"Three production lines, if all placed in our factory, we could handle them."
Sheng Changqing looked at the large wooden crates, transported from the docks by Liberation brand trucks, as if they were his own beloved wife.
If the occasion had been different, he would have embraced the machinery inside and kissed it fiercely.
These were the tools for the Shanghai No. 3 Radio Factory's future transformation, upgrade, and survival!
"Factory Director Sheng, we only agreed on one production line initially. The promise of two was contingent on certain conditions."
"Your factory currently has no money. By the time engineers assemble the production line and workers familiarize themselves with the process to build the first television, time will pass."
"You should first figure out how to pay your workers' salaries. Stop coveting the other production line."
Chen Yang had already struck a deal with Sheng Changqing. These two production lines were not being given to the Shanghai No. 3 Radio Factory for free. He had secured the retail rights for all televisions produced by these two lines for the next five years.
Based on various raw materials, they had preliminarily calculated the cost of components and labor per television to be between 200 and 400 yuan, including integrated circuit boards, picture tubes, display screens, casings, antennas, plugs, and other miscellaneous small parts.
Currently, a 14-inch black and white television retailed for about 600 yuan, a 16-inch for about 750 yuan, and an 18-inch for a hefty 900 yuan.
These were just market prices. In reality, televisions were in such short supply at supply and marketing cooperatives and department stores that many people spent a lot of money just for a television ticket.
Chen Yang's televisions would not require any tickets. He could directly set a higher price. After all, obtaining a television ticket through connections at the supply and marketing cooperative also cost money. With him, customers could get a product immediately with cash, and they would likely accept a slightly higher price.
In 1979, not many people could afford a television, but given the vast population of China, even a small percentage represented a significant demand that neither the Shanghai No. 3 Radio Factory nor Chen Yang's own television factory could satisfy.
This very demand-supply imbalance led to the phenomenon in the 1980s where appliances were hard to come by, and people had to queue up to buy them.
The profit per television could range from 300 to 400-500 yuan.
Of course, the Shanghai No. 3 Radio Factory could not sell the goods to Chen Yang at cost price. They also needed to pay salaries and make a profit.
Chen Yang would directly procure from the Shanghai No. 3 Radio Factory, with each unit providing the factory with a profit of 100 yuan. How this payment would be structured was still to be determined by Chen Yang based on the actual situation.
He certainly wouldn't pay the full cost for each television. A portion of the money from each unit produced would be used to offset the cost of purchasing the production lines.
However, as long as the workers at the Shanghai No. 3 Radio Factory could quickly get up to speed, the cost of the two production lines would be recovered soon.
For Chen Yang, the profit per television could easily range from 300 to 500 yuan.
Value lies in scarcity. These were years of huge profits in the home appliance market, and he had to seize this opportunity to rapidly increase his wealth and then expand production.
By the 1990s, although prices would normally rise with inflation, due to reform and opening up and rapid economic development, numerous appliance factories would emerge, and appliance prices would actually fall.
At that point, the profit margins would not be so high, and competition would be fiercer.
However, Chen Yang would have entered the industry more than a decade ahead of them. His television brand would certainly gain recognition, and he would capture a significant market share.
"Boss Chen, you don't need to worry too much. The Shanghai No. 3 Radio Factory is a state-owned enterprise, and we from the Industry and Commerce Bureau are overseeing it."
"Factory Director Sheng, you are also here. Please give Boss Chen your commitment on when the first television can be produced."
Hou Yong also understood that nothing comes for free. Chen Yang's substantial investment in purchasing production lines for the Shanghai No. 3 Radio Factory must have a purpose.
"Director Hou, Boss Chen, how about this: if you give us the two production lines, the Shanghai No. 3 Radio Factory will work overtime and ensure you see results next month!"
Sheng Changqing exuded confidence. He had visited other factories and seen televisions before. It mainly involved careful soldering of circuit boards and picture tubes.
For those who made radios, the components on circuit boards were not vastly different. With guidance from foreign engineers and by studying diagrams, testing should not be too difficult.
Sheng Changqing was confident that they could produce the first television within a month.
"Excellent, Factory Director Sheng. With your word, I am at ease. I also hope you can produce televisions soon and in large quantities, so you can pay off the cost of the two production lines earlier."
"Once paid off, these production lines will be yours. From then on, all profits from each television produced will belong to the factory."
Chen Yang was motivating Sheng Changqing. In this era, workers' enthusiasm for labor was truly fervent.
Three shifts a day? Non-existent. They worked two shifts and didn't complain of hardship or fatigue.
At this time, labor was still glorified. Anyone slacking off would be looked down upon.
The status of workers was also not low, and their monthly salaries were higher than most people's, so there was no need for performance incentives; everyone would work hard.
In another ten years or so, this would change. With reform and opening up, the economy would prosper, but some of the good traditional values would gradually be eroded by the material pursuits brought by economic development.
Of course, this was all normal.
No one is perfect, and no situation is absolutely good without any drawbacks.
The shift from glorifying labor to focusing on money, earning more for more effort, and distribution according to work, is also a transformation.
There would still be people who advocated for dedication and sacrifice, but they would become fewer and fewer, because everyone needed to eat.
"Boss Chen, is your television brand really called Zhenhua?"
"Not Zhongxing? I think Zhongxing sounds pretty good too."
Sheng Changqing still couldn't fully grasp the impact of brand effect on future market dominance. He felt a little regretful that the brand name of the televisions wouldn't be decided by the factories producing them.
However, regret was regret; he had no grounds to object. Since Chen Yang was purchasing the equipment, they had no right to object to the television's name.
At worst, after five years, the factory would continue to produce televisions, and they could name them whatever they pleased then.