Chapter 1035 Selling products is better than selling production tools
Thinking of the competition between domestic disc factories, or the extreme involution, Fang Chen couldn't help but sigh lightly, looking a little helpless.
Optical disc factories typically belong to industries with small investment, low personnel and site requirements, and low technical requirements.
It is this series of characteristics that leads to the fact that as long as you have two or three million in your pocket and feel that the optical disc factory is profitable, you can enter the optical disc industry.
Fang Chen is now using Sony's latest and largest optical disc production line, so the price is relatively expensive.
In a few years, when the technology is relatively mature, especially when some domestic enterprises begin to produce and manufacture optical disc production lines, a optical disc production line is only two or three million.
Of course, the capacity of this optical disc production line will be relatively small, only one-fifth of the capacity of Sony's optical disc production line.
Take the previous life as an example, in the millennium or so, the domestic optical disc production capacity is an annual output of 700 million sheets, as a high-tech industry, the optical disc factory is mostly concentrated in Yanjing, Shencheng, Lingnan, the three most developed places in China, the country has 80 optical disc production plants, more than 170 optical disc production lines.
The strongest technical strength and the strongest production capacity is Yanjing, Yanjing does not have many optical disc factories, only eight, and these eight have a total of more than 20 optical disc production lines.
However, it is these more than 20 optical disc production lines that make Yanjing have the ability to produce 200 million optical discs per year, while the other more than 70 optical disc factories and more than 150 optical disc production lines have a total production capacity of only 500 million optical discs, and on average, the annual production capacity of an optical disc production line is only more than 3 million discs.
As the leader in the production of optical discs in China, Yanjing in 1996, when DVD was just popularized, the price of copying and processing each disc was more than 7 yuan, and the gross profit of the optical disc factory reached an astonishing 200%.
As a result, a large amount of capital flocked to join the production of optical discs, and in 97 and 98 years, the number of optical disc factories in the country skyrocketed, and the price of optical disc copying and processing immediately fell to less than 3 yuan.
Subsequently, in 1999, Yanjing added three more optical disc production plants, which were different from the past, and they no longer used the confiscated pirated black line, and most of the 10 new production lines put into production by these three optical disc production factories were brand new equipment with higher operating performance and greater output.
As a result, Yanjing's optical disc production capacity has skyrocketed from an estimated 90 million in 1998 to 200 million.
With the rapid increase in production capacity, the competition between optical disc factories has become more and more intense, and various optical disc factories have won customers at low prices.
In 1999, the lowest price quoted by the CD-ROM factory was 1.6 yuan per CD and the highest was 2.3 yuan per CD, and the average profit was only 10 percent.
In just four years, the huge profits of the optical disc factory have completely ceased to exist and entered the era of low profits, which shows how fierce the competition in China has become.
In this case, Fang Chen is crazy to want to monopolize domestic disc production.
Not to mention that if he wants to monopolize the domestic production of optical discs, he will invest at least one or two billion yuan to build fifty or sixty production lines, otherwise he will not be able to meet the domestic demand for optical discs.
However, the most important thing is that he can't prevent others from entering the optical disc industry, after all, he has not yet reached the point of covering the sky in Huaxia.
Seeing that the optical disc factory is profitable, there will definitely be a large number of people and funds that will enter the optical disc industry, and the entry of these people will quickly beat the price of optical disc to the price of cabbage.
At this time, with a production capacity of six or seven billion discs, and nearly four or five thousand production line workers, he was embarrassed.
After all, if he has a production capacity of six or seven billion discs, then others will have three or four hundred million discs, which adds up to one billion, 300 million more than in his previous life, which means that the profits of discs will plummet again.
When the time comes, in order to survive, these optical disc factories can accept even a small profit, even if there is only a penny of profit, and even for the sake of this penny of profit, the optical disc factory itself will have to advance a large amount of capital by itself.
There are too many things in Huaxia, and almost all walks of life have the problem of upstream enterprises advancing funds to downstream enterprises.
At that time, Huaxia's optical disc industry will completely enter an era of vicious competition.
But for Fang Chen, let alone small profits, even low profits he can't accept.
This is not to say that Fang Chen can't get out of the money hole, but he has to think about the majority of employees in Qingtian.
As we all know, the wages of the workers of DynaSky are second to none in the country, and if the profits of the optical disc factory are only very low, then it will inevitably not be able to guarantee the wages and benefits of the workers of the optical disc factory.
This means that the wages of the employees of the optical disc factory will be much lower than those of other Qingtian employees, and may even be inferior to the wages of other enterprises outside, which is absolutely unacceptable to him.
In his opinion, they are all employees of Qingtian, and they all pay the same labor, so it makes no sense why the workers of the CD factory should have lower wages than other workers.
Perhaps in the eyes of others, this is because the optical disc factory is not profitable, and the salary income is lower, which is a matter of course, but here in Fang Chen, this point cannot be explained.
Even if the salary of Qingtian's employees is lower, for example, the salary of Qingtian Communication's employees is lower than that of Xiaobawang, but it is also more than three times higher than the salary level of other companies outside.
And the salary of Qingtian Communication is only about 20% lower than that of Xiaobawang, but the most important thing is that this is only temporary, and now with the spread of switches in China, the salary of Qingtian Communication employees has caught up with Xiaobawang, so Fang Chen was quite acceptable at that time.
But what about the disc factory?
Fang Chen doesn't see any possibility for employees to get high wages.
And if there is such a strong gap, it will inevitably produce a very serious problem, the workers of the optical disc factory will have a huge sense of loss, and if they have the ability to have connections, they will find opportunities to escape from the optical disc factory, and in the future, the optical disc factory will also become a small overlord, and even the exile of the entire Qingtian system.
At that time, the disc factory will become something similar to the cold palace and bathroom in the Qing court drama.
This is something that Fang Chen never wants to see, although he will find a way to eliminate it, but according to his understanding of human nature, the possibility of completely eliminating this is almost zero.
After all, where there are people, there will be rivers and lakes, and where there are people, there will be fights, and Qingtian will naturally be no exception.
It's just that he suppressed it, and Qingtian was actually founded not long ago, and has been getting bigger and stronger, and the cake that everyone can get has been getting bigger and bigger, so this kind of bullshit has never appeared.
And if the current scale is maintained, with a production capacity of only 100 million discs and more than 600 employees, it doesn't matter.
Even if the CD does not make money in the future, he can subsidize all the money from the company, or the part of the money he should get, to the employees, or transfer some money from other businesses to the employees of these CD factories.
Anyway, there are more than 600 people, and the ship is small and easy to turn around, he doesn't believe that a huge Qingtian, nearly 50,000 employees, can't even solve these more than 600 people.
As for the future, VCD sales will be higher and higher, and people's demand for optical discs will increase, and how to solve the insufficient part of production capacity.
It's nothing more than entrusting it to other optical disc factories.
You must know that in the previous life, the genuine disc was expensive because of the copyright fee, not the production of the CD, as long as he stuck the copyright fee on a dollar, the rest did not affect the overall situation, and there is a high probability that the production cost of other CD factories is lower than his.
After all, their equipment is cheap, and their labor is cheap.
Seeing that Jin Zhijiang still looked puzzled, Fang Chen picked up the harm of the expansion of CD production capacity, picked up the places that could be talked about, and told Jin Zhijiang some things, which were not easy to talk about, so he said that it was his own speculation.
Jin Zhijiang asked with some disbelieving: "Will the price of the disc really drop so quickly?"
Although the price of the game console has also dropped a lot, it does not say that it has dropped from 200% of the gross profit to 10% in just four or five years, as Fang Chen said.
Now the price of the Xiaobawang game console has dropped from more than 600 yuan to less than 400 yuan now, a price drop of almost 40%.
But you must know that the cost has been reduced even more, the cost of the game console has dropped from more than 300 yuan to more than 170 yuan, and Fujitsu's OEM price is even lower, only 160 yuan.
If calculated in this way, the profit margin of game consoles has not decreased, but has increased a lot.
And there is basically no sales of game consoles in China, everyone goes to buy learning machines, but in Southeast Asia, and even in the East, the sales in Europe and the United States are not bad, and the price is also high, so in the past six months, the contribution of game consoles to the company's profits is higher than that of learning machines.
After getting Fang Chen's affirmative answer, Jin Zhijiang nodded helplessly, he understood why Fang Chen didn't expand the disc production line, with this profit margin, to be honest, he really didn't look down on it.
As for saying that Fang Chen's speculation was somewhat true or false, he never doubted it, because Fang Chen's speculation had basically come true, or the reality was in the direction of Fang Chen's speculation.
Whatever Fang Chen says, he believes.
"Moreover, do you know what we should do in the future of fierce disc competition?" Fang Chen said with a sudden smile.
Jin Zhijiang thought for a while, and then said with some uncertainty: "Disc production line?"
"Well, that's right, naturally we have to find a way to develop and produce a production line for optical discs. Fang Chen said.
In the future, the fierce competition for optical discs naturally means that there are many optical disc factories that need to buy optical disc production lines, and because they are eager to make money, as long as they can produce optical disc production lines, they can have a strong premium ability.
As for the future when the price of optical discs will be low, there will be no profits, and people will not rush to buy optical disc production lines, it is better to say that order-based production is enough.
The cost of developing the optical disc production line was earned back long ago when the optical disc was very popular.
Besides, the CD production line is not too difficult, so why should foreigners earn this money?
It's actually like the gold rush in the western United States, it's not clear whether the gold diggers made money or not, but the Jew Levi Strauss, the person who invented the jeans, must have made a lot of money.
Therefore, when masks are popular, don't sell masks, but find a way to sell mask machines.
When everyone flocks to set up stalls, don't go to set up stalls, but sell some tables, chairs, benches, stall cars and so on.
Don't sell products, but sell production tools.
Thinking of this, Fang Chen was a little dazed, a little confused, why did he suddenly think of masks and stalls?
After a few seconds, Fang Chen shook his head, it didn't matter, it didn't matter.
All right......
Jin Zhijiang admitted that what Fang Chen said made sense.
After listening to Jin Zhijiang and how to send people to Xiangjiang to make arrangements for movies and TV series, song mastering, and the corresponding disc production, Fang Chen went to the factory to take a look.
Although I just came to the factory a few days ago, after all, it was mainly for VCD, so I took a brief look.
This time, while the VCD is still half a month away, he wants to take a look around the factory to see if he can discover some things that he wants to see but can't see on weekdays.
Although the company has Duan Yongping to help him keep an eye on it, and there are also Wang Wu and Wu Maocai, the channels of the supervision room help him watch it, but there are some things, after all, he still didn't come to see it in person.
The more he looks, the better the company's operation will become, there will be fewer small problems, and the things that are deceived and concealed below will also be done more restrained.
This is probably why, in ancient times, the reason why Ming Jun did not live for a long time, there are so many things in the world, and if he looks at it more, it will be better.
But how much effort does he have to manage the affairs of the whole world?
On the contrary, it is the kings who are idle, who go about all day long, and drain the treasury cleanly, so that they plunder the people's fat and ointment, live longer.
This is probably the reason why the so-called good people do not live long and live for thousands of years.
And just when Fang Chen planned to take root in Xiangshan for half a month and wait for the release of the VCD, thousands of miles away from Lingnan, Jianghuai Province, Luzhou City, Wanyan Company.
Sun Yansheng, chairman of Wanyan Company, Jiang Wanmeng and his partner, who is also the chairman of Scooper Company, and later known as the father of picture compression, looked at the VCD in front of him with great joy.
This is the first VCD sample of Wanyan Company, and it took less than 11 months from the project research and development to the present.
It is a great achievement for any electronic product to be successfully developed and made into a prototype within 11 months, not to mention that this VCD is an electronic product that has never been seen in the world.
Jiang Wanmeng and Sun Yansheng have countless reasons to be proud of.
"I don't know, how is the research and development over there?" Jiang Wanmeng suddenly shook his head and asked Sun Yansheng.