Chapter 6 What to do if you don't make money
Nanshan Automobile is not a well-known company.
More than 90% of the people in China must have never heard of it.
However, the automotive industry looks big, but the circle is actually very small.
After August, all workers in Nanshan Auto Workshop took a high temperature holiday, and the news soon spread in the circle.
"Hey, the one-week high temperature vacation felt like it was over in a blink of an eye. It would have been a great time for work to pass so quickly."
In another automobile company in Nancheng, in Benben Auto's office, Guo Jianxiong was turning on the computer while chatting with his colleague Zheng Dong next to him.
High temperature fakes are considered a normal existence for many automobile companies.
When the weather is hot every July and August, some OEMs will have a week off.
In this week, personnel can also be arranged to inspect the equipment.
But don’t think that this week is really an extra fake. In fact, it was just a piece of the shifts on Saturday and Sunday.
"Yes, it would be great if we could have a month-long high temperature vacation like Nanshan Automobile."
Zheng Dong said enviously.
"Nanshan Automobile has a one-month high temperature vacation? Isn't it possible?"
Guo Jianxiong almost joined Nanshan Automobile when he graduated, so he has always been very interested in the news about Nanshan Automobile.
"Hey, it's said it's a high temperature vacation, but it's actually a discontinuation of production. It's better to use the name of a high temperature vacation.
Fortunately, you didn’t go to Nanshan Automobile at the beginning, otherwise you would be in trouble.”
Zheng Dong's news is obviously quite well-versed.
After all, both companies are in the same city. Even if they are not in the same district, there must be a lot of intersections between their employees.
"They're really discontinued?"
"Then there are fakes? When they were brilliant before, they had sales of less than 10,000 units in a month.
The models we launched in the past two years have completely beaten them, and last month, Nanshan Automobile only had a few hundred units of sales.
The automobile industry must have scale effects to make a profit, and that little bit of sales will definitely be a loss.
Now that the production is not stopped, when will you wait? Maybe in two months, you will hear the news that it has been acquired or bankrupt."
"There are few domestic parts companies that can be used as a result. Nanshan Automobile manufacturers that use similar suppliers as us means that there is no cost advantage.
The price is lower than that of us, and the profit margin is definitely very low.
Stop production early is also a wise choice for their boss.”
"You are right, stop the loss in time!"
...
"Mr. Xiao, all parts are now being prepared as planned, and basically the installation of the first batch of models can be ensured."
In the Nanshan Automobile Conference Room, an intermediate evaluation meeting for the NS1 project is now underway.
Wang Fugui personally reported the cost of parts and production preparations there.
“Although progress is very important, the quality cannot be neglected.
The specifications of all our drawings are very clear. The procurement department and the technical department must ensure that the parts produced by suppliers meet the requirements of the drawings."
Xiao Hui is still very confident about the "auto empire system".
Mature drawings and processing data can normally produce qualified products.
However, this time most of the suppliers of NS1 have selected domestic manufacturers.
These manufacturers produce several samples, which can definitely meet the quality requirements.
However, if the parts are produced on a large scale, the quality stability is often worrying.
This problem existed even in Xiao Hui's previous life.
"Don't worry, we have dispatched all the buyers and quality officers, and we will definitely complete the preparation of parts with quality and quantity.
Everyone also knows that the success of NS1 is related to our life and death.”
Wang Fugui is naturally trusted by the Xiao family if he can sit in the position of Minister of the Procurement Department.
At critical moments, he will definitely not lose his links.
"This time, we only have to succeed, no failure. If we succeed, our Nanshan Automobile will be the pride of the Chinese automobile industry. If we fail, we are just a joke."
Xiao Hui looked at everyone very seriously.
"Mr. Xiao, judging from the current summary cost situation, the NS1 project has no profit.
Even if we produce it smoothly, we cannot reverse the company's profits.
Can you consider increasing this price?"
Finance Minister Li Jinming is naturally very concerned about the income issues of the car model.
In his opinion, NS1 can make a profit by raising the selling price, and there is no need to set the price so low.
"Cut off sales funds by half, can we achieve a break-even?"
As soon as Xiao Hui said this, the sales department director Zheng Zhihua became anxious.
"Mr. Xiao, the necessary sales funds are a necessary prerequisite for achieving sales targets. Compared with previous models, our NS1 sales funds are very small, and there is no way to cut them any more."
"Didn't you plan to advertise in various newspapers and TV stations before? Save all these costs first."
In Xiao Hui's heart, he obviously didn't want to spend money on marketing.
In his opinion, the highest level of marketing is to be free.
Tesla in his previous life played this skill very well.
Relying on Musk's unique charm, they do not need to spend any money to advertise, and each media will take the initiative to report related news.
This is also an important reason why they became the first electric vehicle companies to start making profits.
The price of NS1 is so low that Xiao Hui naturally doesn't want to contribute advertising fees to TV stations and newspapers.
"The monthly sales target of 30,000 units is an unprecedented number and full of great challenges.
I originally wanted to apply for a special promotion fee with the company, but now it is…”
Zheng Zhihua felt very bitter too.
If it weren't for his sales director's job change, he wouldn't have to make it too high or too low, he wouldn't have wanted to continue working at Nanshan Automobile.
Whoever can do it will go.
"The marketing and promotion of models will be discussed separately later, and I won't go into details today, but NS1, as our Nanshan Automobile model, will definitely not lose money.
The procurement department must negotiate costs with suppliers well. If some suppliers are not confident about our sales, we can set a cost with them under the premise of different units.
If we can’t sell 30,000 yuan a month, we can replenish them the price reduction.”
After Xiao Hui said this, Wang Fugui opened his mouth and finally said nothing.
Those who do purchasing will be criticized for their costs every time they evaluate.
Chapter completed!