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Chapter 191 Contract Machine and Installment Payment

Since he understood the whole story and the purpose of Zhou Ming bringing Tang Mingjie, Li Guangbi quickly invited them in.

If Li Guangbi and the others are worthy of being old businessmen, not to mention anything else, at least their qi cultivation skills are first-class. Although they lost face in front of Zhou Ming just now, they quickly adjusted their mood. No matter how shocked they were in their hearts, how many grass and horses were galloping, they could not see anything on the surface.

They sat down in the lobby, and Zhou Ming first asked Tang Mingjie to talk about his thoughts: "No need to be restrained, just come back and talk to me in the car, and you can tell them again."

Tang Mingjie nodded: "Actually, my idea is very simple and direct, it is to cultivate internal skills."

Since Tang Mingjie had already told Zhou Ming about it before in the car, he already had a clearer context in his mind. Now, it is much more organized and clearer than when he was in the car.

First, Tang Mingjie analyzed the problems facing most Chinese-owned factories in Indonesia now, which is that they are too dependent on investment, which leads to excessive capital and insufficient production. In addition, the labor shortage makes the situation of these factories very unstable.

"Although Mr. Zhou Ming's method can solve the problem of labor shortage," Tang Mingjie glanced at Zhou Ming, "This cannot be said to treat the symptoms but not the root cause, but the degree of relief to the crisis is very limited. What we need to do now is how to get these factories out of their dependence on investment, or to take advantage of the current abundant capital, so that they can operate themselves as soon as possible and become real factories, rather than the illusion of piled up with investment."

Li Guangbi and the others nodded in agreement. In fact, they all understood that relying solely on investment is definitely not enough to build a business, let alone that these investments are just a stopgap measure for the Japanese to get rid of the domestic excess of funds caused by the Plaza Agreement. If there is any change in the exchange rate of the international currency market, they may throw away Southeast Asian assets at any time in exchange for greater benefits.

In other words, these factories seem to be very prosperous and lively. It seems that anyone can make money by setting up a factory, but in fact they are sitting on a crater that will erupt when it is unknown.

A gentleman does not stand under a dangerous wall, let alone a businessman. Therefore, he must quickly get rid of the dependence of factories and enterprises on investment, so that these factories can produce and operate on their own, not as empty as they are now.

However, understanding this principle is only understanding, but it is really difficult to do it. After all, you can make money by lying down and reaching out. Who is willing to get up so hard and time-consuming?

Most people have short-sighted vision. It is not that becoming an entrepreneur with assets of one million or ten million must be a very visionary person. The times create heroes, and many people seize the opportunity to make a wave of wealth. Compared with simple entrepreneurship, how to defend a company that has already flourished, how to make it grow smoothly and over-grow or even transform is the key to truly test an entrepreneur's vision and courage and determination.

Unfortunately, most people just have a mediocre attitude, and would rather wait for the crisis to come than give up their existing wealth and start over. Many people even have the unrealistic fantasy of being able to get through it.

It is precisely this reason that made businessmen in Southeast Asia understand the problem in their hearts, but no one was willing to solve it. Until the Southeast Asian financial crisis broke out and everyone lost their pants.

Now Tang Mingjie's words directly put the most fundamental problem that everyone was unwilling to face in front of everyone in such a bloody manner.

Li Guangbi and the others looked at each other, and finally Li Guangbi sighed: "Professor Tang, how come we don't understand what you said? It's just that there are so many factories, and it's not just a simple slogan. There are many very complicated situations in the middle that need to be sorted out slowly."

"Just like Mr. Zhou Ming solved the problem of labor shortage before, which is very good, but then there are new problems of overcapacity."

Li Guangbi said embarrassedly and looked at Zhou Ming, and breathed a sigh of relief when he saw that he had nothing to say. Zhou Ming smiled at this time: "You don't need to worry about me, because I also thought of this problem, so I asked Teacher Tang Mingjie to come out for help."

Zhou Ming had indeed thought of it for a long time. After all, Indonesia only has a market of 100 million people. In the past, the production capacity could not keep up with it and it was exactly in line with the market demand. But now when all or most of the production capacity is started, once external orders are sluggish and Indonesia's domestic demand is not enough to consume production capacity, a new crisis will arise.

Zhou Ming then asked Tang Mingjie to express his thoughts.

"For this issue, I want to say that we have actually entered a misunderstanding, not that Indonesia has insufficient domestic demand due to overcapacity, but that we have not developed the Indonesian market at all!"

Tang Mingjie's hands were swaying left and right, and at the same time he kept explaining this point: "According to the calculations of the consumption model and comparing the sales situation of all factories now, I found that at least 70% or even 80% of the markets have not been developed yet. In other words, we only have 20% and 30% of the market available at present, which is of course not enough, but if the market can be developed deeper and bigger, the situation will be different."

“And it’s not just that.”

Zhou Ming added after Tang Mingjie: "I also have a way of bundling sales or installment payments, which can further deepen and expand the market and bring consumers who were originally on the wait-and-see trend into our market."

In fact, this form of bundled sales and installment payments is something that Zhou Ming often saw in his later generations. Needless to say, installment payments are; and the so-called bundled sales refer to cooperating with communication operators to carry out pre-deposit activities to send phones or pagers, or in turn buying phones or pagers to get free fees. This can not only increase the operator's revenue, but also consume production capacity, which is a completely win-win strategy.

After hearing this idea, Li Guangbi and his friends' eyes lit up.

"This method is really great!" Zheng Yinghong exclaimed immediately, "Indeed, the difficulty of electronic products being difficult to promote in Indonesia is the expensive costs. Most people are not unable to afford so much money, but they feel that paying so much money has no right to do."

"But now we have to tell them that electronic products are given for free, and they only need to pay for communications, which will reduce their concerns and these people can go from waiting and watching to customers."

Chen Yongting even said directly: "Mr. Zhou Ming, your method is definitely epoch-making!"

Zhou Ming smiled and nodded without comment. As a reborn person, Zhou Ming knew very well how powerful this bundled sales model was. In fact, the extremely prosperous mobile phone craze in China in later generations was largely due to the sales model.

Just like the hot and perverted Western systems in Western countries, eating food for the first time is not a big burden for most people. Since there is no need to calculate how much money they have on hand now, many people do not have an accurate concept of future income, so they have much less concerns when spending.

Unlike the excitement of Zheng Yinghong, Wang Yuliang and Chen Yongting, Li Guangbi was a little reluctant to speak.

"Does Mr. Li have any different ideas?" Zhou Ming asked him, "We are discussing now, and you can tell any questions."

Li Guangbi nodded and said, "I have two problems. The first is the problem of over-development of the market, and the second is the problem of unifying product standards."

"First of all, the over-development of the market. If we slowly develop the market, understand part of the market before developing the next market, we can ensure that we will always have good returns and motivation. But if we open the entire market like now, through bundled sales, isn't this a waste of water? Now we can greatly increase sales, what about the future? Do we have to do a slight trait in quality?"

Li Guangbi continued: "Although I don't make electronic products, there are so many family industries, and I also know a lot. I know that the standards of electronic products are different. How should we sell them? You should know that due to the deliberate restrictions of the Indonesian government, almost no one in our Chinese businessmen is in the communications industry."

"You said it well! It's just that these are problems and not."

Zhou Ming said to Li Guangbi: "You said you don't understand electronic products, and I know you are not lying, because if you have a certain understanding, you will know Moore's Law. Its content is that when the price remains unchanged, the number of components that can be accommodated on the integrated circuit will double every 18-24 months, and the performance will also double. In layman's terms, the update speed of electronic products is very fast. Even if we try our best to sell, we may need to replace them before the market is saturated."

"From this perspective, we can treat electronic products as consumables. Although it takes a longer time, we don't have to worry about over-development in the market."

Speaking of this, Zhou Ming paused before continuing: "As for the issue of product standards, we need to communicate with the operators. We only need to choose a reliable operator to strongly support him to use his standards. As long as we do it, these operators will come to us on their own initiative!"

Li Guangbi and the others nodded and understood this. After all, no one wants to lose the market. Once they make achievements, Indonesians choose specific operators to get the contract machine. Other operators are jealous of them, and they will inevitably compete for cooperation opportunities. In this way, they will have the initiative to promote product standardization, and there will be no problem at that time.

Thinking of this, both Li Guangbi, Zheng Yinghong, Wang Yuliang and Chen Yongting were very excited because their factories can bring them great benefits now. So what if the entire Indonesian market is completely opened up? The interests are unparalleled.

"So when will we start? Is it Mr. Zhou Ming, you are here to command?" Li Guangbi and the others looked at Zhou Ming excitedly.

However, Zhou Ming shook his head and looked at Tang Mingjie: "Since I have invited Teacher Tang out, of course he will be in charge."
Chapter completed!
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