Li Xiaotian hesitated for a moment, and then began to say: "Brother, what I mean is that the company's revenue is not bad. The main reason why the company is not making money or the profit is not high is that our company's operating costs are too high. Because our costs are high.
, so our unit price is high. Because the unit price is high, our market competitiveness is much lower. This is also the reason why we currently have few orders. In addition, because our costs are too high, the projects we are operating
Profits are low.”
"Yes, in fact we can also make profits through high-end services. However, there is a problem here. The basic business will always be our bulk. The business volume is large and the most people are used. Therefore, as long as the basic business profits
If it cannot be improved, the company's overall profit level will not be able to increase, and the company will never have major development. High-end business can only be auxiliary and cannot become mainstream. I admit that my previous blind request for salary reduction and layoffs was too paranoid.
, there is also my personal selfishness, but even from the company's perspective, this is indeed a problem that hinders the company's development."
"What about you? What do you mean?" Wang Xudong asked Wu Tian again.
"I still say the same thing. I don't object to the company reducing costs, but salary reduction is not possible. If the salary is reduced, everyone's enthusiasm will be reduced, and the security quality will be reduced. Brother, you also expressed your position just now. Everyone's salary cannot be reduced. At the same time, layoffs
It's impossible. I've analyzed it before. Our personnel arrangements are very streamlined and it's impossible to reduce them any more. I support cost reduction, but cost reduction cannot be achieved through salary cuts and layoffs. We can find ways to start from other sources.
In terms of reducing the company's operating costs and saving expenses, and, I think, the biggest problem should be to increase revenue, not to reduce expenditures. It is like a family. If you want to live a good life, the most important thing is to think about how to live a good life.
Make more money, instead of just thinking about how to save and live frugally." Wu Tian's attitude was still firm.
"Okay, okay, I understand what you two mean. In the final analysis, it's still the same sentence. You two have different understandings of company management. One wants to increase revenue and the other wants to reduce expenditure, right? I carefully
After thinking about it, both of you are right, but neither of you is right. First of all, Xiaotian, what you said is generally right. The company's operating costs are too high, which is indeed a problem. It is inevitable to reduce operating costs, but
, you said that we have lost competitiveness because our costs are too high. I don’t agree with this. I told you the truth last time. Maybe you don’t understand it thoroughly. Let me use an analogy, let’s talk about the cigarettes in my hand.
Cigarettes costing ten yuan a pack or cigarettes costing a hundred yuan a pack, tell me, who is more competitive?" Wang Xudong asked Li Xiaotian.
"this……"
"Are you trying to tell me that the one that costs ten yuan a pack is definitely more competitive? Actually, that's wrong. That's not the case. There is no comparability between the two and they shouldn't be compared together. Why?
?Because they are not the same product at all, there is no such thing as competitiveness. People who smoke cigarettes that cost 100 yuan a pack cannot buy cigarettes that cost 10 yuan a pack, and smoke cigarettes that cost 10 yuan a pack.
People who smoke cigarettes will never buy cigarettes that cost 100 yuan a pack unless there are special circumstances. Therefore, there is no competition between the two because they are not facing the same market. One is doing
The high-end market and the low-end market have nothing to do with each other. This is your first misunderstanding."
"The second misunderstanding is that you said that as long as we reduce the cost, our unit price can be lowered and we can receive more orders. This is also wrong. Take this 100-yuan pack of cigarettes as an example.
People who can afford a pack of cigarettes that cost 100 yuan must not care about the price. What do they care about? The taste of this cigarette, the degree of damage to the body and the image value of the brand. If you spend this 100 yuan
To reduce the production cost of a pack of cigarettes, and in the process reduce the quality of the cigarettes, and sell the cigarettes to 90 or 80, do you dare to say that its sales will become better? Absolutely impossible, in the end
What will be the result? The final result is that people who originally smoked cigarettes that cost 100 yuan a pack will dislike this cigarette and will not buy it, and people who smoke cigarettes that cost 10 yuan a pack still cannot afford that cigarette. Finally, this brand
There is only one way out for cigarettes: bankruptcy. And our positioning is equivalent to a pack of cigarettes costing 100 yuan. What we have to do is not to think about reducing costs to compete in the market with lower prices. That is the most wrong thing. What we have to do is exactly
It is to achieve the ultimate in quality, and then create our own brand influence, and win the market through our image and our brand influence."
"So, you still have to understand that quality is our foundation, and this point must not be touched. No matter how high the cost is, we cannot try to reduce the quality, because once the quality is reduced, it means that we have to close our doors.
Got it. Do you understand?" Wang Xudong said to Li Xiaotian seriously.
Li Xiaotian was a little surprised, and then nodded. This time he seemed to really understand.
"What Wu Tian said makes sense on this point. If you cut your salary, it means lowering the quality. How much you pay, people will do a lot of work for you. How much you pay, people will give you whatever you want.
Service standards are natural. Employees treat us like this, and we treat customers like this. If you give people less money, how can employees still be as motivated and self-disciplined as they are now? How can we hold employees to high standards?
?So, there is absolutely no salary reduction, which I just said. However, there is also a problem with what Wu Tian said. Whether it is starting a company or living at home, it is important to open source, but it is equally important to reduce expenditures. Even if it is
No matter how much money you make, if you don’t know how to plan or save, it will still be a bottomless pit with no balance. When starting a company, there are two eternal topics: increasing revenue and reducing expenditure. These two must be followed up and considered at all times.
However, when it comes to open source, we have to find a direction that is in line with our market positioning to increase open source and reduce expenditure, and we must also reduce expenditure without affecting our quality." Wang Xudong explained the principle.
"Okay, let's analyze the company's affairs carefully, divided into two parts, one is to reduce expenditures, and the other is to increase revenue. Let's start with reducing expenditures. After listening to Xiaotian's words, what Xiaotian said is actually very meaningful.
The truth is, our costs are indeed too high, and the basic business is our core and our largest business. If this business is not profitable, it will be difficult for the entire company to develop. The basic business is the base and the denominator. High-end security
Service is actually just a numerator. The problem now is that the numerator is very small and the denominator is very large. Therefore, no matter how the numerator becomes bigger and stronger, it actually has little impact on the value of our entire company. If we want to
To make money, we can only think of ways from the basic business. Therefore, it is necessary to reduce costs, otherwise the basic business will never make money." Wang Xudong said this and lit a cigarette again. (To be continued)