Chapter 396 Lin Meng Office Equipment Company

For the manufacturing industry, orders and scale are the biggest advantages, because large-scale production can achieve low costs.

If a niche product has less user demand, then the cost cannot be very cheap. However, once the product is mass-produced on a large scale, not only the cost of raw material procurement will be reduced, but also the cost of production management will be greatly reduced.

In the case of automobile production, many small countries have a small domestic market, so it is difficult to compete with the world's auto giants, even with various protective policies. Because, the automobile industry of these small countries does not provide enough orders locally, so that it can maintain a certain scale of production, so naturally do not think about competing for hegemony in the world market.

Since the 80s, it has been the United States, Japan, and Germany that have carved up the vast majority of the market. Because, these manufacturers took the lead in grabbing most of the cake in the global market in the early stage of the local market.

Although the production and sales volume of China's automobile manufacturing industry is not low, a large number of profit sources are provided by joint ventures with the United States, Japan and Germany. This makes the rise of real local brands very difficult.

The goal of Xinai Industrial Manufacturing Group is to achieve industrial mass production, not only electronic manufacturing, as long as there are markets and orders, and the industry does not exceed the limit of its capabilities, it will strive to achieve the world's best OEM manufacturing and after-sales one-stop service.

The brand and intellectual property of Aeron Engineering Chair belong to the newly established Linmeng Office Equipment Co., Ltd. However, the manufacturing and after-sales service are completely contracted to Xinai Industrial Manufacturing Company.

For each Aeron engineering chair, the OEM and after-sales budget given by Linmeng Office Equipment Company is 1,000 yuan, and of course, the after-sales service is also up to 12 years!

It is precisely for this reason that such a high foundry fee will be given.

The foundry fee is given 1,000 yuan, then, the market price is not low, and the reference price in the global market is 500 US dollars!

This price is similar to the price that Herman Miller's chairs were listed at the beginning. Hermann Miller has also developed a 12-year after-sales guarantee to enhance users' long-term trust in the brand.

Of course, in the process of promoting Herman Miller's engineering chairs, in addition to the white-collar reputation on the Internet, the American Hollywood film and television are also full of Herman Miller's chairs. This kind of invisible promotion has also made a huge contribution to becoming the world's first office chair giant.

Although Lin Qi can't follow the example of American brands, Hollywood movies and television are full of soft advertisements for their products.

However, Hong Kong's film and television industry can stuff a lot of soft advertisements. For example, it is not very difficult to give a sponsorship of 20,000 or 30,000 yuan for any movie, so that the chair in the movie can be replaced with an ergonomic chair of Lin Meng Office Equipment Company. And for those film crews with small and medium-sized costs, they must be very excited about the budget being 20,000 or 30,000 yuan more. Within a year, half of Hong Kong's new films will have the Aeron engineering chair, and the sponsorship fee of 10 million yuan should be enough.

All in all, at present, Lin Meng Office Equipment Company is doing office chair business within the new entrepreneurship department in advance. The scale of this business, since it is a brother enterprise, 20,000 chairs is only an order of 20 million yuan.

After the order for these 20,000 chairs is completed, it will be promoted to the world at the market price of $500 each!

As for whether enterprises and government users around the world are interested in ergonomic chairs, Lin Qi is not worried.

……

"Boss, is the price of the Aeron engineering chair too high? Moreover, the after-sales service of 12 years is not in line with common sense! Under normal circumstances, 3 years of after-sales service is already a relatively long after-sales service. Extended to 5 years, users will definitely praise the after-sales service. Guo Yunhai, a professional manager in his early forties, was a little dissatisfied with Lin Qi's business plan, "By reducing after-sales service and reducing the number of after-sales teams, we can better control costs, and give the foundry 1,000 yuan of foundry fees, which can also be reduced to 700 yuan, which has ensured that at least 100 yuan of profit can be made in the process from production to after-sales." And our ex-factory price can also be reduced, 500 US dollars is too expensive! I think if it is reduced to 200 US dollars, the market may expand several times, through small profits and quick turnover, to occupy the market faster!"

"Why do you occupy the market faster?" Lin Qi smiled.

"Of course, it is to avoid imitation by competitors and seize this market!" Guo Yunhai, as a middle-aged man in the workplace, naturally has a little problem with his waist, and ordinary boss chairs and sofas cannot provide better support for his lower back, so he is more able to deeply experience the power of human industrial chairs!

"Don't worry about that...... Lin Qi said, "Although we are only going to produce one product at this stage, we will register about 300 design patents for ergonomic chairs, and the number of patents involved is more than 2,000." It cannot be said that others cannot imitate our ergonomic concepts. However, the best and better design, we are all registered. In the short term, it is difficult to design an ergonomic chair that can compete with our products without infringing on our design patents!"

"......" Guo Yunhai quickly fell silent, of course he liked such a rogue patent troll. Hundreds of different design patents, so how deep does the research on ergonomic concepts need to be developed, so many different solutions can be developed?

At the same time, Guo Yunhai no longer doubts the company's prospect planning. Because, the doubt is simply because I don't understand the strength of the new entrepreneurship department and the Lin Meng department. The number of patents registered by these two technology giants is even richer than that of the country, and they can also rank within the top ten when compared with the country.

Most of the patents registered, in fact, are not adopted, just to establish patent barriers and slow down the time for competitors to enter the market.

"Still have questions?" asked Lin Qi.

"No!" Guo Yunhai knew that the capital scale of Lin Meng Office Equipment Company was of course much inferior to that of the new venture company and Lin Meng Technology. However, with a registered capital of 100 million yuan and the endorsement of the new entrepreneurship department, the initial amount of its bank credit loan is 100 million yuan.

In the short term, the company's production does not use so much money, and these funds are more used for marketing, that is, to promote the product to potential users and persuade users that it is very necessary to change chairs!

Lin Qi's salary for Guo Yunhai is not high, and the annual salary is only 220,000, which is completely different from the annual salary of millions or even tens of millions of dollars for managers in Hong Kong, creating some gimmicks of working emperors.

However, Lin Qi took 87 years as the benchmark year for performance assessment, and the annual revenue was 100 million Hong Kong dollars, so Guo Yunhai himself could take 0.2% of the equity. After that, within 10 years, if the annual growth rate exceeds 50%, you can enjoy equity incentives. If the revenue of the year is backward from the previous year, then 0.1% of the equity will need to be returned.

The company that has been engraved with Lin Qi's brand has an annual salary of 220,000 yuan, and the rest is the equity incentive system to return to the team. Therefore, wages and salaries will not get out of control, which saves a lot of costs for enterprises. The loss is only the proportion of equity held by the boss, but as long as the company develops well, the reduction of the shareholding ratio is not a big problem. And what is the use of garbage companies, even if they have 100% equity in their hands?

And this VAM treaty, if it can be realized. In the next ten years, you only need to pay 2% of the equity, but what you will gain is an ergonomic chair giant with a revenue of 5 billion Hong Kong dollars!