The current Taobao website is almost completed and will definitely be launched in June. If MP3 cannot catch up with this time node, Taobao's launch plan will have to be postponed to accommodate production capacity issues.
In fact, Taobao can also be launched first, but Li Mu feels that if he goes to Taobao first, he has no gimmick that he can come up with. It is difficult to promote Taobao in the early stage. Just inviting current small sellers will consume a lot of manpower and material resources. Instead of In this way, of course, it is better to just come up with a benchmark event and make Taobao famous at the beginning of its launch.
If Taobao goes online and you use YY, Tieba, Yiting.com, Alipay and other platforms to roughly divert traffic to Taobao, it will be meaningless, there will be no eye-catching points, and the user conversion rate will be too low. The first time a user comes in and sees it, it feels unattractive. It will be much harder to attract them next time.
Therefore, in Li Mu's heart, he hopes that the release of MP3 can be consistent with the launch time of Taobao, so as to maximize the effect.
Faced with the inability of the two foundry manufacturers, Li Mu considered it over and over again and decided to adopt a jointly customized solution.
In the name of Yiting Technology, we signed OEM contracts with two companies. The first batch of orders was 45,000 units from Taiwanese OEMs and 55,000 units from Shenzhen OEMs. Yiting paid 30% of the cost in advance. When the technology was first split, it didn't have much money on its books, so it borrowed a sum of money from Makino Technology's account and would repay it after the batch of MP3 players were produced and sold.
The construction period of both factories is set at 27 days. Based on the 30% + 30% + 40% model, 100,000 machines will be shipped in three stages. The fastest batch of 30,000 machines can be produced in two weeks. Come out, just in time for early June.
The first batch of goods will arrive in early June, and the second batch will arrive every week thereafter. In this way, Li Mu will have the confidence to go online on Taobao in early June, and directly launch MP3 sales promotions, and then the delivery cycle can be unified One week after ordering, there is a price advantage after all, and netizens are not spoiled by Taobao's 24-hour delivery in the future, so users should be happy to accept this clause.
The key details have been thought through clearly. Before signing the contract, Li Mu had a thought in his mind. He called the people under him at night and asked them not to rush to sign the contract the next day. Then he went to Lin Qingya temporarily and wanted to discuss a more important and urgent matter with her. .
The two made an appointment to meet at a 24-hour coffee shop in Zhongguancun. After Li Mu ordered a latte for each of them, he told Lin Qingya a concern of his.
"I suddenly thought of a question just now. In front of any OEM, we are all small customers. Most of their production capacity is allocated to those large customers who have established a large scale, and large customers also contribute most of their production to them. In terms of revenue and profit, if our MP3 is launched on Taobao and follows the zero-profit sales strategy I formulated before, it will have a huge impact on all current MP3 brands. By then, we will definitely become the leader of all MP3 brands. Common enemy, what if they put pressure on OEMs to stop making products for us?”
Li Mu's worry is not unreasonable. Once a disruptor appears in the industry, no matter how fierce the competition in the industry has been, the disruptor will become the target of public criticism. Just like Shenzhou Computer, when Shenzhou Computer broke out from the complete machine market, it was a disruptor. The price war and the slogan "4880, take Bensi computers home" not only promoted Shenzhou to the whole country overnight, but also made Shenzhou a mortal enemy of other brands in the industry. If Shenzhou hadn't disrupted the situation, the entire machine would have been It is self-produced, and I am afraid that it has been strangled to death from the foundry level.
Li Mu had no intention of thinking so badly about the domestic MP3 companies, but he had to be on guard against others. If he disturbed other people's food, others would definitely jump up and fight against him.
It was only when Lin Qingya heard Li Mu talking about this issue that she remembered the huge threat contained in it.
If, as Li Mu said, the entire MP3 industry is angered by then, it is very likely that many companies will join forces to put pressure on OEMs. By then, it is very likely that OEMs will give up their work due to pressure from many parties. The situation of Yiting.com OEM happened.
Lin Qingya asked Li Mu: "Mr. Li, if we put aside the situation of the OEM, how many units of our MP3 player can we sell in a year if we have sufficient supply?"
Li Mu smiled and said: "It is conservatively estimated that the MP3 market this year will be close to 10 million units. If we use an unprofitable model to disrupt the market and have sufficient supply guarantee, we will definitely have no problem selling more than 3 million units."
Lin Qingya said: "Three million units, sales are almost one billion. If the market space is really that big, can we invest in building a factory ourselves, or simply acquire one?"
Li Mu shook his head and said, "I don't want to get involved in hardware production. Once the production process is involved, there will be too much trouble."
Lin Qingya asked curiously: "Most hardware companies have their own production lines, right? Some big brands will only hand over some small products with a small proportion to OEM manufacturers."
Li Mu smiled and said: "If we produce it ourselves, we can't imagine how troublesome it will be. Among other things, the factory needs to pile up hardware and manpower. The production line needs to be designed, customized, maintained, and frequently upgraded. A huge team of workers also needs to be installed." It requires a very complex management system, there are too many shady things in the procurement of spare parts and raw materials, and it is difficult to avoid cutting corners. If I were to produce it myself, it would be too much of a headache to handle all these things. In contrast, I would rather increase the cost a little. , let the OEM consider these issues for me. I only need to give him my requirements and money, and he will solve all aspects of production, quality control, and after-sales for me. The contract is clearly written in black and white, and I will pay if you do it well. If money doesn't work well, I can settle the accounts at any time, how easy it is."
Lin Qingya's beautiful eyes suddenly flashed with a different kind of brilliance, and she said in surprise: "Mr. Li, I have an idea, please listen to it and see if it is useful."
Li Mu nodded: "You say."
Lin Qingya immediately sat up straight and said with excitement: "You just said that the contract was clearly written in black and white. I suddenly thought, can we sign a big contract with the OEM in advance? Although we will customize 100,000 units in the early stage, we The contract can be set to 1.2 million units."
Li Mugang wanted to say that if a deposit of 1.2 million units was paid according to the normal process, the money would be lost.
At this time, Lin Qingya said again: "We have broken down the big contract within the contract. One is an agreement to directly order 100,000 units. We follow the normal process and pay 30% of the payment first and they will start work. The remaining 110 We signed an intention agreement with them. We promised to order an additional 1.1 million machines from them within this year. To this end, we can pay an intention fee of five yuan or ten yuan per machine. If we breach the contract and give up the order, The earnest money belongs to them free of charge, and if they breach the contract and cannot supply goods on time, they will need to compensate us five or ten times the liquidated damages."
Li Mu was stunned and asked: "You mean to create a contract trap?"
Lin Qingya nodded repeatedly: "That's what I mean. The factory definitely has no objection to the order. As long as their production capacity can be obtained, they will definitely accept the order without hesitation. If they cannot obtain the production capacity, I think they will also Take it first and then subcontract it to others, because every order represents actual profit for them.”
"Currently, the production share given to us by the two foundries is only about 100,000 units per month. We can sign an intention contract with them for 1.1 million units based on the productivity they gave us, on the grounds that we are worried about them adjusting their share allocation. , the factory will definitely agree without hesitation, because on the surface, it seems that this intention order of 1.1 million units is of great benefit to them. First of all, we will give him a deposit for intention, and secondly, They can lock in profits of 1.1 million units in advance, and manufacturers can’t imagine the situation they will face in the future now, they will ask for it.”
When Li Mu heard this, his heart suddenly became enlightened.
Lin Qingya just wanted to give the manufacturer a set. Currently, the two manufacturers still have a certain amount of production capacity. The increase in production capacity means a reduction in profits for them, so they naturally hope to be able to produce at full power and get such a high price at one time. There are many orders, and the order quantity is one that they can completely digest. Moreover, the other party also gives a deposit for intention. This gives them no reason to refuse. Even if they break the contract and have to pay ten times the deposit as compensation, they should still They will not refuse, because they know in their hearts that the possibility of paying ten times the compensation is almost zero, unless uncontrollable factors such as natural disasters and man-made disasters occur. Li Mu can even relieve them of worries on this point and directly Add a clause in the contract: weather, disaster and other force majeure factors are excluded.
However, in this way, as long as the manufacturer signs the contract and you want to refuse to produce for me under external pressure, this does not fall into the category of force majeure. As long as you dare not to produce for me, you will You have to compensate me ten times. Unless you burn down your own factory, there is absolutely no negotiation.
Thinking of this, Li Mu also became excited and praised: "Qingya, your method is really great. Let's do this. This matter is of great importance. You will meet with the legal affairs department tomorrow and draw up a new contract as soon as possible according to the method you said. For OEMs, but you must remember that in the one-year contract, it must be stated that the OEM price will be readjusted every month based on the market price of storage chips. This manufacturer should also agree, as hardware updates are so fast now. , other brands will definitely take this issue into consideration when signing contracts with manufacturers, and prices will definitely be adjusted frequently in a relatively short cycle."
Lin Qingya nodded and said, "Then I will start working on this matter at work tomorrow."
Li Mu said: "It would be best to induce them to sign more production capacity in the contract. It would be great if they can sign two million units."
Lin Qingya thought for a moment and said, "This may depend on their current order status, but I believe their orders for the second half of the year are still pending. If we place the order and pay the deposit first, they will definitely give it to us first." .”
The third update, thank you to Bazhou Fatty for the 50,000 starting coin reward, thank you to the titty woman, terrf for the 10,000 starting coin reward, and thank you to all other friends who gave the reward, thank you! I'm working on the fourth update...
(End of chapter)