Chapter 916: The Need for Expansion
For the sales of light-speed bicycles, Su Rui is confident that he will set a retail price of 1,000 yuan.
If he doesn't believe enough in the sales of light-speed bicycles and thinks that it is impossible to reach 10 million annual sales, then he will naturally not set the retail price at 1,000 yuan, but at a higher price.
However, Su Rui believes that the lightspeed bicycle, as a new type of bicycle, will inevitably lead the trend, and the sales volume is not low.
It can be said that the unique and cool appearance of the light-speed bicycle is enough to ensure the annual sales of 10 million units, plus this is only one of the advantages of the light-speed bike, not the biggest advantage, with strong performance, and superior riding experience, this is enough to ensure the sales of light-speed bikes, it will be a very good number.
Lightspeed bikes are not like other bikes, other bikes don't get this sales, but lightspeed bikes don't necessarily can't reach it.
Therefore, the annual sales of 10 million units are not unattainable for lightspeed bicycles, on the contrary, the possibility of success is still relatively large.
When the retail price of the lightspeed bicycle is 1000 yuan, the production cost can be reduced to less than 400 yuan, which means that there is a profit of at least 600 yuan, that is, a profit margin of 60 percent, which is already a very considerable profit for a thousand-yuan bicycle.
In this industry, it is difficult for a bicycle in the same price range to achieve this kind of profit margin, even if it is a more expensive bicycle, it is difficult to have a net profit of 600 yuan, let alone reach a profit margin of 60%, which is almost impossible.
Of course, if the lightspeed machinery manufacturing company wants to take this annual profit margin, it needs to be sold in the official mall of life, if it is not sold in its own channels, there is no way to maintain this profit margin, and the sales channel is also to make money, so that it can only reduce the profit, or increase the retail price, so that it can continue to maintain this profit, and the sales channel is also profitable.
It's just that at present, Su Rui and Shen Qing have no plans to develop other sales channels, and they are only ready to sell lightspeed bicycles in the official store of life for the time being.
In this way, the profit margin of light-speed bicycles can indeed be maintained at 60 percent, that is, for every one sold, there will be a profit of 600 yuan, but if you want to do this, the premise is that the annual sales of light-speed bicycles can be close to 10 million, and the gap cannot be too big to have this sales.
In fact, compared with other bicycle companies, Lightspeed Machinery Manufacturing Company has a great advantage in producing lightspeed bicycles.
It can be said that even if Su Rui announces the production process of light-speed bicycles, including the production process of new materials, and all the technologies, except for the light-speed machinery manufacturing company, no bicycle manufacturer can control the production cost of light-speed bicycles to less than 1,000 yuan, even if the annual output is 10 million.
If the retail price of light-speed bicycles remains unchanged at 1,000 yuan, and the annual sales are in 10 million, these bicycle manufacturers are not sure that they can make a profit.
Because, compared with these bicycle manufacturers, Lightspeed Machinery Manufacturing Company has the advantage of not only leading in design, technology, etc., but also leading in all aspects, among which the production equipment is far ahead, compared with peers, the advantage is much greater, not only can ensure higher output, but also higher yield, labor costs will be lower, which are obvious advantages.
Because of this, Lightspeed Machinery Manufacturing Company can control the production cost of lightspeed bicycles within 400 yuan, which is not possible for other bicycle manufacturers.
Therefore, Su Rui is confident that in the next few years, the light speed bicycle can guarantee an absolute advantage and will always be in the lead.
On the first day of pre-sale, 100,000 lightspeed bicycles were sold in five seconds, according to the retail price of 1,000 yuan, that is 100 million yuan of revenue, if the average profit is 600 yuan, it means that the lightspeed machinery manufacturing company has created a profit of 60 million yuan.
In one day, the lightspeed bike generated a profit of 60 million yuan, which is a very good start.
With such achievements, Su Rui is more looking forward to the future prospects of Lightspeed Machinery Manufacturing Company, at least for now, it seems that there is no shortage of funds for development, and there is a lightspeed bicycle is enough for Lightspeed Machinery Manufacturing Company to have enough development funds, not only to expand the scale, but also to develop more different products.
However, because the first-day pre-sale results of the lightspeed bike were so good, that the previous preparations were slightly insufficient.
For example, the bicycle production base that Su Rui and Shen Qing planned to build at that time only had an annual output of 10 million bicycles, and an average of 28,000 bicycles per day.
And now, this bicycle production base, has been put into use, has been able to achieve a daily production capacity of 15,000 vehicles, and it will not take long for this production base to complete all the construction, that daily production capacity can be 28,000 vehicles, the annual output can exceed 10 million.
For this launch, the bicycle production base has been working overtime to produce and currently has an inventory of 500,000 light-speed bicycles.
The inventory of 500,000 units, Su Rui thought it was quite a lot, thinking that it could be sold for quite a while.
But now it seems that the 500,000 light-speed bicycles will not last long, judging from the 100,000 pre-sold on the first day, if the sales are released, the 500,000 light-speed bicycles may be sold out in a few days.
Therefore, now it seems that the production scale of this bicycle production base still can't meet the market demand, even if it is calculated according to the highest design capacity, the output of 10 million units a year may not be able to meet the needs of the market, after seeing this first day of pre-sale, Su Rui and Shen Qing both believe that the annual sales of lightspeed bicycles can exceed 10 million.
On top of that, Lightspeed Machinery Manufacturing will not be able to sell only road bikes in the future, for example, it will launch different types of bicycles, which will require a lot of production.
As a result, the production scale of this bicycle production base is only 10 million annual production capacity, which is indeed a little unable to keep up with the demand.
Therefore, Su Rui is considering whether to increase the production scale of the bicycle production base and make the production capacity of bicycles higher, so as to prepare for future production needs.
Fortunately, when planning without looking for a bicycle production base, I have already taken into account the future expansion plan and reserved enough land in advance.
So, if you want to expand your production, it's not difficult to do that.