Losing Money to Be a Tycoon - Chapter 293 - Everything that Boss Pei Did Felt Wrong
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Chapter 293 - Everything that Boss Pei Did Felt Wrong

Chapter 293 Everything that Boss Pei Did Felt Wrong

Zhang Yuan was confused. “Huh? Boss Pei, what do you mean?”

Pei Qian sniggered. “From the way things are going, customers have to wait at least four to five days for their system units to arrive at their doorstep after placing their orders, right?”

Zhang Yuan thought for a moment and replied, “Er… we could deliver the units in three or four days if we act quickly.”

Pei Qian shook his head, obviously unsatisfied. “That’s really slow.

“Based on our current model, we are creating good computers to be displayed in Fish-Catching Internet Cafe. Gamers can come to the internet cafes and try out the computers for themselves, in order to see if they are good or not. “If they like the computers, they have to pay for it. We would then order the necessary hardware and assemble a computer for them. At the same time, we would be responsible for getting the system units delivered to their doorsteps and providing after-sales services. All we would earn are the installation and service fees, right?

“Here comes the problem. If we order the hardware online, it would take at least two or three days to come even if the delivery is quick. Then, we have to assemble the system units and deliver them. That would take another day at least. Wouldn’t customers become very anxious in those few days?

“That’s a huge problem!”

Zhang Yuan was slightly confused. “Huh? It’s just three or four days; they can wait, can’t they?

“Even online shops that sell ready-made computers work that way, right? Some shops even take a full week to deliver the system units after the orders have been made. We’re already considered quite fast.”

Pei Qian shook his head. “We’re only two or three days faster than other online shops; how can we call that a core benefit? Gamers still have to wait, don’t they?

“Fast service is this: customers placing an order in the morning and receiving their system unit by the afternoon on the same day!

“That’s why we cannot only place orders for hardware after receiving customers’ requests. We have to be prepared with the hardware in advance.

“We need to achieve four things:

“We should deliver customers’ purchases as quickly as if they had been bought from physical stores. Our after-sales service has to be as good as first-tier brands. Our marketing model and the quality of our goods have to match up to the most good-hearted online stores. Our quality-to-price ratio must be pegged against what unscrupulous merchants selling ‘lemon’ products[1] boast of! “Only then can we do this glowing logo justice, understand?”

Zhang Yuan became speechless. He pondered for a moment and said, “That requires us to have large amounts of stocks prepared. Yet, that’ll be like false bravado. If we can’t sell our stocks, we’ll have to hold it until the next generation of products comes out. By then, the stocks would have to be sold at very low prices. The risks are too high!”

Pei Qian smiled. “There will be risks to anything that we do. How can we sit back and do nothing just because of that?

“As long as money can buy an excellent shopping experience for our customers, it would be money well-spent!

“Since we have decided to venture into this business, we should not keep it so low-profile. I’ll give you a sum of money. You can rent warehouses near each of our Fish-Catching Internet Cafe branches and store our stocks there.

“Don’t worry about overstocking. I’m thinking about holding a 1024 Programmer’s Day event. We can use that opportunity to publicize ROF’s brand as well.”

All three men looked confused. “Programmer’s Day?”

Pei Qian nodded and explained his plan in detail.

The main event was a huge sale for Fish-Catching Take-Out and Upwind Logistics, starting from the week beginning with October 24th. The event would ultimately aim to give back to old and new customers alike, improve the businesses’ reputation, and increase their market share. Of course, the core aim was to spend as much money as possible.

After finding out about the computer-installation business, Pei Qian decided to include it in the 1024 Programmer’s Day event.

It would seem quite underwhelming if he only gave discounts for Fish-Catching Take-Out and Upwind Logistics on Programmer’s Day.

Now, he could give discounts on system units, too. It was just as well!

“ROF can be included in the event as a computer-installation brand as well, but we have to make some changes.

“First, we have too few types of systems, one, to be exact. We won’t be able to properly satisfy customers’ requests.

“I think we can come up with three types of systems: costing 7,999, 11,999, and 15,999 yuan respectively. During the sale, we can sell these systems at their cost price. In essence, these systems would be sold at the total cost of their respective hardware parts. That would mean we would deliver and install them at no charge.

“We can also include a free upgrade. Those who purchase the 7,999 yuan system can upgrade to the 11,999 one for free. Those who purchase the 11,999 system can in turn upgrade to the 15,999 one for free.

“The first 100 customers can enjoy this free upgrade. After that, we will hold a ballot and allow lucky customers to upgrade at no charge. “Fish-Catching Internet Cafe can hold a ballot at regular intervals as well. We would give one entire system to one lucky customer during each ballot.

“Of course, all of these activities will be conducted between October 24th and 31st. After that, we’ll resume normal operations. “Holding a promotional event like that would make us more popular and get our brand name out there. It wouldn’t be too ridiculous to spend some money, right?”

Pei Qian was not actually speaking to the three men… but to the System.

Indeed, the System did not prohibit him from doing this!

The System drew a very blur line between ‘promotions’ and ‘free gifts’. As long as it looked like a promotional event on the surface and Pei Qian explained that he was trying to gain popularity by giving discounts, the System would likely turn a blind eye to his actions.

He could not help but feel moved. Physical industries were really the best!

He could do no such thing for the games.

Once research and development was complete, games required no more production costs. The more promotions one ran, the more one would earn.

On the other hand, one had to incur large expenses for manpower and rent to operate physical industries. On top of that, he could run huge promotional events and sell computer hardware at low prices. As long as he did not do this over an extended period and gained popularity and fame in return, the System would not consider it an intentional loss.

He had also mentioned he wanted to produce a large number of stocks. He would spend a lot of money to build up an excess of stocks, which Pei Qian guessed would not all be sold. Once they came up with new products, the excess stocks would have to be sold at extremely low prices. That meant another chance to incur losses!

Great!

After listening to Boss Pei’s explanation, Zhang Yuan could not help but raise his thumb. “Boss Pei, you are far-sighted indeed, and you make such bold moves!

“However, I have a minor suggestion.

“1024 is Programmer’s Day, but if we run a promotional event for that reason, it might not be as effective. After all, we are trying to target everyone… and not just programmers.

“Why don’t we call it ‘1024 Digital Day’? That would expand our audience and make it easier for us to advertise the promotion.”

Pei Qian nodded. “Alright, that works!”

He didn’t think that referring to October 24th as Programmer’s Day was appropriate either.

At first, he was only going to run promotions for take-out and delivery services. Referring to such an event as Programmer’s Day sounded far-fetched.

Now, the event would include take-out, logistics, and computer-installation services. Calling it 1024 Digital Day would be more memorable.

More people in Jingzhou would take note of it, and Pei Qian would incur more losses.

In addition to the manpower costs Pei Qian would incur during this period, he could be assured that he would be spending a huge sum of money.

Zhang Yuan was becoming very excited and highly motivated.

Boss Pei is amazing!

He trusts me! Before this, Zhang Yuan had thought about keeping the business low-profile. He wanted to go down the route of online computer-installation business and ride on Fish-Catching Internet Cafe’s fame. He thought that he would be able to generate some revenue by targeting ballers.

He had not expected Boss Pei to be so generous. He was offering so much support that Zhang Yuan felt touched!

“Boss Pei, don’t worry. I’ll do this well!”

Pei Qian nodded. “Alright. As always, do not be afraid of spending money. Understand?”

Boss Pei had finally thought th