Chapter 77: Witnessing History

"Dongling High-Tech needs to acquire another electronic production site in Guangzhou to serve as Dongling's new production center!"

Li Dongling looked at Gao Peng and said these words. Now, the production capacity of this electronic industrial park in Pingyang had reached its limit. With a daily production capacity of 70,000 electronic pet machines, wanting to increase production capacity again was not a matter of adding production lines, but of needing to expand the factory buildings.

The factory building currently used by the electronic industrial park was a temporary, simple structure. The real production factory was still being built with overtime work.

The fastest way to increase production capacity was to acquire another private electronic production factory in Guangdong. This was the fastest way to increase production capacity as soon as possible.

However, once a production center was established in Guangzhou, it meant that a component supply chain had to be set up there. The appearance of knock-off, pirated, and imitation electronic pet machines was an inevitable thing.

These were all things that would happen sooner or later. As for the low pricing of electronic pet machines in the country, whether domestic machines would be transferred to overseas markets, this kind of thing would definitely happen. Never mind electronic pet machines; in the past, as long as it was electronics, home appliances, clothing, shoes, etc., which one didn't have knock-offs with big brand labels, and then sold to overseas?

But this kind of smuggling from the country to abroad was ultimately small-scale. Electronic pet machines also came in multiple language versions. The domestic ones were Chinese versions. Even if they were sold abroad, the experience wouldn't be much better.

What was the state of electronic pet machines abroad now? They represented not just an electronic product, but a trend and culture, a topic center for countless young people gathering together for entertainment and parties.

At this time, if someone came up with a pirated knock-off machine in a different language, what would happen? Whether they would be mocked, I don't know, but it definitely wouldn't be comfortable.

Additionally, Dongling High-Tech's electronic pet machines were mainly sold abroad through the sales channels of the Ning Trading Company, Bandai, Toys "R" Us, and Hamleys. As long as these sales channels didn't sell knock-offs or goods flowing in from the country, it wouldn't affect Dongling High-Tech's revenue.

In places like Russia, which were currently in chaos, supervision might be lax, but in Japan, America, England, and other places, the logistics companies and sales stores that transported those pirated and parallel-import electronic pet machines could all be sued. They could even sue the merchants selling these machines in the country through local customs, seal their overseas collection accounts, etc.

There were many methods. The difference was just whether they wanted to spend such a high price to clean up those companies that were fishing in troubled waters. Small-scale trouble was one thing, but if those knock-off and imitation electronic pet machine companies really wanted to compete with Dongling High-Tech for food overseas, then it would be time to clean them up.

If they really couldn't do anything about those knock-off companies, then the "certain field shoes" of the past would have long since been sold to the whole world, playing the genuine Adidas and Nike to death. But what was the result? The OEM was still the OEM, and it still couldn't replace the original owner.

It was possible that some people in certain industries who made knock-offs earned money, but that was always a minority.

There was no such thing as a free lunch in the world. At a certain period, when so-called cross-border e-commerce emerged, many people popped up boasting about selling those knock-off parallel-import shoes and clothes to overseas, earning tens or hundreds of thousands of USD a month, etc. But those who really believed these words, went to do it, spent a large sum of money, found the people boasting about this to get goods, then found logistics and customers, and finally went through all kinds of hardships to sell them overseas, fantasizing about sitting back and collecting tens of thousands of USD a month.

And then... there was no then. To sell goods, you had to collect money, right? Whether it was a PayPal account or other bank accounts, they were frozen one by one. When asked if they earned money doing this work, those people wouldn't say a word.

"I understand!"

Gao Peng nodded in agreement. He knew that Li Dongling was asking him to go to Guangzhou to build another production center for Dongling High-Tech.

The next day, Ma Yingxian and a group of distributors were brought into the Dongling High-Tech office building. This was the first time Ma Yingxian and the others had entered here. Before they could look carefully, they entered the conference room.

There were too many distributors coming, so much so that the not-so-small conference room on the second floor was actually packed full.

As the head of the sales department, Zhang Ao attended this distributor conference on behalf of Dongling High-Tech.

"Everyone can take a look at the agency contract for Dongling High-Tech electronic pet machines first. If you have any objections, you can raise them now. If you can't accept it, you can leave now!" Zhang Ao said.

"We also have to pay a deposit? If the retail stores under us sell the machines we distribute at a higher price, we also have to be responsible?!

With so many retail stores, how can we manage them? Isn't this intentionally trying to deduct our money?!

Isn't this a bully clause? You might as well just deduct the money directly. I'll just leave!"

A distributor, after reading the "bully clause" in his hand, couldn't help but stand up, looking like he would leave if things didn't go his way.

But regarding this distributor's performance, Zhang Ao still showed a smile. He was a person who didn't care about anything, and he had never been afraid of threats. Before, when he went to other provinces to find agents for satellite dishes, he had dealt with these agents too many times. He knew what kind of birds these people were. As long as there was money to be made, they were even willing to be spat on, let alone some "bully clause." If there was really no money to be made, they wouldn't even want to look at Dongling High-Tech.

"Is there anyone else who doesn't recognize the Dongling High-Tech agency contract? You can leave now. You can go to the Dongling High-Tech finance department to reimburse your travel expenses!"

Zhang Ao looked at the group of distributors present and said. If a certain agent only had one or two retail stores under them, secretly selling electronic pet machines at high prices, that was naturally an individual case, and Dongling High-Tech wouldn't confiscate the deposit because of this. But if a certain agent's region was selling machines at high prices on a large scale and unscrupulously, then it definitely had something to do with the agent.

The distributor who was just shouting about the bully clause, seeing that the group of distributors didn't mean to cooperate with him to make a scene, sat back down sheepishly. If he left now, wouldn't he be at a loss? Restricting the retail stores he supplied from not selling electronic pet machines at sky-high prices wasn't really impossible; it just depended on whether he wanted to or not.

"This agency contract is the intention of our Dongling High-Tech Chairman Li. If you want to distribute electronic pet machines, you must abide by it!"

Zhang Ao's expression suddenly became serious. "Dongling High-Tech has reserved enough high profits for agents and distributors. The unified selling price of electronic pet machines in the country is 68 yuan. Agents and retailers can take away nearly 25 yuan in profit per machine. This profit is already enough!"

Regarding the selling price of electronic pet machines in the country, if the pricing was too high, it would basically be cheap for knock-offs. The higher the pricing, the more rampant the knock-offs would be. It was better to set the domestic price well from the beginning.

As for the profit Dongling High-Tech wanted to take away, yesterday Li Dongling, Hu Zixian, Yao Luoying, Zhang Ao, and the others discussed it for a long time. In the end, under Li Dongling's insistence, Dongling High-Tech made concessions on the profit of electronic pet machines in the country.

With large-scale mass production, the production cost of electronic pet machines had dropped from the original 60 or 70 yuan. Production, transportation, warehouse, and other costs added together had been compressed to around 30 yuan now. In the future, after the technology matured, the cost would be further compressed. In the end, the cost of one machine might only be a few yuan. Those knock-off merchants of the past sold one machine for a dozen yuan and still made money. There was no reason for Dongling High-Tech's cost to be higher than theirs.

Even calculating with the current cost of 30 yuan, and calculating with a selling price of 68 yuan, the profit of one machine was around 38 yuan. Dongling High-Tech took away 13 yuan of it, and the remaining 25 yuan was used as the profit for agents and retail stores.

If they wanted agents to abide by the agreement, they certainly couldn't rely on empty words. They had to let them get the money in real silver and gold before they would abide by the agreement. Otherwise, just relying on Dongling High-Tech to send people to supervise, with so many cities in the country, how many people would they have to send to be able to manage it?

"Wow!"

Hearing that Dongling High-Tech actually let them have 25 yuan in profit per machine, the distributors who were dissatisfied before now all showed joy on their faces. Although they had to share this money with retail stores, they were definitely taking the lion's share. Not to mention anything else, if electronic pet machines could reach the popularity they had abroad, they would definitely be able to make a big profit.

Entering the stage of competing for agency rights, the distributors present all began to become opponents, starting to bid against each other.

At first, there were distributors watching, wanting to see if they could pick up a bargain, but seeing that just competing for the Qiantang agency rights had reached 3.25 million, they couldn't hold back anymore.

When it came to Yanjing, Shanghai, Guangzhou, and other places, the competition was even more intense. Among them, the competition in Guangzhou could be described as tragic, once reaching 820,000. You have to know, this was just the agency rights for one city. Even Zhang Ao felt a little shocked hearing it.

In the end, the agency rights for Guangzhou were traded at a price of 830,000. The others really couldn't bid anymore.

The competition for agency rights lasted until the afternoon before it was all traded. In fact, it was mainly competing for the agency rights of several coastal provinces, as well as several big cities like Yanjing and Shanghai. The agency rights for the remaining inland cities were not too tragic. Among them, the provincial agency rights for the frontier only had less than 1 million.

But the total transaction amount for the entire agency rights reached 37 million, setting a new record for the transaction amount of agency rights for domestic beverages, health supplements, electronic products, and other items!

"President Zhang, you have to ship the goods to us as soon as possible!"

Chen Zuhan, who had bid for the agency rights for electronic pet machines in Guangzhou at a sky-high price of 820,000, said to Zhang Ao after signing the contract.

This time, for the agency rights for Guangzhou, Chen Zuhan had risked his life. His net worth was not low, but such a large amount of cash at once was truly not easy. This time, it was almost a desperate gamble, betting that by relying on the agency rights, he could make a big profit.

You have to know, the agency contract signed with Dongling High-Tech was not just paying the agency fee, but also a deposit of about half of the agency fee. Chen Zuhan had to take out a total of 1.23 million in cash. He certainly couldn't take out so much cash all at once, and even had to take out a part of the loan from the bank. Such a large amount was absolutely a risk.

There will be two more chapters this afternoon!

(End of chapter) ===== CHAPTER 78 =====