Super Rich from Winning a Lottery

Chapter 413 271: Huasheng Automobile’s Explosive Sales

Yi Anguo thought for a moment and felt that Yi Haiyang still made sense. It's indeed not easy to accurately calculate the cost price now, as a batch of samples has just been trial-produced.

And determining the cost of a product involves many pricing factors, plus the cost of raw material purchases will certainly vary, easily influenced by the market.

The price of anything will be affected by the market, causing fluctuations. Even long-term suppliers can't guarantee stable supply prices, at most, they can only promise that the price will not fluctuate due to market factors for a certain period.

Similarly, merchants also need to adjust prices according to market changes when selling products; they cannot maintain the same price indefinitely, neither increasing nor decreasing, which is impossible to achieve.

"Then as quickly as possible, figure out what the final cost price is? For now, let's proceed with the price you mentioned, put it on for trial sales and see how consumers react," Yi Anguo finally said.

"Considering this quality and price, I believe consumers should be able to accept it."

"Yeah! Although this price isn't cheap, the quality assurance makes it worth the price. At least our quality is not much worse than those big brands, and the price is much lower," Yi Haiyang nodded in agreement.

"Consumers are very wise. I believe once they use our products, they will certainly continue to accept and choose our products."

"If this price sells well and the cost can be reduced further, the profit could be substantial," Yi Anguo thought aloud.

"These everyday consumer goods have inherently high profits. Although the market competition is fierce, resulting in varied prices and greatly differing quality, big brand products still maintain very high profits," Yi Haiyang agreed.

"Even those lesser-known brands, despite their low prices, actually have considerable profits, mainly relying on sales volume."

"The rural market is large, and rural per capita income isn't high. Although they know the big brand quality is good, they find the prices too expensive. Therefore, many rural consumers opt for cheaper minor brands or lesser-known products rather than splurging on big brand items."

Yi Anguo understood this deeply, aware that in years to come, a shopping platform called Pinduoduo would emerge, focusing on the underdeveloped market, aiming at rural consumers.

Although they sell lesser-known and imitation products of poor quality, countless people still purchase from them. Their performance even surpasses Taobao, mainly because their prices are genuinely cheap, offering free shipping for items costing even a few bucks.

No matter when, ordinary people occupy the majority of society, unable to afford overly expensive items. Though aware of their superior quality, they still opt for cheaper alternatives.

Yi Anguo wished to help everyone afford better quality products.

However, improving product quality first requires better quality materials, making it difficult to significantly reduce costs.

Ultimately, producing better quality products means the retail prices won't be too cheap.

Although the prices would be much lower compared to big brands, they would surely be higher than lesser-known, poorer quality products, even substantially so.

This inevitably leads many consumers to continue choosing cheaper, poorer quality products over his affordable, high-quality offerings.

But that can't be helped. Yi Anguo can't cater to everyone.

He can only do his best, trying to offer better-quality products at slightly lower prices to those he can reach.

Yi Anguo visited Xijiang again to inspect the newly formed Huasheng Group, gaining insights into the research, production, and sales situation of Huasheng Automobile.

The sales volume of Huasheng's new energy vehicles indicates poor performance for pure electric cars; few car owners were willing to buy them. As 2010 neared its end, Huasheng's introduced pure electric car, similar to Tesla, sold fewer than a hundred units, mainly through government department cooperation for urban taxies.

However, government departments in Xijiang provincial city were cautious about bulk purchasing new energy vehicles for the taxi market, only willing to try them out. If successful, they would increase procurement.

In reality, though, the results weren't very promising, proving hard to manage.

The primary reason for poor sales was the inconvenience of charging, with too few domestic charging stations and piles.

In 2010, the domestic electric vehicle industry was just entering its initial stage, affected by limits in charging facilities and technology, essentially requiring home charging. Though some charging stations and piles were completed, their numbers were scant.