Chapter 41: The Whole Set of Theories

Xiaoyan waited for Lin Qiang to finish the call, and couldn't wait for him to explain the so-called fixed costs and change costs.

Lin Qiang smiled and said, "Xiaoyan, this may not be the name in the textbook, it can be regarded as my original term." What is variable cost? For example, for example, the cost of raw materials, the cost of engraving, the cost of inkjet, packaging, warehousing, Transportation and other costs, is the so-called variable costs, because they will change with the increase in the number of products, and fixed costs are in a certain range will not change with the increase in the number of products of fixed expenses, specifically in our company's existing scale, the production of 20 background walls and the production of 50 background walls per day, our factory rent will not change, the salary of our management personnel will not change, design costs, The investment in publicity will not change, and even the cost of our existing equipment will not change if depreciation is not counted, so I call it a fixed cost.

In fact, the fixed cost of the product accounts for a greater proportion of the new product, especially those high-tech products that need to invest huge amounts of research and development funds, the simplest example is the mobile phone, the material cost of a mobile phone will never exceed 200 yuan, but why the price is as high as several thousand yuan? is because it has a large proportion of fixed costs.

Let's go back to our background walls, the cost of materials is not much, but customers see these novel and high-end products, they don't know the production process at all, you two must have felt before, can make such a beautiful picture on ordinary tiles, it's really amazing, right? Therefore, it can be said that these background wall products have embody a lot of my hard work, and the cost cannot be calculated, so our current pricing cannot be said to be profiteering, right?

There is another point, that is, as a product start-up, we will be 'copycated' and chased by peers and competitors all the time, which is why I want to cooperate with you, one is to make the product stronger and bigger as soon as possible, to seize the market, and the other is to always increase the intensity of new product research and development, which requires financial support. You know, a small industry like ours can't do "monopoly" at all, as soon as the product is launched on the market, it will soon be imitated, the entry threshold is also very low, and the competition will be very fierce.

Our trendy brand color carving, in fact, also belongs to the variable cost is very low, but the fixed cost is extremely high small enterprises, not counting the so-called creativity and what R & D costs, just the two large UV inkjet machines and those engraving machines will be more than one million, although everyone is optimistic about the market prospects of this product, but I am always thinking about how much we have to sell each month, in order not to be less than the break-even point. This is quite important for a company, and only after the break-even point will the numbers on the books look much better. But if I can't cross the break-even point for a long time, as a boss, I really can't sleep all the time. ”

Xiao Yan listened with interest, and nodded from time to time, "Brother Qiang, I didn't expect you to have a whole set of theories." By the way, listening to you say this, I remembered that Sister Hua took me to a rather hidden high-end women's club at the foot of Baiyun Mountain to do FACESO, and when I went there for the first time, I felt that the fees there were really not cheap, and they were several times more expensive than those high-grade beauty salons on the market. Now that you think about it, in terms of the fixed costs you mentioned, they can't actually be considered windfall profits. ”

Lin Qiang had heard of this kind of hidden club for a long time, but he had never had the opportunity to experience it. These clubs are full of mystery, not that you can enter with money, they are all membership-based, and they are not allowed to enter the door without considerable relationships, and they are not allowed to enter without members. "Xiaoyan, it seems that you comprehend quite quickly. That's right, the clubhouse you are talking about, the cost of change in there is really low, and the cost of those hydrating masks, whitening essence gels, and BB oils is almost negligible, but if you think about it, if you want to build a club like this, the fixed costs in it are incredible. Although the fee seems to be expensive, if there are not many customers in the club every day, maybe it will lose money, so how can it be profitable?"

"Lin Qiang, I also heard a CEO-level friend say before, once on a business trip, I bought a glass of lemon ice water in the lobby of a five-star hotel, and it actually cost 50 yuan, and I called it 'huge profit', I laughed at him at the time, why didn't he go to the small shop outside to buy it? He said that the sun outside was very fierce and hot. Wen Jie said.

"Sister Wen, it's not that I'm mean-spoken, that kind of person has no knowledge, and the boss, I think it should be humanely destroyed. He only thought that the cost of a glass of lemonade was only one or two yuan, and he thought that other people's profits were sky-high, but he didn't know how big other people's fixed costs were, and if he imagined that he could earn dozens of yuan by selling a glass of lemonade, it was indeed enough to make huge profits, but what if he only sold ten cups a day? In addition to the expensive rent, there were also labor, lamp oil, and wax, so it would be good not to lose money. Therefore, we should look at the essence of the problem and not be deceived by superficial things. When I sell background wall products, I never think about whether it is profiteering, but only the other party's ability to accept it. As long as the other party can accept it, I never mind doubling the price, just like Yamato Villa, but if the other party's ability to accept it is limited, I will make some changes and reduce the profit margin appropriately, but it must be above the lower limit set by myself, if it is below this limit, I would rather give up this kind of customer than let my product fall down. Having said that, do you understand my positioning of the company's products?"

"I understand something, but I haven't been able to understand it deeply. Xiao Yan said: "However, with you as the CEO, Sister Wen and I will be happy and relaxed, right, Sister Wen? By the way, Sister Wen, although the club I just mentioned is not low, the service inside is really good, and there is time for Sister Hua to take us to enjoy." ”

Xiaoyan said and introduced various beauty packages to Wen Jie, as well as saunas, oil pushes and other services.

Lin Qiang smiled and shook his head, not wanting to hear them talk about these women's favorite topics, and after telling Xiaoyan to get out the company's "core values" and other promotional materials as soon as possible, he went out of the office and went to the newly built production workshop to learn about the production situation.

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Dear readers and friends, this novel is the sequel to my other novel "Time Apocalypse", if you want to have a deeper understanding of Lin Qiang, Cao Xu, Wen Jie, Qin Xiaohua, Su Juan, Zhou Wenjie and other people's previous experiences, please read "Time Apocalypse" first, and please give more suggestions, send more comments, thank you!