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Chapter 48 Game consoles can also play financial leasing

When the 8080 CPU was just launched by Intel in 1975, the price was as high as $300 to $400. However, after Zilog created a copycat version with similar performance, Intel's shipment price was forced to lower by 25%.

Then when the 8086 appeared in 1978, the 8080 was outdated, and now it costs just over $200. As for the high-quality imitation z80, it is less than 150 yuan.

This is normal, because CPUs and graphics cards both abide by Moore's law, and the price is once a year. Audiences who equipped assembled machines before 2010 should understand this. (The price of outdated installation accessories in recent years has not been reduced, mainly because they have stolen memory and Bitcoin mining has stolen graphics card production capacity.)

Based on the material costs in the second half of 1979, Gu Ao would cost about $150 to build a "thunderfighter" and dozens of dollars in memory and other components, which means that the motherboard would cost about $200.

There is also a $100 image tube, a few dozen dollars in shells and various miscellaneous materials, a transportation and logistics fee, and a total machine material cost of $350.

Among them, the production part in China also needs to pay a 25% tariff when imported into Japan (CPU is welded in Japan, so the materials do not need to be exported to the country, and this part does not need to be paid repeatedly)

According to the practice of later generations, "the cost of materials shall not exceed 60% of the gross profit retail price" (this is a "convention" for companies such as Huawei with very low net profits. If you use profit-making companies like Apple as a practice, the proportion of material costs will not exceed 25%)

Finally, if the shipping price on the day is not less than US$600/150,000 yen per unit, you will have a slight gross profit. If you rise further, you will be the absolute net profit part.

It can be seen how "black" the "equipment financing and leasing" agreement made by Han Ting for Miko Shirai, which is 800,000 yuan per unit is. This "proportion of material costs in selling prices" is more than twice as low as Apple sells iPhones in later generations.

However, huge profits with insufficient thresholds will never last long.

Gu Ao knew that the first person to react must be Taidong Electrical Appliances. He already had a semi-finished project on hand, but it was not favored by the market before, so it was abandoned.

At most one or two weeks, the other party can complete the market discovery, hold a new meeting to investigate, modify the design requirements, and rectify the supply chain in another month. It is estimated that Taidong's competitors will appear on the market by early December this year.

According to the original development speed of history, Namco, Konami and Nintendo will also launch their own follow-up works within six months of the first hit on the market, which is easy to think of.

So after the Spring Festival next year, there may be 2 to 3 peers on the market. By May Day, the intensity of competition will further increase to 5 brands.

In the United States, Atari may also follow the trend and imitate it. With Atari's channel advantages and technology, it may only be faster. Atari has become very mature in making electronic game arcades, with more than three years of industry history. Compared with his Japanese counterparts, it just does not have the concept of "shooting games", so the hardware is completely mature, just spending time at the software level.

Considering that arcades are a product that relies heavily on channels and is not directly targeted at the end consumers, Gu Ao never imagined opening up the American market in the arcade era.

Once the amount of goods on the market is larger, first of all, the high price of 100 yen per coin will definitely not be able to withstand it. It will soon fall back to 50 yen, which is the same as other gaming consoles. In this way, the income of the terminal game hall owners will instantly cut by half, and the price of equipment will drop by more than half, and there will be no huge profits.

...

One day at the end of October is also the third Monday of the opening of Shirai Video Games Store.

At 9 a.m., Manager Shirai Mikoto had just finished sorting out the store’s internal affairs, cleared the accounts, and then opened the rolling gate to start work.

Sakuragi Haruko and other temporary workers have not come to work yet, because the morning is not the peak period of Akihabara Game Hall, and the number of customers in the store will not arrive at 10, so there is no need for clerks to help.

However, today's situation is different.

As soon as he opened the door, Mikoto Shirai saw Mr. Gao Sha who rented an entire floor to open an electrical appliance company in the department store opposite, wandering into the store.

"Takashasan?" Shirai Mikoto was facing a great enemy, thinking that the other party wanted to come and make a comeback.

Mr. Gao Sha was very straightforward and threw a handful of coins into each machine and asked his followers to play with him. He should have occupied the pit to avoid others from disturbing the chat.

Then he went straight to the point: "Miss Shirai, your store business is very popular. I have been in Akihabara for 15 years and have seen countless stores. Even if it is an electrician, at least it will have to open other businesses in the morning to amortize the rent. I dare to make the morning time completely empty, and I can only make money in the afternoon and evening. I have only seen it in Ginza and Shinjuku."

Seeing that the other party's attitude was pretty good, Mikoto Shirai calmed down and quickly followed the lines taught by Han Ting to persuade her.

Han Ting once said that as long as she introduces her to buy a game console, she will give her a personal appropriate commission, which is about 5% of her sales.

"It's all up to know a boss with a good vision in Xiangjiang and asked her how she got into the latest game console developed in Xiangjiang. Is Gao Shasang also interested?"

Mr. Gao Sha was very surprised. He thought that Mikoto Shirai would definitely hide it and did not want this secret to make money to be known to his colleagues, but now he was so happy that he couldn't help but feel that there was a conspiracy in it.

"Ms. Shirai is so generous? Don't you want to monopolize the money alone and make longer?"

Shirai Mikoto took a deep breath and recited: "To be honest, I don't have much capital. I was still not a penny a month ago. How could I afford to open my own store? It was still the boss Han from Xiangjiang, who was not familiar with Japan and was unable to end up in person because of the law.

So it is said that I found a lawyer who graduated from Dongda University and thought of a franchise plan for "equipment financing leasing". I almost didn't ask me to pay for the money and opened the store.

Although I have a high turnover now, most of my revenue has been paid back according to the financial leasing agreement, and my hands are still tight. However, Boss Han issued me a commission of 2% after selling the equipment, and I can get it directly, so I think it is good to help sell the machine."

Mr. Gao Sha didn't understand the concept of "financial leasing". He asked in detail and then confirmed that "When the store was opened, Mikoto Shirai only paid two expenses of 200,000 yen for the first month of rent and temporary workers' wages. All game consoles were owed on credit according to the financing leasing agreement."

In China in 1979, no one could play this model. Even Boss Rong, who just established CITIC Trust this month, has never seen such a bold business.

Even in Japan, it is very rare, but it is legally allowed. In fact, it has only been seen in large-scale industrial complete sets of equipment cases, each transaction is at least one billion yen per ten million US dollars.

Only in the United States, where financial innovation is the most advanced, this model can be reduced to small businesses of the order of 100,000 US dollars. That is, container truck drivers who cannot afford the cost of buying cars at one time and want to take on transportation business, so they sign financial leasing with manufacturers that produce heavy trucks, and then use most of the transportation income in the next five years to pay back the "rental". After the lease expires, the ownership of the car belongs to the driver.

(In fact, it is a mortgage for producing equipment, but the risk bearer of the mortgage loan must be a bank and other financial institution, and the risk bearer of the financial leasing is directly the equipment manufacturer and does not require any financial qualifications. In this case, Gu Ao and Han Ting became "creditors")

Han Ting used this trick to bypass Japanese laws that prohibit foreign "self-employed" from operating the entertainment industry, and ensured that all the money received by Miko Shirai was controlled.

After listening to Mikoto Shirai's description, Mr. Gaosha's last concern was eliminated. He asked incredibly and eagerly: "Can this kind of business still be played like this? Do you don't have to give a little capital first? You can get the game console first without a business, and then use the money you earned from the game console to pay the price of the game console itself? Isn't that just a waste of money?"

Shirai Mikoto quickly explained: "Boss Han said that I am the first pilot, so I can have zero down payment. The subsequent down payment is required at least 25%. If you think it is not cost-effective during the rental period, you can stop repaying the loan and the equipment supplier will recover the property rights of the game console. Moreover, the higher the down payment ratio, the lower the total price discount. You can get a 75% discount if you pay the full payment in one go."

"Do you have a quotation here?" Mr. Gao Sha asked eagerly.

Shirai Mikoto took out the quotation.

Mr. Gao Sha glanced at it and jumped: "The down payment of 25% of the Thunder Fighter is 700,000 yen? It's too expensive! Our electric racing machine purchased only 250,000 yen two years ago! Now the inventory has been reduced to 200,000! Yours is a total of 3:5 times the average industry price of more than 3:50!"

Shirai Mikoto: "But there are already several racing machines that are eating dust there, and you have seen the profitability of my machine, right? Moreover, Boss Han provided financial leasing. Only the down payment is 25%, so you can take the machine away first.

Moreover, you don’t need to repay the money in the first month after you pick up the machine. You can use the machine’s income to fully fill the 25% funding gap. You can refund it later. That’s equivalent to just paying some rent. How much risk can this be?"

In fact, according to the first batch of customer slaughter prices, as long as Gao Sha pays the first 25% down payment, Gu Ao has already paid back the capital and can still have a net profit of more than 10%, so he will not lose.

The next 75% will be a complete net profit regardless of the amount of the collection.

The price of the whole machine, which is 3.5 times higher than the previous generation of products, will definitely be severely conflicted under normal marketing model. Because the bosses of electrical appliance companies are unwilling to take this risk.

But the down payment of 25% is equivalent to a one-time financial pressure slightly lower than purchasing an old-generation electric motor, so many people are willing to give it a try.

"Also, we can ensure that the number of shipments in the first month will not exceed 100 units, because the production capacity is limited, which is the quota for the entire Japanese market. The earlier we get it, the less saturated the market, the more profitable it can be.

If you are willing to wait for a few months, although I promise that the machine will be cheaper, you can wait for Namco and Nintendo to copy this thing. But the peers who run the game hall may also be several times more. At that time, it will not be 100 yen at a time, but only 50 yen at a time."

After such lobbying, Boss Gao Sha finally made up his mind: "My first batch will require 20 units! Can you recommend me to meet Boss Han?"

"Of course, I only have the right to help promote, but I don't have the right to make a decision."

...

In the afternoon of the same day, Mr. Gao Sha met Han Ting and the bosses of three other Akihabara Electric Appliances Firms. After communicating with Mikoto Shirai in the morning, he chose to further cooperate.

They were very surprised by Han Ting's beauty and temperament. Unexpectedly, the boss who operates this high-tech equipment as the manager of Baijing said was actually a woman.

Gao Sha also thinks that he should be an old man like Shigeru Miyamoto at the level of an executive at Nintendo.

However, Han Ting gave them a warning: "Gaoshajun, everyone, in order to ensure everyone's interests, I hope only one of the game consoles that can be shipped this week is operated in Akihabara. The rest, I hope you can find stores in Shibuya and Shinjuku. Too much operation is not only not conducive to product promotion, but also causes you to squeeze each other's customers, and no one is good."

These people are all capable of getting stores in downtown Tokyo, but this will be a big risk and there are still problems of cycles and running-in.

However, they all felt instantly that what Han Ting said was indeed reasonable, and that everyone's business in large groups could only be vicious competition.

"I want to stay in Akihabara!"

"Me too!"

Seeing his colleagues making excuses, Mr. Gao Sha knew that things were not that simple: "Miss Han, just say it straight, how do you want to screen the qualifications and decide who can open a store in Akihabara."

"I'm sure the price of the product is dead. Don't worry, I won't start the price. But I will choose the two indicators of future financing and repayment progress and one-time purchase scale to select the most competitive partners and open a store in Akihabara."

"I can purchase 50 units at a time, oh no, 60 units! And I promise that 90% of all revenue will be used to pay the rent first! Until you pay it off!" Mr. Gao Sha shouted loudly when he heard the sound.

There were only 100 supplies in the first week, and he entered 60, which was enough to ensure that others did not add up to him. Moreover, he also knew that these opponents could not raise enough funds to exceed him for the time being.

Even if there is a 25% advance payment, there is a pressure of more than 10 million yuan in funds. If you raise it within one or two days, the boss of the small electrical appliances bank really can't do it.

At the same time, Gaosha understands the nearby market conditions and can place it in front of several stores to share the exposure. 60 machines are not enough to exhaust the consumption potential of the entire Akihabara neighborhood, and there will be no vicious competition that will lead to price cuts or vacant places.

Sure enough, the two competitors next to them were instantly lost. They couldn't beat the purchase quantity or the diligence in repaying the loan.

"Boss Gao Sha is really happy, so that's it." Han Ting took out a contract with a clever smile.

"Can I look at the sample first?" Mr. Gao Sha looked at the other person's expression, and for no reason, he felt like he was being plotted against. So he insisted on looking at the sample.
Chapter completed!
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