Chapter 182 – Distributors Part 1
“106 units!”
“How many?” Li Mingde could not believe his ears.
“106 units!” The Office Director repeated.
“They were all sold from the sales location in Bing City? Just today alone?”
The Office Director nodded and said: “Just today at Dongli sales location. I am not sure why people from the neighboring cities and districts also came here to buy. Even though there was a promotional price today, but it was also selling at 18,000 RMB. How can there be so many people buying?”
The Office Director was confused. This motorcycle was so expensive yet so many people are buying.
The 100 bikes they had prepared were sold out, and even the 6 display bikes were also sold. In the end, all bikes were sold out. There were so many wealthy people in Bing City? These bikes were selling at almost 20,000 RMB, and people were buying!
Feng Yu now was in his office working overtime. The sales for the first day was better than he expected. It was still Winter, but it did not affect the sales at all.
As long as it was not snowing, they could ride bikes even if it was windy. With gloves and a thick scarf, there was nothing to be afraid of!
Seems like telling people that the prices of the motorcycle will rise soon was still effective. There were no domestic 125 cc bikes in the market, and Songjiang Motorcycle was the only model. The imported bikes do have 125 cc, but the average prices were above 25,000 RMB.
How much is the cost of a 125-cc motorcycle? It was less than 6,000.
This was because the workers were still not familiar and not very productive, and the cost of the materials was too expensive.
After a while, the workers will be more efficient, and the cost can be lowered. Feng Yu had wanted the cost of a bike to be around 3,000 RMB. During the millennium, a 125-cc bike retail price was about 5,000 RMB. The Soviet Union’s production lines were very advance but the efficiency was too low, and there was too much wastage.
But now it was considered okay. A motorcycle sold to Tai Hua Trading at distributor price and still getting a 5,000 RMB profit, was something Li Mingde don’t even dare to think about in the past. The gain was almost 100%.
When Li Mingde first saw the production costs, he felt it was unbelievable. How can the cost be so low? After deducting the costs and expenses, these motorcycles were more profitable than tractors!
Feng Yu had said that if people were willing to spend over 10,000 RMB for a motorcycle, they would also be willing to pay 20,000 RMB as long as the designs were beautiful and the bike was comfortable to ride. At first, Li Mingde thought that Feng Yu’s targeted segment was too small and he needs to increase the profits.
But who would had guessed that the prices of their bikes were almost the same as imported bikes, and they were selling better!
“Zhigang, did any of the Machinery Company go to the sales location and ordered our men around?”
“No, but I saw some of them loitering around. They left when we sold out all the bikes. They should be reporting back to Li Mingde. Rest assure, Manager Feng. No one can interfere with the sales of the motorcycles. We will only follow your instructions.”
Wu Zhigang was also confident. He never expects that these motorcycles were so popular. There were more wealthy people in Bing City than he expected. But he thought about the bikes. If they had not used all their money to buy shares, all of them would also buy these motorcycles.
They had only worked for a year, and they were willing to spend 20,000 RMB on a motorcycle. Then those who were doing businesses earlier than them would be the same too.
The exterior of these motorcycles was attractive and looks better than any domestic or imported bikes. Furthermore, there were celebrities’ endorsements, and the commercials were aired on CCTV. Now, there were only a handful of people that did not hear of Songjiang Motorcycles.
“Fine, prepare only 50 units for sales tomorrow. We will stop selling after these 50 units were sold.”
“50 units? Manager Feng, 50 units might not be enough. Are you doing that hunger marketing strategy like the humidifiers again?” Wu Zhigang suddenly remembered. When they started selling the humidifiers to the shopping malls, Feng Yu had used this method to let the consumers feel that if they were late, they would not be able to get the humidifiers even when they had the money. This was to stimulate the buying desires of those that were still considering, and the sales volume turned out to be even better.
Feng Yu nodded: “The distributors should be arriving tomorrow? Show them the crowd at our sales location.”
The next day, the distributors arrived at Bing City, and even though the contract signing was the following day, they came early. They knew the temper of the people at Tai Hua Trading. If they were late, they might be chased away!
At first, many of them were still hesitating, but after they watched the advertisements on CCTV, they felt that this was a great opportunity.
They had felt that the humidifiers would not sell well initially, but after it was advertised on CCTV, the sales picked up. Every one of them made huge profits.
This time, Tai Hua Trading not only advertised on CCTV, they even hired 3 top celebrities for product endorsements. They heard that the following year, there will be a new commercial staring Balding Chen and Zhu Simao. The promotion effects were well done, and if the quality of the motorcycles were not too bad, there was nothing to worry about the sales. They only need to place some deposits, and they could quickly earn back that amount within a month!
A few of the distributors who had arrived early, went to the sales location to take a look. There was a huge crowd, and most of the people there were just onlookers, but there were also some buyers too.
What? Sold out so early? How many motorcycles were sold? Now it’s only two in the afternoon.
50 units? From morning 9 am until now? 50 units were sold out in 5 hours?
What? Yesterday they sold over 100 units, and all were sold by 5 pm?
If the sales of the motorcycles can be so good in this rural Bing City, then the coastal regions and the more prosperous provinces should be selling much better!
……
“We had worked together for more than once. There are a few unfamiliar faces, but I believe that everyone here should know Tai Hua Trading rules. We will divide the market based on provinces. Every month the sales cannot be lower than 400 units. The supplier price of each motorcycle is 15,000 RMB. We will still pay an additional 5% of the supplier prices as commission. The top 3 distributors every month would also receive different rewards……”
“Manager Wu, I wanted to get the northwest region. The quota of 400 units every night be slightly high.”
“Meng, Qing, Tibet…… these areas are a bit different. We will talk to you separately later and give a reasonable quota. Are there any other questions for the other provinces?” Wu Zhigang roared.
“Manager Wu, if according to what you just said, then does that means the more we sell, the more commission we can get?”
“That’s right. Not only the top 3 distributors will be rewarded. The top 3 sales for the year will also be rewarded! Just remember that the more you sell, the more profits you will get. Also, this time all of you only needs to place a onetime deposit. This was to prevent any cash flow issues on your side.”
“Manager Wu, can the deposit be lesser? Don’t you think that 500,000 RMB is a lot?”
“You look at how much the goods we send to you are worth every month? 400 units are worth a total 6 million and are 500,000 RMB deposit a lot? If you are not able to pay the deposit, you can back out. Our company can easily set up a sales office in the province you are handling!” Wu Zhigang shouted.
These people were still discussing among themselves. Feng Yu shook his head. Seems like he got to do this himself.