Chapter 13 Seven Steps to Drawing

In the meeting room, under the solemn gaze of everyone present, Wang Ye spoke confidently.

"The so-called 'value-added' of a product."

"Mainly refers to the new value created through effective labor during the process of converting raw materials into products."

"And the term 'effective labor' isn't just about physical labor in the conventional sense; it also includes mental labor, which encompasses design, management, technology, and so on."

"Besides mental labor, effective labor also includes equipment processing and physical labor of workers, as well as circulation and marketing."

"The so-called marketing can be understood as 'advertising' from the south."

As Wang Ye spoke, the expressions of the participants varied. Among the six heads of the machinery factory, there was a sense of confusion. After all, the former Red Star Machinery Factory was a state-owned military factory, and it never involved such commercial concepts as planned production was the norm. As for Liang Jinsong, he furrowed his brow slightly, appearing pensive.

Instead, Director Li, who had just lit his cigarette, showed a flash of realization on his face. In the gap of Wang Ye's speech, he quickly raised his hand and said:

"Wait a moment! Let me jot this down!"

With that, he took out a plastic-covered notebook from his briefcase. From the degree of wear and tear on the notebook, it was clear that it was frequently used by Director Li. He opened it with a grin, unscrewed his pen, and joked:

"A good memory is not as good as a bad pen. Opportunities for a high-achieving student from Huqing University to attend classes are rare."

"I must make a note of this!"

Although he was the Deputy Director of the Yun Tai City Industrial Bureau and the Director of the Industrial Development Office, a serious high-level official at the municipal level, at this moment, he showed no hint of arrogance or pretense, behaving like a student—remarkably humble and eager to learn.

Seeing this scene, Wang Ye didn't say anything, just waited quietly for him to get ready, feeling relieved at the same time.

In fact, Wang Ye didn't say these words to show off or brag. He realized that Director Li was no ordinary person; he was a true reformer!

In a sense, the development of China over the next twenty years was the result of countless officials like Director Li continuously pushing forward. They had ideals, motivation, were practical, and steadfastly pursued China's path to "wealth and power".

And that's why Wang Ye wanted to say these things.

After all, in today's China, only three years had passed since the opening-up, and the development of the market was chaotic. Everyone was feeling their way through, and the commercial field was almost blank. Even advertising had only just emerged in the southern city of Pengcheng.

Wang Ye felt it necessary to take advantage of Director Li's breakthrough and promote some commercial and economic concepts. Although these concepts were ubiquitous on the internet decades later, even known by elementary school students, they were extremely valuable knowledge in this era. If they could really spread and be applied, they could save the country from many detours.

"My strength alone isn't true strength, and the success of the Red Star Machinery Factory isn't true success."

"Only by leveraging the entire era, the rise of the entire China, can we achieve true greatness!"

As this thought flashed through Wang Ye's mind, Director Li on the other side of the conference table was ready. He nodded, indicating, "Please continue!"

Wang Ye lit a cigarette, took a sip of tea, and continued:

"Just now, I briefly explained the concept of value-added."

"Now, I want to emphasize two important concepts related to value-added."

"One is 'high value-added,' and the other is 'circulation value.'"

"The concept of high value-added is actually easy to understand—it's the value of mental labor mentioned earlier in 'effective labor.'"

"Let me illustrate this with a simple example: currently, one ton of steel in the plan is worth 550 yuan, and a tank weighs about thirty tons. Does that mean a tank's selling price is 16,500 yuan?"

"No! Of course not."

"But a tank is mainly made of steel. Why isn't its price the same as steel?"

As soon as Wang Ye finished speaking, Liang Jinsong, who had been smoking and thinking, spoke without hesitation:

"Although a tank is mainly made of steel, it also involves technology."

"How to turn steel into a tank, that process is what you call mental labor. That's where the high value-added of the tank lies, right, Wang Ye?"

Suddenly, a smile appeared on Wang Ye's face, and he snapped his fingers, saying:

"Exactly! That's the point!"

And as Liang Jinsong continued to ponder, Li Gang, who had been listening and taking notes, said thoughtfully:

"In other words, to make money with a product, you have to use your brain, develop products with technology, rather than producing products that everyone can produce, is that what you mean, Wang Ye?"

Wang Ye nodded, took a puff of his cigarette, and continued:

"Yes, but there's more."

"The second concept, circulation value."

"Director Li, have you ever heard the phrase 'the customer is always right'?"

Upon hearing this, Director Li nodded without hesitation and said:

"I have. I used to hear it frequently when I was studying in Pengcheng last year. It means that as a salesperson, when you see a customer, you should treat them with the same respect, enthusiasm, humility, and courtesy as you would a god."

"Unlike the salespeople in our department stores, who are indifferent when someone walks in."

"Am I right, Wang Ye?"

In fact, the phrase "the customer is always right" was proposed by the Japanese in the early 1960s. With the recent opening up, it entered the country and became a business maxim in the open regions of the south.

And the reason for this was the higher level of business theory, something that the people of this era had never heard of!

"You're right, but in my opinion, that understanding is too one-sided."

"I believe there's another important implication, which is 'customer first.' In terms of circulation value I mentioned earlier, it means catering to the needs of customers and providing them with the products they need."

"In other words, we produce what the customer needs!"

Finally, Wang Ye said. Director Li kept repeating the phrase "we produce what the customer needs" until a few seconds later when he suddenly breathed a sigh of relief, his face filled with an expression of enlightenment, and he said:

"I get it now! So that's it!"

Then, Director Li didn't explain what he had understood, but looked at Wang Ye with a mixture of admiration and curiosity, asking:

"So, Wang Ye, I'm curious now."

"With such powerful market economy theories supporting you, what kind of product have you developed that can solve both of these problems?"

Under the gaze of everyone present, Wang Ye suddenly stood up, picked up a notebook and a pen from the table, grinned, and said:

"In ancient times, Cao Zhi wrote poetry in seven steps. Today, Wang Ye draws a picture in seven steps!"

"One step! Two steps! Three steps! ... Seven steps!"

"Everyone, take a look."

"This is the product I designed—a gas cylinder exclusively for export!"

As Wang Ye took seven steps, he swiftly drew on the notebook. When he put down the notebook, everyone in the meeting room crowded around, examining the drawings on the notebook.

"A gas cylinder? It looks different from the usual."

"It seems a bit longer. Why is the support like this?"

"Why are there two layers inside?"

"I wonder what this pipe next to it is for?"

"Is this how gas cylinders look like in foreign countries?"

As everyone looked at the strange-looking gas cylinder on the notebook, the discussion ceased abruptly. All eyes were fixed on Wang Ye's smiling face!