Chapter 270 How to set the price?

“But not all equipment is unusable.

Look, I already have several machines installed on the production line.

I've tried it these past few days, and you haven't told me yet, this new machine is just different.

The accuracy and speed are much better.

I calculated that if all these machine tools and equipment were replaced.

Our production capacity can be increased by at least double.

The precision of the machined parts is much better than before.

Apart from anything else, improving the accuracy of an engine alone can reduce fuel consumption by another 3 to 5 percent.

Also, there are fewer people in need.

Otherwise, why would I be in such a hurry to install it? "

Just as Fang was thinking about Director Ma, Cao Tianwei continued.

After saying this, even Fang Xiang was a little surprised.

Although this improvement was expected, the information Cao Tianwei provided gave Fang Xiang more ideas.

Apart from anything else, some details that were originally forced to be abandoned due to unattainable processing precision can now be added.

In addition, some of the details that were previously required can now have higher requirements.

Then correspondingly, the efficiency will naturally be improved a lot.

The reduction in fuel consumption that Cao Tianwei just mentioned is only the most superficial manifestation.

Another more direct manifestation of improved precision is that the life of the machinery will also increase.

Just like before, if the precision is not enough, the inner wall of the engine will often suffer from cylinder scuffing, eccentric wear and other phenomena.

Although it will not be completely improved now, it has been greatly reduced.

It is no wonder that Cao Tianwei is so concerned about the construction of the new factory.

If the new factory building is built, the equipment will be installed and debugged in place.

Naluoqi can be said to have been improved in all aspects.

"There's no point in being anxious. Luoyi is not in the south and will not be affected by the weather.

That’s all for now, just some small adjustments.

By the beginning of spring, the new factory building will be completed and the new equipment will be installed.

Let’s fully implement the new design.

Let us take our products to the next level.”

Faced with Cao Tianwei's complaints, Fang Xiang naturally could not join in, but instead began to comfort him.

"what do you mean?"

Cao Tianwei's eyes lit up. He had already guessed some of Fang Xiang's plans.

“Well, I will update some details in the design.

Please make a list for me of the installed and debugged equipment later.

Regarding the related parts, I want to see if I can perform some simple upgrade and optimization.

Then I will base it on the performance of this batch of new machine tools.

We also optimize, improve and adjust our products.

By the way, let’s see if we can save some costs or something.”

Fang Xiang nodded.

The completion of this transaction and the handover of subsequent work.

There is basically nothing else for him to do this winter.

Since I'm free anyway, I might as well think about how to optimize the product.

"That would be great.

By the way, the batch of cars you shipped back last time.

I have also arranged for people to dismantle it.

The drawings are being surveyed and reproduced, and it won’t be long before the complete drawings can be drawn up.

But to be honest, those cars were not as good as I imagined at first.

The design and materials used in many places are not as good as ours.

It turns out that the design and car-making capabilities of those foreigners are just so-so!"

After hearing Fang Xiang’s words, Cao Tianwei also agreed with him.

However, this aspect has always been Fang Xiang's job, and most of the time, he is responsible for the implementation work.

Since Fang Xiang had the idea, he would definitely support it, so there was naturally no need for him to say much.

So the topic turned to the batch of new cars that Fang wanted to buy.

"Well, at first I also thought that foreign cars would be like this and that.

When I opened the engine compartment, I almost got a fright.

Including the interior of the car, it is also very simple.

I just want to know why our costs are so outrageously high.

Not only is our design good, but the materials we use are also good.

The interior is also much more refined, so the cost cannot be reduced.

But you may not know that selling cars in Hong Kong Island is quite profitable!

Guess what the cars I brought back were sold for in Hong Kong Island?"

When Cao Tianwei started complaining about the dozen or so cars that were pulled back.

Fang Xiang also nodded in agreement.

Before traveling through time, he had actually never been exposed to car manufacturing.

My impression of cars comes only from the cars I have bought and the drawings I have seen.

After traveling through time, the first cars I came into contact with were top-notch welcoming cars like Hongqi.

Although they were later Jeeps 212 and 213, in his subconscious mind, they were all military vehicles.

Military vehicles do not pay attention to comfort, convenience, luxury or anything like that.

So even though 212 and 213 are more crude, Fang Xiang thinks that is normal.

Later, when Fang designed the new BMW, he thought it was almost based on the concept of car manufacturing in later generations.

Many design details can even be compared with the current Mercedes-Benz S-Class.

Wouldn’t the cost of making a car like this be sky-high?

This was the painful lesson Fang learned after visiting Hong Kong and seeing the small cars made in other countries at the same time.

But if you think about it from a step back, the cost is so high, the car that is made should be good.

Otherwise, why does Howard, the world's richest man, think 120 is good?

Moreover, when I bought the car, the owner of the car dealership also vowed that it would be a big seller.

Isn’t this Fang’s philosophy of building cars regardless of cost?

"How much does this car cost?"

In fact, Cao Tianwei has some understanding of the current international car prices.

He was also well aware that BMW's costs were high at the time and that it had no price advantage compared to other international brands of cars.

But at this time, he still asked cooperatively.

"Except for Ben Tian's mini car, none of the others are priced below 12,000 Hong Kong dollars."

Fang Xiang stretched out a finger and gestured.

“Twelve thousand Hong Kong dollars?!

How much would that be?”

Cao Tianwei exclaimed in surprise, but immediately realized that the unit he was talking about was Hong Kong Dollar.

"It's not much different. It's almost one to one."

Fang wanted to explain.

"That means that the car we made for over 6,000 yuan can be sold for over 10,000 yuan?!"

Cao Tianwei was even more surprised at this time. Compared to his previous deliberate cooperation, he was really surprised this time.

“That’s not the case.

The cost of making it is more than 6,000.

The cost of transporting it to Guangzhou is basically close to 7,000 yuan.

Although Hong Kong Island is exempt from customs duties, transportation, transit and warehousing of goods to Hong Kong Island are required.

Add to that the sales cycle, capital turnover and taxes, and the cost will be at least 7,500.

In addition, sufficient profit margin must be left for dealers.

Otherwise, if they don’t make money, why would they sell cars to us?”

Fang Xiang counted on his fingers and roughly calculated the cost of each link.

"So how much should it be sold for?"

Cao Tianwei listened for a long time but didn't hear the result he wanted.

At this moment, some people were so anxious that they were scratching their heads.

"How much do you think is a good price?"

Fang Xiang did not answer his question directly, but looked at Cao Tianwei with a smile.

This question was asked.

“We can also sell it for 12,000!

what do you think? "

Cao Tianwei was stunned for a moment, thinking about what Fang Xiang had said just now, that those cars that were not even as good as BMW were sold for 12,000 yuan.

Ours is better than theirs, so why can't we sell it at the same price?

"No!"

Fang Xiang shook his head.

This is the narrow-mindedness of many Chinese people.