"Before the official auction, I'd like to tell you about our pricing policy!" Hu Zhibiao solemnly announced to all the dealers before the auction started on the second day.
The dealers widened their eyes and pricked up their ears. The pricing policy was the most important piece of information for the dealers. How much would they sell for in the whole country? How much would they get from the dealers?
This was directly related to the dealers' desire to compete for the dealership rights.
"After careful consideration, we have decided that the national pricing for Aiduo VCD players will be 5666 RMB!" Hu Zhibiao announced the pricing of Aiduo VCD players.
From the pricing, it was obviously the Daqian VCD players' pricing.
The Daqian VCD players' pricing was 6666 RMB, and Aiduo VCD players' pricing was 5666 RMB. It was 1000 RMB cheaper. The meaning was obvious.
The dealers were also excited about the pricing. Aiduo VCD players were 1000 RMB cheaper than Daqian VCD players. This would definitely arouse the customers' interest. With this price advantage, they would be able to snatch food from Da Qian's mouth. They would be able to take over the rich market created by Da Qian's VCD players.
After the national pricing was announced, the next step was to announce the pricing for the dealers. This was the most important thing for the dealers. It was directly related to their profits.
"After careful consideration, we have decided to set the pricing for all the dealers at the provincial level at 5000 RMB!" Hu Zhibiao announced loudly. All the dealers were overjoyed when they heard the pricing.
The provincial dealers' pricing was 5000 RMB. That meant that every dealer at the provincial level would get 666 RMB of profit for every VCD player sold. Although the provincial dealers would distribute the dealership rights to all parts of the province in the future, and half of the profits would be given to the dealers at the lower levels. But even so, every VCD player sold would still make about 300 RMB of profit.
In a year, a province could sell at least 10,000 VCD players. That would be 3 million RMB of profit!
How could this not make the dealers below the stage excited?
Finally, Hu Zhibiao announced the pricing policy. For example, the dealership rights auction would last for a year. If a dealer's profit was not enough to cover the cost of the dealership rights auction, then the excess would be refunded by Aiduo VCD players.
In addition, the prices must be unified throughout the country. Without the approval of the factory, they are not allowed to reduce prices and promote sales.
Also, this price was only for delivery. Aiduo VCD players would not be responsible for the transportation costs.
The provincial distributors would be in charge of the sub-distributors, and Aido VCD players would not interfere. But if there were any problems with the distributors, it would affect the reputation of Aiduo VCD players. This was the responsibility of the provincial distributors.
If the distributors seriously breached the contract, Aiduo VCD had the right to cancel their dealership. At the same time, Aiduo VCD had the right to sue the court for high compensation.
In any case, these were the usual terms between manufacturers and distributors. Hu Zhibiao merely reiterated them.
Once these steps were completed, the real auction would begin.
The first item to be auctioned was the dealership of Jianfu Province.
Choosing Jianfu Province was very particular. First of all, they couldn't let those economically trashy provinces be the first to be auctioned. That way, the price would definitely be very low, and it would affect the price of the entire auction.
But at the same time, they couldn't auction off the province with the strongest economy, because the first province to be auctioned would definitely not have the best price due to the wait-and-see mentality of many dealers.
That's why the most suitable provinces to be auctioned off first were those with an above average economy, such as Jianfu Province.
Sure enough, after Jianfu Province was auctioned off, the whole meeting room became lively.
According to Hu Zhibiao's information, there were 4 distributors from Jianfu Province in the room. Logically, only these 4 distributors would be competing for the dealership of Jianfu Province.
But in the end, there were 8 distributors bidding for the dealership. In other words, 4 distributors from other provinces were going to Jianfu Province to compete for the dealership.
This made the local dealers in Jianfu Province very angry. After a round of fighting, the dealership in Jianfu Province was finally won by a dealer from Dongguang Province at the price of 750,000 yuan.
"Factory Manager!" The young man sitting at the side heard the price and felt a little dizzy.
As the main researcher of Aiduo VCD player, the young man had gotten 20% of Aiduo VCD player's shares. In other words, out of the 750,000 RMB, 150,000 RMB belonged to the young man, and this was only the price of one province. The young man felt that he was going to faint!
Of course, the young man was still too young. Just 20% of the shares would not give him 150,000 RMB.
If Hu Zhibiao told him that the money would be used to develop the company, the young man would not get a single cent. He would only get the shares.
In fact, Hua Xia's companies were stubborn and did not want to get any dividends.
After Jianfu Province had a good start, the competition for the dealership rights in other provinces became more intense. The most intense competition was in Dongguang Province and Sujiang Province. These two provinces were economically strong.
Dongguang Province had the highest dealership rights in China, and it was worth 1.48 million RMB. Sujiang Province was second, but it was still worth 1.32 million RMB.
No wonder the distributor from Dongguang Province wanted to fight for the dealership rights in Jianfu Province. The competition in Dongguang Province was too intense.
The cheapest dealership was in Jiangxin Autonomous Region. It was only sold for 50,000 RMB. But this was understandable. After all, the Daqian market was not doing well, and the cost of living there was too low.
In the end, the provincial agency rights of 28 provinces were auctioned off just like that. Hu Zhibiao earned more than 15 million just from the agency fees alone. This fee had already exceeded all the fees that Hu Zhibiao had invested in the beginning. It could be said that Hu Zhibiao had already recouped his investment just by auctioning the agency rights.
This made Hu Zhibiao so excited that he did not sleep for the whole night. He had been reluctant to spend money, but this time, he brought the young man to the first nightclub in the area. He called two beautiful women over and brought the young man to enjoy the life and services of a rich man for the first time.
Also, it was not expensive. Each beautiful woman only cost 300 RMB.
After the dealership rights auction ended, Ado VCD players appeared in all the shopping malls in China.
This was because Hu Zhibiao had done a lot of preparation work in advance. He had made a lot of semi-finished Ado VCD players. After the Ado VCD players passed the final test, he only needed to add a few more parts to create a brand new Ado VCD player.
That was why the production speed was fast. Within 3 days, 20,000 Ado VCD players were off the production line and distributed to the distributors.
At the same time, in the shopping malls, Ado VCD players had started to make a name for themselves. It was 1,000 RMB cheaper than the Daqian, and it attracted a lot of buyers. Many of them had wanted to buy a VCD player for a long time, but they were reluctant to spend 6,000 RMB. Now, when they saw the Ado VCD player, which cost 5,000 RMB, they immediately bought it.
For the whole of April, Aido VCD player sales had exceeded 20,000 units in China. Based on the profits of 500 RMB per unit, Hu Zhibiao had made 10 million RMB in profits in April. Including the 15 million RMB agency fees, that was 25 million RMB in profits!
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