Chapter 105, New Changes to Cisco
What other colleagues in the film industry think has nothing to do with Alice. Her daily life is just to go to and from school as usual. After March, the popularity brought by "The Ghost Record" dissipated, and she had already poured her box office revenue of over 100 million yuan into the bottomless pit of the clothing market. It can be said that there was nothing for a while.
Of course, we can't say that. At least, Microsoft's Windows 1.0 was indeed popular because of movies. No matter what, this is the super popular market in the US alone that earned 200 million US dollars, and overseas box offices are gradually heating up. The moviegoers who have watched it are almost the same as 100 or 200 million. How many of them have seen advertisements made by Alice?
"When it is sold with the DOS system, it is completely in the sky and the other underground!"
Therefore, this advertisement with zero endorsement fee is excellent, so it is not surprising that Gates would call and thank you in person, and even so excited that he even said something bad: "Many companies in the UK, Italy, Germany, and France called us and called us to buy Windows 1.0! Yesterday alone, we signed 452 orders, 341 the day before yesterday, and 675 the day before yesterday, with a single-day sales of tens of thousands!"
Really promising... So what Alice thought as she listened to Gates' incoherent sigh.
Daily sales... tens of thousands, what does this matter?
Although the profit margin is ridiculously high...
You know, Cisco is selling for 2,000 US dollars, while Windows 1.0 is priced at only 100 US dollars. Microsoft wants to sell twenty of their systems, which is equivalent to Cisco selling a router here.
However, who said that the current market situation is like this? Although the graphical user interface is excellent, Microsoft is not without other competitors at present. Moreover, the current number of application software is limited. Users are using the DOS system well, so they have to pay another penny.
I buy you to give you face, I think it is really convenient to use, it is icing on the cake, but that's all. After all, compared to the really hot 95 system, the highlight of Windows 1.0 is really just a graphical user interface.
But the router is different. It can directly reduce the cost of building a LAN by three or four times, and free up space for a computer. Although 90% of the price of this 2,000 US dollars is pure net profit, the direct effect of saving huge costs for users is directly there...
Just as Alice had calculated earlier, if she hadn't been to deal with the future price war, even if she raised the price to a full 4,000 US dollars, the orders would still be endless!
Speaking of which, it was not until Posack hung up the phone again that Alice, who had been busy with other things, remembered that the agreed deadline for thirty venture capital firms had arrived.
Yes, it was April 1st in 1985. According to the couple's original running speed, that is, the hard work of 73 families in 1986, it is almost the same for 30 families today.
So, early the morning after receiving the call, Alice and Sophie took a small plane to San Jose Airport, and just in time for lunch, they sat in the restaurant at the Posacks' mansion near Stanford University.
On the spacious dining table, the couple prepared a sumptuous lunch for the guests at noon. However, although the expressions on their faces were obscure, they clearly expressed one meaning, that is, they were eager to end the meal quickly.
"This is the company's financial statements for March, please take a look."
Sandy handed over the report to Sophie, and handed over the copy to Alice, adding: "How about putting the account book in the company after lunch?"
Sophie nodded and agreed, while Alice took the report seriously.
Main business income: 828,700
Net profit: 694,370
Liabilities:-
Recalling the financial statements in February, Alice said: "Although it is already countless times higher than other industries, it is an indisputable fact that profit margins have dropped. What costs have risen?"
Posack pulled down his glasses and smiled: "CPU, the contract signed between Sandy and Intel has expired. They refused to sell the goods at the original price, which increased the price by 10%. Because you were still in China at the time, we had to renew the contract directly, but it only lasted for three months. In other words, we can bargain with them again in June."
Alice nodded, and said nothing, but opened the list of customers. Sandy was extremely serious in treating customers. Just looking at the list information, she classified all the information in detail according to strict standards, and even the library could not do better.
"Los Angeles has a market share of 8%, San Francisco has a market share of 17%, San Diego has a market share of 4%, and then there is a full 12% in Las Vegas... Sandy, how is this share calculated?"
"We looked through the yellow pages of our city and counted the number and industry distribution of all registered companies. This proportion is the proportion of companies that have purchased Cisco products, which accounts for the number of companies in the yellow pages."
Sandy answered very proudly because she saw Alice's satisfied smile. At this time, she actually felt a strange feeling in her heart. She was obviously just a thirteen-year-old girl, but when she spoke as a thirty-year-old university professor, she couldn't help but report her work like a regular subordinate.
And the most amazing thing is that after instantly realizing his attitude, Sandy felt a little unbelievably that his low attitude of reporting work seemed to be a very normal thing.
Didn't notice the surprise in Sandy's eyes flashing. Alice said: "I did a good job, but since we have expanded the market so quickly, we must have appeared in our peers, right? Over the past few months, we have sold tens of thousands of routers to major companies, research institutions and colleges. No one else is fool, and we are about to be impacted."
Posack hit the table with his fingers flashing and his eyes were contemplating, but after waiting for his mouth to say something, after reading the financial statements, Sophie said: "At present, there are only two of you employees in the company. Although this can save costs, the business is expanding and it is time to recruit new employees."
Invisibly, this sentence positioned Posack and the others as employees, but Sophie spoke quickly. Before the two could think more about that word, her subsequent speeches had already come one after another.
"What Alice just said is reasonable, so we need to quickly set up a market department. While striving to expand the product market, we also try our best to investigate all potential competitors. Therefore, the technology and customer service department should be established. After more customers, various related consultations will also increase, and we should also set up the enterprise structure."
Posack nodded and agreed, "Indeed, although the shipping process has been shipped directly by the manufacturer according to Alice's idea, we are indeed a little incompetent in handling a large number of orders every day. If we recruit people, it is enough to recruit five people in the technical department. After all, we only have this product at present."
Alice waved her hand and said, "In terms of team building, let's talk about it later when you arrive at the company site. This is a very complicated issue. Have a meal first and just chat, my steak is almost cold!"
In this way, the lunch ended in a different mood of four people. Posack immediately drove a car and brought Alice and his daughter to the current Cisco location.
It is near an office area in the San Francisco area, and I found an office here as a registered address, that's all. Cisco is still early than the scale of tens of thousands of employees in 20 years. While stepping into the office, Alice looked around. The room may not be as big as hers, and the spaces are almost filled with spaces.
"Since you are going to hire someone again, the office will definitely be replaced."
Alice was paced in the room, looking around slowly. The offices of several rooms were filled with file cabinets, and the largest room was used to study hardware assembly. It can be said that it was the limit to make Posack and the other two work, and at most they could accommodate one person, otherwise the depression of the environment would be enough to make everyone collapse.
Posack murmured afterwards. It has been almost a year since the company was established. Indeed, the company's revenue level is steadily increasing, but more and more businesses are no longer something the couple can handle alone.
Who would have thought that just after Alice handed over the first batch of orders, the following business came here like a snowball? Almost from that time on, the couple spent almost all their time dealing with business, dealing with various manufacturers, and interviewing customers at home. The busyness of all matters made them only take a little time to raise funds for the company, that is, to visit the venture capital manager at home.
And just after they visited those venture capitalists again and again, they encountered failures again and again. Even until now, Posack was completely unable to understand why he could not convince them?
Of course Alice did not use her mind reading skills, but she had the atmosphere along the way, so of course she knew what the couple was thinking.
Take out the order summary from the general manager's office, and based on the clear information above, Alice can easily draw conclusions.
Since she quietly asked Lawrence to mobilize her connections, and after several major financial media outlets such as the Wall Street Journal posted some small advertisements, the number of orders flocked to Cisco is really beyond the word of mouth for professors at several universities.
Look at the instant coffee bags accumulated in the trash can, and then look at the feeling of gratitude deeply contained in the tired expressions of the Posacks, Alice shines and reveals her snow-white teeth.
The reason is very simple.
After tiring the original founder to become a dog, of course they wished someone could share the blame for themselves.
The only problem is that once this responsibility is divided and if it is taken back, it will be nowhere to be achieved.
Chapter completed!