Chapter 106: What About the Mafia
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Meyer hung up the phone, contemplated for a moment, and decided to call Hardy. "Hardy, the solution worked unexpectedly well."
"How did you solve it?" Hardy asked.
"You don't know?" Meyer replied, surprised.
"Hehe, I just made a call. I don't know the details of the solution," Hardy said.
Meyer explained the solution to Hardy, and Hardy smiled. "It looks like I'm heading to New York. I owe the old man a thank you."
Meyer didn't inquire further about the "old man" Hardy referred to but guessed it was someone significant. Previously, Meyer had viewed Hardy merely as a subordinate of Siegel, but after this incident, Meyer realized Hardy was much more capable than he had thought.
Hardy had earned Meyer's respect and admiration. Meyer now saw Hardy as an influential figure in his own right. He smiled and said, "Working with you has been a great choice."
"We still have many opportunities for collaboration in the future," Hardy replied with a grin.
After ending the call, Hardy rang Mike. Hardy hadn't mentioned the crew to Mike.
"Mike, I'm heading to New York tomorrow. I've booked my flight," Hardy said.
"Great! It's about time you came over. The TV factory is on the right track. Come and see what needs improvement," Mike said, smiling.
"I trust your abilities," Hardy said.
"Thank you for the trust. I'll pick you up at the airport tomorrow," Mike said.
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Hardy visited the antique storeroom to select a gift. He needed to express his gratitude for the help he received. Among the collection of Chinese antiques, he decided to keep those for his personal collection.
He found a painting among Western artworks, an 18th-century Italian piece by Canaletto, known for his landscape paintings. Hardy thought the purchase price of $2,500 was reasonable.
The next day, Hardy flew to New York.
After over ten hours of travel, he arrived in New York late in the evening. As soon as he exited the airport, he saw Mike waiting for him.
"Hardy."
"Mike."
They greeted each other warmly with a hug. Mike helped Hardy with his luggage and painting, and they drove to the hotel. Mike stayed with Hardy that night, and they chatted late into the evening.
"Currently, our TV factory can produce 120 TVs a day, which totals about 40,000 units per year," Mike explained.
"Professor Ward designed a new production model that has reduced the cost per TV to $58. Our wholesale price is $85, and the retail price is $127."
Hardy considered this. With an annual output of 40,000 units and a profit of $27 per unit, the annual profit would be $1.08 million. They initially invested $2 million, so it would take about two years to break even, assuming good sales and low repair rates.
In addition, a new production line for 17-inch, 19-inch, and 21-inch TVs was planned, which would require a significant investment. Color TVs were also on the horizon, though they were not yet in mass production.
To make money, continued investment was necessary, creating a cycle.
"How are TV sales going?" Hardy asked.
Mike's excitement waned a bit. "Sales are slow. We're selling only a dozen units a day."
"I've been focusing on sales lately. Many customers want TVs, but the $127 price is deterring them. The war has just ended, and people have limited funds."
"Currently, we're producing more than we're selling, which puts pressure on the factory's finances. If this continues, we might run out of funds to purchase raw materials in two months," Mike admitted.
"How do you plan to address the sales issue?" Hardy asked.
"Advertising and promotions could help attract customers, and we might lower the price to entice buyers," Mike suggested.
"Hardy, do you have any ideas?" Mike asked.
Hardy pondered for a moment. "I don't have a perfect solution right now. Let me think it over and maybe come up with something tomorrow."
Mike smiled in response.
The next day, Mike showed Hardy the TV factory. The factory was running at full capacity, and the TVs were housed in wooden cabinets. The picture quality was slightly distorted compared to modern LCDs, but it was considered the best available at the time.
In 1946, this was the best they could achieve.
Hardy visited the Corleone estate at noon and met the old Godfather again. Hardy presented the gift—the Italian landscape painting. The old Godfather was surprised and delighted.
"This is St. Mark's Square. I visited there in my youth. It's a fond memory," the old Godfather said.
"Do you still like it?" Hardy asked.
"Of course. Thank you for reminding me of my memories," the old Godfather replied.
During lunch, the old Godfather asked about the business. Mike updated him on the production and sales issues.
The old Godfather then turned to Hardy. "Hardy, as a partner, do you have any thoughts on improving sales?"
Hardy considered for a moment. "I discussed this with Mike yesterday. He mentioned that increasing advertising and promotions is a common approach, but I have an idea that might be worth exploring."
"Oh? What is it?" Mike asked eagerly.
Hardy explained, "Mike conducted market research and found many people interested in buying, but the upfront cost of $127 is a hurdle. Instead of discounting the price, we could offer installment sales."
"Discounting reduces profits and brand value. We can partner with a bank to offer interest-free loans. Customers would pay a 30% down payment, around $38, and the remainder in 9 installments of $10 each. This way, many people can afford the TV without paying the full price upfront."
"For military personnel, we could offer 0 down payment and 12 installments of $10, with a final installment of $17."
"With numerous bank branches in major cities, we can partner with them to handle this. I believe this model will be more successful than discounted sales."
Mike pondered Hardy's suggestion and found it highly practical.
"But what if some customers fail to repay the loan?" Mike asked.
Hardy smiled, "The risk is mitigated by requiring job verification, which ensures most loans will be repaid. Even if some defaults occur, the increased profit from sales will offset these losses."
"Additionally, partnering with the bank provides quick funds to purchase raw materials and expand production. As the market grows, we'll benefit even more."
The old Godfather nodded in approval. "Hardy's suggestion is excellent and worth trying. You're truly a talented businessman."
The meal was pleasant, and Hardy gained further approval from the Corleone family.
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In New York, the film crew was busy. Matilda, coming back with groceries, was initially delighted but soon found the scene at her apartment horrifying. Her door was ajar, and through the crack, she saw a body on the floor. Recognizing her brother's shoes, she feared the worst for her family.
She approached the door in panic, only to be confronted by a police officer who pointed a gun at her. Tyler, distressed, pressed the doorbell and pleaded for someone to open it.
Director Hitchcock was pleased with the performance. Hardy, arriving on set, was greeted warmly by Tyler.
"Mr. Hardy," Tyler exclaimed, running up to him and hugging him tightly.
Director Hitchcock and the producer smiled at the scene.
Later, Hardy took Tyler to a French restaurant. During dinner, Tyler asked, "Mr. Hardy, I heard a rumor on set that the explosion was caused by gangsters trying to extort money. I also heard you were involved in solving the issue. Is it true that you have Mafia connections? What are they like?"
Hardy couldn't help but laugh at Tyler's curiosity.
He beckoned Tyler closer and whispered, "I am the Mafia. Are you afraid?"
Tyler's eyes widened in shock. Hardy burst into laughter, realizing Tyler had been teased.
"There's nothing mysterious about the Mafia. They're just people, and I happen to know them. Don't share this secret," Hardy whispered, his breath tickling Tyler's ear, causing her face to flush.
Tyler asked, "How long will you be staying in New York?"
"I'll be here for a few more days, handling some business with the TV factory. Plus, Ava Gardner and the crew are coming soon for the final promotion of 'Red Dead Redemption'. I'll wait for them and then head back," Hardy said.
Tyler, finding this amusing, hoped to spend more time with Hardy.
"Can you visit me often?" Tyler asked coquettishly.
"Of course, as long as I have time," Hardy promised.
After dinner, Hardy dropped Tyler off. She was reluctant to leave, but eventually, she ran back to her hotel, excited like an elf.
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Mike and Citibank of New York reached an agreement to offer installment loans for TV purchases. The bank saw the potential benefits: increased business and publicity.
The next day's New York Times featured an ad: "Get a TV at Home for $0 Down—Act Now!" The ad highlighted the cooperation between MEBO TV Factory and Citibank, offering interest-free loans for TV purchases.
People flocked to the bank, eager to take advantage of the offer. The sight of long lines and enthusiastic customers impressed Mike and Hardy.
Mike was amazed at the high demand. "I didn't expect the inventory to sell out so quickly," he said.
Hardy suggested, "If we run out of stock, have customers fill out loan applications in advance and leave their addresses. We can deliver