Chapter 381 Sales Channels of Starlight
Chapter 381 Sales Channels of Starlight
Ma Baoguo nodded, looked at Ling Yun, and said, "President Ling, it's not that I disagree. I'm afraid of losing money. The cost is four thousand, the selling price is six thousand, we have to pay taxes, pay employee salaries, pay for distribution channels, invest in after-sales service, and spend money on promotion. In the end, how much will we have left? We might not even break even."
Ling Yun walked back to the table and sat down. He looked at Ma Baoguo and said, "We won't lose money. We can still reduce costs. We'll use BOE screens, the batteries from the company in Huizhou, and the casings from the company in Shenzhen. As the volume increases, the unit price will decrease. Ten thousand units will have one price, one hundred thousand units will have another, and one million units will have yet another. We won't make money at first, but once the volume picks up, we'll naturally make a profit. That's how Alienware started. The first batch of five hundred units cost 1,500 yuan, sold for 1,999 yuan, with a gross profit of 400 yuan. Now we sell 1,200 units a day, the cost has dropped to 1,200 yuan, and the gross profit is 800 yuan. As the volume increases, the cost decreases."
Ma Baoguo nodded and remained silent. Wang Jianguo looked up and asked, "What about the system? Which version of the Star System does Starlight use?"
Lingyun said, "Use the education version. Simplify the desktop, pre-install teaching software, office software, and a browser. No games, no entertainment features. Boot directly into the learning interface. Students can use it immediately without learning. Teachers can start teaching immediately without training. Mr. Wang, you handle this version. Is a month enough?"
Wang Jianguo thought for a moment and said, "That's enough. Change the desktop, configure the pre-installed software, and run a test. It can be released in twenty days."
Lingyun said, "Okay. We'll produce a test version in twenty days for the schools to try. We'll revise it based on the feedback, and then officially release it in the first quarter of next year."
Wang Jianguo made a few notes in his notebook.
Ling Yun looked at Li Mo and said, "Li Mo, something's come up for you."
Li Mo raised her head and looked at him.
Lingyun said, "The Starlight laptop uses a BOE screen. But the Alienware laptop's screen also needs an upgrade."
Li Mo asked him, "How do I level up?"
Lingyun said, "Add a touchscreen, a strip-shaped one, and place it on top of the keyboard to replace the physical function keys. Volume, brightness, play/pause—just swipe your finger. No buttons needed, it's more advanced. Alienware is positioned as high-end, so it needs to look high-end. Buttons are from the 90s; it's the 21st century, it's time for a change. Contact BOE and have them make it. You provide the design for the size, resolution, and interface standards. Let's make 10,000 units first to test the waters. If it's good, we'll add more later."
Li Mo asked him, "Can BOE do it?"
Ling Yun said, "They can do it. They currently make mobile phone screens and computer screens; they have the technology. They also make touch screens, small ones. They haven't made the strip-shaped touch screens used in laptops before, but they have some basic knowledge."
"If you place an order with them, they can make it. As the quantity increases, they can upgrade their equipment and improve their processes. If you don't place an order, they will never be able to make it. This isn't about buying something; it's about giving them a helping hand."
"What does BOE lack right now? Orders. Orders bring money, money can be invested in R&D, equipment, and personnel. R&D leads to good products, and good products bring more orders. It's a positive cycle; if you don't push it, it won't move on its own."
Li Mo nodded and jotted down a few notes in his notebook. He asked, "How much for ten thousand pieces?"
Ling Yun said, "Go and negotiate. Don't push the price too low. They need to make money so they can invest in R&D. If you push the price too low, they won't make money, and they won't have the money to upgrade their equipment, so they still won't be able to produce it next time. This isn't a one-off deal; it's a long-term commitment. You need to show them that following Xinghuo will ensure their livelihood, and as long as they keep up with our development, they'll always have a place to eat."
Li Mo said, "I understand."
Ling Yun stood up, walked to the whiteboard, and wrote another line below those words: "BOE touch screens, 10,000 pieces." After writing that, he turned around and looked at everyone.
He asked, "Is there anything else?"
No one spoke. He nodded and said, "That's settled then. The Starlight Notebook will be released in the first quarter of next year. It will cost six thousand, with an educational version system. Factory Manager Ma will be in charge of production, General Manager Wang will be in charge of the system, and Li Mo will be in charge of the screens. Each of you will manage your own area, and we can discuss anything that needs to be done."
Ma Baoguo stood up and said, "President Ling, there's one more thing. How should we distribute the Starlight brand? Alienware sells online through Amazon and its official website. But what about Starlight? Domestic consumers aren't used to buying such expensive items online. Six thousand yuan is a lot of money for ordinary people. They need to touch it, look at it, and try it out before they dare to spend the money."
Ling Yun thought for a moment and said, "Let's go through offline channels. Xinhua Bookstore, computer malls, campus stores. Let's find a few pilot locations first, Jinan, Beijing, Shanghai, Guangzhou, one or two in each city, set up demo units, and let people try them out. If they like them, then they can buy them. We'll also put them online, but online won't be the main channel. If users see the reviews and want to buy, but can't find where to buy, it's okay if they can buy them online, but our main focus will be on offline channels."
Ma Baoguo said, "Offline channels need to be established, and we need people and money."
Ling Yun said, "Let's start by bringing in people from internet cafes. Zhao Weiguo's internet cafes have managers and staff who understand computers and customers, and they have computer repair technicians in every city. We'll bring a batch over, train them, and then put them on the job. If that's not enough, we'll hire more."
Zhao Weiguo nodded and said, "Okay, I can transfer twenty people from my side. They'll train them first, and they'll start working after the New Year."
"Mr. Ling, most of our directly operated internet cafes are now owned properties. Some internet cafes don't need such a large space, so they are sublet or temporarily vacant. Should we convert them into after-sales service or sales points for Starlight Computers?"
Ling Yun pondered for a moment, "For vacant spaces, we can build after-sales service outlets. Repair personnel can work at these outlets regularly, and internet cafes can be reassigned if needed. For spaces that aren't vacant, we can build after-sales service points nearby or by renting or buying property. After-sales service is essential for building a brand; it gives users confidence and makes them less afraid of being scammed. Without trust, how can anyone buy your branded computers? Our new brand doesn't have the same brand recognition as foreign brands, so we need to put even more effort into these things."
"Every Xinghuo Internet Cafe is a sales point for Xingguang and Alienware laptops. The operation of each Xinghuo Internet Cafe is to enhance users' trust. Selling laptops in Internet Cafes is using the trust of Internet Cafes to endorse us, so that users will naturally trust us. Therefore, Internet Cafes should put display models in prominent positions so that people who come to Internet Cafes can understand our Xingguang and Alienware laptops."
Zhao Weiguo further suggested, "We can also open brand stores in several major cities. Foreign brands like to do this now, setting up a high-end store makes their brand appear more classy, allowing them to sell at higher prices and give users a sense of pride."
Ling Yun said, "Okay, then we'll build four or five brand stores in each first-tier city, and two or three brand stores in each provincial capital and second-tier city. Brand stores will have priority in purchasing properties for their own use, saving us from spending a lot of money on renovations only to have the landlords snatch them up for their own use in a few years. Zhao Weiguo, you should handle this. If the internet cafes don't have enough money, apply to the group."
"Yes, Mr. Ling."
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