Technology: Start by selling mobile phones
Chapter 85 Cooperation with BOE
“I prefer BOE’s screen.”
Jiang Lan slowly expressed his thoughts.
"Although we have launched a 43-inch traditional TV, in general, our branding in the TV industry is still far behind.
Not to mention compared with Samsung and Xiaomi TVs, even second-tier and third-tier brands cannot compare. "
"So... I think our 55-inch TV should still be the same as the 43-inch TV, focusing on cost-effectiveness."
Focus on value for money.
Mo Ran tapped his fingers lightly on the table.
Indeed, unlike mobile phones, the TV industry is still an emerging industry.
The TV industry can be said to be very mature and even somewhat solidified, and various manufacturers have basically divided up all the market shares.
In such a market environment, if you want to enter, price will naturally become an important factor.
"Keep talking."
"Um."
Jiang Lan continued:
"Now all mainstream manufacturers have regarded 55-inch LCD TVs as important production lines and have launched their own smart TVs."
“The price of 55-inch smart TVs from Internet TV manufacturers such as LeTV, Xiaomi, and Fengxing is about 3,599 yuan.
So what I consider is that our ‘smart TV’ is priced at 3,199 yuan, which is about 400 yuan cheaper than Xiaomi. "
"As for traditional TV, I want to set it at 2,799 yuan!"
Mo Ran thought for a moment and nodded.
As an e-commerce company that only sells online, Jiang Lan made the right decision to refer to Xiaomi TV for pricing.
Although Nietzsche's sales have been good recently, and it even appeared on the hot search list, Mo Ran is not so arrogant that he thinks Nietzsche's brand can compete with Xiaomi.
He looked up at Jiang Lan.
"What's the approximate cost?"
"Because traditional TVs do not have CPU, memory and other spare parts, the cost is about 2,500 yuan, and the gross profit margin is a bit low, about 12%."
"The cost of a smart TV is about 2,800 yuan, and the gross profit margin is about 12%."
"After deducting other costs such as OEM and express delivery, the net profit rate is about 6-8%, which is a bit low."
"Moreover, this is the cost of BOE's screen. If it is a Samsung screen, the cost will be higher."
Mo Ran frowned and suddenly thought of another thing.
"I gave you a copy of the 'TV Image Quality Chip Optimization Program' before. Have you tested it? How is the effect?"
Jiang Lan nodded.
"I tested it and the effect is very good."
“In fact, this is one of the reasons why I firmly use BOE screens.
With the "hardware image quality decoding technology" and "TV chip optimization program" you provided, many BOE screen backlight, motion compensation, and color problems have been improved. "
"Now, to the naked eye, the effect of our 55-inch smart TV is almost the same as that of Samsung's screen..."
Hearing this, Mo Ran took a deep breath and stopped tapping his fingers on the table.
He looked at Jiang Lan and said:
"So...the only problem now is that the profit is too low."
"Yes!"
"Compared with other manufacturers, our costs are much higher, especially when it comes to the purchase price of TV screens. We have no bargaining power at all."
"Now, we want to increase profits, and I think the best way is to talk to BOE."
"Lower the purchase price."
Nietzsche TV has only started to take off in the past few months.
When small manufacturers like Nietzsche first entered the TV industry, most of their spare parts were not purchased from manufacturers.
Instead, we purchase goods through a series of trading companies and agents.
As a result, the cost is much higher than that of large manufacturers. Naturally, there is no advantage over large manufacturers.
I have encountered this problem before when I was making the Nietzsche 43-inch traditional TV, but at that time, the scale was small and the sales volume was small...
Nowadays, as Nietzsche TV models become more and more numerous and the scale becomes larger and larger, procurement costs must be found to be reduced.
But……
Talk to BOE?
Thinking of this, he said:
"Jiang Lan, I am personally responsible for this matter. I will leave it to you to continue the research and development of the 55-inch TV and strive to launch it as soon as possible."
Jiang Lan responded, then turned and left.
but.
When she reached the door, she turned around and added:
"Mr. Mo, there is one more thing."
"We have reached business cooperation with Youku, iQiyi, and Tencent Video, and the general framework of our smart TV platform has been completed."
"If you want to add our unique resource content, you can add it at any time when the time comes."
"Okay, got it."
Mo Ran smiled.
He really hopes that Nietzsche TV will be ecological like LeTV, but the current situation of Nietzsche TV should be put aside for now.
Watching Jiang Lan leave, Mo Ran quickly called Wang Fugui, who was responsible for communicating with BOE.
After hearing Mo Ran talk about the high price of BOE TV screens, Wang Fugui frowned.
After thinking for a moment, he slowly said:
"Boss, in fact, we not only have to solve the problem of expensive TV screens, the price of our 'Nietzsche X1' Oled screen is also a bit high!"
"It just so happens that our last batch of Oled screen orders will be delivered soon. I also want to talk to you about this matter."
Mo Ran nodded calmly. Now it seems that cost control must be resolved.
In fact, Nietzsche approached Samsung and BOE for the Oled screen of the "Nietzsche X1".
Samsung's customization volume was so high that it easily cost one million yuan. In the end, it had no choice but to find BOE to customize 100,000 Oled screens.
Although the number of customizations is less than that of Samsung, BOE’s price is not low.
In addition to paying RMB 5 million for customization, Mo Ran also costs as much as RMB 850 for each Oled screen!
This is also the most expensive cost of the entire "Nietzsche X1".
certainly.
Mo Ran understands that the mass production quantity is small and the cost is high, but now...
With the monthly sales of "Nietzsche X1" approaching 50,000 to 60,000 units, Mo Ran is preparing to continue to place more orders for Oled screens.
Under such circumstances, the price of Oled screens should be lowered.
Thinking of this, he looked at Wang Fugui and said:
"Old Wang, have you contacted them and discussed this matter?"
"I tried to ask them, but they refused."
As he said this, Lao Wang changed the topic.
"However... our 'Nietzsche X1' has been selling well recently. I heard that Xiaomi, Huawei and other domestic giants have approached them, hoping to also customize and produce a batch of Oled screens of the same type as ours."
"It can be said that the explosive sales of our 'Nietzsche X1' this time have promoted their Oled screen business. Previously, Samsung Screen was the only one."
"At this point, I don't know if we can do anything."
Moran raised his eyebrows slightly, and after thinking for a long time, he slowly stood up.
"Old Wang, please prepare yourself. We will go meet BOE's senior management in person."
"Meet BOE senior management?"
"Um."
…
Wang Fugui moved quickly.
After Mo Ran decided to visit BOE in person, he contacted BOE that afternoon to arrange a meeting time.
The next day.
Hui Province, Hefei, BOE factory.
BOE is actually a very legendary company. Its factory is not located in the coastal city of Yanguo, but is located in Hefei.
Receiving Mo Ran and Wang Fugui was Wei Xiaojun, general manager of BOE’s marketing department.
He first accompanied them to visit the "Nietzsche X1" Oled screen production line, and then invited the two of them to the living room.
After the guests and hosts had a good time, Mo Ran got to the point.
"I'll tell you the truth, Mr. Wei."
"We came here in person today. On the one hand, we want to add orders for the 'Nietzsche X1' Oled screen. On the other hand..."
As he spoke, Mo Ran picked up the teacup and took a sip, observing Wei Xiaojun's expression from time to time.
To be honest, this was also his first meeting with BOE's senior management, and he didn't know the specific situation.
After observing for a few seconds and seeing that Wei Xiaojun's expression showed no fluctuation, he slowly said:
"On the other hand, I hope that the price of our customized 'Oled screen' can be lowered."
The words fell,
Wei Xiaojun was still smiling, with no change in his expression at all.
Actually.
After Wang Fugui made an appointment to meet yesterday, Wei Xiaojun roughly guessed Mo Ran's intention.
really,
Like Nietzsche, who ordered the first batch and continued to add batches, the price will naturally be lower due to the scale advantage.
Moreover, he knew it very well.
Because of the popularity of "Nietzsche X1", BOE's mobile phone OLED screens have attracted the attention of many domestic manufacturers, and even negotiated several large orders as a result.
These are entirely due to Nietzsche X1.
but.
Despite this, Nietzsche still did not have enough weight. As a businessman, he did not intend to agree easily.
Wei Xiaojun shook his head with a smile on his face.
"Mr. Mo, as you just said, your Oled screen is specially customized and the cost is very high, so it may be difficult to lower the price."
Faced with rejection, Mo Ran was not surprised.
BOE is a very large enterprise, and all its executives are old foxes. He never thinks that he is very easy to talk to.
He said calmly:
"We will place an additional order for 350,000 Oled screens at a price of 500 yuan each."
"impossible."
Wei Xiaojun shook his head and was not angry. Instead, he continued to fill Mo Ran's tea cup.
"This price is impossible. The previous price was 850 yuan per piece. If we add an additional 350,000 yuan, the price can be reduced to 800 yuan per piece."
"600 yuan."
"780 yuan."
"620 yuan."
"750 yuan."
"650 yuan."
"750 yuan is our bottom line."
"Bottom line?
The negotiations between the two parties became more and more intense, and Mo Ran suddenly stopped and looked at Wei Xiaojun sharply.
After a moment, he whispered:
"To tell you the truth, Samsung found us and offered us a price of 750 yuan!"
The words just fell.
At this time, Wei Xiaojun, who had been calm all this time, was suddenly startled and raised his head to look at Mo Ran.
"Samsung found you?"
Not to mention Wei Xiaojun was surprised, even Wang Fugui on the side was completely surprised.
Samsung Screen came to us?
when?
but.
After being stunned for a moment, he suddenly came to his senses.
Mr. Mo is deceiving Wei Xiaojun!
I remember that more than half a year ago, when I was asking for salary, my boss also cheated like this once. Unexpectedly...
Under such an occasion, the boss once again used this method to move out of Samsung and use Samsung screens to put pressure on BOE?
I just don’t know if I can succeed!
While thinking, his eyes fell on Wei Xiaojun, who looked surprised, and Mo Ran's calm voice came to his ears.
"That's right..."
"Actually, you should also know that before approaching BOE to customize this 'Oled screen', we also contacted Samsung Screen."
“After our ‘Nietzsche X1’ was released this time, Samsung Screen quickly noticed us.”
"A few days ago, we received a call from Samsung. They offered to help us customize the production of Oled screens at a price..."
"That's 750 yuan a piece, and you know the color performance is better than the screen you provide."
Speaking of this, Mo Ran felt even calmer.
After looking at Wei Xiaojun lightly, he said:
"As for why Samsung took the initiative to contact us, I believe you can guess some reasons."
"Our 'Nietzsche X1' is selling well. It is said that...Huawei, Xiaomi, and even Apple are paying attention to this Oled screen. Naturally, Samsung does not want to lose their core customers."
After the words fell, Wei Xiaojun's eyes completely changed.
He took a deep look at Mo Ran, his expression no longer as calm as before.
Of course he could hear the meaning behind Mo Ran's words.
In fact, BOE has been beaten by Samsung and LG in high-end mobile phone Oled screens.
Whether it is the screens of Iphone 6 or the latest Iphone 7, Apple purchases all Samsung screens. BOE has no share in high-end screens.
Now.
Finally, the unique full-screen design of "Nietzsche X1" aroused other manufacturers' interest in BOE's Oled screen.
Under such circumstances, Samsung may indeed contact Nietzsche and ask them to provide Nietzsche with a better and higher-quality Oled screen.
And once such a situation occurs, there is no doubt that it will be a complete slap in the face of BOE, and BOE will also lose the hard-won golden signboard of "Nietzsche X1"!
Thinking of this, Wei Xiaojun glanced at Mo Ran again.
He didn’t know whether Samsung actually contacted Nietzsche.
but!
He doesn't dare to gamble!
Compared with Wei Xiaojun's uncertainty, Mo Ran calmly poured himself a cup of tea and did not speak in a hurry.
The living room fell into silence, and you could hear a needle drop. After a long while, Wei Xiaojun exhaled slightly.
Then he looked at Mo Ran and said slowly:
"690 yuan, it can't be lower."
Mo Ran smiled slightly.
"make a deal."
After saying this, he clearly felt that Wei Xiaojun opposite him was relieved.
Actually.
Not only Wei Xiaojun, but also Mo Ran's clenched fists relaxed.
After handling the "Oled screen" matter, Mo Ran became more and more calm. The second thing that came to his mind when he came to BOE today was--
The price of a TV screen.
He stared at Wei Xiaojun, and after a moment, he laughed softly.
"Mr. Wei, don't worry, there is one more thing."
"Um?"
"It's like this. We are developing a 55-inch LCD TV and are now choosing which manufacturer's LED screen to use."
"We have used your 43-inch LED screen before, but the price was a bit expensive."
"This time we hope to get a better quote for our 55-inch LED LCD screen."
Wei Xiaojun instantly understood what Mo Ran meant.
He frowned slightly,
"How many LED TV screens are you planning to order?"
"The first batch of 50,000 yuan."
"Fifty thousand yuan?"
Wei Xiaojun suddenly laughed.
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