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Chapter 103 - Chapter 103 Factory Construction Plan

The adult world can be very complex when it's complex, and very simple when it's simple.

Without violating one's own interests, a meal with drinks and a KTV session can be enough to make a friend.

After arriving at the venue, Tan Jincheng had already started putting his arm around Tan Jincheng.

Besides Zhang Mingcan, Zhang Haiping also called a few other small bosses to introduce his circle to Tan Jincheng.

Interestingly, not many were in the clothing business; more were like Zhang Mingcan, dealing in auto parts, molds, or electronics.

It was unclear whether Zhang Haiping did this intentionally or unintentionally, but it was good for Tan Jincheng.

Tan Jincheng saw the clothing industry as a way to make quick money and didn't plan to delve deep into it.

In the future, he would mostly deal with factory owners like Zhang Mingcan, so getting to know more people like them was beneficial.

Once in such a place, there's no need to pretend to be a saint.

In this fleeting life, besides holding on to one's final convictions, one should relax as one pleases.

"I haven't been a big brother for many years, I don't like cold bed edges."

Zhang Mingcan's roar echoed in the private room, and combined with his tall stature, he truly resembled that motorbike-loving big boss.

Tan Jincheng's practiced movements made Zhang Mingcan and the others cast sideways glances.

It was probably only during KTV that he could show a generation gap different from their age, singing all those mumbling things.

"Quick, use nunchaku, huh-huh-ha-xi."

Listen to that, what kind of songs are these?

They played until late into the night, drinking a lot of fake alcohol provided by the KTV.

Tan Jincheng was too lazy to go back, so he found a hotel nearby to stay.

The next morning, he went back to shower and change clothes.

By the time Tan Jincheng arrived at Jinpeng Trade, it was already past 10 AM.

"Please buy me lunch. This afternoon, we'll go to the factory together to take a look."

"Oh, okay."

Back in the office, Tan Jincheng began writing the proposal, contemplating the factory construction plan and capital investment for the electric two-wheeler factory.

Electric vehicles operate under a production license system; one can produce them simply by applying for a production license from the Administration for Industry and Commerce (Quality Supervision Bureau).

The entry barrier is not high: renting a factory building, a production line, a few employees, and procuring some supporting components are enough for assembly and production.

The entire production process is actually not complicated, and employees can easily operate on the production line after short-term training.

Based on Tan Jincheng's current understanding and information collected through a survey company, an investment of 500,000 RMB can secure a production line with a daily capacity of 100 units.

This is the approximate initial investment cost.

Next are the fixed investments for the factory building and employees.

The factory area cannot be too small, so a location far from the city center must be chosen.

He inquired with Zhang Mingcan last night; his factory building has a total area of about 1000 square meters, with a monthly rent of around 15,000, which is acceptable.

Additionally, there's the salary of assembly workers.

He also looked into this; the salary level for assembly workers is not as exaggerated as that of mold makers, and an average of 3000 to 3500 RMB per month is considered a relatively high income.

Equipment is a one-time investment, and not much money will be spent afterward apart from maintenance.

Rent and employee salaries are fixed monthly expenses, which are the major costs, amounting to at least four to five hundred thousand RMB per month.

In addition, with about 1,000,000 RMB for supporting procurement and other operating costs, a small electric vehicle factory with a monthly output of around 3,000 units can be supported.

As for some small electric vehicle workshops hidden in the city, the investment cost is even lower.

Firstly, they don't have professional assembly lines; a few relatives and friends or even an entire family can start working.

Products are procured using refurbished parts, making the cost very low.

For sales, they rely on local production and direct sales.

According to an auto parts factory owner from last night, such a small workshop could be started with approximately 200,000 RMB.

Tan Jincheng naturally wasn't going to set up such small workshops.

A monthly capacity of 3,000 units and an annual output of over 30,000 units were the baseline.

Only by doing so could production scale be rapidly expanded.

With the current high-profit margins, it was natural to go for a big venture.

But if that's the case, the fixed monthly investment would start at 1,000,000 RMB, with an annual investment of at least 12,000,000 RMB.

Where would this money come from?

"Let's not think about that too much for now. First, let's secure around 2,000,000 RMB in startup capital."

Let's get started first.

If 20,000,000 isn't feasible, raising 2,000,000 RMB for startup capital shouldn't be a problem.

At worst, that 2,000,000 RMB would be wasted.

In fact, production wasn't the issue; it was how to position the product and how to sell it.

If you produce 3,000 vehicles a month, you need to sell them to recoup funds and continue operating.

Firstly, there's the product positioning issue.

Currently, the leader in the electric vehicle market is Xinri, which primarily develops luxury electric vehicles.

A small player directly competing with the leader is definitely not going to work.

So the best option is to bypass the luxury electric vehicle market developed by Xinri and focus on the simple electric vehicle market, emphasizing compactness, lightness, and cost-effectiveness.

Lei Bus did exactly this with his phones, immediately focusing on cost-effectiveness to bewilder competitors.

Only by doing so could he quickly gain a foothold.

Secondly, in terms of distribution channels, it's impossible to do it like Lei Bus.

Lei Bus, the chosen one, more protagonist-like than a web novel protagonist, had already achieved financial freedom when he made phones and could build his own channels to sell them.

But Tan Jincheng certainly doesn't have that capability.

So, he can only act subserviently and offer concessions to dealers, capturing the market through these concessions.

Preliminary plans for factory construction, product positioning, and marketing strategies were in place.

The next step was actual implementation.

It depended on Zhang Mingcan's situation; if there were no suitable options, then renting a factory building would be the starting point.

A tall building rises from the ground; taking the first step is the key.

——

"Boss, time to eat."

"Okay, got it."

Putting out the cigarette in his hand, Tan Jincheng let out a long breath, stood up, and walked out of the office.

Let's focus on the immediate tasks first.

Building a factory needs to be done step by step; there's no rushing it.

But what should the factory be named?

And what kind of brand trademark should the electric vehicles register?

Trademarks of several major competitors in later generations cannot be registered, which would mean losing an anchor point and would be counterproductive.

The exterior design of the electric vehicle must be novel, and the name should also be pleasant.

For a brand-new brand, this is no less important than quality control, and even more crucial in the initial stage.

After all, Lei Bus's first-generation Xiaomi back then didn't have great quality control, but relying on extreme cost-effectiveness, a decent appearance, and its system, it still quickly captured the market.

In a market where regular brands typically start selling at three to four thousand RMB, what more could you want for 1999 RMB?

The 1999 RMB price is good.

For the pricing of the first electric vehicle, Tan Jincheng also wanted to try this price point.

Since the goal is to seize the market, then seize it completely, focusing on making friends, not making money, truly not making money.

While eating, Tan Jincheng fantasized about a bright future and couldn't help but laugh, causing Li Yanning and Li Jinglan to be puzzled.

Eventually, Li Jinglan couldn't resist speaking up.

"Boss, is today's dish particularly to your liking?"

"Ah? Why do you say that?"

Tan Jincheng, coming back to his senses, looked at the three dishes and one soup on the table.

It was no different from what they usually ate.

What was so delicious, what was so particularly to his liking?

"I saw you eating with a grin on your face. Is it because the food is good, or do you have something happy to share?"

"Oh, of course, I'm happy. The company has more orders, so it's making money. Aren't you happy?"

"What are we happy about? You don't share the profits with us, and you'll even increase my workload."

Although Li Jinglan was a little afraid of Tan Jincheng, perhaps due to her youth, she truly dared to speak her mind.

In fact, apart from being a bit strict at work, Tan Jincheng was impeccable towards the sisters Li Yanning and Li Jinglan, providing ample salaries and benefits.

He was also particularly tolerant of Li Jinglan's naive personality, usually not caring much about her unguarded remarks.

Anyway, Li Yanning would scold her.

No sooner had Li Jinglan finished speaking than Li Yanning reprimanded,

"What nonsense are you talking about? Rising company performance is definitely a good thing for us."

"Haha, it's alright. Jinglan has a point. How about this: last year, didn't I give you a raise after you completed one full year?"

"Now that we've received a big order and will be hiring new people next month, we won't wait for a full year. Starting next month, your salaries will increase, both of your basic salaries will be raised by 20%."

A 20% increase at once seems quite high, but in reality, it's not much money.

Taking Li Jinglan as an example, her basic salary is 1500 RMB, so a 20% increase is 300 RMB, which is only 3600 RMB a year.

"Really?"

Li Jinglan ignored her sister's scolding and immediately pressed for an answer.

"Of course, it's true. You have a point; it's normal for employees to enjoy some benefits when the company makes money."

"Boss, you're really too kind. You're better to me than my brother. You're my benefactor! Here, have a chicken drumstick."

Li Jinglan, who had just been full of haughtiness, immediately transformed into a sycophant, flattering him while simultaneously giving Li Yanning a challenging look.

Li Yanning felt a surge of helplessness, but still added,

"Thank you, Boss."

With a 20% increase in basic salary, her monthly income would increase by 600 RMB.

Getting the raise 5 months early meant an extra 3000 RMB, almost enough for a year's rent, which was an unexpected surprise.

Jinglan was right, Boss Tan and Boss Zhang were indeed very good.

Perhaps this was the advantage of working for a young boss; salaries and benefits weren't as scrutinized as with middle-aged bosses.

"I hope Boss Tan's business gets better and better, so we can also earn more,"

Li Yanning thought silently.

If not for a certain dream, Tan Jincheng would actually quite like his current state.

Because in recent years, pure foreign trade business has been very profitable.

Jinpeng Trade operates with light assets, and the company's costs, apart from rent, are basically utilities, travel, and some entertainment expenses.

Based on his abilities, hiring a few merchandisers and salespeople, the company wouldn't need to exceed 20 people at most.

With an annual operating cost of a few million RMB, achieving a turnover of several hundred million RMB would be relatively easy.

If done well, it wouldn't take many years, perhaps even just one or two, to accumulate over a hundred million RMB.

Many bosses in the business world started their fortunes this way because the purchasing power gap between the US dollar and the RMB was simply too significant in those years.

Earning US dollars and spending RMB, with government subsidies, one can imagine how strong that position was.

It was somewhat similar to the feeling of later generations waving RMB and spending money in less developed countries.

"After lunch, take a short break. This afternoon, you two will go with me to visit some suppliers. Before the Canton Fair ends, if there's anything you need to run around for, take a taxi if it's far, and remember to bring back the reimbursement receipts."

"Okay. Boss, did you buy a new car? I saw you get out of a BMW this morning."

Li Jinglan agreed, then, recalling what she saw while slacking off that morning, she couldn't help but ask curiously.

"Yes, I registered a new company, and that car is for the new company. The Passat is for your Boss Zhang. Also, you two should quickly go and learn to drive. There will be more and more cars in the future, and learning will get more expensive."

"Okay, we'll go register this Sunday."

(End of Chapter)

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