Chen Xiao briefly introduced the relevant situation of Lingyue. It is a formal company with production lines. The most important thing is that it has relevant patents for MP3, especially MP3 decoders.
"We are responsible for the warranty. According to the national warranty requirements, we will be responsible for maintenance within one year. Our factory is in Jiangzhou."
Tao Junhui was immediately moved!
The reason is that Lingyue actually has a patent for MP3 points and a patent for MP3 decoding chips.
This proves that Lingyue Company is not a leather bag company, but one with certain strength.
In addition, Tao Junhui watched Lingyue MP3 and found that the feel, quality, appearance and sound quality are all very good.
"Where's the price?" Tao Junhui was very concerned about this thing.
Chen Xiao did not say clearly: "Based on the current profits of small home appliances, Guomei will have a profit of about 15% for each unit sold."
"It depends on our cooperation method. If Gomei mats are purchased, we will make some profit. If Gomei provides a platform and does not advance funds, then we will currently give 50 yuan in profit compensation based on the sale of one unit."
The profit of a DVD is only a few dozen yuan, but an MP3 has such a huge profit. It seems that the cost of domestic MP3 is indeed lower than that of foreign ones.
And compared to TVs and other major appliances, MP3s are fast-moving consumer goods. As long as the price comes down, many people will buy them.
Tao Junhui asked Chen Xiao to wait a moment, and he would immediately report the relevant situation to the company.
Finally, under Huang Guangyu's instruction, Tao Junhui cooperated with Chen Xiao on behalf of the company.
Tao Junhui asked: "I just had a phone call with my boss. Now I can take the company to discuss cooperation issues with you."
Huang Guangyu was very courageous. When he learned that MP3 was actually produced in China, he immediately explained the follow-up cooperation matters to Tao Junhui on the phone.
Huang Guangyu is betting that domestically produced MP3 players can bring strong profits and greater popularity to Gome.
Tao Junhui said: "We don't talk about 15% profit or 50 yuan per unit. Lingyue directly gives us a wholesale price. We purchase according to the wholesale price. We set the retail price here. How much profit can we make?"
It's our business to make less money."
"But one thing I want to explain is that Lingyue can only cooperate with Gomei and cannot cooperate with other department stores. We must ensure that we are the only sales channel for our products."
This is Tao Junhui's suggestion, which is actually very beneficial to Lingyue.
Because Lingyue no longer has to worry about the sales side, it also reduces the pressure on inventory and costs.
But Chen Xiao did not agree with this suggestion for one reason.
Chen Xiao cannot control the price at the sales end. Selling high and selling low is decided by the store, which makes Chen Xiao very passive.
If the price of Lingyue MP3 is relatively affordable, let’s not talk about it. This proves the product’s premium capability.
If the store, for its own benefit, such as holding activities to gain popularity, sacrifices the price of MP3s, or even sells them at a price lower than the cost price.
Then this will greatly damage a brand like Lingyue.
Competition for MP3 players will be huge in the future.
Next year the high-end brand Apple will launch the iPod, and various low-end brands will enter the MP3 market next year.
If Lingyue wants to survive and earn enough profits, it must ensure the value of its brand.
Therefore, the price of Lingyue MP3 can only be determined by Chen Xiao.
Chen Xiao said: "We can guarantee that Gome Electric Appliances is our only offline sales channel, but the sales price must be set by us, and you can only sell according to our prices."
"We can give you 10% of the sales price for profit, and it will not be less than 50 yuan."
"Whether Guomei purchases in advance is up to you."
Tao Junhui was a little surprised by Chen Xiao's proposal.
He saw that Chen Xiao was not very young and had quite a lot of ideas.
10% of the sales price is given, and it will not be less than 50 yuan, which is very beneficial to Gome.
It’s certainly not a bad idea to purchase in advance without having to pay in advance.
However, Tao Junhui was a little curious and said: "Why are you so aggressive on the price? In my opinion, you only need to calculate your own costs and give a selling price. As for how much we sell, it is our business, and you will not lose money."
ah."
Chen Xiao's words made Tao Junhui face up to the issue of branding for the first time.
Chen Xiao said: "Why is it that Changhong color TVs of the same size are thousands of dollars cheaper than Sony, but still can't sell to Sony?"
"The quality of the product is the prerequisite, but the brand is also very important, and low price is the second."
Tao Junhui burst out laughing: "Brother Chen's insights are so unique!"
In fact, the relationship between price, quality and brand effect has always troubled Xiaguo products.
If you have the core technology of a product, then you must make it high-end.
It is easy to go from high end to low end, but it is extremely difficult to go from low end to high end.
Xiaomi and domestic cars of later generations are examples.
It is easy to enter an industry from the low end, but when you are ready to get rid of the low-end image and earn greater profits, you will find that there is a problem with your original positioning.
Tao Junhui said: "We are planning to sell Lingyue MP3 in a total of 40 Gome stores in first- and second-tier cities across the country."
Tao Junhui thought for a while and said: "A total of 2,000 MP3 players need to be prepared. I wonder if Lingyue has difficulties in this regard?"
Tao Junhui said this to test Lingyue's actual production strength.
If 2,000 MP3 players are not supplied, then this kind of cooperation will be questioned.
Although Tao Junhui believes that Lingyue MP3 has the ability to become a hit, after all, this is the first time the two parties have cooperated, and Tao Junhui does not dare to ask for 5,000 or 10,000 MP3 units in one go.
If it fails to sell, it will also cause a squeeze on goods for Lingyue.
Chen Xiao asked: “When will it start being put on the shelves for sale?”
"Next week is the Mid-Autumn Festival. We will have activities during the Mid-Autumn Festival at the latest. It would be best if we can catch up with this event."
Chen Xiao said: "I will ask people from the company to send over the cooperation agreement later. I wish us a happy cooperation!"
Chen Xiao stood up and shook hands with Tao Junhui before leaving the Gome store.
There is no problem at all before the Mid-Autumn Festival, but during this period Chen Xiao still needs to do two things.
One thing is to find the right person and shoot a beautiful MP3 commercial.
Another point is to advertise Lingyue MP3 in paper magazines such as "Reader" and "Youth Digest", as well as Baidu, Network Management System, 11181 and other channels.
The readers of "Reader" and "Youth Digest" are middle school, high school and college students, who are potential consumer groups.
The audience of 11181 website and Baidu advertising page is mostly boys.
Lingyue MP3 is not intended to be sold to boys, but I hope to see such advertisements in the next life and buy products like this as gifts for the girls I like.
After Chen Xiao left, Manager Zhang asked Tao Junhui some questions.
"Mr. Tao, I have never heard of Lingyue Company. We at Guomei cooperate with big brands and companies. Is it safe to cooperate with such a company?"