Extraordinary Genius

Chapter 1172: Substitutes shall also be subject to standards

“President Feng, after half a day of thinking, you have given me such a thought?” Huang Fatty had some desire to work for someone else, and became the bottom line.

“Huang, what do you call a supermarket? It's just a few times bigger. Then why do retailers make so little money that supermarkets make so many times as much money? ”

“The supermarket is huge and there are many products. ”

“You have a point, but the most central factor is that the supermarket defines the cost of a commodity. If the supermarket is to guarantee a certain percentage of profits, then it limits the cost of your goods. You're too expensive to survive. Retail stores, across the street, may have different commodity prices, but in Taihua supermarkets, all stores, the prices of one commodity are exactly the same. This is the cost criterion. ”

Huang Fatty nodded thoughtfully: "But what does this have in common with substitutes? ”

“Workers and production technologies are at the core of agency work. The same thing that supermarkets have in common is the development of cost standards, production cost standards. People can produce 100 items in eight hours, you can produce 120, so you can make money, and you can make everybody, by your standards. This is a bit similar to the quota in the business. ”

“But it's only 20 more pieces. How much money can you make? In this way, we completely lose the opportunity to become our own brand.” Huang Fatty hesitated a little, but he knew how much the added value of a brand would be after a commodity became a brand.

“Huang, think about it, is our country's Lenovo Group strong? ”

“Strong, Asian computer production and sales boss, is said to be the number one in the world computer industry.” Huang Fatty also knew that even if the group had Feng Yu's shares, not to mention that the group was really strong, of course he was not stingy in praise.

“Even though the Group's own factory capacity is not high, most of it relies on surrogates. Even our factories of EWA appliances and wind and rain appliances have made a number of surrogate products for them, especially the production of Lenovo brand LCD monitors. Do you think I'd do it if I didn't make money? I make more DVDs, I crush your little plants, can't I make more money? Our profits on a DVD far exceed the patent licensing fee. ”

“Because the price is not low even if you want to give us a surrogate fee. And our machinery and equipment, apart from overhaul time, never stop running. This makes our factories more profitable and our part-time workers more profitable. Yangcheng, Pengcheng side, factory lining, nature has great advantages in terms of employees, if you can combine these, form scale, improve efficiency, then you will definitely earn a lot of money.” Feng Yu pointed.

Rich and healthy in previous generations, such a company, set many manufacturing industry standards, strictly controlled worker efficiency, became the industry leader, a year's profit, but not a small number.

It was only later that Rich Solid was too demanding in terms of management, which caused some problems. Combined with the subsequent general increase in labor costs in Huaxia, Fushikang gradually moved its plants to countries such as India, where labor costs were lower.

Fushikang, is truly one of the 500 largest companies to leverage labor cost advantages.

“President Feng, I think I understand what you're saying. It's about scale, efficiency, cost, profit, right? ”

Feng Yu nodded: “That's pretty much what I meant, but there's still one thing left to do, which is to set standards. Let future agency enterprises follow your standards, below your standards, profit will be far short, even no orders can be taken. ”

“But the merger of those little plants, which I can do, is not very good these days, and most of them would be happy to sell to me if I were to propose a merger and receive all the workers. But after the merger, even if we got more efficient, the cost dropped, but we didn't have orders? ”

You work hard, you work well, you don't have a job, what's the use!

“Since I told you, I can assure you that you have work to do. If you really want to merge those factories, form a scale, and increase efficiency, I can take the lead and give you some HDDVDs, phones, MP3s, USB drives, even computer accessories, or the whole machine assembly. When you receive these orders from us, other product orders will not be too difficult. ”

Huang Fatty's eyes were bright. President Feng's meaning was too obvious. He should be ordered. With President Feng's big pen, I'm afraid the order won't be small. If he still torments himself with this small factory, it certainly won't work.

“Mr. Feng, see if you can do this, you give me the order and I will find a way to complete the quality assurance.” Huang Fatty turned his eyes and thought of another way.

That's when he becomes a first-hand contractor and subcontracts orders to other factories to earn money.

Feng Yubai glanced at Huang Fatty: “What do you think? ”

Huang Fatty chuckled: “President Feng, to be honest, if you hadn't dropped that patent license fee before, it wouldn't be too hard for me to acquire those plants. But now, I'm afraid it's going to cost a little more. Of course, I can still take it out, but there's no bottom line. ”

“You want to sign the contract first? ”

nods head like a yellow fat chicken pecking rice: “Okay? ”

“Of course not!” Think about the good stuff! When the contract is given to you, you cannot complete the order. Accountability is a small matter. Importantly, it affects the sale of the product.

“Mr. Feng, how do you define this standard? ”

“Fushikang, you know? Thinking of the biggest agents for computers and storm phones, they are now setting 3C standards. If you could join him, it would work. ”

“Rich? So it's them. The management there is too demanding. Many of our workers jumped from Fushikang.” Huang Fatty is a bit of a jerk to Rich and Solid.

Management, we also need to be human. Workers create value for you, and if you're still bad for workers, the factory must be in turmoil. As education in the country generally improves, it becomes increasingly difficult for those who know nothing about it and whose wages are extremely low and acceptable.

There were many of these people in the west, but now, Feng Yu's glorious cause is starting to move faster and faster in the west. Many people who decided to work in the first place can get jobs in their hometown.

Things can get a lot closer to home, so stupid X has to go this far to work.

“Since you feel rich and hard, how can you meet and exceed the efficiency of rich and healthy and develop your standards? Though you may initially earn less than the rich, your corporate culture will make your business more permanent. ”

……