Chapter 69 Business Philosophy
"But young master, today I contacted some friends in the business world, they think that in fact, the price of the luxury version can be set higher, and now the luxury version is only 1000 lira more expensive than the standard version, and most people will grit their teeth on the luxury version, which does not reflect the characteristics and status." Antonio pondered for a long time, and finally decided to say this.
"You mean I'm low?"
The other party did not express his position, but said: "The orders are basically the luxury version, and there is almost no ...... the standard version"
Contini smiled and shook his head: "I did it on purpose. ”
"Deliberately?" Antonio thought for a moment, but didn't understand what that meant.
"There are two kinds of beer in the bar, one is a large glass, and the other is an extra-large glass, the price is only a little more expensive, but there are a lot of things, which one will most people choose?"
"Extra-large cup, it looks more cost-effective."
"Actually, I just wanted to sell a super large cup to you, the big cup is deliberately put to give you a comparison, balance the mentality, for normal people to drink a big cup is completely enough, choose a super large cup is completely because of the psychology of greed, do you have such an experience, for the greedy result to buy more than expected things and eventually lead to waste?"
"I rarely have them, but in reality there are quite a few of them."
"That's one thing, and the other is to lower the price of the luxury version because I don't want the luxury version to be too high and too low, and it's the only toy for the rich, and all my business goals are aimed at the middle class, newspapers, radios, motorcycles, and cars in the future." "Skilled industrial workers in Italy earn no more than 10,000 lire a year, and they must not be able to afford the deluxe version of 4,999 lira, and 3,999 lira is estimated to be unaffordable, but the middle class can afford 4,999," Contini explained. The significant difference between the middle class and the wealthy class is that the difference in their sales volume may be more than 10 times, Mercedes-Benz cars are much more expensive and profitable than Ford Model T, but which one sells better? ”
"Are you going to go with a strategy of small profits and quick turnover?"
"It's not just a small profit, but there are other considerations...... "Contini gives an example, "and you make 1 million lire, do you want to sell 100 or 10,000 units?" ”
"100 units, so that our products have more identity and status, follow-up maintenance pressure is also less, and management is less difficult"
Contini shook his head: "My choice is exactly the opposite of yours, I choose to sell 10,000 units, even to sell 10,000 units, I can accept only 900,000 or even 800,000 lira in the early stage." ”
"Why?"
"Follow-up supporting services, 10,000 units means that there is a steady stream of accessories and modified parts for later secondary sales, 100 units can not sell much, I promise a 3-year warranty, but normal wear and tear, man-made damage are to customers pay for themselves, this is the business of fine water." "I hope to be able to form a motorcycle culture with Italian characteristics in a certain period of time, and if there are only 100 luxury units, there will be no practical culture at all, only a culture of admiration - this is not what I need." Making money is the goal, but not the only purpose, I have bigger ambitions. Uncle Antonio, do you know how big a company should be with 10,000 motorcycles a year? What if the annual production is 50,000 units? ”
"It's big, it takes a lot of people." Antonio had not previously managed an industrial enterprise, but was well aware of the size of Fiat.
"Then I will be able to train the working class and engineers in Italy, and then in the future I can build cars and airplanes along the same lines and models, and I can also switch to building armored cars and tank......s," Contini blinked, "You say, if I focus on being an industrial tycoon, what do I want so many industrial workers and engineers to do?" It's none of my business to improve the Italian industrial system and scale up, and I wish there were fewer competitors as much as possible. But if I step out of this box and look further, do you think that the Italian Prime Minister and Leader will not be my turn in 10 years, and will it not be my turn in 20 years? If I didn't fight for this lofty goal, why would I get so many planes and raise so many elite guards? ”
Antonio opened his mouth and stammered, this was the first time that Contini showed his determination and "spat out wild words" in front of him, and at this moment, he instantly understood the surging ambition under the young master's calm face! This kind of ambition is much stronger than that of the old man!
Contini looked at him stunned, and also felt that what he said was a bit big, and hurriedly said: "I'm sorry, I drank too much, don't take it to heart if you talk nonsense." ”
Drunk people always say that they are not drunk, and those who are not drunk say that they have drunk too much, and of course Antonio understands this. He now understands at a deeper level the reason why the young master would rather lose money and sell the radio for nothing, which will not only quickly open up the market, form a group of electrical engineers and industrial workers, and let United Radio occupy a monopoly position, but also make the influence and role of the Italian National Radio more far-reaching - why use two girls who admire the young master and are constantly approaching as pillars, and why select a group of young people to work in the radio station, the superficial reason is, of course, innovation and youthfulness. It's not that there is no intention to firmly control the entire radio station, who can the 20-year-old young master control and influence? Of course, only members of the Youth Union and employees of the United Group. So the bigger the scale, the better!
Other radio companies had no chance of following suit, because the more they gave away, the more the Italian national radio would benefit, and this kind of divine assistance was impossible for a shrewd businessman, and the Marconi company would not have given up selling its own products in Italy in favor of accessories? And even if other tycoons want to copy Contini's successful ideas, there is a ban on "no new radio stations for three years", and then follow this set of radio stations and send radios after three years? It's late!
There are newspapers, magazines, and radio stations, which control the position of public opinion; There are aviation bases and aircraft all over the country, there are strength and financial resources involving various industrial fields, there are a wide range of interest groups, coupled with the "Roman Warrior" club and elite guards carefully built by the young master, as well as the increasingly vigorous youth league, what can be done in the future, Antonio can figure it out with his toes - follow this path step by step, it seems that it is inevitable to be a leader in the future, and Mussolini will always be old!
The biggest constraint of this model is capital, only a steady stream of funds for Contini to use in order to drive the entire business logic and then in the formation of scale, industrialization after the political benefits, in other words, as long as the capital chain continues, there is no profit is second - why the pricing of the joint motorcycle has been higher than the market ordinary products and the profit margin is still low, is because of the amortization of too much one-time investment, as long as the output goes up, these amortization can eventually be recovered, and this process does not have to pay income tax due to continuous losses, It's not a big deal.
Based on the above logic, Antonio made up his mind and decided to push the loan demand of 90 million to more than 100 million, and finally to ensure the effective operation of the United Group.
Back at the base, all the engineers, pilots and other personnel were having a party, although the conditions of the base were far worse than those hotels and hotels in Milan, but the atmosphere was lively, Potti, Vivian and Adriana co-hosted on stage, everyone was entertaining themselves, celebrating the success of today's launch and the success of the product - the number of orders received has exceeded everyone's most optimistic expectations, and the factory inventory has also exceeded the factory's inventory, everyone is happy.
Even the engineers and technicians from Germany were very happy, greeting each other in half-baked Italian, hoping to integrate into the group as soon as possible, and Contini was very satisfied with the atmosphere of the company's team and applauded enthusiastically from the audience.
"Calais is coming......" Potty caught a glimpse of Contini in the crowd, and hurriedly invited him up, asked him to say a few words to everyone, and expressed his gratitude to Potti for his uninvited help today, Contini also expressed his gratitude, and while taking the microphone, he couldn't help but pat him on the shoulder to express encouragement - you kid is good.
Contini walked to the center of the stage and said from the bottom of his heart: "The successful debut of United Motorcycle Company and products is a perfect demonstration of your efforts, and the company's management will reward you for your hard work since the preparation period, we have created an unprecedented joint speed, and I have always been proud of you!" I hope that we can work together to achieve greater results in the future, thank you! ”
Contini is very eloquent, but now that the scene is in full swing, it is a bit out of place to make another tirade, and a word of thanks is enough to say it all.
What does the joint speed refer to is very clear: since the beginning of the preparation in November, only more than 4 months, the United Motorcycle not only built a new plant, added equipment, thoroughly ate the relevant design drawings and created nearly 200 qualified products, all this is achieved in the case of desperate work, the company from the general manager to the staff working hours a day comparable to other companies for two days, and the effect is three days, four days, all of us like a clockwork machine like a rush to run wild, this has a "joint speed" This term is almost unimaginable in Italy.
He was met with a round of applause!