Reborn in 1976, teach him how to be an official

"Four million kilograms of tea seeds can produce 400 kilograms of tea oil each year."

"The current market price for tea oil is about 1.6 yuan per kilogram wholesale. The retail price is about 2.6 yuan."

"Based on wholesale prices, at this level of output, the Qingqiao Tea Oil Factory can generate an annual output value of 115 million yuan, with a gross profit of around 35 yuan."

"But now, the annual output of Qingqiao Tea Oil Factory is only about 40 kilograms, with an output value of only about 30 yuan, and a gross profit of less than 10 yuan."

"Even so, the tea oil factory is already the largest and most profitable collective enterprise in Qingqiao District."

"I asked the people in Qingqiao why they didn't expand production capacity. They told me that if they produced too much tea oil, they wouldn't be able to sell it. Right now, the tea oil produced by the Qingqiao Tea Oil Factory is mainly supplied to Zhuang'an County and several surrounding counties. Even our Ningzhou Department Store doesn't sell Qingqiao tea oil."

"Comrades, let's take this tea oil factory as an example and talk about what kind of benefits will be produced if we can liberate our minds and expand the scale of this tea oil factory to make it bigger and stronger."

"According to the calculation I just made, if we switch to machine extraction, the oil yield can reach 23% to 25%. With 400 million kilograms of dry tea seeds per year, we can produce nearly 100 kilograms of tea oil, with an output value of 160 million yuan and a gross profit of 50 yuan."

"In addition, we can also increase the retail price of tea oil by changing the packaging and promotional methods. For high-end tea oil with beautiful packaging, there is no problem in raising the retail price to 3 yuan per kilogram, and we can even sell it at a higher price."

"We can also convert some of our wholesale sales into retail sales. This way, we can earn even higher profits. Qingqiao Tea Oil Factory can easily make an annual profit of one or even two million..."

When Liu Hongyi said this, someone in the audience finally couldn't help but ask, "Secretary Liu, what if we can't sell all this tea oil?"

Liu Hongyi laughed.

Finally someone asked.

This proves that everyone's thinking is following his lead.

It also proves that many of the cadres here are still thinking in the planned economy era and have no idea about marketing.

"Good question!"

“What if the product is produced but cannot be sold?”

“Open up the market!”

Liu Hongyi said loudly in a strong tone.

"Let me give you a practical example. The Chuzhou Agricultural Machinery Factory opened an office in Beidu two years ago. They sell Chuzhou's agricultural machinery products all over the country."

"Now, many large factories in Chuzhou have set up offices in major cities across the country."

"Everyone should be familiar with the Enamel Factory's thermos cup, right?"

"I guess everyone in your office has seen high-end thermos cups produced by the Chuzhou Enamel Factory. They sell for two or three yuan each in the department store!"

As soon as Liu Hongyi gave this example, no one present could refute it.

Because their office is indeed full of high-end thermos cups produced by Chuzhou Enamel Factory.

"Chuzhou, also a backward agricultural region, can sell its products nationwide and even abroad. Why can't we?"

"The Chuzhou Regional Planning Commission has a dedicated market research department, which is the largest department in the entire planning commission. It has over a hundred people...oh, it should be over two hundred now...Their mission is to travel around the country to investigate and understand the market situation. After receiving feedback, Chuzhou will build corresponding factories to produce various products that are urgently needed by the people across the country. Therefore, Chuzhou's products rarely encounter major sales difficulties, and most of the time, they are in short supply."

"Besides that, every larger factory and company has its own market research department."

"We all do the same thing, which is to accurately grasp market demand and produce according to demand."

There were exclamations of admiration in the classroom.

Obviously everyone was moved by the practical examples Liu Hongyi gave.