Reborn as a tycoon in Hong Kong

"Next, let's discuss the pricing of the Xingyue console."

Lin Baicheng said something, and then continued: "Let me tell you my thoughts first. If you think it is inappropriate or there is something wrong, just point it out and don't hide it."

"Chairman, please rest assured, our duty is to correct your mistakes and provide you with better suggestions."

Isabella listened and said that after following Lin Baicheng for so long, they have seen clearly that their boss is someone who can listen to their opinions. He will not scold the assistants because they oppose his ideas, nor will he give any advice to the assistants. Wear small shoes and so on, so they will enthusiastically express their opinions.

"Um!"

Nodding, Lin Baicheng said: "First, let's talk about the cost of the Xingyue console. The console is divided into ordinary models and high-end models. Let's talk about the high-end models first. The high-end models are mainly sold to rich people who are not short of money. There won’t be many sales, the company won’t produce much, and the selling price will definitely be higher than the cost.”

"The company will only produce 10,000 high-end Xingyue consoles at the beginning. The production cost of each console is US$290. If labor, freight and other costs are included, the cost of each console will be no less than US$300."

"What I mean is, since the cost is already so high, the price should be set a little higher, at US$399 per unit. What do you think?"

"Chairman."

Isabella listened and asked: "How much is the price of the regular model, and is it much different from the high-end model? Also, how is the high-end model better than the ordinary model?"

Lin Baicheng said: "The price of the ordinary model will not exceed US$200. We will discuss the specific price later. As for the difference between the high-end model and the ordinary model, the host image quality and running speed will be better than the ordinary model. The difference is visible to the naked eye. ."

Maori Haruko couldn't help but frown slightly: "The price of the high-end model is about twice as high as the ordinary model. Isn't this too high?"

Bill Harveys said: "If you like video games and have good family conditions, I think there are still many people who don't mind the price difference. Besides, the production cost of high-end models is 300 US dollars per unit, if you want to make a profit, each unit must be sold for at least US$350. Since the price is already so high, it is not bad at US$49.”

Eric Davis also said: "Since the production is small, then simply set a high price. If you can sell some, just leave the ones that can't be sold and sell them slowly."

"Bella, what did you say?"

Lin Baicheng looked at Isabella who had not yet expressed her stance.

Hearing this, Isabella said: "It's okay to set a high price for the high-end model. The greater the difference between the price of the ordinary model and the high-end model, the higher the acceptance of the ordinary model by everyone. The price of the ordinary model does not count. Too high a mentality.”

"In this case, the high-end version will be priced at US$399."

Seeing that three of the four people had similar ideas to his own, Lin Baicheng made a decision, and then said: "Next let's talk about the ordinary model of the Xingyue console. If the production cost of the ordinary model is calculated as 1 million units, the cost is 212 US dollars per unit. If you include labor, water, electricity, transportation, publicity and other expenses, the cost of each unit is probably no less than 230 US dollars. If the R\u0026D cost of more than 100 million US dollars is also included, the cost will be even higher. I don’t know how high it is going to be.”

“When it comes to the pricing of ordinary Xingyue consoles, we have to mention the price of Atari VCS. Although our ordinary consoles are slightly better than Atari VCS, Atari VCS is the originator of consoles. Atari Atari's reputation is also greater, so when the price of Atari VCS is 199 US dollars, the price of Xingyue console must not be higher than this price, otherwise I worry that it will be used for comparison, causing people to be more Are you willing to buy Atari VCS instead of our Xingyue console, what do you think?"

"Chairman, I very much agree with this."

Bill Harveys agreed: "The technology of the United States is now stronger than other countries in the world. Our Xingyue console is produced in Xiangjiang. Xingyue Electronic Game Company is also a company in Xiangjiang, and Xiangjiang is a place where there are probably many Americans have never heard of it and only think it is a small place somewhere. Therefore, when there is Atari VCS for comparison, people will naturally think that the technical content of Atari VCS is higher than that of Xingyue console. Higher, once the price of the Xingyue console is higher than that of the Atari VCS, many people may not even know about it and just buy the Atari VCS."

Isabella also said: "Chinese people do have this mentality, but for any technology product, even if it is a Japanese product, it will take time to ferment if it wants to enter the domestic market."

"I agree with both of you."

Eric Davis first agreed, and then said: "However, the cost of the Xingyue console is not low. If the price is too low, it can be said that every console will be sold at a loss, and I don't know if it will be able to The cost cannot be recovered, and even if the cost can be recovered, it will only take a long time."

"Consoles are being sold at a loss, so making money depends on cartridges."

Lin Baicheng listened and said: "As for cassettes, Atari's cassettes cost US$45 each. Since the company's console is priced lower than Atari VCS, the price of the cassettes will naturally be lower, just US$40 each. The cost of the cassette will not be higher than 20 US dollars, and the profit of each cassette can be 20 US dollars. As long as the sales volume of the cassette is not too different from the sales volume of the console, then the company can still make a profit."

"One game comes with one cartridge. The company has developed nine console games and is still developing them. So as long as the sales of the console are not bad, people will definitely buy cartridges after buying the console. At that time, they were losing money on the console. You can make money back from the cassettes."

"Let me tell you what I think. The price of Atari VCS is 199 US dollars. In order to be attractive to people, the difference between the price of Star and Moon console and the price of Atari VCS must be not low, so I think 179 The U.S. dollar is more suitable, and 20 U.S. dollars cheaper is not too much."

Such pricing means that Xingyue Electronic Game Company will lose almost US$50 for every console it produces. One million units means a loss of US$50 million. This does not include the R\u0026D cost of more than US$100 million, which equals nearly US$200 million. Loss.

If a cassette makes 20 US dollars, it would take 10 million cassette sales to earn 200 million US dollars. This is just a literal return on investment.

After all, the company will still have to pay taxes, so Xingyue consoles must sell more consoles, and more cartridges must be sold in order for Xingyue Electronic Game Company to make money.

If it weren't for Lin Baicheng's current strong capital, he would really not dare to play like this. He would rather produce a small amount and slowly test the market at a higher price, so that even if the sales volume is not good, the loss will not be too much.