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Chapter 84: Chapter 84: Lao Cai Asks for Advice II

\'Apart from brand, material and price, style is a very important aspect when buying furniture. I found that there were many regulations about furniture in the past, about who could sit in what kind of chair and sleep in what kind of bed. So in the past, our furniture was more about etiquette than about the comfort of the people using it. For example, our textbooks have pictures of the dragon throne in the Hall of Supreme Harmony in the Forbidden City, which is indeed majestic, but I don\'t think the emperor sitting on it was very comfortable.\'

In order to avoid any awkwardness, Feng Yiping said these words based on his own current situation.

\'The first thing people looking to buy furniture look at is the style, and what attracts customers is also the style. If you want to buy well, the style should be innovative.\'

A direct result of fierce competition is that there are more and more similar products on the market, and they are highly homogeneous. If you don\'t look at the brand, and put them together, the people who produced them may not be able to tell which is which. At this point, the simplest thing to do is to develop a new look.

To be honest, this old Cai has not really thought about it much. What he is thinking about now is mainly how to get more orders. He has worked at the City Furniture Factory for almost his whole life, and some things have become fixed. He can make some improvements and fine-tunings to the original style, but it is still difficult to really come up with a completely new one.

Feng Yiping probably also knows his difficulties, and continues, \'Nowadays, our housing, our lighting, our kitchens, our bathroom fixtures, and many, many other things, are all learned from the West or simply copied. The same goes for furniture. The West doesn\'t pay as much attention as we do, and just makes things as comfortable as possible for people. So, you can buy more of these professional journals, learn the styles in them, and you are a master, you can also make some improvements yourself.\'

The old man is still cautious about changing these aspects. \'If I make a new model, I think someone will follow suit soon, just like what\'s happening now,\' Cai asked.

\'This situation is inevitable,\' Feng Yiping said, adding that he has experienced this situation many times. \'But sometimes it\'s just like this: if we take the lead, we will stay ahead. If others follow suit, we will make some small changes next time.

For example, add a baffle below, add a secret compartment in the drawer, leave a space for a small safe, or combine a vertical section next to it for people to put their computers specifically...

You are the expert, there will be many more improvements that can be made. In short, if others follow once, we will add a little change, so that they will always imitate but never surpass.

These are things that Lao Cai is well versed in, but he is still a little hesitant. Changing the style involves changing too many things. Feng Yiping doesn\'t expect him to accept it all, so he changes the angle, \'If doing business with the old model is good and profitable, there is no need to make drastic changes to the new model. In fact, the new model is not important, what is important is making money.\'

Lao Cai nods his head as he listens to this.

Feng Yiping pointed at the coffee table in front of him and said, \'For example, let\'s say this coffee table. If, in the end, everyone makes this type, with similar styles, colours and materials, and at a similar price, or even lower than ours, there will be no more money to be made. Then we might as well stop making this type and come up with a new style, and then we will have the pricing power in our hands, and that will be profitable.\'

Hearing this, Lao Cai was a bit more receptive. This is the situation now. Everyone is relatively unknown, and the products are all similar. Although there is still business and money to be made for the time being, in the end, it is inevitable that there will be price wars, and in the end, there is certainly not much profit.

\'Wait a minute, I\'m getting old and my memory isn\'t very good, let me take notes,\' Lao Cai really ran over and got a notebook and pen.

Lao Cai, like a student, carefully took down everything Feng Yiping said. As a businessman, Feng Yiping didn\'t feel that this was a loss of face. On the contrary, he thought that Cai was a man of action and admired him a little. It was rare for an old man to have such a learning spirit.

\'Isn\'t it best if we have a store?\' Feng Yiping asked.

\'Yes, a retail department. I\'ve thought about it,\' Cai Dexiang said. \'I originally planned to buy this piece of land and see a few houses in front of it to use as a retail store. Now it seems that this will have to wait.\'

In fact, with the factory\'s current hardware and software, it would be inappropriate to place the store in front of the factory, but due to his current status, he would rather not say anything.

\'Inside the store, in addition to our representative products, it would be best to use good materials to make a set of high-end furniture to display. Although there may not be many people buying it, it will be good for upgrading the grade of our brand.\'

As soon as Lao Cai heard this, he understood. Many people who open stores will have treasures that are the pride of the store, and it would be good to have such a set in the store.

\'Moreover, there have been many rich people emerging in the past two years. Most people think that something that costs a few hundred yuan is too expensive, and they don\'t think that anything that costs a few thousand yuan is of a good enough quality. However, at present, most of the furniture on the market is of a low quality, and there are not many high-end products. This can also be used as a direction, killing two birds with one stone.\'

Lao Cai also understands that although high-end products are in small quantities, the profit margins are high.

\'The last point is perhaps more long-term. If we make the styles in those professional journals and they are recognised by customers, then we can consider doing foreign trade.\'

\'Doing foreign trade? That\'s too difficult!\' Lao Cai is deeply aware of this. When he was still working at the city furniture factory, companies that could earn foreign exchange were all star companies, all the red-hot favourites of governments at all levels. His furniture factory never earned even a single dollar in foreign exchange.

Of course it wasn\'t easy to do foreign trade at this time. You shouldn\'t even think about self-supporting import and export rights. It was already good if you could find a trading company to act on your behalf, even if you had to pay a high commission and even if there was a credit period after the money was received by the trading company.

Just think about those furniture factories of average size later on. They casually did tens of millions of foreign trade a year. Now if they just take one order of a few million, won\'t the factory develop?

\'It\'s difficult and a long-term goal, but it never hurts to get prepared early. I read in the newspaper that the country is still strongly encouraging exports and providing various subsidies, so this is a trend. Regarding our advantages, the newspaper also makes it very clear that compared to developed countries, our labour costs are now very low, especially for some products that do not require high technology. Internationally, we still have a great cost advantage. So we need to get started as soon as possible. If we wait until all our competitors have realised the advantages and are getting ready to do the same, then we won\'t have any advantages at all.\'

\'Just think, most foreign trade transactions are settled in US dollars. Let\'s not talk about the big ones, but even a single transaction of tens of thousands of dollars, when converted into RMB, is worth a hundred thousand or more.\' Feng Yiping held up a big slice of cake.

The domestic economic situation has changed rapidly in the past two years. Just this year, the annualised rate of return on money deposited in the bank is almost 20%, which is unthinkable for later generations.

In addition, according to statistics, in the six months since the beginning of the year, the exchange rate of the renminbi against the US dollar has depreciated by half. So although it is no longer appropriate to call the US dollar the US dollar, during this period of time, if you don\'t even mention being able to earn US dollars, just transferring them in will make you money.

At this time, Lao Cai didn\'t think about how a small child from the countryside, who had probably never seen tens of thousands of dollars, could casually talk about hundreds of thousands of dollars without blinking an eye. He was already immersed in the beautiful imagination of doing tens of millions of dollars in foreign trade.

\'Yes, you need to prepare early and get ready early,\' he was so excited that he was a little incoherent, and he was stunned by the big cake of foreign trade thrown by Feng Yiping.

While other peers were still fighting in the one mu of land in front of them, he was already focusing on the world, feeling that he had reached a higher level and improved his realm.

Feng Yiping had originally planned to rush back to cook for his parents at noon, but as a result of Lao Cai\'s endless questions, the conversation continued well into lunch.

He didn\'t say everything, and he pretended not to understand some of the questions Lao Cai asked, but he said only what was appropriate for the current situation.

Cai Hong came over after work and was surprised to see her father, who looked like a schoolboy, taking notes as Feng Yiping spoke, and even refilling Feng Yiping\'s water glass. What was going on?

Cai Hong closed the notebook and patted it with his hand. \'It really is the case that heroes come from young people. I have to admit that I\'m impressed. I\'ve learned a lot this morning. Feng Yiping, tell me, how can I thank you?\'

Feng Yiping was a little tired after showing off all morning, and gulped down the cup of tea in front of him. \'What I said was just off the cuff, just my own opinion, and it hasn\'t been tested in practice. At most, it can be used as a reference for you, but how can it be of any help?\'

\'Haha, still so modest, good! Good! Let\'s go and eat.\'

Feng Yiping followed behind and said after a moment\'s thought, \'Uncle Cai, if possible, I really have something I\'d like to trouble you with?\'

\'What trouble? Just say it,\' said Lao Cai, patting him on the shoulder. \'Don\'t be so polite with me.\'

\'Okay, here\'s the thing. My parents can\'t keep going like this forever. It\'s too hard. And the little business they have now barely manages to support the family, let alone provide for any development. I think they should find a better place, even if it\'s just a noodle shop. It\'s not like they\'re out in the sun and rain all day like they are now. You\'re well-known, so could you keep an eye out for us?\'

\'You really are a filial child, and your parents are blessed to have you! Don\'t worry, I\'ll take care of this for you. I\'ll definitely find you a satisfactory one, preferably a shop downstairs with people living upstairs. That way, it\'ll be convenient, okay?\'

\'That would be great, so thank you, Uncle Cai, in advance!\'

\'You\'re welcome, as I told you. Let\'s go, is there anything else? Let\'s eat first.\'