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Chapter 219 Frustration

The chubby Michael Dell's image in public has always been an approachable and sunny man full of smiles, but when Lin Zheng really came into contact with Michael Dell, he finally confirmed that the media is a lie, and it is a personal image specially created by Michael Dell. Now this guy gives Lin Zheng the feeling that he is a strong opponent who must be treated with caution... When he thinks of this, Lin Zheng couldn't help but laugh at his naivety in his heart: he can quickly build a huge computer empire from scratch, how could this guy still deal with it?

"Mr. Lin, based on my friendship with Angieber, I can give you a chance to convince me, but in the words of you Chinese, I like to put things in front," Michael Dell looked at Lin Zheng with a scrutiny and a strong distrust. "To be honest, I don't think your company has the ability to produce my business, but for the sake of my friend Angieber, I can give you a chance to convince me, but that's all. If you think you can get my order with Angieber, you're very wrong. Unless you can convince me, I can't hand over this order to you... I believe you can understand this."

"I understand," Lin Zheng nodded, his tone neither humble nor arrogant, "We have a saying in China, "Business is business". In the words of the United States, it is 'Business is business'. If we cannot meet the requirements of Dell Computer, even if you agree, your board of directors will not agree; if we are better than all our competitors, there is no need for you to be unable to get along with the money."

"Interesting, very interesting." Michael Dell smiled. It was the first time he met a Chinese person who was so proud in front of him. There were also Chinese employees within Dell. But those Chinese employees gave Michael Dell the feeling that they always felt inferior, completely different from the guy in front of him. This made Michael Dell see the shadow of his youth. "You are very confident, I like confident guys, but I hope your confidence is not arrogant."

Lin Zheng smiled and didn't say anything. He just showed his confidence, but now he can't help but feel a quarrel when talking again. He paused a little. Lin Zheng said, "We have analyzed Dell's sales and production model. In our opinion, Dell's direct sales model has pioneered the sales of large electronic products. The first 'manufacturer-customer' sales model completely eliminates the intermediate links in the sales process. It greatly reduces sales costs, which is also the fundamental reason why Dell computers can rise rapidly: the price advantage of products."

Although Dell's expression had not changed much, a smile appeared in his eyes.

The direct sales model is the most proud innovation that Michael Dell is the most proud of. It is precisely through this direct sales model that Dell computers can develop rapidly under the layers of surrounds of ibm, HP, Compaq and even Apple computers, and are very likely to enter the top five American computers this year. Although he knows very well that Lin Zheng is complimenting himself, there is no doubt that these words are tickling Michael Dell's itch.

The smile flashed in Michael Dell's eyes did not hide from Lin Zheng. This discovery made Lin Zheng slightly relieved. "But with the development of Dell's company, the scale has expanded dramatically, and the previous way of reducing costs has become somewhat insufficient. If Dell computers want to continue to develop, they must find ways to reduce costs. I believe this is also the reason why Mr. Dell decided to re-choose an OEM manufacturer."

"I don't know how much the cost of Jabil Technology and New Meiya for Dell computers is, but based on the current selling price of Dell computers in the United States, we have made a rough calculation. If we hand over this order to us Lisheng Electronics to operate, we can ensure that Dell computers will reduce the cost of the entire computer to 80% without reducing the quality of use... Maybe more, but due to the limited lack of information in our hands, we cannot get a relatively accurate number."

Dell's OEM model is different from the OEM model that is widely recognized by everyone more than 10 years later. The companies that do OEM are purely OEM. The appearance of the computer, the design of the circuit board, the color scheme, etc. are all handled by Dell. Even suppliers of spare parts such as image tubes and cooling fans are handled by Dell computers themselves. The logistics system is also designed by Dell. The logistics company with the optimal configuration will be sent to the OEM factory and assembled.

The reason why Jabil Technology and New Meiya are not willing to do Dell's OEM is that there are big reasons for Dell's production model. Although Jabil Technology and New Meiya are mainly engaged in OEM business, they have related spare parts production business. If the OEM unit adopts their spare parts, it means that they can make two money in a company, but it is different for Dell to produce OEM. They are used to making two pieces of money and are not used to making only one piece of money... This situation is very suitable to describe them with the five words "It is difficult to go from extravagant to frugality".

But Michael Dell didn't seem to be very satisfied with Lin Zheng's answer. He frowned and said to Lin Zheng bluntly, "Is it only 80%? If the data in my hand is not wrong, your industrial workers will only have a monthly salary... Well, about $50, right? I think 60% is a relatively reasonable number."

Compared with American industrial workers with perfect labor laws and monthly wages of no less than two or three thousand US dollars, the cost of putting this business in China, where the monthly wages are only $50 US dollars, will only reduce the cost by 20%? This is obviously not what Michael Dell wants.

"Yes, the wages of our industrial workers are not very high, but we think 80% is a relatively accurate number," Lin Zheng replied calmly. He was mentally prepared before coming. Lin Zheng was not surprised. "All parts are designated by your company. Parts are shipped from all over the world to our company and then shipped from my country to all over the world. The freight cost is quite high. We believe that reducing the cost by 80% is already the limit... Dell's production model is 'customized production', which can provide each customer with personalized customized services. Compared with large-scale industrial production, this production method is obviously not economical enough."

Unexpectedly, Lin Zheng was so persistent. Dell frowned. After a moment of contemplation, he said, "Let's do this, Mr. Lin, put down your information. I need to see your information."

"OK."

………………………………………

"The situation is not very objective." After coming out of Michael Dell's office, Tan Na's expression was not very good. "Why are they not happy to reduce the cost by 20%?"

"It's normal. For capitalists, in order to maximize their profits, they want to squeeze out all the upstream and downstream profits. It's best that all spare parts suppliers and dealers can give them additional blood transfusions," Lin Zheng said, but his brows were also frowning very strongly. "It seems that we have underestimated Dell's ambitions."

"What did you say?" Tan Na didn't understand what Lin Zheng meant.

"The information I read before. Dell Computer is likely to become the fifth largest microcomputer supplier in the United States this year. I thought Dell might be more satisfied with this result, but now it seems that Dell is not very satisfied with the fifth position."

"What?" Tan Na exclaimed in a low voice, "You mean?"

"Yes, his goal may be third or higher." Lin Zheng's expression was extremely solemn. "If you want to be second or first, for Dell, a new personal computer, the first generation must have sufficient price advantages. Secondly, the production capacity must keep up. Without price advantages, there is no way to compete with giants such as HP, ibm, dec, and Compaq for the market. On the other hand, if the production capacity is not enough, and you have a lot of orders in your hands but cannot provide products to customers, this is also fatal... Dell has great ambitions."

Although Lin Zheng was vague, Tan Na still understood, "So, Dell plans to rely on this scale advantage to squeeze the profits of spare parts suppliers while squeezing the profits of OEM manufacturers?"

"Apart from this explanation, I can't think of how 60% of him came out, but has this guy forgotten? The proportion of human resources costs in industrial production is actually not high, and the cost of raw materials and spare parts is the highest. What did this guy think?" Lin Zheng frowned and analyzed in his heart how Foxconn won the OEM contract from Dell.

It was around 2004, Foxconn's Handa and Shunda were factories that specialize in OEM for Dell. It seemed that at that time, the wages of Foxconn workers were only about 1,000 yuan. In the window market in 2004, this wage level could only be considered to be lower than that. It would be fine if it was just like this, but Foxconn's labor intensity and working time were extremely large. There was only a total of 20 minutes of concentrated toilet use and 14 or 15 hours of working hours a day, which made Handa and Shunda's workers very mobility. As far as Lin Zheng knows, many small sales in Huaqiangbei came out of Handa and Shunda's two factories...

"What are you thinking?" Tan Na asked Lin Zheng curiously. Looking at Lin Zheng's nagging background, she was a little curious.

"Oh, I thought of a way that could probably reduce the cost to about 70%.

"Really? Tell me what's the solution?" Tan Na didn't expect Lin Zheng to have an idea so quickly. She was slightly stunned, and then said excitedly, "It's really possible that we can reduce the cost to 70%. Is it very likely that we will win?"

"I promise you won't do this." Lin Zheng, who is very familiar with Tan Na's personality, said with a wry smile, "This violates the style of our two people."

"Reduce costs in this way?" Tan Na unconsciously opened her mouth slightly, looking at Lin Zheng with a little horror, "Tell me, you won't do this, right?"

"Of course I won't do that, but now it seems that someone is going to do it."

"Who?" Tan Na screamed, "Don't they know this is a violation of the Labor Law?"

"What is the Labor Law? Can it be eaten?" Lin Zheng sneered, "In the premise that this state-owned enterprise is laid off on a large scale and goes bankrupt, for the people, they will be Amitabha if they can have a job that pays them a salary. For the government, solving the employment problem of workers is the first thing they need to consider. As for working hours and work intensity? If you don't do it, there are still many people who are queuing up to do it. Some jobs are good, and you dare to pick and choose?"

Tan Na was speechless. Of course, she knew that Lin Zheng was not talking casually. The fact is indeed the case. In the current situation of employment, it would be good to have a job that can support the whole family. As for the issue of working hours and work intensity, picking around would be considered to be inappropriate. However, domestic media at all levels have always been too positive about foreign capital and joint ventures. In addition, this girl doesn't know much about them, so she has a little doubt about Lin Zheng's words. She hesitated for a moment and said with some uncertainty, "That's right, but Foxconn is a big company at least, they won't do this, right?"

But my tone is a little unconfident.

"Big enterprises? There are also many foreign-funded enterprises in the southeast coastal provinces. Let's find out how those who work in Taiwanese-funded enterprises and Korean-funded enterprises evaluate these two types of enterprises. They work more tiring than donkeys, eat worse than pigs, get up earlier than chickens, get off work later than Xiao & Sister, pretend to be more obedient than grandsons, look better than anyone else, and be older than anyone else in five years." Lin Zheng's eyes were a little red, and he sneered.

These words are not Lin Zheng’s random words. Foxconn’s desperate efforts to exploit employees have reached the point of public grievances. It has caused a violent rebound in employees who are unbearable to exploit them several times. They have been suppressed by Foxconn and the local government, and they have not even been seen in the newspapers and media. However, such things are almost well-known in Huaqiangbei. When it comes to Foxconn, which one is not a person who is in Huaqiangbei shook his head?

"In the future, our company can't do this no matter what it says!" Tan Na suddenly gritted her teeth and said hatefully, "Even if we make less money, we can't be sorry for our conscience!"

"That's of course, you didn't see that the benefits of workers in our company are not only the best in this city, but they are very competitive even if they are compared with the south? Koreans can look down on us, and Wandao people can look down on us, but we can't be a slut... We will pay it back sooner or later."

This sounds like arousing, but after getting angry, the real problem still has no end. Tan Na's face suddenly collapsed, "But how can we get the order from Dell?"

"Maybe we can try our luck at Combat?" Lin Zheng suggested.
Chapter completed!
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