Chu Tianyao took David Yu and Hu Zhibiao around the industrial zone for a long time, and finally settled on a factory site.
Of course, the rent of factory buildings here is not cheap. For a factory with tens of thousands of square meters, the annual rent is at least 500,000 yuan.
"Mr. Chu, the land price in Shekou is too expensive. I think we should change places?"
Hu Zhibiao followed Chu Tianyao and said.
It cost 100,000 yuan to rent an office space, and now Chu Tianyao was planning to spend 500,000 yuan to rent a factory. This made Hu Zhibiao feel a little heartbroken and secretly called him a prodigal.
You know, in other places, the annual rent for a 10,000-square-meter delivery room may be less than 100,000, but in Shekou, the price will be several times higher.
"Old Hu, you don't understand this. According to Shenzhen City's policies, all factories that settle here will have tax incentives. Otherwise, you would think that those entrepreneurs are crazy and insist on opening factories here.
Are you joining in the fun in Shekou?”
David Yu patted Hu Zhibiao on the shoulder and smiled.
"Tax incentives?"
Hu Zhibiao was stunned, obviously he didn't know there were these ways.
"As one of the earliest special zones for reform and opening up, Shenzhen City can do nothing without some policy support."
Chu Tianyao also smiled, and then looked at the empty factory in front of him.
"Lao Hu, based on your previous experience in running an electronic parts factory, how much output can we achieve if we use this as an assembly line?"
After hearing Chu Tianyao's question, Hu Zhibiao came back to his senses, looked around carefully, and even paced back and forth for a long time, and then gave a conservative number.
"We are only doing assembly production, so we don't need much space at all. In my opinion, such a large factory can be made into at least four assembly lines, with twenty people on each assembly line. As long as there are enough materials, one assembly line can assemble at least three hundred units a day.
.”
Hearing the number said by Hu Zhibiao, David Yu was also startled and became inexplicably excited.
"So, our factory can make 1,200 VCDs with just one plant?"
After making a calculation in his mind, David's face showed a hint of uncontrollable joy.
The profit of a VCD is at least more than a thousand yuan, which means a profit of millions in one day?
"Stop dreaming, do you know how much it costs for Wan Yan to make a VCD?"
Seeing the excitement on David Yu's face, Chu Tianyao asked with a sneer.
Wanyan is the first company to produce VCDs. Since its official establishment at the end of December last year, in just half a year, it has become quite famous in the industry.
"Cost?" David Yu was stunned when he heard this, and after thinking for a moment, he said: "If it is Wanyan Company's own product, the production cost should be at most one thousand yuan, and this is the best quality VCD."
The implication of David's words is that they don't need to compete with Wanyan. Even if they make a few copycat products, they can greatly reduce production costs and increase profit margins.
When David Yu said these words, Hu Zhibiao on the side also nodded.
"As far as I know, since the first batch of Wanyan VCDs came on the market, there have been a lot of counterfeit products. Although the sales are good, they are not very popular yet because of the poor quality."
Hu Zhibiao continued to suggest to Chu Tianyao: "The reason why I originally planned to build a factory in Shenzhen City was because I wanted to take advantage of Shenzhen City's external parts procurement and mass-produce before these copycat merchants. Even if our quality cannot keep up with Wanyan vcd,
It is also better than those small copycat workshops, and there is still a lot of market space in the future."
David Yu and Hu Zhibiao spoke one after another, and they seemed to have constructed a beautiful blueprint in their minds.
But at this moment, Chu Tianyao shook his head and spoke ruthlessly to shatter their dreams.
"My prediction is that VCDs in China will only have a lifespan of less than five years at most. Even Wanyan Company is not far from death, so we must make money quickly."
As soon as Chu Tianyao said these words, David Yu and Hu Zhibiao, who were still immersed in fantasy, looked shocked.
"Old Chu, what do you mean by this?"
David Yu asked in disbelief.
Precisely because he knew Chu Tianyao's business strength, he believed that Chu Tianyao would not be unintentional. There might be some reason for his words.
Hu Zhibiao's eyes widened and he looked at Chu Tianyao in confusion.
So he disagreed with Chu Tianyao's statement, but due to his identity, he was not in a hurry to refute it.
"The cost for Wanyan Company to produce a VCD is 360 US dollars, which means that the cost of a VCD alone is 2,000 yuan. Including the publicity costs, the market price is as high as 4,000 to 5,000 yuan per unit."
When Chu Tianyao said this number, both David Yu and Hu Zhibiao were shocked.
It is an indisputable fact that Wanyan VCD is expensive, and it is precisely because of this that it gives huge living space to those counterfeit goods with poor quality and low price.
You need to know how many families in China can currently afford it at a price of four to five thousand.
Neither David Yu nor Hu Zhibiao were fools. As soon as Chu Tianyao said these words, they realized something.
"However, this is not the most fatal flaw of Wanyan Company."
In front of the two of them, Chu Tianyao spoke again.
"Mr. Chu, does Wanyan Company have any fatal flaws?"
Upon hearing this, Hu Zhibiao couldn't help but ask.
You know, he once targeted Wanyan Company and dreamed of becoming the second Wanyan Company in the country.
But now, Wan Yan, whom he regarded as his goal in life, seemed to be somewhat unworthy of mention in Chu Tianyao's mouth. How could Hu Zhibiao accept this?
He knew how Hu Zhibiao felt, but Chu Tianyao still said: "Patents, Wanyan Company should never do it. It ignores the importance of patents."
"patent?"
Hu Zhibiao was stunned.
Chu Tianyao explained with a serious face: "Right now, Wanyan's publicity campaign has not started yet. We know that there are not many consumers of this VCD product. Once consumers come up, in the face of huge profits, the copycat manufacturers in the market will
Just like the crucian carp crossing the river, they are countless."
In his previous life, Chu Tianyao had personally seen how powerful the copycat industry in China was, and he also knew more clearly how Wanyan VCD, the world's first VCD manufacturer, had declined.
One of the most important reasons is that Wanyan’s leader, Jiang Wanmeng, ignored the importance of registered patents.
Without the protection of patents, copycat manufacturers in the market have almost no scruples in mass-producing copycat versions of Wanyan VCD.
Unlike Wanyan VCDs, these knockoff VCDs are low-cost to produce and do not even require formal factories. Often a team or even a family can assemble a dozen or twenty knockoff VCDs in one day.
On the market, counterfeit products are like a vast sea, eventually forming a situation where bad money drives out good money. As the inventor and creator of the invention, Wanyan Company failed completely and could not escape the end of being acquired.
"Old Chu, is it possible that Jiang Wanmeng doesn't know the truth that even you, an outsider, knows?"
During the scene, David Yu said with some doubts.
Hearing this, Chu Tianyao smiled helplessly.
Yes, even an outsider like him understands the truth. As one of the founders, Jiang Wanmeng, how could he not understand it.
But the truth is often so shocking.
Jiang Wanmeng once said in an interview that his goal is to quickly occupy the market, and he believes that whether to apply for a patent or not is not important.
What is even more incredible is that the real core decoding technology of Wanyan VCD actually fell into the hands of another founder, Sun Yansheng.
And this Mr. Sun is not only a Chinese American, he is also the chairman of the American Scoop Company.
As a result, Wanyan Company spent huge sums of money to commission the decoding chip technology developed by Scoop Company, and it fell into the hands of foreign companies.
The core technology is mastered by foreign companies, which also lays the real foundation for the domestic VCD industry to be strangled by foreign alliances.
Someone in later generations once said this.
This is the only opportunity for China to lead foreign countries in the field of consumer electronics at the end of the twentieth century.
It's a pity that this opportunity was missed.
"Of course, we would also like to thank Mr. Jiang. If he hadn't registered a patent, we wouldn't have had the chance to get involved in the VCD industry."
Standing in the empty factory building, Chu Tianyao smiled with some emotion.