Chapter 49 Taking Initiative to Make Mistakes?

Meanwhile, in Huaxia, at the Red Star Machinery Factory.

Wang Ye still didn't know that Jiquet had already received the goods and mentally gave him a thumbs up. So, after much thought, he decided to send a telegram to Jiquet in Yuntai City to keep in touch and strengthen their relationship.

In present-day Huaxia, only the city can send international telegrams; other places cannot.

Of course, it seemed a bit foolish to specifically send a telegram. Also, with the recent rise in temperatures, Wang Ye decided to push forward with his plan to launch his electrical appliances.

With this in mind, Wang Ye made his way to the manufacturing plant.

As soon as he entered the workshop, he heard the buzzing sound of electric fans. After all, with hundreds of people working simultaneously in the workshop and the temperature gradually rising, Wang Ye immediately instructed that each workshop should have twenty fans!

This not only addressed the issue of employees staying cool but also served as a durability test for the products, as the fans would be running day and night.

"Baojun, call all the team leaders for a meeting!"

Entering the workshop, Wang Ye arrived at his own office area in the corner and called out to Li Baojun not far away. Li Baojun uttered an acknowledgment and then hurriedly left the workshop. Moments later, all twelve team leaders had arrived.

Originally, there were ten team leaders, but after adjustments, two more were added. Meanwhile, five of the original ten had been replaced, not because they neglected their duties but because they lacked the necessary skills for effective management.

Among the twelve people, Wang Ye particularly admired three: Li Baojun, who was lively and adept at socializing; Zhang Yue, known for his reliability and efficiency in tasks assigned to him; and a young woman named Sun Xiuli, who, at just twenty years old, showed exceptional intelligence and versatility in both technical matters and tasks at hand.

These three were the focus of Wang Ye's current efforts in training.

"Baojun, how many electric fans and washing machines have we produced so far? How much longer can the remaining materials support production?"

With all twelve people standing before him, Wang Ye asked from his seat. Upon hearing this, Li Baojun exchanged a glance with Zhang Yue, indicating that he should speak.

Currently, Li Baojun held the position of "Chief Team Leader" and was in charge when Wang Ye was absent. Zhang Yue, on the other hand, was known for his reliability and diligence, taking on roles similar to that of a financial manager or production supervisor. He was well-versed in all production-related matters.

"Report to the factory manager, we have inspected 637 electric fans and 280 washing machines. The first batch of purchased materials has been used up, and following your instructions, we purchased an additional fifty thousand yuan worth of materials a week ago. We can continue production for approximately three more days."

Upon hearing this, Wang Ye nodded slightly and then asked again, "How's the cost accounting coming along? Have you set the selling price? Didn't I ask you to conduct market research in Yuntai City a few days ago?"

Both cost accounting and pricing were tasks Wang Ye had assigned to these twelve individuals. With all eyes on him, Zhang Yue replied:

"According to our calculations, excluding labor costs, the material cost per electric fan is 55 yuan, and for the washing machine, it's 136 yuan. We've included the costs of processing parts by the machinery factory and the expenses for water and electricity. As for the selling price... We believe that setting the price at 150 yuan for electric fans and 280 yuan for washing machines is reasonable."

Upon hearing Zhang Yue's response, Wang Ye chuckled and said, "The cost accounting is basically fine. However, I have serious concerns about this pricing."

Before anyone could respond, Wang Ye continued, "Your product prices were based on the cheapest similar products in department stores. But have you considered that those products in department stores require industrial vouchers, while ours do not?"

"Secondly, while it's understandable that making the products cheaper might increase sales, have you thought about our production capacity? Can we meet the demand if the products are massively purchased? And if our products sell out quickly, what impact will it have on potential future buyers?"

"Lastly, even if our products are affordable, not everyone can afford them, especially considering that industrial vouchers are limited. So, while making them cheaper might increase sales, it might also lead to a shortage of products for those who can afford them."

"Have you thought about these issues?"

Faced with Wang Ye's questions, the twelve team leaders were speechless. Wang Ye then explained, "Of course, I understand that your intentions are good. But you must remember that while making the products cheaper to a certain extent is good, destroying the market with excessively low prices is not. Besides, we don't need to engage in a price war right now."

"In addition, you've overlooked another important issue: labor costs, which are the largest component."

"Are we not paying wages? Isn't the cost of truck fuel money?"

Upon hearing Wang Ye's explanation, some seemed to understand, while others remained uncertain. Finally, Wang Ye made a decision:

"We are selling floor-standing electric fans for 280 yuan and double-tub washing machines for 360 yuan. This price is approximately ten percent cheaper than similar products in the market, and since industrial vouchers are not required, it's enough to ensure our sales."

With Wang Ye's decision, the twelve team leaders had no objections. They looked as though they were learning and being enlightened. Wang Ye then waved his hand and said, "Alright, load fifty electric fans onto the truck. Let's go to the city."

Upon hearing this, Li Baojun hesitated for a moment and said, "But, Manager, haven't we negotiated with the department store yet? Shouldn't we make arrangements before directly bringing the products there? Shouldn't we contact Director Li of the Industrial Bureau first?"

Other team leaders also nodded, clearly misunderstanding that they were about to start selling. Wang Ye stood up and laughed, saying, "No, no, no. Of course, we're not going to sell directly."

"We're going to the city this time to give gifts to the Municipal Party Committee, the Industrial Bureau, the Commerce Bureau, and the Finance Bureau!"

As soon as these words were spoken, the team leaders' eyes widened, and Li Baojun even glanced around, lowering his voice to say, "Manager, giving gifts is a mistake! And besides, our electric fans are definitely not short of buyers. There's no need to give gifts!"

Seeing the concern in front of him, Wang Ye stood up and scolded with a smile, "Do you think I don't know that giving gifts is a mistake? But this is not the same kind of gift giving!"

"I'll explain it to you on the way. Let's go!"

Amidst the puzzled looks exchanged by the team leaders, they chose to believe and follow. Soon, two Liberation-brand trucks borrowed from the machinery factory were loaded with fifty electric fans and rumbled off towards Yuntai City.