Chapter 125:
A Sensation!
Translator: Nyoi-Bo Studio Editor: Nyoi-Bo Studio
“We’ve prepared a total of three editions; there are two home-use editions which are the cla.s.sic and deluxe editions respectively. However, there are not many differences between the hardware of the two editions. There are also hardly any differences in their functions. There will be many differentiated versions of the deluxe edition. Each version will have its own unique color and embellishment, creating a very different appearance from other versions. Each version will definitely be limited to less than 1,000 units. There’s also a custom-made commercial edition. Commercial users are still very important to us. As compared to the first generation, the 2.0 commercial version had undergone several heavy upgrading processes. However, as the environment in which the commercial edition is used is very different, the redundant home-use function has been axed. There has only been a slight increase in the production costs of the 2.0 commercial edition. Finally, we will reveal their prices!” After Ling Jundong’s words, a loud rumble could be heard across the stadium.
It was as if a bombsh.e.l.l had dropped. A list of prices was shown on the huge screen behind him:
Wa-wah 2.0 home-use cla.s.sic edition: $8,999.
Wa-wah 2.0 home-use deluxe edition: $10,999.
Wa-wah 2.0 custom-made commercial edition: $5,999.
Of the three editions, the net profit margin of the cla.s.sic and deluxe home-use editions was guaranteed to reach 30% and above. This was much higher than the 22% net profit margin of Wa-wah 1.1. Unexpectedly, the custom-made commercial edition was the one with the best value for money.
From a seat in one of the front rows, a voice grumbled in puzzlement. Its complaint rang in Chen Jin’s ears. “Why are there only two similarly configured editions launched for the home-use Wa-wah? Why didn’t you create a common edition with less powerful configurations and another ’emperor’ edition with much better configurations? The range of selection is too small with only two editions.”
Chen Jin turned his head slightly and explained, “It’s not that we intend to reduce the range of selection for customers by coming up with only two editions. Instead, we’ve provided the best choices for selection. The available products provide the best value for your money! There will be no meaning in comparing them with other editions. In addition, by reducing the product variety, it can help to greatly reduce the after-sales costs borne by the company. This will increase the efficiency of our maintenance services and provide a better after-sales experience for our customers. After buying the Wa-wah robot, the user can rest a.s.sured that it will be in good working condition for the next 5 to 10 years. Besides wanting to be the best high tech company, Xing Hai Technologies also intends to have the best after-sales service. Only with this can we acquire a significant base of loyal customers.”
“Hmm…” The girl nodded, “You’re right, but the price of $8,999 is a little too high. It’s nearing $10,000. Are there many who can afford this?”
“You can look at it this way. Purely as a cleaning robot, it’s worth $3,999. As a professional home carer, it is worth at least $5,000. As a social robot that can bring you fun and joy, it’s again worth another $3,000. As it has been imbued with the value of protecting the environment, it also functions as a robot for the welfare of the public. With this generous and loving att.i.tude, it’s worth at least another $2,000… After adding up all the roles it can play, do you think $10,000 for one unit is too much?”
For the deluxe edition of Wa-wah 2.0, one would get the equivalent of a “custom-made skin” as well as an “action model” that could work, all for the additional price of $2,000. Wasn’t this price a real bargain? Chen Jin did not even have to explain this to the girl beside him. The response of the audience said everything.
“Buy! We have to buy!”
“What? There are one million units of ready stock and we can make our order now? I want to make my order right now!”
“Order successful! I’ve reached my Ant credit limit. Starting from next month, I have to subsist on gra.s.s.”
“Buy! I have a Wa-wah 1.1. But, I’m buying the Wa-wah 2.0 to manage my finances. I have an incoming $9,000 and I will spend $20,000. The differential of $10,000 will be used to buy my robot.”
“That’s right, I would bet that Wa-wah 2.0 is definitely this year’s most value-for-money financial management product! One million units of ready stock is totally not enough to satisfy our appet.i.tes.”
“F**k me, it’s out of stock? It’s only been a few minutes and all one million units are gone?”
…
After the launch event of the new product had ended, on that very same night, it created a huge sensation online and generated some intense discussions. It immediately became the hottest topic on Weibo.
“Xing Hai Technologies, you’ve used all your f**king might to squeeze out this amazing series of upgrades from your reserves! The upgrades are so overwhelming; it’s too awesome!”
“Xing Hai Technologies, I hate you! How little time has pa.s.sed since I last bought Wa-wah 1.1?”
“F**k, I’m even worse. I’m using a Wa-wah 1.0 that was bought less than a year ago. Now, I think it’s even more out-dated than the Symbian mobile phones that had been eliminated from the market.”
“@Xing Hai Technologies, can I return my product? Can I exchange my unused model for this latest model? Can I pay to exchange the less powerful model for a better model?”
“Xing Hai Technologies is too d.a.m.n ruthless. Have you thought about leaving some room for your compet.i.tors to survive? You’re driving your friendly rivals onto the road of no return.”
“One million units were all sold out within five minutes and 58 seconds. In mere moments, it achieved a revenue of almost 10 billion. The t.i.tle of ‘the most powerful company in 20X0’ belongs to none other than Xing Hai Technologies!”
“I’m not buying! I’m determined to not buy it. I won’t buy it even at gunpoint… Stop, stop, stop; wife, stop. I’ll buy! I’ll buy! Wife, please put down the knife at my throat.”
“From today onwards, even though you can bad-mouth Xing Hai Technologies or cast aspersions on its development strategy, you can’t underestimate this company! Without a doubt, it’s still the most powerful contender in the field of cleaning robots!”
…
On the way back.
Chen Jin received a call. He heard an anguished and blood-curdling wail.
“Brother Chen, the rumors in the industry say that I’m ruthless. But, you’re way more ruthless! Your Wa-wah 2.0 will drive my Love Mi robot out of the market! I’m ruined. The Love Mi robot is completely ruined. It’s impossible to sell even one unit in the domestic market now. I can’t even earn a single penny! I can only continue to expand in the overseas market. But I’ve heard that you’ve stopped production of the Wa-wah 1.1. Why don’t you consider packaging your technology and sell it at a reduced price to my Da Mi Company? Our Love Mi robot is selling well overseas. I believe that overseas sales will increase significantly if we launch a Love Mi robot 2.0 with a technological standard similar to Wa-wah 1.1.” Lei Xiao Jun was feeling dramatically woebegone. However, as he spoke about his overseas success, he also felt extremely delighted in addition to the confusion and doubt that he was experiencing,
This was due to the fact that soon after the Love Mi robot was introduced in the overseas market, it rapidly gathered momentum, and a storm for the Love Mi brand was suddenly created. Sales volumes soared past some ten million units within half a year. Countless had been converted into “Mi Fans.”
Xing Hai Technologies had no ambitions to become an international company and did not place much importance on the overseas markets. If not for this fact, it was unlikely that Da Mi Company could even earn a single penny on their products. It would even be more unlikely that revenues from the overseas markets became the biggest contributor to the company’s profit growth in the past year. Thus, Da Mi Company was able to generate a very positive financial statement.
Da Mi Company experienced a breakthrough last year (20X9) as its net profits soared past 15 billion, of which the Love Mi robot had contributed significantly. Hence Lei Xiao Jun had set his sights upon the Wa-wah 1.1 by Xing Hai Technologies. Even though it was a product that had been culled, he still wanted to purchase the technological copyrights of that product.
With a bitter laugh, he thought helplessly, I’d never imagined that I would be targeting the rubbish abandoned by others.
Of course, it was only rubbish to Xing Hai Technologies. To Da Mi Company, it was a treasure that could generate more profits.
“Ok, copyright fees are $250 per unit. Is this acceptable?”
“Yes, that’s totally fine.” This little bit of copyright fee would merely raise the Love Mi robot’s basic selling price by a few percentage points. Overseas customers would still buy the product. Lei Xiao Jun asked another question, “Brother Chen, the Wa-wah 2.0 from your company is a very good product indeed. It has huge market potential! Why didn’t you introduce it to the overseas market? If you have no intention to establish an overseas sales channel, would you consider working with Da Mi Company? We’ve established excellent sales channels in more than 30 countries; we can help to sell this model of robot overseas! I believe that this product will be very popular in the overseas market. Why don’t we work together and earn crazy amounts from foreign customers?”
“That’s not necessary.” On his end of the phone, Chen Jin shook his head. “Wa-wah 2.0 is meant for the domestic consumers. Why would foreigners use such an advanced robot? They can simply use the slightly outdated Love Mi robot. In this way, the overseas market share that the Love Mi robot has painstakingly carved out for itself will not be intruded upon. Brother Lei, you can consider earning more money for yourself.”
“You’re right, if Wa-wah 2.0 is introduced to the overseas market, the Love Mi robot will be pushed out of business.” Lei Xiao Jun became energized again. He smiled. “Brother Chen, thanks for giving your buddy some business.”
“You’re too polite.”
“Let’s work together in the future.”
The two ended their conversation.