. "
Xiao Fan? Hawker? Feng Yu looked at Director Fan and almost laughed out loud. Director Fan was almost 50 years old and was still a Director level officer. How would he feel if he was called a hawker?!
Maybe it was because Feng Yu's conditions had tempted the Ministry of Telecommunications, or Director Fan had tried his best to make this happen. Anyway, everything went smoothly, and the Ministry's leaders did not make things difficult for Feng Yu. Only the length of the contract was different. Feng Yu suggested 3 years, but the Ministry wanted at least 10 years!
10 years? After 10 years, the pager business will stop! Feng Yu only wanted to produce pagers for 5 years. After 5 years, the number of pager users will drop rapidly, and it will be mobile phones!
In the end, both sides took a step back and signed a 6 years contract. Although Feng Yu was forced to sign a 6 years contract, he did not regret it. Compared to the increase in sales and brand value, this amount of money was nothing. Furthermore, this way, his relationship with the Ministry would be better.
The terms of the contract were simple. Both parties will do a double check every month, and Aiwa Electronics will pay the fees. The Ministry was not worried that Feng Yu would break the contract. If he really did, the Ministry could order Aiwa Pagers to stop selling!
Feng Yu would also not break the contract. This amount of money was nothing compared to the profits from pagers! Furthermore, if there were any changes to the policies in the future, the Ministry would be notified immediately. The Ministry might even give more support to Aiwa Electronics. Feng Yu had nothing to lose!
After getting the contract, Feng Yu left with a smile on his face. This time, no one can stop Aiwa Pagers from rising!
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