Reborn multinational giant

1999 yuan, what is the concept? Nowadays, there is no smart phone on the market that can match the Mi1 configuration.

Even mobile phones with a price of 3,000 yuan and up, there are many mobile phones that are not as good as the Mi1 in all aspects. However, such a mobile phone that is configured to hit all the mainstream mobile phones on the market today, its price is as low as 1999 yuan!

"I heard it right, 1999? Did I hear it wrong or did Mr. Lei say it wrong?"

"Wrong fart, haven't you seen the 1999 yuan figure on the big screen!"

At this time, on the big screen in front of the stage, a huge "1999 yuan" took up the entire screen. Mi fans and the audience in the audience looked at this number, and they couldn't stop talking, especially some special fans. The invited media, reporters, and mobile phone industry evaluation experts, etc., were whispering one after another.

"Lao Yao, didn't you say that the price of Mi1 will not be lower than 3000? Why is it now 1999?"

"Where do I know, I also heard from a supplier friend of Xiaomi last time. He said that according to the configuration of the goods received by Xiaomi, the cost will be at least 1,780. If this is coupled with R&D logistics and channel stores The starting price of this kind of distribution cost is at least two thousand seven thousand and three thousand higher!"

"Then how can they sell it so cheaply? Isn't this making money at a loss?"

"The ghost knows, maybe they have other ways to make money!"

......

The audience's discussions continued for dozens of seconds. On the stage, Mr. Lei raised his palm and suppressed the voice of the audience, saying:

"I know everyone must be very curious. How did our Mi1 mobile phone have such a good configuration but only such a low price?

Today, I won’t sell it anymore. Please look at the big screen. First of all, let me briefly talk about the main cost of mobile phones..."

Mr. Lei briefly introduced the various costs of the mobile phone, including the material cost of the internal components of the mobile phone, research and development costs, patent fees, and the cost of the mobile phone from the factory to the transportation to the distributors.

After the introduction is completed, the PPT will switch to the next one. The costs of transportation, agents, distributors, etc. are all worn away, replaced by almost zero, online sales!

"Our Xiaomi mobile phones will be sold on the official website and directly operated stores on JD.com!"

After Mr. Lei said this, the audience in the audience also understood. The feelings have been for a long time. The configuration of Xiaomi is saved in this way. The cost of transportation and distributors is the cost of the mobile phone from the factory to the consumer. Being cut off means that consumers get the ex-factory price directly!

Moreover, it's more than the ex-factory price. Seeing Mr. Lei talked about how Xiaomi was arguing with suppliers to upgrade and reduce prices, Xiaomi fans and audiences in the audience all felt sincerely that Mr. Lei and Xiaomi are really conscientious. !

The price/performance ratio of Mi1 is really too high. With this price and configuration, let alone in the domestic smartphone market, even in the global mobile phone market, it may be difficult to find competitors!

"No, they can't make any money by doing this!"

Sitting in the second row, the mobile phone evaluation expert from Zhongguancun Online sighed in wonder. He doesn't know how many mobile phone conferences he will attend and how many mobile phone evaluation reports he writes every year. Therefore, his understanding of all aspects of mobile phones is also Definitely professional.

Based on the market price of these configurations on Xiaomi, the final cost will not be less than 1700. If you add the costs of Xiaomi's operation and research and development, he feels that the Mi1 phone will not make a dime at all!

It just so happened that this comment was heard by the big boss Fang Zhe, who was sitting in front of him. Fang Zhe didn’t look back either. This was the first time he had heard similar exclamations. When the expert said, Fang Zhe thought in his heart: "It's more than not making money. In fact, if Mi1 is sold at a bare metal price of 1999 yuan, it will definitely lose money!"

That's right, the final cost of each mobile phone of Mi1 is now nearly 2050 yuan, which means that for every Mi1 bare machine sold, Xiaomi has to lose nearly 50 yuan!

For this reason, when Fang Zhe proposed to set the price of the mobile phone at 1999 yuan at the Xiaomi high-level meeting, all the executives, including Mr. Lei, and the veterans of Xiaomi's entrepreneurship, all grew up looking at him with surprise. .

Who is Fang Zhe?The founder of Huizhong, the four major domestic Internet companies, and the chief consultant of Xiaomi, almost no one dares to question his authority. Even so, when Fang Zhe said 1999 yuan, which was lower than the cost price, he still suffered. To the questioning of Xiaomi executives.

And Fang Zhe had to spend more than two hours, somehow, finally let them understand the hard work he insisted on setting this price!

First of all, Xiaomi is a start-up mobile phone company. If you want to quickly gain a foothold in the mobile phone industry where large manufacturers gather in the country and the world, it must have its own strong core competitiveness.

In the initial stage, the most critical aspect of this competitiveness is cost performance. No matter how good the MIUI operating system is, Xiaomi phones are expensive and not many people use them, but the reverse is not the same. If Xiaomi phones can easily impress people If the price captures the hearts of the people, it can quickly open up the reputation and occupy the market.

It took Xiaomi in three years to ship 70 million mobile phones a year, which is the best proof of the success of this strategy!

Obviously, the price of 1999 yuan, more than 2,000 or even 2,000, has unparalleled appeal!

Merchants always like to sell things at a price of *99, which is to understand the price psychology of users when choosing goods. Although 1999 is only a dollar cheaper than 2000, it is also more than 1,000 mobile phones, not 2,000 or more than 2,000 phones. .

Only one dollar short can capture most of the current users whose mobile phone budget is between 1000-2000. This money is definitely worth the loss!

Of course, in Mi1, the difference is not only 1 yuan, but nearly 50 yuan, a mobile phone is 50 yuan, and 1 million mobile phones are 50 million yuan, and the cost-effective route like Xiaomi is good and cheap. Mobile phones, with 1 million sales, can be said to be just a threshold!So, Mi1 set this price just to make money at a loss!

However, if you count the difference between the release time of the mobile phone and the official release time, the price and profit of Mi1's other 8G, 16G, 32G flash memory, as well as the mobile phone casings, headsets and other mobile accessories such as Mi1 , Can basically make up for the loss of bare metal prices, and even have a net profit of less than 10 yuan!Of course, if the user does not buy these peripherals and only buys bare machines, then the loss will not run away!

However, Fang Zhe believes that Xiaomi's well-known headsets, mobile phone cases and other ancillary products, probably not many users who have bought Xiaomi phones will not buy them!