mtl008 Chapter 202 Long-term Interests
Chapter 202 Long-term Interests
"Tell me, has the company encountered any difficulties recently?" Su Ruiwen sat on the sofa, looked at the two of them, and asked.
"kindness."
Le Huizhen and He Min both nodded at the same time.
"Sister Min, you speak first." Le Huizhen turned to look at He Min and spoke.
It just so happened that they also wanted to talk to Su Ruiwen about the company's matters.
They themselves can't make up their minds.
"Okay, Amin, you speak first." Su Ruiwen looked at He Min and spoke.
Although Su Ruiwen is not a successful businessman, he has the vision of several decades ahead, and the general direction of the company's development is naturally very clear to him.
"Awen, do you still remember what you said?" He Min looked at Su Ruiwen with a serious expression.
"You said at the beginning that OEM is only temporary, and we will independently develop and produce our own products in the future."
"Yes, that's right. I did say that." Su Ruiwen nodded in response.
Su Ruiwen not only said this, he was also prepared to do it.
No, that's not right.
It's not about preparation, but about having done it now.
"Awen, these are the company's financial statements for the past two months. Take a look." He Min said as he handed the financial statements to Su Ruiwen.
Su Ruiwen took the report and took a look at it.
To be honest, Su Ruiwen can't understand many things, but he can understand the final income and profit.
"What's going on? Why did the company's profit drop by 20 percent?" Su Ruiwen looked at the report and his expression suddenly became serious.
You know, relying on the huge market in the mainland, it is no problem for Panda to earn 30 million yuan every month.
As a result, we made six million less last month than the month before, which is a 20% profit.
"That's exactly what I wanted to tell you." He Min looked at Su Ruiwen and advised, "Awen, why don't we just do OEM production instead of doing production and research and development ourselves? It's too expensive."
"You mean, the more than 6 million was spent on research and development and own production?" Su Ruiwen frowned when he heard this.
"Yes."
He Min nodded and said, “We produce it ourselves, whether it’s raw material suppliers, equipment and production lines, we need to spend money, and there are also experienced workers, which all require extra money.
Moreover, because we produce in relatively small quantities, prices are difficult to control, or even impossible to control.
For example, for the same TV, the price of other factories may only be 500 yuan, but we need 600 or even 700 yuan.
This is just one of them, and with the others, the expenses are getting higher and higher.
If we don’t stop it, our profits this month will be even lower.” He Min said with a distressed look on his face.
Listening to what He Min said, Su Ruiwen immediately frowned.
He finally understood that no matter what time it is, it is the most difficult to make money by running a physical business.
Especially those who do their own research and development and production.
If they outsource more and are only responsible for OEM, they can earn more.
"Awen, what do you think?" He Min looked at Su Ruiwen and asked.
She had wanted to tell Su Ruiwen about this matter for a long time.
After all, earning a few million less every month would amount to tens of millions less a year.
It's a shame to just throw away such a large sum of money.
"No."
Su Ruiwen heard this and shook his head firmly.
Compared with He Min who focuses on immediate interests, Su Ruiwen focuses more on long-term interests.
If you continue to use OEM products, you can indeed make a lot of money in the short term.
But in the long run, even if their pandas have great reputation and brand effect in the mainland, it will be useless without a core competitive target.
If you don’t have something core of your own, you will definitely be controlled by others.
Su Ruiwen would rather earn less than be controlled by others.
"this......"
Seeing He Min's hesitant expression, Su Ruiwen looked at He Min and said seriously, "Amin, you just said that there are also problems with the workers' wages, right?"
"Correct."
He Min nodded when he heard this.
“If you are only responsible for OEM, the requirements for workers are not high, so it is very cheap and you can hire someone for 1,000 yuan.
However, if you produce it yourself, you will need skilled workers with certain skills, and you will have to spend about twice as much on wages.
Now, the workers’ wages alone will cost an extra three million per month.”
Of the six million yuan in lost profit last month, three million yuan was spent on workers' wages.
You know, Su Ruiwen's factory is a labor-intensive factory with several thousand workers alone.
Otherwise, not so many items would be produced every month.
"In this case, it seems necessary to open the factory outside the city." Su Ruiwen's expression turned serious.
If Su Ruiwen remembered correctly, at that time, many people had already invested and set up factories in the mainland.
He could also invest and set up a factory in the mainland.
This will not only reduce personnel expenses.
In Hong Kong, there are more than 4,000 workers, and the salary alone costs about 7 million Hong Kong dollars per month.
But if it is in the mainland.
The current salary level is about 200 to 300 per person. The salary of 4,000 people is only one million per month.
Saving 6 million a month means 72 million a year.
And as the factory gets bigger, the savings get bigger.
There are two main sources of making money: either increasing revenue or reducing expenditure.
Saving money is equivalent to making money.
"Open a factory somewhere else?"
He Min looked at Su Ruiwen and asked with some surprise.
"Where is it?"
"We'll talk about this later. I haven't thought about it yet." Su Ruiwen shook his head.
There was no answer to He Min.
The main reason is that he hasn't thought it through yet.
Because once he moved the panda factory to the mainland, he would no longer be able to make foreign exchange profits from the smuggling business.
Therefore, Su Ruiwen is considering whether to start production now or wait for a while.
"Awen, do you have any concerns?" He Min thought for a moment, looked at Su Ruiwen and said, "We are a family now. If you tell us, maybe we can think of a solution."
Looking at He Min's sincere eyes, Su Ruiwen thought for a moment and spoke.
"Okay, then you can help me think about it..."
Afterwards, Su Ruiwen shared his thoughts with He Min and Le Huizhen.
"That's it."
Hearing this, He Min said, "Awen, we can definitely continue smuggling while building a factory in the mainland.
At present, our products are only circulated in the southern part of the mainland. We can open up the northern market and then enter the northern market from the Tianjin Port. "
Su Ruiwen's eyes suddenly lit up when he heard this.
Although He Min's ideas are sometimes short-sighted, he can't help but come up with some eye-opening ideas.