006: The law of the market

Even some car companies with unknown conditions began to complain: why should they relocate after good production, which is simply inexplicable.

Some domestic and foreign car companies even scoffed at the original Cosmos company's product launch conference that 'no sales in the sea market area', and now they don't even have production, is this to slap themselves in the face!

Volkswagen, together with several companies, took advantage of this opportunity to sell its own driving safety system to domestic car companies, and the price was almost the same as that of Cosmos.

Although several other companies that developed the product together with Volkswagen had objections, they were persuaded to "occupy the market first", and they basically agreed.

The automotive market is undercurrent.

In addition, the increase in the number of new cars in China's automobile market is close to 10 million units per year, and the profit volume should not be underestimated because of the monopoly of the driving safety system.

At the beginning, Cosmos Electric supplied 100,000 safety systems to domestic manufacturers every month, with a price of about 3,000 per unit, and a turnover of 300 million, while the price of supplying foreign-funded car companies was usually about 10,000 yuan.

What's more, with the current number of driving safety systems, it has only just reached about one-fiftieth of the market demand.

Volkswagen's strategy of occupying the market is absolutely valuable.

At the beginning of the third month when the security system of the Cosmos Company was out of stock, Volkswagen has rolled out its own driving safety system to more than 80% of the domestic car companies.

In addition to BYD, Geely and other companies, most of the others have business dealings with Volkswagen.

At the beginning of the third month, seven car companies joined forces to raise the demand for loans from the government to expand production capacity.

With their current output of less than 100,000 driving safety systems per month, it is far from meeting the market demand, so they began to think about expanding production capacity.

In their plan, the first phase will add a safety system electronic base with a production capacity of 300,000 units, and they directly plan to borrow 8 billion yuan from Haishi, and the other seven companies are jointly investing 7 billion yuan to complete the project.

The valuation of fixed assets in Haishi's automobile industry is more than 1 trillion yuan, and the annual sales of automobile-related industries are more than 700 billion yuan. Driven by the recent driving safety system, the automotive industry is more like a second spring, the single automobile industry, the sales output value for two consecutive months has achieved a growth of 200%, which also means that the sales growth in the single automobile industry has exceeded 150 billion every month, which is definitely a huge surprise for the market.

Therefore, there was almost no hesitation, when these seven car companies jointly launched the loan demand, with the intervention and support of the municipal government, the relevant departments directly approved 10 billion funds as the funds for Volkswagen to jointly build a security system electronics factory.

Volkswagen, together with several companies, plans to increase the production capacity of driving safety systems to 1 million per month in the future under the relatively stable market.

Compared with other people's children, Zhao Tian's Universe Electric Company is definitely a hard-working child.

In the third month of the construction progress of the Cosmos Electric Company, all work is progressing steadily.

According to the original projection, three months will definitely be able to carry out normal production.

This also means that it is now time for the final engineering phase of the electrical company.

As the project enters the final stage, then everything else starts to work.

Huang Houcai, who was preparing to put the new plant into operation, was in big trouble.

Raw material purchase!

In the manufacture of electronic components, many of them require specific precious metals or metal raw materials for special purposes.

In the past, when I was in Haishi, the location of the electric company was surrounded by many electronic production industry chains, and it was very convenient to be a raw material supplier. In addition, the sea market has three major transportation advantages of sea, land and air, coupled with some trade policy benefits, whether it is imported raw materials or domestic ones, the supply of goods is extremely abundant.

Now the situation has changed a lot.

Although the geographical location of Huishi is not bad, its economic development is also quite basic.

But in terms of industry, Huishi is really weak and can't provide any help at all.

Originally, the entire budget of the Universe Electric Company, plus Huang Youcai's funds, was 600 million, of which 100 million was used for the company's usual operations.

Now that we are having difficulties in purchasing raw materials, we need to re-evaluate our budget.

After Huang Houcai made a comprehensive calculation of all aspects, the cost of raw materials increased by about 40 percent compared with the original.

This means that the raw materials purchased for the same amount will be reduced by 40% compared with the original production.

Then the cost of the product will increase by about 25 percent.

The driving safety system of the Universe Company has less than 30% of the profit ratio after sales for domestic car companies.

If the previous price is followed, the profit ratio of the driving safety system will be at least halved now.

After this series of data analysis, Huang Houcai decided to make corresponding price increase measures for the security system.

Of course, he must report this decision to Zhao Tian before he can implement it.

Cosmos, Chairman's Office.

This is Huang Houcai's second time here.

The first time was when he first arrived in Hui City, as the head of a subordinate company of the Universe Company, he naturally had to recognize the boss's door first, which is the so-called Bai Pier.

After Huang Houcai arrived at the office, he sat on the sofa honestly, staring at the water on the coffee table, and his expression was quite restrained.

He now suddenly had a sense of absurdity in his heart that the ancient local princes had come to see the king.

But from a certain point of view, it is really like that, after all, compared with Lao Chang, Li Minghao and other ministers, he is indeed more like a foreign minister.

Zhao Tian sat behind the desk, his sword eyebrows furrowed slightly, and his eyes carefully looked at the relevant cost data sent by Huang Houcai.

After looking straight for a while, Zhao Tian rubbed his eyebrows, his forehead flattened slightly, and said in a deep voice: "Lao Huang, the last suggestion in your report is to increase the price of the security system by fifty percent, isn't this too much?"

Huang Houcai straightened up when he heard this, as if he had expected Zhao Tianhui to ask like this, and said with confidence: "Dong Zhao, this final price increase plan is also a conclusion I came to after discussing with various departments of the company. ”

Zhao Tian tilted his head slightly, waiting for Huang Houcai's further explanation.

Huang Houcai continued: "First of all, the increase in the cost of raw materials, this must be calculated into the price, after all, any increase in cost will lead to the rise of prices, which is the law of the market." ”

Zhao Tian saw that what he said was reasonable, and nodded and motioned for him to continue.

"In addition, our current products have been upgraded and updated, and after our product launch, major car companies and large customers are highly respected for our new generation of security systems, and the response in the small market is also extremely good, which is also the basis for us to increase the price, good quality things, the price in the market is originally higher, which is also the law of the market. ”

This sentence made Zhao Tian feel that Huang Houcai's speech was quite interesting, three sentences or two sentences, and in the end, it was inseparable from the laws of the market.

"At the same time, there are some situations that we can't ignore, that is, our factory has been relocated, and at present, no matter which aspect of the funds is relatively tight, we also need a considerable amount of funds to be recorded in order to ensure the steady operation and growth of the electrical company. ”

"This is also the law of the market?" Zhao Tian asked curiously.

"Uh," Huang Houcai was asked like this, and instantly choked up a little speech, but quickly reacted, "Yes, this is also the law of the market, and the wool comes out of the sheep." ”