Chapter 891 The price can't be low

"Xiaochen, since you regard the international market as the main market in the early stage of IPENG, there is a ** annoyance, whether we are in Europe or the United States, we have no channel customers, and we can say that the degree of understanding of the market over there is zero, so do we want to set up a separate marketing company to do this?"

In Mr. Chen's office, he and Mr. Hu had a discussion about the market operation and even pricing of the new product.

"Uncle Chen, there is no need to set up a separate marketing company, only a special sales department is required, at least at this stage, we don't have so much energy and manpower to run a marketing company. Hu Mingchen said.

Since it is mainly in the international market, it is particularly important to have a good foreign language and understand the operation of the international market, and it is best to have direct experience in successful practical operations. Chen Xuesheng said, "In terms of the operation of the international market, our company does not have a person who understands it now. ”

Although Chen Xuesheng's words included Hu Mingchen, Hu Mingchen also had to admit this, it did include him Hu Mingchen, and he really didn't know anything about the operation of the international market.

"This ...... It's better to slow down now, we don't launch a new product as soon as it is released, we still have a few months to go, and during that time, we will deal with this matter. Hu Mingchen thought for a while and said, "Now our top priority is to get the new product launch conference right, and we still have to prioritize things." ”

"Now there are only six days before the new product launch, I am getting more and more nervous now, I just asked He Xin, the quality of the product is still unstable. ”

"Speaking of nervousness...... I'm so much nervouser than you are. When it comes to nervousness, Hu Mingchen is nervous now, and his words have become a little unnatural.

Don't look at Hu Mingchen has seen some storms, this project is also completely led by him, but in front of so many media to do a demonstration for more than an hour, especially to broadcast live, Hu Mingchen is not only the first time, and the whole process must not be the slightest mistake, otherwise, the publicity conference will become digging his own grave.

Therefore, the pressure on Hu Mingchen is very huge, and this pressure is so great that there are still five days before the press conference, and Hu Mingchen begins to get nervous.

"Indeed, it is you who will come to the stage to explain at that time, and speaking of which, it is true that no one is more suitable than you, and I can understand the pressure. But it's also you, if it were someone else, I'm worried that whether I can say it smoothly is still the same thing, anyway, it's my flower, I'm afraid I can't do it. Chen Xuesheng muttered.

"So, to make sure that nothing goes wrong, we're going to have rehearsals starting tomorrow, and we're going to have rehearsals in a row these days. ”

"Still want a rehearsal?"

"Of course, it is necessary to solve the problems found in the rehearsal in advance, otherwise, it may be too late when it is officially released. Before, I thought that five machines were estimated to be enough, but now it seems that at least ten must be prepared. Hu Mingchen said.

"Well, that's right, then the TV station also needs to be synchronized, right?"

"Yes, finding problems in advance is not only limited to our own products, but also includes the broadcast of TV stations, although the rehearsal cannot be broadcast live, but to test the signal, and to record the rehearsal footage for study, we only have one chance, so we must be perfect. ”

"Xiao Chen, have you ever thought about the pricing of this product, since it is a new product launch conference, the retail price should also be one of the contents at that time, and it is impossible not to include it. Chen Xuesheng asked.

Regarding the sales price of this product, Hu Mingchen has actually been weighing and figuring out this time.

This new IPENG, Hu Mingchen has calculated the cost by themselves, and if it is produced on a small scale, the cost will be about 2,000 yuan, but once it is produced on a large scale, the cost can be suppressed in the range of no more than 1,000 yuan, in other words, the cost of this new mobile phone is 200 US dollars.

At the beginning, Hu Mingchen wanted to set the price at 2,499, so that they would have about 75 percent gross profit. This profit is not low, but later Hu Mingchen felt that the price was still low, especially in the case of positioning the market in the international market and taking the mid-to-high-end route.

"The price in the international market is set at 499 US dollars, and the domestic market is 2999 yuan. ”

"499 US dollars? Will the price be expensive, our cost can be compressed to less than 200 US dollars, so calculated, we will have 15% profit, it should be more expensive, the price is too high, it is not conducive to our sales and market acceptance." As for the domestic market, the price is set at 2,999, and I think it's okay, after all, the more expensive mobile phones on the market are now in the early 2,000s. Chen Xuesheng listened to the price proposed by Hu Mingchen, and was a little surprised.

On the one hand, Hu Mingchen's pricing makes the profit margin really high, on the other hand, Chen Xuesheng has been working as an OEM for a long time, and the profit of OEM is very low, about 10% is very good, which leads to Chen Xuesheng's thinking being a little unable to keep up.

In other words, if this product is entrusted to Pengbo Electronics, they may only make tens of hundreds of dollars. But now Hu Mingchen's pricing in overseas markets can indeed earn more than 2,000 yuan.

"Is $499 considered high? No, it's not high, for the income of ordinary people in Europe and the United States, this price is completely within the affordable range, and the key is the product. As long as our products are attractive enough, especially for younger demographics, that's not a problem. As for 15 percent gross profit, it's nothing for an original company that is committed to scientific research and development, and I don't think there's anything wrong with it at the moment. What's more, only higher profits can ensure that we continue to maintain high investment in R&D. Besides, don't forget, the products we export to Europe and the United States are subject to tariffs, and if you subtract the reasonable profits of intermediate agents and distributors, we actually do not have such high profits, at most they are maintained at 100 percent. Hu Mingchen explained.

"I just think that our company is not famous, if the price is too high, in case people do not accept it, it will be troublesome, although the income of European and American people is much higher than ours, but Nokia, Motorola and other giant companies, the price of products in foreign markets seems to be about 300 to 350 US dollars. We were more than a hundred dollars more than a hundred dollars higher than them all at once...... There is a certain amount of risk associated with such pricing. ”

"Risk? Yes, there must be risk, not to mention that we make this product itself risky. But we can't be afraid to try because of a little risk. It is precisely because their price is in that range that I want to raise the price a little higher, not only for profit, but also to make a product positioning segment. If we want to lead the fashion, if we want this product to be the most fashionable and popular and sought after mobile phone, then the price is low. Because there is a basic idea all over the world, that is, cheap is not good. If you look at the shoes that Europe and the United States sell to our country, a pair of shoes, even cars, cosmetics, and so on, which ones are cheap? No, they are all expensive, but we don't buy them because they are expensive? On the contrary, the rich people in China are eager for those things, so I have never had a problem with the price. ”

"But those are big brands, even luxury brands, and they have a brand effect, but we don't. Chen Xuesheng said a key point.

"I don't deny what you said, but it's true that branding is important, and branding can generate additional value. Because of this, we have to go for high-end prices, because as a product, low-end prices will not bring brand effect. Moreover, the profit margin is low, and we have no money to do brand marketing. In a word, I'd rather we sell fewer quantities than make our company's products synonymous with vulgarity. Hu Mingchen said firmly.

The factors mentioned by Chen Xuesheng are not that Hu Mingchen has not considered them, and it is precisely because of some weighing and consideration that he will have such persistence.

Tighten your belt and invest so much R&D funds, if you continue to take the low-end route, then why bother, it is better to engage in assembly machines.

And in Hu Mingchen's mind, he has a huge plan for the future, although this plan is still a little vague and a little crazy, but one thing is certain, that is, to continue to invest large sums of money in technological innovation, if there is no high profit, there is no sustainability.

Science and technology are the primary productive forces, not only because technology can bring efficiency and produce better products, but also because technology can bring profits.

Not to mention anything else, just in the competition between new smartphones and existing mobile phones, if there is no unique positioning and strong strength, it may be possible to be defeated by the old forces.

Chen Xuesheng was not completely persuaded by Hu Mingchen, which naturally has a lot to do with his lack of information about this IPENG.

However, Hu Mingchen is the actual leader of the company, and he insists on doing that with a price strategy, and Chen Xuesheng can only approve. What can you do if you don't approve it, you can't push it over.

After chatting with Chen Xuesheng for more than half an hour, Hu Mingchen went to the media liaison team to check the situation, and at the same time, he also contacted Ma Jiahao to see how prepared he was for the live webcast.

With the help of the relatively professional media team sent by Penguin Technology, Pengbo Electronics' invitation and contact with the media has become much faster. So far, nearly 200 large and small media have expressed their willingness to participate in this press conference, and they have also sent out invitation cards.

Among the nearly 200 media, there are relatively few mass media, and more are professional media for consumer electronics. Of course, these media also include more than 20 foreign media, some of them are branches in the mainland, some are branches in the **, and of course, a few magazines and websites come from the United Kingdom, the United States and Singapore.