Chapter 170: Breaking the Game
In order to open up the American market, Oriental Games Company has invested more than 20 million US dollars in publicity funds in one go, such a high-intensity advertising investment, coupled with the simultaneous release of FC game consoles are the most popular arcade games in the United States, which can naturally attract the attention of a large number of game fans.
In fact, in Jackson's store these days, almost every day there will be customers asking if they want to buy this newly launched FC game console. But Jackson went to the wholesaler to get the goods, but the other party shook his head and revealed to him the news that the FC machine had been blocked. It is said that Atari has issued a ban on this new FC game machine, and anyone who dares to sell FC machines will be pulled into the blacklist of refusal to supply by Atari. This made Jackson have a lot of concerns.
"Mr. Johnson, you must have heard some news that Atari has resorted to some more insidious means in order to squeeze out our company's game console. Josh saw the other party's hesitation at a glance and said with a smile, "Compared to our FC game consoles, the Atari-2600 is a garbage that can be eliminated, and the bosses of Atari know this very well, so they don't dare to compete with us openly, because they know that they will lose so much that they don't even have their pants left!"
But don't worry, Atari's so-called ban is only against those intermediate wholesalers, have you been notified by them? No, right? That's right, this war is a contest between Atari and our Oriental Game Company, and it has nothing to do with you small store owners! You just open a store, make money, and support your family, and you will naturally sell whatever can bring profits!"
Jackson nodded approvingly, those wars between large corporations. What does it have to do with him, a small boss!
"Hey, boss, how much does this console cost?" the boy's father suddenly asked the two of them.
"Sir, FC consoles are priced at $199 nationwide, and game cards are priced at $19.9, except for Tank Wars. You can also give Mario Bros., Hong Kong Cubes, and Pac-Man a try, all great games that are now taking the whole of America by storm!
Also, if you are going to buy a game console, I personally recommend that you buy an original controller. Most of our company's games have a two-player mode, so you can play with your son on the weekends and fill his childhood with fatherly memories!" In place of Jackson, the boss replied politely and warmly, and his wording pleased the boy's father.
Josh said as he stepped forward to replace the console with another Mario Bros. game card. This game is no less attractive to children than the previous "Tank Wars", and the little boy began to play the new game with relish.
Josh walked back to his boss, Jackson, and pulled a stack of papers from his backpack. He took a few copies and handed them to him, saying, "You should know Garcia the bald head, and Mr. Thompson, both of whom have shops just a few blocks from you." These two people have already signed a trial marketing contract with me.
It's not just them, in fact, most of the game retail stores in Saramento City have signed a consignment agreement with us, so you don't have to worry about yourself being blocked! Even if the wholesalers who supply you know that you are selling FC game consoles, they will pretend not to know? If you are really blocked, who are they going to sell the mountains of products in their warehouses?"
Josh didn't think he had enough chips and said with a smile, "How's that?" Mr. Jackson, are you interested in being a distributor of FC game consoles, we at Oriental Games are responsible for delivering directly to you. To reduce your risk. Our company can let you test sell for a month without paying, and when you are sure that our FC game console is indeed a good bestseller, we will discuss the rest of the matter!"
After he finished speaking, he took the test sale contract from his backpack again, and it was very simple. The text of the contract is very simple, if the dealership is willing to sell this FC game console, Oriental Games Company can provide the supply for free, and settle the payment according to the actual sales volume at the end of the month. Seller's sole obligation. It is necessary to place the FC game console in a prominent position in the store and enthusiastically promote the game console to every interested customer.
"Boss. I want a game console, a gamepad. and a box of each of these five game cards!" The boy's father was so satisfied with the FC console that he decided to buy it for his son.
"Okay, wait a minute, I'll go get you the goods in the car outside!" Josh winked at Jackson's boss, then smiled and nodded at the father and son, and quickly went out to pick up a bunch of beautiful boxes from the car parked outside.
"$199 for a game console, $25 for a gamepad, $19,9 per box for a game card!"
It sounds like Josh is paying for the customer, but in fact he's telling the owner Jackson the price. Jackson quickly printed the sales invoice according to his offer, and the father had to pay a total of $350 after adding sales tax.
Oriental Game Company has played a trick, although the price of the FC game console is not high, the price of the game card is not cheap, and only one game controller is given with the game console. If you want to play in Duo mode, you will need to purchase an additional original controller.
Less than ten minutes after the father and son left, Josh walked out of Jackson's store with a smile on his face, the fourth consignment contract he had signed today.
The thought of getting a lot of money at the end of the month makes Josh feel motivated. He sat back in the driver's seat of the car and immediately spread out the map of the city of Salamento and followed the route marked last night to find the address of the next retail store.
Josh is just one of dozens of teams of salesmen sent by Oriental Trading Company to all of California, and they are responsible for running game retail stores in all parts of California in half a month.
At the same time, several logistics centers in California have also begun to work out the most reasonable delivery routes according to the addresses on the test sales contracts sent back by the salesmen. Then a number of trucks were quickly dispatched to deliver to the owners of retail stores who were willing to sell FC game consoles on their behalf.
The reason why Li Xuan chose California as the target of the key breakthrough is not only because California is the most economically powerful and populous state in the United States, but also because it is the most mature area for computer park companies. With the help of the perfect logistics and distribution system that has been established by the computer park company, Oriental Commercial can quickly distribute the supply of goods to most areas of the state.
"A few gentlemen!" Han Peng said with a smile to the agents who were sitting in front of him with a slightly embarrassed expression, "You can take a look at this information first!"
As he spoke, he motioned for the secretary to hand out a stack of materials to several guests on the other side, all of whom were game console dealers in Southern California. The Oriental Company was first in the guò arcade business, with which several of them entered into partnerships. Later, the Gameboy handheld business allowed Orient Commercial to have closer business relations with these distributors.
Originally, they had already reached a distribution plan with Oriental Commercial for FC game consoles, but Atari suddenly announced that it would refuse to cooperate with any agent that sold FC game consoles from Oriental Games. As a result, they immediately chose to hug Atari's thigh and stabbed Oriental Games in the back, making the sales of FC game consoles extremely troublesome. After all, the ATARI-2600 console and game card account for a significant share of their entire business, and they will certainly not give up these steady profits.
"That's the sales of more than 200 game retail stores in Southern California in the past week! The results are very encouraging, with 7,200 consoles sold and 15,000 game cartridges sold in one week. On average, each retail store sells 5 game consoles and 10 game cards per day!"
The expressions of several distributors present were full of shock, and they couldn't believe that Oriental Commercial Company had quickly built the entire distribution network in just half a month without the support of their own people. These more than 200 retail stores have been covered, and more than eighty percent of the next stores are in the hands of a few distributors here. That is to say, Oriental Commercial Company does not need to rely on their snort in the future, and can directly deal with terminal retailers.
What shocked several distributors even more was that the FC console was far more popular than they thought. 200 retail stores sold 7,200 units in a week. At this sales rate, if the sales are distributed in the United States, the monthly sales of FC consoles can be at least 300,000 units, which is not much compared to Atari's Atari Atari-2600 game console.
Looking at the surprised expressions of several people, Han Peng didn't care, and still said in a very calm tone: "All the gentlemen here are all industry insiders, and after reading the number in your hand, you should understand that our FC game machine is definitely a gold-absorbing weapon comparable to ATARI-2600."
The more than 7,000 consoles sold in the Southern California market were supposed to be delivered to retail stores through Guò's distribution channels. Based on a gross profit of $10 per console, you've lost more than $70,000 in total over the past week.
Add to that the distribution profits of the game cards, and you each lose at least $20,000. That's a week's worth of losses, and that's almost $1 million for the whole year. And how much profit can you make from distributing Atari consoles? How much extra compensation did Atari give you for such a big loss?"