Chapter 16 Double Profit

Chapter 16 Double Profit

Chapter 16 Tenfold Profit

In just ten days after its launch, the total sales of the Little Blue S2 mobile phone on various platforms reached several thousand units...Among them, the main light blue color was deeply loved by consumers, accounting for % of sales.

The most important thing is that this phone actually attracted the attention of some mobile phone reviewers, who began to actively review it... Of course, they still had to pay for it.

The success of Little Blue S2 made the people at Weiku Electronics Co., Ltd. even more excited than the previous small success of Little Blue S1.

Because this proves that the Internet brand mobile phone plan proposed by Mr. Xu is a path that can achieve sustainable and rapid development, rather than a flash in the pan.

Compared to the short-lived hot sales of a certain mobile phone, a company cares more about sustained and steady development and brand building.

In the new round of monthly meetings, the heads of various departments all had relaxed expressions on their faces, which was in stark contrast to the dullness of the meetings in the previous few months.

At the meeting, Bai Qiwen, the head of the company's marketing department, excitedly informed a group of managers about the progress of the e-commerce business.

"So far, we have sold 16,000 Bluegogo phones in just over a month since we launched our e-commerce business!"

"Among them, the new product, Bluegogo S2, has achieved an astonishing sales volume of units in just ten days since its launch!"

“This breaks the record for the best-selling mobile phone in the history of our Vico Electronics!”

“And the sales of the Bluegogo S1 smartphone are also continuing to rise!”

According to our marketing department's forecast, the total sales of our e-commerce mobile phone brand Bluegogo will reach 15,000 units in December!"

At this time, Xu Shenxue said with a smile:

"This sales result is far better than we expected!"

"Here, on behalf of the company, I would like to thank all my colleagues in the marketing department, R&D department, production department and other departments for their hard work!"

"It is because of your coming together and working hard that we have finally achieved this result. To express my gratitude and to motivate the hard work of all my colleagues, I have instructed the finance department to increase bonuses according to the performance of all my colleagues!"

"As for the exact amount, you can check your pay slip when you get paid, but I believe the number will satisfy everyone!"

When everyone present heard Xu Shenxue talking about bonuses, even the senior managers of the company, they all smiled.

Even though they are senior executives of the company, they are still workers. When the boss gives them bonuses, they are as happy as ordinary employees, or even happier.

Because as senior management, their bonuses are not a small amount.

Xu Shenxue looked at the happy expressions of the dozen people below him and waved his hand slightly. "Okay, the bonus is there, and it can't be avoided. But I want to emphasize that we must not lie down and give up just because of temporary success. We have done well in the past month or so, so we must continue to maintain this work enthusiasm and continue the success!"

"The company's business is good and profitable, so the bonus will come naturally!"

After talking about the bonus and getting excited, the next step is to get down to work...

"Today's meeting is mainly to discuss how to continue to advance the business, what difficulties there are, and how to solve them!"

As soon as these words were spoken, everyone put away their previous relaxed demeanor and began to concentrate on their work.

Both the R&D department and the marketing department have raised some issues one after another. For example, the R&D department has always requested to increase staff, saying that with the launch of multiple R&D projects, the staff in their R&D department is becoming increasingly tight.

Xie Jianyong from the R&D department said: "Now our R&D department is responsible for too many projects. We have to be responsible for the R&D of the Weiku mobile phone and the Xiaolan mobile phone. These two major product lines alone require a lot of manpower!" "In addition, our R&D department has set up a separate smart phone project team according to the previous instructions of General Manager Xu. The R&D of this part is extremely difficult and requires a lot of manpower!"

Xu Shenxue said directly: "I know about the difficulties of the R&D department. The Human Resources Department should follow up and increase efforts to recruit engineers for the R&D department. There can be no delay!"

Luo Yinian, the manager of the HR department, wanted to say something, but in the end he didn't. He could only say, "I understand. We will increase the intensity of recruitment once again!"

However, having said that, HR Manager Luo Yinian still lamented in his heart that it is not so easy to recruit R&D personnel!

Then the production department said that with the increase in production, although there is still some spare capacity in the equipment, it is not much, and they must speed up the purchase of various equipment and recruit more employees to build a new production line.

Otherwise, it would be embarrassing if we have orders but cannot produce the goods.

In response, Xu Shenxue said: "The purchasing department should speed up contacting the equipment manufacturers to get the equipment in place as soon as possible. The human resources department should also increase the recruitment of production department employees!"

After that, he turned to An Dayu, the manager of the production department, and said, "But it will take time to build a new production line and expand production capacity. The production department needs to make good production plans, tap the potential of existing production lines, organize key technical personnel to adjust production lines, plan production processes, and improve efficiency."

"However, the quality must also be maintained stable. The increase in production capacity must be based on maintaining product quality. We cannot increase production capacity at the expense of product quality. This will cause great damage to the company's brand. We cannot do things that put the cart before the horse!"

After thinking about it, Xu Shenxue said to Bai Qiwen from the marketing department: "Based on the limited production capacity of our current factory, we can appropriately reduce some low-profit OEM business and transfer the production capacity to our own brand!"

OEM is a hard-earned income, but the profits from owning a brand, especially the new Internet brand like Bluegogo, are much higher.

Using the same production line and producing the same mobile phones, the latter earns several times more money than the former.

Bai Qiwen said: "This is natural. We did OEM before because the sales of our own brand could not absorb the production capacity. Now that the production capacity of our own brand has increased, it is reasonable to gradually reduce the OEM business. This will further increase our overall profits!"

Xu Shenxue nodded slightly to show his approval. The profit gap between OEM and own-brand products was actually not that big before. After all, the previous Wecool brand mobile phones were also sold as miscellaneous brands, so they made just a little more money than OEM.

But things are different after the rise of e-commerce business. Although the Xiaolan mobile phone is sold at a low price, its profit margin is quite considerable.

In offline channels, the purchase price of a J56-core Weiku brand straight-screen mobile phone by a first-tier channel dealer is approximately between RMB and , depending on factors such as the number of orders from the channel dealer and the payment period.

As for how much the channel dealers sell it for after purchasing, it has nothing to do with Weiku Electronics. If you have the strength and channels, it is your ability to sell it at the terminal price of six or seven hundred. If you don’t have the strength and sell it for more than five hundred, it is also your business.

But no matter how much the terminal sells for, Weiku Electronics only takes the factory wholesale price between 320-340.

However, the Little Blue S1, which has almost the same cost, can be sold for 449 yuan through e-commerce channels.

This is a price difference of more than 100 yuan. Even if part of the profit is shared with the e-commerce platform, certain express delivery costs and marketing costs still need to be paid. However, the money that finally falls into the hands of Weiku Electronics is still dozens of yuan higher than the wholesale price of offline channels.

The gross profit margin of low-end feature phones is already very low, and the net profit is even lower. After all, the factory price is only 320 yuan, and the net profit is normally only 20 to 30 yuan.

However, now, there are dozens of extra dollars... This means that the net profit has increased several times!

The newly launched Little Blue S2 has higher material costs, but its profit is also higher, almost reaching hundreds of yuan.

This net profit of dozens or even hundreds of yuan is much better than the previous offline profit of twenty or thirty yuan, or even the ten yuan from OEM and private label business!
It can even be said that the profit from selling 10,000 mobile phones on an e-commerce platform is equal to the profit from selling 100,000 units through OEM.

Therefore, under the condition of limited production capacity, it is necessary to produce more orders for e-commerce brands and reduce orders for OEM business.

(End of this chapter)