Chapter 75 10 yuan for 20 dollars
George, who originally had a coping attitude, after carefully watching Lin Wei's demonstration, found that this set of tools can be summed up in one word - clever.
The function is no different from ordinary tools, but the design is very clever. A small box contains four commonly used tools, and there are also some commonly used small parts such as screws and nuts on the bottom.
Take the wrench for loading and unloading tires, for example. The wrench that comes with the car is usually designed to be lightning type, but Yao Yuan designed this wrench to be foldable. When folded, it is only 25 centimeters long, which can just fit into the box. Expand
Later, they turned into cross wrenches each fifty centimeters long.
When Danny came back, his expression suddenly froze when he saw this scene. After his subordinates told him that the Grand Voyager commercial vehicle had been purchased, he immediately put on a smile and followed George to discuss the tools.
Yao Yuan promptly stepped forward and introduced, "Take the folding cross wrench as an example. We have used mechanical design for the joints and used high-strength steel. After our tests, joint failure will not occur until it is used more than 500 times."
Danny shook his head and said, "Five hundred times is too few. Your data can hardly meet the needs of consumers. In the life of a car, the life of the supporting tools must reach at least three thousand times."
Yao Yuan smiled, said nothing, and asked George, "Mr. George, what do you think?"
"Danny is right, the standard of this set of products is too low." George said with some general interest, "The lifespan of wrenches on the American market is generally more than 5,000 times. Yours is too different."
Yao Yuan said with a smile, "You can get the four most commonly used tools for thirty dollars. It's unrealistic to expect super high quality."
"Thirty dollars?" George asked subconsciously.
"Yes, only thirty dollars." Yao Yuan said.
George shook his head slightly and said, "It's too expensive."
Yao Yuandao, "Thirty dollars is the suggested retail price."
At this time, both George and Danny's expressions changed. If it was the recommended retail price, it would be really cheap. This is a six-piece set. There are no similar products on the market, and if they are purchased separately
, it costs about one hundred dollars to prepare six tools.
Attractive.
Yao Yuan dropped another bombshell, "Now let me answer the first question for you two, is our product can only be used 500 times? No, the figure of 500 times is based on our extensive market research.
After analyzing a large amount of data, we came up with the most appropriate number of uses. We could also achieve the standard of 5,000 uses, but we didn’t do that.”
"Mr. Yao seems to have other reasons?" Danny asked.
George felt that Yao Yuan's speech was very different from that of other Chinese people. The novel ideas revealed in his words were interesting to those of them who thought they were at the forefront of business trends.
Yao Yuan smiled and said, "After research and analysis, we found that in the life of a car, most of the times a single tool is used is less than a thousand times. It makes no sense to increase the number of uses to more than a thousand times. Of course,
, this is only for personal use of tools, not for institutions such as repair shops.”
"Then why is the service life not a thousand times but five hundred times?" Danny asked with a frown.
George seemed to have thought of something, and he frowned and began to think hard.
Yao Yuan smiled and said, "Consumers pay thirty dollars. In my opinion, a set of tools that can be used five hundred times is already worth the money. And another reason is that the wear and tear of the tools is within a reasonable range.
And within the time we hope to see it, isn’t this a good thing for manufacturers and sellers, Mr. George, what do you think?”
A ray of light hit George's head. His eyes were bright and he kept nodding, "Yes, yes, Mr. Yao is right. In fact, countless examples show that products that blindly pursue high technical indicators are missing.
It has to be easy to sell, Mr. Yao is right, the key lies in suitability."
Yao Yuan looked back at Walker and said, "Kroger was impressed by the two major features of these two sets of products. First, they are cheap enough. A six-piece set costs only $30, and a twelve-piece set only costs $80.
Second, these two sets of products are multi-functional maintenance tool boxes specially built for families. They can be carried with the car and used wherever you go. In contrast, the cross wrenches and other small maintenance tools provided by the car manufacturers have a poor user experience.
It's worse, Mr. Danny, I'm sorry."
"It doesn't matter." Danny shook his head and said it didn't matter. He was from a car factory, and Yao Yuan's words meant to offend him, but he knew that what Yao Yuan said was the truth.
Many cars never use the few simple tools that come with them throughout their lives.
There is no reason not to negotiate on the purchase. Firstly, this product is indeed attractive and meets market demand. Secondly, Kroger has already purchased it, so Wal-Mart has no reason not to purchase it.
If Kroger has it on its shelves, Wal-Mart must have it. If Kroger doesn't have it, Wal-Mart must have it, so that it can be worthy of its status as the industry leader.
He Xueli had already brought the contract over, and when she saw Lin Wei listening to Yao Yuan and the others in confusion after the demonstration, she stood beside him and translated in a low voice.
After listening to this, Lin Wei frowned and said, "I haven't done any US market research, and I don't have any mechanical design. It's all what A Yuan said. This bitch just knows how to brag. What, Secretary He, A Yuan said
Thirty dollars a set?”
"Yes, the boss said that the recommended retail price for a six-piece set is thirty US dollars, and a twelve-piece set is eighty US dollars." He Shirley said in surprise, was it really like what Lin Wei said, that it was all blown up by Yao Yuan?
Lin Wei counted on his fingers and was shocked, "Thirty dollars is one hundred and eighty yuan!"
"Moreover, you are calculating the official exchange rate. In fact, thirty U.S. dollars can generally be exchanged for two hundred and forty Chinese dollars." He Shirley said.
Lin Wei murmured, "How much did it cost to sell Ayuan to them?"
"We haven't talked about it yet," He Shirley said.
As soon as he finished speaking, George asked Yao Yuan the price.
Yao Yuan never said the price but kept emphasizing the recommended retail price. The purpose was to deepen the pricing level of this product in George's mind. Naturally, George would definitely take the initiative to ask about the shipping price.
At this point, you are only one step away from signing the purchase contract.
Yao Yuan said sincerely, "Mr. George, maybe this is just a set of simple tools, but it is unique in terms of design concept and practical value. As you can see, this box is handmade from logs."
He pointed to the toolbox and said, "Our BMW Machinery Research Institute has done a lot of research and testing, and our marketing department has done a lot of market research and analysis. You know, it is very difficult for us to do research and analysis on the US market. We have invested a lot of money in it."
A lot of manpower and material resources.”
He Shirley translated it to Lin Wei.
Lin Wei rolled his eyes and grinned, and whispered, "I'm bragging again. In fact, Ayuan and I used files from the machine shop of the sugar factory to make the box. The box was made by a carpenter in the village, and even the raw materials were picked up."
The factory uses leftover scrap iron..."
"..." He Shirley rolled her eyes when she heard this.
Looking at the eloquent Yao Yuan, He Xueli suddenly felt like she had met a big liar. She couldn't help but believe what this big liar said!
Yao Yuan stretched out his hand, spread his fingers, flipped it twice, and said, "The shipping price of the six-piece set is only US$22! The twelve-piece set is only US$45!"
This pricing is carefully considered. The twelve-piece set is relatively large and rarely used in general family cars. The main product is the six-piece set. The shipping prices of the two are corresponding, but the recommended retail prices are very different.
The former relies on volume, while the latter is more profitable for a single set of products.
When Lin Wei heard this, his tongue almost came out.
"Ayuan is too much. The cost doesn't even cost 20 yuan. He dares to sell it for 22 US dollars!"
"Mr. Lin." Sherry He reminded in a low voice, shaking her head slightly to signal Lin Wei to keep it confidential.
Lin Wei was startled and took a deep breath to adjust his emotions.
He was surprised to see that George didn't look surprised, and became even more puzzled. Are Americans all pigs who can't see the cost of this toolbox?
George pondered for a moment, glanced at Walker's face in the distance, and asked, "Mr. Yao, how much did Kroger purchase? What was their purchase price?"
Yao Yuan smiled and shook his head, "Sorry, Mr. George."
George was not dissatisfied. He did not expect Yao Yuan to answer. This was a commercial secret between both parties to the transaction.
"But I can guarantee that the price given to Wal-Mart must be the most favorable, because if the purchase volume reaches 100,000 sets, an additional 5,000 sets will be given away, which is a discount of 110,000 US dollars." Yao Yuan said with a smile.
George frowned, thinking deeply.
For Wal-Mart, the situation is very simple. When the selling price is the same, the purchase price is lower than that of Kroger. In this case, Wal-Mart is the winner, and he, the purchasing manager, is the winner.
Yao Yuan added, "We have investigated the U.S. market. According to our survey conclusions, there is currently no similar product in the U.S. market. We are the only one. Secondly, the number of cars in the U.S. has reached one to one. In other words, theoretically,
This is a huge market worth over 100 million units.”
"With the number of stores that Wal-Mart has in every state and county in the United States, I think it is quite easy to sell 100,000 units a year. Of course, the situation at Kroger is roughly the same. In this way, I think what Mr. George needs to consider is actually
Distribution volume, which requires huge quantities to quickly fill the empty market..."
George and Danny looked at each other and walked aside.
George asked in a low voice, "Danny, from a car consumer's perspective, what do you think of this set of tools?"
"Personally, I am willing to spend thirty dollars for that well-made box. From the perspective of an automobile manufacturer, I would be happy to see the emergence of in-car maintenance tools for most of GM's models on the market. You know,
If we can fill this gap, we can save the cost of on-board tools."
Danny whispered, "You should have discovered that the tool designed by Mr. Yao is aimed at the American market. I personally think it is a very good new product."
George didn't hesitate anymore, turned around, walked up to Yao Yuan, and asked, "Mr. Yao, if the purchase volume is larger, can the price be lowered?"
Yao Yuan looked in the direction of Walker with embarrassment, pursed his lips slightly, as if he was having a fierce ideological struggle. This scene fell in everyone's eyes, and they couldn't help but feel excited. Even Lin Wei held his breath and concentrated,
He was frightened by Yao Yuan's expression.
Chapter completed!