Reborn as a tycoon in Hong Kong

“As a new channel dealer, we have never cooperated with those toy companies before, so the cost price of purchasing goods from toy companies is higher than that of other channel dealers. Fortunately, our store locations are very good, so business is good. But not much in terms of profit.”

Eric gave a more detailed answer.

Isabella said more specifically: "Generally speaking, the profit of channel dealers is between 10% and 20%. For products that are popular and long-lasting, channel dealers usually only have 10% profit; most of them only have 10% profit. The profit of product distributors is 15%; for a few products that have average sales or have been popular for many years and have not sold well, the distributors have 20% profit."

"Because we are a newly established channel and have never cooperated with other companies, our profits for all products will be reduced by 3%. For the same product, other channel operators can earn 15%, then we can only earn 12% of the profits. .”

"As for specific profits, January is not included for the time being because it only operated for about ten days. The total revenue in February was US$2.4 million, of which popular products accounted for 60% of the revenue and 12% of the total profit. 25% of the revenue, and the remaining toys with average sales account for 15% of the total revenue.”

"In terms of profit, the total profit is about US$240,000. There are 160 employees in 40 stores. Small stores are equipped with one store manager and two ordinary employees, and large stores are equipped with one store manager and four employees. The monthly salary of each ordinary employee is 260 US dollars per month, and the store manager’s monthly salary is 350 US dollars, which adds up to a monthly salary of about 45,000 US dollars.”

"This is only the monthly salary of the employees at the store. There are dozens of employees in the company such as salesmen and front desk staff, as well as the highest-paid manager Eric. The combined salary of all employees has reached 100,000 US dollars. "

"In addition to employee salaries, there are also additional expenses such as water and electricity, which are about US$30,000 to US$40,000. Therefore, the real profit last month was only about US$100,000."

“Although since it just opened last month, the monthly operating income will increase and the profits will also increase, but based on your investment in BOSS, it will take at least several years to recover the cost. "

Regardless of the fact that you can earn one hundred thousand US dollars per month now, and the monthly profits will be even more in the future, you may still have a profit of two million US dollars in a year, but this does not include other expenses throughout the year. , and the most important tax, whether you can earn 1.5 million US dollars in a year is questionable.

Lin Baicheng's investment was US$8 million. Even if he could earn US$1.5 million a year, it would take five years to recover the cost. This is when the business is not bad every year. If the business is bad one year, it will take longer to make back the cost.

However, Lin Baicheng was mentally prepared for this. Without selling his own products, it was already good to be able to earn employee salaries. What's more, the current channel profit is still 3% lower than that of other channel providers. As time goes by, these 3% profits will definitely recover, and you can earn more.

Lin Baicheng said: "Now that Jupiter Toy Company has stocked a large number of Rubik's Cube toys, it is now time to sell them. The focus of Rubik's Cube promotion is wisdom and environmental protection. The aspect of wisdom means that playing with the Rubik's Cube can be beneficial to the development of children's intelligence. Combining the Rubik's Cube with With the 'smart' hook, I believe parents are willing to pay for it. In terms of environmental protection, the materials used to make the Rubik's Cube are environmentally friendly and will not cause health damage to children, allowing parents to buy with more confidence."

"I plan to promote it through TV stations and newspapers. It will be held in the United States, Japan, and Hong Kong at the same time, and relevant competitions will be held in the three places to cause a greater sensation."

"What I said, do you have any suggestions?"

"BOSS!"

Isabella listened and said: "As for publicity, I don't think it is necessary to spend too much money. After all, the profit we can make from the Rubik's Cube is limited. I remember BOSS, you mentioned that the price of the Rubik's Cube is 9.9 US dollars. , in this way, even if we can sell 1 million units, the revenue will only be 10 million US dollars. After deducting costs, labor and other expenses, if we spend too much on publicity, we may not make much money. .”

Eric also said: "A certain amount of publicity is still necessary to let the public know about this toy, but as Assistant Kent said, you can't spend too much money, otherwise it will not be cost-effective."

"So, there is no need to hold competitions?"

Lin Baicheng nodded thoughtfully, feeling that what the two of them said was not unreasonable. After all, Lin Baicheng sells Rubik's Cubes to make money. If he doesn't make money, there is no point in selling more Rubik's Cubes.

Isabella said: "For now, it is not necessary. But after the Rubik's Cube becomes popular, we can hold relevant competitions and give it a boost to make it more popular."

"So what about the pricing? How much do you think is appropriate?"

Lin Baicheng asked aloud. He thought it would be better not to be self-righteous. He is not an American, so it would be better to listen to Isabella and Eric's opinions on what price a Rubik's Cube toy should be priced at.

"In fact, the price can be set higher at the beginning, and then lowered after the first half of the year or one year. This will win the favor of customers."

Eric said aloud that he is quite experienced in sales.

"The initial price is $20. Isn't that too high?"

Isabella asked Eric. Apparently she also thought that the initial selling price could be set higher.

"Can!"

After thinking for a while, Eric nodded and said: "The Rubik's Cube is an educational toy after all, which helps children's intellectual development. We are not lying about this, it is just a bit of exaggeration, so there is no problem in setting the price a little higher. "

"Since you think the price of $20 is more appropriate, let's sell it at the unit price of $20 first."

Lin Baicheng clicked his tongue. These two people were darker than him, but since both Americans thought it was appropriate, he naturally obeyed. The cost of the Rubik's Cube, even if it uses environmentally friendly materials, is only HK$5 each for a production volume of one million units, which is US$1.2 in US dollars.

Lin Baicheng originally sold each item for US$9.9, and could earn US$8.7 per item. Even after deducting shipping costs, labor costs, publicity fees, taxes, etc., on average, as long as the sales volume exceeds one million US dollars, he would definitely earn US$5 per item. . In this way, Lin Baicheng felt that he was quite shameless. After all, each one cost only US$1.20.

Nowadays, each one sells for 20 US dollars, not to mention the profit of each Rubik's cube.

Lin Baicheng asked Isabella and Eric to plan a publicity plan. After he reviewed it and found that there were no problems, he could sell the Rubik's Cube.

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