Video Game Empire

"If we follow the mainland model, our pricing may indeed be a bit high. △￠ is small. I know that the mainland implements a planned economy. After calculating the cost of each product, the Planning Commission will set aside 10%-20% of the gross profit for the enterprise. Space, used to pay staff wages, and the necessary expenses to keep the business running!

Factories don't need to invest in R&D, because that's the job of research institutes. Enterprises do not need to worry about raw material procurement and product sales, because in the order meeting organized by the government every year, there will naturally be upstream and downstream supporting enterprises to connect with enterprises according to the annual production tasks issued by the government!

This economic model seems to be able to maximize the use of resources through the social division of labor! But it has a fatal certainty, that is, it suppresses creativity! Take Professor Liu yourself as an example. You made a report to Beijing University of Posts and Technology to apply for the research and development of the s-2000 switch project.

Beijing Post does not have enough funds to support your project, so the school applied to the Ministry of Posts and Telecommunications, but although the Ministry of Posts and Telecommunications approved your project, it also has no funds. The funds in the ministry all come from the allocation of the state, and each one has a specific purpose. A project like yours simply cannot be ranked! "

Li Xuan continued to talk to Liu Junliang, who was in deep thought: "And I think one of the most important reasons for this is that the price is too low, and many products, especially high-tech products, do not reflect their due value at all! Or It's not right to say that, it should be said that his value has not been distributed reasonably!

Or take the s-2000 digital program control machine as an example, as I just said, its final price. It will be slightly cheaper than the $500,000 price of similar foreign products, but it will not be much cheaper. Converting this price into RMB at the exchange rate stipulated by the state is about 1 million yuan. And Professor Liu, you are the first developer of this project. The cost of the s-2000 should be known. If industrialized production, its cost will not exceed 400,000 RMB!

In your opinion, Professor Liu. Even if the cost of research and development, sales, etc. is covered, its gross profit margin can be above 100%, and I must feel that I am a vampire! But in good faith, this price is actually not high. In high-tech industries such as communication equipment, products with a gross profit margin of 200% or even 300% make a big difference!

The reason why I am qualified to set this high price is because I paid a lot of money upfront. For example, the research and development funds invested by the Oriental Research Institute in your team have already reached 5 million Hong Kong dollars, and you will need to invest another one or two million Hong Kong dollars in the later stage!

In addition, we order this s-2000 digital switch. Purchased dozens of basic patents from Bell Labs in the United States and Nortel in Canada, and the investment was also as high as 5 million Hong Kong dollars.

That is to say, the initial investment of the Oriental Research Institute for the entire s-2000 project is about 12 million Hong Kong dollars. Maybe you could say that at the high price we decided to give the s-2000, just selling 10 switches would be enough to cover the cost. The capacity of the mainland market is far more than 10!

But we also need to see the risk cost paid by the Oriental Research Institute. Scientific research is a high-risk business, and a lot of money and time may not be able to reap the fruits! For example, Professor Liu, if you and your team fail in research and development, then the 12 million Hong Kong dollars invested by the Oriental Research Institute in the early stage will be wasted. Naturally, it is impossible for us to recover this investment from you or Beiyou University!

To be honest, the state allocates money to the Ministry of Posts and Telecommunications every year. The funds used to build communication networks are as high as hundreds of millions or even billions. If the leaders in the ministry have the courage, the s-2000 project can be converted into RMB and only need a few million funds, and it can definitely be arranged by squeezing.

In case your project is successfully developed. The country can save much more foreign exchange than the investment cost every year, and there is no need to buy foreign digital program-controlled switches! You must know that a 10,000-door digital program-controlled telephone switch purchased by Southern Fujian Province from Japan not long ago cost 2.74 million US dollars in foreign exchange!

But the leaders of the Ministry of Posts and Telecommunications did not have the courage. Because you may fail, and they can't afford to lose for their position! But our Oriental Research Institute can. There are dozens of projects within the institute that have invested more than one million dollars. In the first eight months of this year, the total investment in scientific research of the Oriental Research Institute has exceeded 250 million US dollars. Losing a million or two dollars wouldn't hurt us at all.

The reason why we are so confident is that we rely on the strong revenue capabilities of other companies in the Oriental Group. For example, the arcade machine of Dongfang Game Company, the ex-factory price of each machine is about 1500 US dollars, but the actual cost is only about 600 US dollars, and the gross profit rate is as high as 150%! It is with the huge profits of these products that the entire Dongfang Electronics Corporation can develop at a leaping speed! "

Li Xuan said Datong in one breath, just to explain the reason for the high price to this intellectual who is still bound by the planned economy. In fact, in general, the profit margin of consumer goods will be relatively low, and communication equipment such as digital switches that are not electronic consumer goods are mostly closed for three years, and open for three years!

What is Consumer Electronics? It is the kind of electronic product that you feel should be replaced after one or two years or three or four years of use. For example, the gross profit margin of domestic Lenovo, Huawei and other companies in later generations will not exceed ~www.wuxiaspot.com~, while the profit margin of Apple is as high as 70%, which is called a monster in the entire consumer electronics industry.

"Because of the high profitability of Dongfang Electronics, we can provide excellent salary for the technical talents who choose to join us! If Professor Liu is willing to accept the invitation of Dongfang Research Institute, we are willing to provide you with a foreign exchange of 20,000 yuan. The annual salary of the voucher.

Of course, this salary level is indeed not high compared to the salary of R&D staff in Hong Kong, but we have to consider the salary level in the Mainland! In fact, within the Oriental Research Institute, the salary of a team leader like you is not the main income.

If you are willing to join the Oriental Research Institute, we are willing to build a brand-new laboratory for you in the mainland, and support you to continue to develop 5,000, or even 10,000 digital program-controlled telephone switches. If your research and development results can successfully enter the international market, then just the sales dividend is enough to make you a millionaire in an instant! "Li Xuan said.

"Mr. Li, thank you for your interest in me, I need to think about this issue carefully!" Liu Junliang said a little embarrassedly.

Li Xuan showed no dissatisfaction at all, waved his hand and said with a smile: "Of course, such a decision related to your future development must be carefully considered!" (To be continued...)