In this group of people in the conference room, none of them are younger than Lin Zhenhua in terms of age, and Lin Zhenhua is not in the forefront in terms of level. But after going through so many things, everyone Yijing regards Lin Zhenhua as the backbone and is willing to listen to his thoughts on the development of the entire industry. Gu Jiahua admired Lin Zhenhua's tossing strength as early as when he was in the Ministry of Petroleum, and at this time he became a friend in the machine tool industry, so he was naturally more willing to let him have more ideas.

"Xiaolin, you said that we should hurry up and make the scale bigger, this proposal of becoming stronger and bigger was a little fresh in the early years, but now it is an old-fashioned cliché, which leader does not bring a sentence when he speaks. I think it is an inevitable requirement to become stronger and bigger, but how to become stronger and bigger is the most important thing. Gu Jiahua said to Lin Zhenhua with a smile.

Lin Zhenhua knew that Gu Jiahua was provoking him, but he had planned to pull everyone together on this occasion today, and Gu Jiahua could be regarded as handing him a ladder.

"Let me give you an example." Lin Zhenhua said, his eyes swept around the conference room, and finally fell on Bao Guangming's body. He looked at Bao Guangming with a smile and asked, "Director Bao, let me inquire, what is the current annual output of the shearing machine produced by our Su Forging, and how much is the ex-factory price of one unit?" ”

Bao Guangming was slightly stunned, not knowing what Lin Zhenhua meant by asking. The data asked by Lin Zhenhua, although it is nominally a trade secret, but everyone is in a circle, and this kind of secret can't be hidden from anyone, but everyone usually doesn't talk about these contents casually. Now, hearing Lin Zhenhua ask directly, Bao Guangming replied openly:

"Our shearing machines, sales have been rising in the past two years, 85 units were sold last year, the models of various shearing machines are different, the ex-factory price is also different, the average is about 180,000."

Lin Zhenhua asked again: "If you are asked to lower the price again, how much can you press?" ”

Bao Guangming counted with his fingers and said: "The material cost of a shearing machine is probably less than 80,000, which cannot be reduced." Others, water and electricity costs, working hours, and management costs can be amortized to about 70,000 yuan, and the ex-factory price of such a piece of equipment is about 150,000 yuan. ”

"If you don't sell 85 units a year, but 200 units, or 400 units, can your ex-factory price still go down?" Lin Zhenhua continued to ask.

"200 units! That's definitely no problem, I can make a profit if I press 130,000 yuan. Bao Guangming replied.

This is the so-called problem of scale effect, and the cost of small batch production and mass production is definitely different. After the production batch is large, special tooling can be used, and the mold does not have to be changed back and forth, and after the purchase of some accessories increases, the unit price also has room to decrease. In this way, it is normal for the entire production cost to drop by one or two thousand.

Between Lin Zhenhua and Bao Guangming's questions and answers, the CEOs of other companies also began to secretly calculate their product costs in their hearts, and they found that if their company's product sales can increase by one to two times, then it is easy to reduce production costs by more than 10%. Conversely, if production costs fall and then factory prices fall, then there does seem to be room for sales to rise. Could it be that Lin Zhenhua hit this idea?

Sure enough, after Lin Zhenhua asked Bao Guangming, he turned his head and said to everyone: "I asked the director of Bao about these situations just now, and everyone has heard them. I think it's a similar situation for all companies, but if we can increase sales, we will be able to reduce costs effectively, and we will become more competitive. Mr. Gu just said, stronger and bigger these four words yijing was overused by everyone, I think, these four words still have to be said separately, in our machine tool industry, we must first be bigger, and then we can be stronger. ..., Gu Jiahua said: "Xiaolin, I listen to what you mean, I suggest that you reduce the current sales price by a large margin in order to seize the market, and then use the scale advantage to reduce costs and make up for the deficit, right?" ”

Lin Zhenhua said: "Exactly. I roughly calculated, most of our products in the entire machine tool industry, there is still a lot of room for price reduction, if you count the cost reduction brought by the scale effect, and then compress some of the circulation links of the markup, we will reduce the entire sales price by 30% should not be a problem. ”

"30% Off!"

As soon as Lin Zhenhua said this, the audience was shocked. So many enterprises, no one dares to say that their profits can reach more than 30%, if the sales price of products is reduced by 30% in one breath, then we will not directly turn from profit to loss? Of course, another situation that Lin Zhenhua said is also true, if the price falls, the market share of each enterprise will definitely rise, and the production cost will also decrease. But even so, a 30% price cut is more than worth the cost.

For example, the original production of 100 machine tools, the profit may be 1 million; Now the price has been reduced by 30%, and the sales volume has risen to 200 units, while the profit may have dropped to only 200,000 units. Obviously, you can easily earn 1 million, but now you do more work, but you earn less money, what is this picture?

"Mr. Lin, is the price reduction you mentioned a little too big?" Meng Zhenya asked timidly, "Our current price, the customer is actually quite satisfied, let's take the initiative to reduce the price, there is not much need." ”

"Yes, yes, Mr. Lin, I don't think it's necessary to do such a big amplitude." Bao Guangming echoed, "Our factory has been losing money in the past few years, and finally with the help of Hanhua, Yijing turned losses into profits, and the employees in the factory are counting on the factory to earn more and give everyone more bonuses." If the price reduction is too large, we can't afford to lose. ”

This is also for Lin Zhenhua, if someone else proposed a 30% price reduction to everyone, I am afraid everyone would have left long ago. If you are easy to talk, you will think that you are inexperienced and blind; If you don't talk well, then you have to directly suspect whether you deliberately came here to make trouble for everyone. However, the person in front of him is Lin Zhenhua, who is kind to everyone, and everyone really doesn't want to speak ill of each other.

Lin Zhenhua expected everyone's reaction before he spoke, he smiled slightly, and said: "Everyone, I know that everyone is having a good life now, and I have a little idea of peace and security." But don't forget, in fact, there are a group of strong enemies around us. Think about it, if Japan, South Korea, and our machine tool companies in Taiwan begin to reduce prices, what should we do? ”

"Wouldn't it? There is not much room for them to reduce prices. Meng Zhenya said.

Imported machine tools and domestic machine tools Yijing have been fighting for several years, and the hole cards between each other are relatively clear. Imported machine tools have some advantages in quality and performance, but they are disadvantages in terms of price. The quality of domestic machine tools is unsatisfactory, mainly because of the low price to win the favor of users.

Those overseas machine tool companies have not thought about taking the low-price strategy, but multinational companies have the trouble of multinational companies, wage standards, profit margins, etc., there are some hard frames, not easy to break through. In addition, their high technology is not falling from the sky, but is supported by a large number of research and development funds, which are spread into the sales price of machine tools. Therefore, Meng Zhenya said that there is not much room for price reduction of imported machine tools, which is reasonable.

"And what about the exchange rate?" Lin Zhenhua asked, "If the yen and the won depreciate, will the price of their machine tools come down?" ”

Meng Zhenya said: "Mr. Lin, you are too worried, right?" If we even have to think about these things, then don't compete with them at all. ..., Lin Zhenhua said angrily and funny: "Old Meng, do you care about current affairs?" Since the Asian financial crisis, the Japanese and South Korean won have begun to depreciate, which is not a matter of unfounded worry. I asked everyone to be prepared for a 30% price reduction, and I also took this into account. ”

"I've heard that our country has also been affected by the Asian financial crisis, right? With the depreciation of the yen and the Korean won, should our renminbi also depreciate? When the time comes, everyone will depreciate together, won't they cancel each other out? Bao Guangming said that he is slightly better than Meng Zhenya, and he usually at least reads economic newspapers and knows about the financial crisis.

Lin Zhenhua shook his head and said: "We can't have this kind of luck mentality, what if the RMB doesn't depreciate?" According to my analysis, the possibility of the renminbi not depreciating is relatively large, after all, we are a big country, and at this time, it is very important to stabilize the value of the currency. ”

Lin Zhenhua is not engaged in the economy, and he can't say what is the significance of stabilizing the value of the currency, but he has the impression that China promised not to depreciate the renminbi during the Asian financial crisis. At a time when the currencies of Southeast Asian countries are depreciating sharply, the renminbi insists on not depreciating, so that Southeast Asian countries can increase their exports to China and thus obtain trade income to improve their own currency conditions, which is a helping hand extended by China to Southeast Asian countries affected by the crisis.

On the other hand, at that time, the economic situation of Japan and South Korea was still passable, but these two countries depreciated their currencies one after another out of the consideration of self-preservation, and they were obviously unwilling to share the worries of Southeast Asian countries. These two contrasting performances have allowed Southeast Asian countries to recognize who is a trustworthy partner, and thus build trust in China. Later, the renminbi gradually entered Southeast Asian countries, becoming a hard currency circulating among the local people, and even becoming the reserve currency of some countries, which is the result of China's commitment not to depreciate.

"The financial crisis is both an opportunity and a challenge for us. If we deal with it properly, we can do it all at once and completely defeat the Japanese, South Korean, and Taiwanese companies that threaten us. But on the other hand, if we are not prepared, we may be caught off guard by them and lose a great opportunity. Lin Zhenhua solemnly reminded.

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