Extraordinary Genius - Chapter 309 – AIWA Walkman is a learning tool
All the arrogant dealers were all swallowing their saliva and shaking. It was apparent that they were scared of this person.
“Manager Feng, why are you here?” Fatty Huang from Guangdong smiled and asked.
“Manager Fu is my friend, and this AIWA Walkman is our product. Why shouldn’t I be here? If I did not attend this meeting, all of you would be taking away all the profits.” Feng Yu smiled and said casually. But the things he said, gave the dealers immerse pressure.
All of them knew Feng Yu’s temper. If they still carry on with their attitude, Feng Yu would surely flip.
When Feng Yu flips, the dealer will no longer get to sell the profitable motorcycles, humidifiers, and bladeless fans. Now, the Wind and Rain appliances and Songjiang motorcycles were selling all over China. Feng Yu does not need these dealers at all. He can quickly get a new batch of dealers anytime. All the sales channels of these dealers were no longer important to Feng Yu.
But the dealers were curious why Feng Yu did not use Wind and Rain brand since he said that this Walkman was his. If he had used the Wind and Rain brand, then the sales will definitely be good.
“Manager Feng, we are just joking around. Businesses need to negotiate. Everyone is just voicing out their conditions. Everything can still be negotiated.”
“Really? That’s good. I thought I had not met all of you for about a month and all of you are not giving me face. Since everything can be negotiated, then I will tell you my conditions. Now, we are introducing the newest model of Walkman. The wholesale price is 150 RMB. All of you will be given a minimum target. Once you exceed the minimum, there will be tiers, and you will be getting incentives. Hover, if you are not able to reach the minimum target, you will be penalized. Is this condition reasonable?”
“Yes, yes……” All the dealers nodded and agreed.
“That’s good. Then I will say my second condition. The retail price will be set within a range. The dealers can decide how much to sell within this range. But if I find out anyone that is not selling the Walkman within this range, the dealer in charge of that region will be responsible!” Feng Yu sat down on a chair and crossed his legs.
“Manager Feng, what will be the range?”
“230 to 250 RMB. I had calculated. Because of the transportation, your cost will be slightly higher. Also, there are differences in the development of your provinces, and the size of your market will vary. That why I had set the retail price within a range. All of you can decide how much to sell within the range. I will also print “Recommended Retail price: 248 RMB” on the Walkman packaging.”
The group of dealers was all smart businessmen. All of them knew what Feng Yu was talking about. Now, when people were buying expensive items, they still tend to bargain. Even if they managed to save 1 RMB, they would be happy.
With this “Recommended retail price” printed on the packaging, it means that this price was only suggested and was not the final selling price. If the consumers were willing to accept this price, then it’s okay. If not, the dealers can still negotiate with the consumers. The dealers still get to decide the selling price.
The dealers made a mental calculation. The cost of a Walkman was at least 170 RMB, and at most, it would be 190 RMB. They still need to split their profits with their downline and their earnings would be between 10 RMB and 30 RMB.
But the dealers were not really happy even with these high profits. They knew that Feng Yu will surely set different minimum targets and rewards for them. All the dealers will still make some profits, but the difference between them will not be significant.
When they started selling Wind and Rain humidifiers, Tai Hua Trading had given them some concessions for the transportation. But after that, Wind and Rain electric fans had additional conditions. The dealers knew that this time, all these conditions will be included in their contracts.
Feng Yu continued: “Do all of you know who the targeted segment for this Walkman is?”
“Young adults. They like to listen to music. It is definitely not those old men and women.” Someone shouted.
“Hahaha, ~~~” Everyone laughed.
“Wrong!” Feng Yu roared.
All the dealers stopped laughing. What? This targeted segment is wrong? The most popular Walkman brand, Sony is targeting this segment. What’s wrong?
Other than the young adults, who else would buy a Walkman? Walkman is just portable music players with slightly better music quality.
“Manager Feng, Walkman is for those young adults to listen to music. What’s wrong?” Someone was not satisfied. Even if you are Manager Feng, you can’t be right every time. All of us had thought this way, it can’t be everyone is wrong.
“Although our Walkman has better sound quality than the other brands of Walkman in the market, our Walkman are learning tools!” Feng Yu seriously said.
Huh? Learning tool?
All the jaws of the dealers dropped. Even Fu Guangzheng, standing by the side was confused. This Walkman is just a small music player. Even the recording function was removed due to the regulations. How can it be used as a learning tool?
Who had heard of using a music player as a learning tool? What does Feng Yu mean? Was he joking with us?
“All of you don’t understand? Mr. Huang, how old is your child?” Feng Yu suddenly asked Fatty Huang.
“13 years’ old. He is in year 2 of junior high school.”
“Does your child learn foreign languages?”
“Of course. The school has English lessons. But my son’s grades for English is not very good. Manager Zhao’s son has good grades. His son is always in the top 3 of the class!” When mentioned about his son’s grades, Fatty Huang did not have his usual arrogance.
He was the richest among these dealers, but when they compared their children, his son could not be compared to the other dealers’ children. This had been bothering him!
Eh? We were still talking about Walkman and why are we discussing my son’s grades?
“Mr. Huang, I am able to say this because I am good in English and Russian. From my experience, to learn foreign languages, one needs to listen more and speak more.” Feng Yu said this and picked up the Walkman on the table.
Listen more? Listen to cassette tapes in foreign languages?
“Mr. Huang, if your son says he wants a Walkman to listen to songs, will you buy one for your son? But if your son comes to you and says he needs a Walkman to help him learn English, will you buy it?”
Fatty Huang’s eyes shined: “Of course I am willing to buy a Walkman if it can help him with his studies! Manager Feng, are you saying that this Walkman can be used to help students learn foreign languages?”
Feng Yu smiled cunningly: “To the parents, we will market the Walkman this way. But we cannot control what the students do with the Walkman once they bought it.”
All the dealers saw a new horizon. If this Walkman was marketed this way, then most of the parents will buy it for their kids.
Fu Guangzheng was also shocked. How come Feng Yu could always think of weird ideas to sell his products. If they market the Walkman as what Feng Yu said, then this will be selling like hotcakes. It was still the school holidays now. Soon, the school will reopen, and it would be a perfect period to market the Walkman!
The Fu family had been in the retail businesses for so many years, but compared to Feng Yu, who was less than 20 years’ old, Fu Guangzheng felt dejected. Luckily, he was still Feng Yu’s friend!