Chapter 733 Water Tickets and Gifts
When Liu was sure that Qin Zhengguo needed one million water dispensers, he was shocked.
This number is really astonishing. You have to know that the sales volume of this product by their company in the past few years has not exceeded 200,000 units!
It is unimaginable that he wants one million water dispensers at once. How could Southeast Asia have such a big market? How come Liu didn't know about it?
Suddenly, an idea flashed through Liu's mind, and he asked without thinking, "Are you planning to sell these products in the domestic market? Is Shenghua planning to develop the water beverage industry ?"
"Boss Liu is Boss Liu. He thought of this so quickly." Since it was a cooperation, there were some things Qin Zhengguo had never intended to hide from him from the beginning, and this matter could not be hidden.
He immediately told Liu that Shenghua was indeed preparing to launch a water beverage project in China, and that the project would be mainly implemented by Sit, and Shenghua, as a member of Sit's board of directors, was merely cooperating.
As for the situation of Si Te and Sheng Hua, Qin Zhengguo did not say much, but he knew that Da Liu must have known about it before, because the fact that Song Yuanchao was the chairman of Si Te could not be hidden from Da Liu, and this was no longer a secret.
For a moment, Liu's mind started to work rapidly. The key for his company to set up a factory in Pengcheng was to target the mainland market.
The mainland market has developed rapidly in recent years, and many of the first bosses who did business with the mainland have become rich. Liu is no exception, so he naturally paid attention to this.
Hong Kong is too small and the market is too narrow. The local sales of Liu's company do not account for an important part of the company's overall sales. The main markets are foreign markets, especially Southeast Asia, Europe and the United States.
However, due to the rapid development of Hong Kong in recent years, labor costs have continued to rise, resulting in an increase in product costs, and competitiveness is not as strong as in previous years.
This is also the reason why Liu previously preferred to move the factory from Hong Kong to Shenzhen. Compared with Hong Kong, the labor cost in the mainland is much lower and it is closer to Hong Kong. This will make his products more competitive compared with products from other countries.
Currently, most water dispensers are direct drinking water dispensers, which are divided into two styles.
One is a desktop and the other is a floor-standing one. Their functions are actually exactly the same, except for the mold opening and shape. The cost is not much different either.
Now in Hong Kong, the selling price of a desktop water dispenser is around 100 yuan, and the vertical one is slightly higher.
Production costs are about one-third of sales.
This is calculated based on the production cost of the Xiangjiang factory . If production is directly carried out in Pengcheng, the cost can be further reduced. In addition, due to the characteristics of industrialized production, the larger the single batch output, the lower the cost. Liu made a preliminary estimate that if all production is carried out in Pengcheng, then one million water dispensers will be enough to meet most of the production capacity of the Pengcheng factory, and its cost can be further reduced.
This is a big deal. Even if Shenghua is given a preferential price and purchased in bulk, the profit from the two drinking water products will be over 10 million.
In addition, the cost and sales estimate are based on the current product model. If it is the simplest water dispenser without heating or cooling effect, the cost will be even lower. After all, it is just a thing of making a mold and assembling the inner tank and outer shell, so how much does it cost?
"This is just the first batch of orders. If the cooperation goes well, there will be more orders later. The preliminary estimate is at least two to three million units a year. What do you think, Boss Liu? Are you interested in this kind of business?"
Big Liu smiled happily: "Boss Qin and Mr. Song are taking care of my business. I can't thank you enough. Boss Liu, are you okay now? If you are free, let's go and see the finished product first, and then come to my office and sit down, and we can talk in detail?"
After all, Liu was a shrewd businessman. How could he sit still with such a large order? He immediately invited Qin Zhengguo to see the goods and discuss the details of the follow-up. Qin Zhengguo liked his suggestion very much. He readily agreed and the two got up and left the teahouse. They first drove to Liu's warehouse, then went to the factory, and then returned to his office to discuss the details of the follow-up.
After about three days of actual negotiations, Shenghua Group and Liu's company signed an order for one million water dispensers, and also signed subsequent intention orders for the same number.
In other words, Liu's company received a huge order for two million water dispensers in one go, which is not a small amount for a home appliance company.
As for the models and styles of water dispensers, after confirmation by Song Yuanchao, they were divided into half desktop and half floor-standing.
Moreover, the function is only heating, excluding the cooling function. In addition, Shenghua also placed an order for 300,000 plug-in drinking water pipes with Liu Da, which has a simpler structure and no problem for Liu Da to produce.
As for the price, Liu Da made appropriate concessions while ensuring profits and gave them a very good preferential price. When the quotation was faxed to Song Yuanchao, Song Yuanchao readily agreed after reading it.
However, during the cooperation, Liu also put forward a condition to Song Yuanchao and others, which was to take advantage of the opportunity of Sit's entry into the water beverage market to launch water dispenser products for sale in the country.
In fact, it is not too much for Liu to propose this condition, because as an electrical appliance company, he can completely bypass Song Yuanchao's side and directly produce and sell, without seeking Song Yuanchao's consent. But he still proposed this point on the basis of the current cooperation, in order to achieve better cooperation between the two parties.
Moreover, Liu is very smart. After several days of negotiations, he has figured out Song Yuanchao's general idea. Song Yuanchao's water dispensers are used to assist water beverage products in the initial market coverage, so the models and styles selected are the most basic ones, and the functions are also very simple.
In other words, the products that Liu produced for Shenghua were basic products, while there were also mid- to high-end products in the water dispenser market. Song Yuanchao did not touch these products, and there was no need for him to do so, because Sit was a beverage and food company, not an electrical appliance company. It was impossible for it to transform into electrical appliance production just for a water beverage, right?
In this case, Liu saw the business opportunity. Once the mainland water beverage market would gradually be developed, and the market for water dispensers would then be created from scratch.
Compared with the Southeast Asian market, Liu knew very well how much potential the mainland market had. Once this market was developed, as the first electrical appliance company to cooperate with Si Te, how could Liu give up such a good opportunity? Liu was so happy that he could launch a mid-to-high-end water dispenser and make a fortune. At the same time, he could open up the domestic market through this product.
When Qin Zhengguo told Song Yuanchao that the contract had been signed and the first batch of deliveries would be made at the end of the year, Song Yuanchao hung up the phone with relief.
A company meeting was immediately held, and several senior executives and the head of the newly established beverage business unit were invited to discuss the next promotion and sales plan for water beverage products.
According to the previous water beverage project establishment, Sit's water beverage products are divided into two categories. One is bottled water beverages, that is, beverage products in plastic bottles. The market sales objectives of this type of product are similar to those of ordinary beverages.
Another type of water beverage is bottled water. The market sales of this type of water beverage is different from the former, and it is mainly aimed at ordinary households and units (companies) including government agencies.
As for marketing methods, in addition to the beverage sales model used before, Song Yuanchao plans to adopt a free giveaway model for sales, which is mainly aimed at the bottled water beverage market.
According to Song Yuanchao's plan, Sit will set up special water stations in major cities. These water stations are currently temporarily managed by branch companies to store and distribute bottled water.
In addition, the headquarters of Si Te will allocate 5 million yuan as promotional start-up funds. This part of the funds will be used to directly give water tickets to some enterprises and institutions. The number of water tickets given to each enterprise varies. These water tickets are printed in the size of ordinary bills, with 25 water tickets in a book. The front side has the company's logo, contact number, code, purpose and exquisite patterns, and the back side is printed with detailed instructions for use and validity period of the water ticket.
With the water ticket, you can make an appointment for water delivery by simply dialing a phone number and reporting the address and contact person. When delivering bottled water, the water is delivered in barrels and a deposit is required The deposit for a bucket is not high, only about 8 yuan. An average family only needs 2-3 buckets. There will be a receipt for the deposit. Keep the receipt. If you don't use it that day, you can directly notify the water station to take back the deposited bucket and return the deposit.
In addition, Sitter will also give a desktop water dispenser to users who purchase 100 water tickets at one time. Otherwise, a water dispenser can be operated through a deposit mode. As long as a deposit is paid, you can get the right to use a desktop water dispenser. As long as the water dispenser is not damaged when it is returned, the deposit can be fully refunded.
As for the upright water dispenser, it is more expensive and requires purchasing 200 water tickets at one time or a higher deposit to obtain it.
Of course, it doesn’t matter if you don’t need a water dispenser. Shenghua can match it with a plug-in drinking water pipe. This thing is expensive, but only ten yuan is enough.
For some customer groups, Sit has also made some adjustments. For example, for those government agencies, enterprises and institutions, Sit will give them water tickets and water dispenser usage rights for free.
In addition to this model, the activities of large-volume purchases and free gifts of water dispensers by enterprises and institutions are also very flexible. Not only can water tickets be discounted when a certain quantity is reached, with the lowest discount reaching 35%, but replacement buckets and water dispensers can also be given away for free.
According to the company's calculations, a lot of money was invested in the early stages. The initial 5 million yuan could only last for a period of time, and this did not include the cost of the first batch of 1 million water dispenser equipment purchased from Liu Da.
However, Song Yuanchao is not worried about the problem of insufficient funds. In his opinion, the most important thing now is to cultivate the market, occupy the market as soon as possible and let users feel the benefits of the product.
Moreover, these methods are not all unprofitable in actual operation. The profits of water beverage products are simply huge profits. How much does a bottle of water cost? What is the market price? Song Yuanchao is very clear about how many times the profit is the cost.
Moreover, through such promotional methods, the company can also recover a large amount of funds from water ticket sales and deposits, and then invest this money in market development, and it will not take more than a year to achieve a good cycle. After a year, the market will gradually mature, and it will be the season for harvesting.
