OBS Chapter 569 Have you figured it out?
Chapter 569 Have you figured it out?
Li Xiangyang remained silent for a full ten seconds. The number 70,000 orders swirled in his mind.
Based on current prices, the profit is at least twice the factory's total revenue in previous years!
However, Li Xiangyang did not agree immediately.
In his previous life, he had seen too many companies go bankrupt due to blind expansion.
"Mr. Lin, can you give me some time to think it over?" Li Xiangyang's voice was calm.
A hint of surprise came from the other end of the phone: "Mr. Li, this is a golden opportunity!"
“I understand, but I need to assess our actual capabilities.” Li Xiangyang glanced at the bustling workshop. “Doing business requires a steady and cautious approach; we can’t take risks just because an order is large.”
Lin Zhihua was silent for a moment, then said, "Alright, I'll give you two days. But the client is pressing you hard, so I hope you can reply as soon as possible."
After hanging up the phone, Ma Qingfu came over and asked, "What's wrong? You don't look well."
Li Xiangyang recounted the conversation that had just taken place.
Ma Qingfu's eyes lit up: "My God! Why refuse?"
"Fatty, calm down." Li Xiangyang waved his hand. "Let's settle the accounts first."
The two arrived at the office, and Li Xiangyang took out paper and pen to start calculating.
Raw material costs, labor costs, equipment depreciation, transportation costs... every item was carefully calculated.
By the end, Ma Qingfu's expression had turned somewhat grim.
“At the current production capacity, it will take at least five months to fulfill the orders,” Li Xiangyang said, putting down his pen. “And that’s without guaranteeing a 100% pass rate.”
"Shall we add another production line?" Ma Qingfu suggested.
"It'll take a month for the equipment to arrive, and another month to train the workers," Li Xiangyang shook his head. "By the time the production line is built, it'll be too late."
Ma Qingfu was somewhat unwilling: "Then how about outsourcing part of it to other factories?"
"How can we guarantee the quality?" Li Xiangyang retorted. "Who will be responsible if problems arise?"
Just then, Li Xiaoyun came in carrying tea.
"What are you discussing? You look so serious."
Li Xiangyang briefly explained the situation.
After listening, Li Xiaoyun pondered for a moment: "Xiangyang, you already have the answer in your heart, don't you?"
Li Xiangyang nodded. His wife knew him best; she knew he would never take risks for short-term gains.
"But such a big order..." Ma Qingfu was still a little reluctant.
“Fatty, let me ask you, what will we lose if this batch of goods flops?” Li Xiangyang looked at him.
Ma Qingfu thought for a moment: "The loss... isn't just a matter of money, it's also about reputation."
“Yes.” Li Xiangyang stood up. “What’s the most important thing in doing business? It’s not seizing every opportunity, but only doing what you’re confident you can do.”
The next morning, Li Xiangyang answered Lin Zhihua's call.
"Mr. Lin, I've been thinking about the additional order all night."
"Mr. Li, have you thought it through?" Lin Zhihua's voice was filled with anticipation.
"Yes, I've decided to politely decline the additional order for 20,000 units," Li Xiangyang said firmly. "Our current production capacity can only guarantee the quality and delivery time of 50,000 units."
There was silence on the other end of the phone for a few seconds.
"Mr. Li, are you sure you want to give up this opportunity?" Lin Zhihua asked, somewhat incredulous.
“Boss Lin, I know this is tempting,” Li Xiangyang said, walking to the window and looking at the well-organized production line in the workshop. “But I value long-term cooperation more. Rather than risking things and messing things up, it’s better to focus on producing these 50,000 sets properly.”
Lin Zhihua remained silent for a long time: "President Li, to be honest, this is the first time I've encountered a factory manager like this."
"How to say?"
“Most people would be eager to accept such a large order immediately,” Lin Zhihua laughed. “But you’re so calm.”
"Doing business is like being a person; you have to know your own limitations," Li Xiangyang said calmly. "I'd rather earn less money than ruin my reputation."
“Okay, I understand.” Lin Zhihua’s voice carried a hint of admiration. “I’ll find another way to handle the remaining 20,000 sets. But Mr. Li, I can assure you that if these 50,000 sets are handled well, there will be more opportunities for cooperation in the future.”
"Then I'll thank you in advance, Mr. Lin."
After hanging up the phone, Ma Qingfu was still somewhat frustrated: "Xiangyang, do you think we were being too conservative?"
"Fatty, what do you think is the most valuable thing for a company?" Li Xiangyang asked.
"Equipment? Technology?"
“It’s about reputation,” Li Xiangyang said earnestly. “Reputation takes ten years to build, but only one day to destroy.”
Just then, the sound of machines stopping came from inside the workshop.
Li Xiangyang walked over quickly and saw that a new piece of equipment had malfunctioned.
Technician Lao Wang was performing repairs, his brow beaded with sweat.
"What happened?" Li Xiangyang asked.
"It's probably a break-in period issue with the new equipment; it needs some adjustments," Old Wang said, wiping his sweat. "It'll probably be down for half a day."
Li Xiangyang glanced at the production schedule. If this equipment were to be shut down for half a day, today's output would definitely not be achieved.
"Old Wang, do you need a technician from the manufacturer to come over?"
"I've already contacted them, they'll arrive this afternoon."
Li Xiangyang nodded, then turned to Ma Qingfu and said, "You see, this is why we refused to place additional orders. The equipment is malfunctioning, the workers need time to get used to their skills, and any problem in any of these areas will affect the overall progress."
In the afternoon, the equipment manufacturer's technicians arrived and quickly resolved the problem.
Li Xiangyang breathed a sigh of relief, but also became more convinced of his judgment.
While seizing opportunities is important in business, assessing risks is even more crucial.
Blindly expanding may seem courageous, but it is actually irresponsible to customers and employees.
When Li Xiangyang returned home that evening, he saw his wife, Li Xiaoyun, helping their son, Li Wangchen, with his homework.
"Dad!" Li Wangchen saw Li Xiangyang return and immediately put down his pen and ran over.
Li Xiangyang picked up his son and kissed him on the cheek: "How was your day at school?"
"My teacher praised my handwriting!" Li Wangchen said proudly.
"That's because my son studies hard," Li Xiangyang said, ruffling his hair. "But he can't be arrogant; he needs to keep working hard."
Li Xiaoyun walked over and took Li Xiangyang's coat: "How was the factory today?"
Li Xiangyang recounted the events of the day in detail.
After listening, Li Xiaoyun nodded: "You're right. Doing business definitely requires a steady and cautious approach; you can't take risks for short-term gains."
The next morning, as soon as Li Xiangyang arrived at the factory, he saw Ma Qingfu sitting in the office with a worried look on his face.
"Fatty, what's wrong?" Li Xiangyang poured him a cup of tea and handed it to him.
“Xiangyang, I thought about this all night.” Ma Qingfu looked up. “You’re right, we really can’t take the risk.”
"Have you figured it out?"
"Hmm," Ma Qingfu said with a wry smile, "I remembered that Mr. Zhao I met in the provincial capital before. He took on a big order, but the product quality was problematic, and he not only lost money but also lost customers he had built up over many years."