RBCT Chapter 5 Resolving Future Concerns
Chapter 5 Resolving Future Concerns
On the way back, Lin Feng was already thinking about how to write the charter and which teacher to find for guidance.
Professor Zhang from our department has a good impression of him; you could give him a try.
The materials were prepared over several days.
Lin Feng revised the charter again and again, and set its purpose as "popularizing digital knowledge, enriching campus music culture, and building a communication platform".
The organizational structure includes a president, vice president, content department, activities department, technology department, and external relations department.
Lin Feng will serve as president, Wang Peng as vice president, and the others will fill in the rest gradually.
Teacher Zhang readily agreed to be Lin Feng's mentor after hearing his introduction.
Lin Feng neatly printed out the materials, put them in a file bag, and delivered them to the student union office.
There was only one staff member in the office. I asked him to put the file bag on the table and said I would hand it over to Minister Wu of the Student Union later.
Lin Feng thanked him and turned to leave.
That afternoon, Wu Feng returned to his office and saw the file folder on his desk.
He flipped through a few pages, his gaze lingering on the applicant's name, "Lin Feng," before taking out his phone and dialing a number.
"Hey, Zhou Yang! Your business rival, Lin Feng, is applying to form a club."
On the other end of the phone, Zhou Yang was promoting the Samsung YP-55MP3 to his junior classmates.
Upon hearing this, he immediately walked to the side.
"Brother Feng, you absolutely mustn't approve his club application! Lin Feng is ostensibly running a digital music club, but actually it's just a convenient way to sell MP3 players! And what he's selling are counterfeit and shoddy products!"
Do you know how he got all those members in his club? They're all people who bought his MP3 players. He's trying to use the club as a sales channel, don't fall for it!
Wu Feng frowned: "I understand. Thanks for reminding me!"
He and Zhou Yang were classmates. In their daily interactions, Zhou Yang was quite methodical in her speech and actions, and didn't seem like someone who would fabricate stories.
Wu Feng hesitated for a moment, then locked the application in the drawer.
A week has passed since I submitted my application, and I haven't heard anything back.
Lin Feng asked Chen Tao to inquire about Wu Feng twice, and Chen Tao replied that Wu Feng was very busy recently because the school was strict about approving club activities, and then there was no further news.
"Busy? Strictly controlled?" Lin Feng sneered inwardly. He had a pretty good idea of what was going on.
He didn't go to the student union office to ask again. There was no point in urging him; asking would only be pointless.
But he was not idle either.
Since the "official status" of the organization is temporarily stalled, let's focus on doing practical things more solidly first, and continue the business and make money.
The second batch of 32 MP3 players sold, earning another 8000 yuan. Adding the initial investment and the profit from the first batch, I now have 22,000 yuan in capital.
This number is still far from 100,000. But he knows that the next step is to lay a solid foundation before he can start increasing sales volume.
So Lin Feng went to Taisheng South Road again.
The street scene outside the bus window slowly receded, and most of the ginkgo leaves on the roadside had turned yellow. A gust of wind blew them down, and they fell to the ground with a rustling sound.
He looked out the window, pondering how to talk to Lao Liu later.
After-sales service for generic mold machines is a major issue.
The MP3 market in 2003 was in complete chaos.
Reputable brands like Samsung and Aigo have official service centers and offer a one-year warranty.
As for those generic, off-brand machines, they're basically a "sell and be done with it, if they break down you're out of luck" business. Many manufacturers don't even last a year before going out of business, and distributors certainly won't bail you out.
Some off-brand MP3 players have a return rate as high as 30% to 40%. The more of these products you sell, the more troublesome the after-sales disputes become.
Lin Feng cannot take this path.
He's doing long-term business, not a one-off deal. The community needs to be established, its reputation needs to be built, and after-sales service must be solid.
But the question is, why should the stall owners on Taisheng South Road guarantee your safety?
When the bus arrived at the station, Lin Feng got off and walked along the familiar street.
Taisheng South Road was still the same as always, with loudspeakers blaring from the shops along the street, and it was packed with people selling mobile phones, MP3 players, and repairing computers. Lin Feng stopped in front of Lao Liu's stall.
Old Liu was lounging with his legs crossed, smoking, when he saw Lin Feng, his face immediately lighting up with a smile: "Hey, student brother's here! How much do you want this time? We still have some of those Grade A boards from last time!"
Lin Feng looked serious and didn't rush to reply. He sat down on the high stool in front of the counter.
"Boss Liu, there's no rush for the goods. I'm here today to discuss something with you."
"What is it? Tell me." Old Liu stubbed out his cigarette and leaned closer.
"After-sales service," Lin Feng uttered.
Old Liu's smile faltered, as if he hadn't heard clearly: "Huh?"
"After-sales service," Lin Feng repeated. "What kind of warranty do you provide for MP3 players sold through me if they break?"
Old Liu finally understood and grinned, "You're not kidding me, are you? These are generic molded machines, where's the after-sales service? It's a rule that once they're out, they don't acknowledge the product! If it breaks, it's just bad luck or improper use!"
"Dude, these generic models are so cheap, you expect them to be as high quality as Samsung or Sony, and come with after-sales service? No way..."
Lin Feng disagreed: "Boss Liu, I understand what you're saying. But what I want to do isn't a one-off deal."
"I don't just sell hardware when I sell machines. I build a network. If a machine breaks down, the customer will definitely come to me. If I don't provide after-sales service, my reputation will be ruined, and my business will be over."
He raised his voice slightly: "I've been buying goods from you, Boss Liu, for a long time. If my business falls apart, who will help you sell all this stock?"
Aligning interests is the key to long-term success in business. Lin Feng knew this, and Boss Liu naturally understood this principle as well.
"So what do you want to do?" Old Liu's tone softened a bit. "I can't just give you a full refund if one breaks down, can I?"
"No need for a full refund." Lin Feng had already come up with a plan. "Big brands like Samsung offer '7-day return policy, 15-day exchange policy, and one-year warranty'."
Our machines are cheap, and the warranty period is doubled. 3-day return policy, 10-day exchange policy, and 6-month warranty. How about that?
If the machine is unusable due to non-human damage within 10 days, I'll take it back, and you can replace it with a new one at cost price of 300 yuan.
If it breaks down within six months, could you arrange for it to be sent back to the factory for repair?
"300 yuan cost for a replacement?" Old Liu quickly did the math in his head.
He earns Lin Feng tens of yuan per machine, but buys back broken machines for 300 yuan, which means he gives back his profits and even loses some money.
But the broken machine is in his hands; he might be able to salvage some parts and still use it. The key issue is the failure rate... and sending it back to the factory for repair is a huge hassle.
Old Liu shook his head: "It's unrealistic! To tell you the truth, these machines are all assembled from templates in Shenzhen. The manufacturer may be here today, but not tomorrow."
Send it back to the factory? The factory's gone. I can't repair it myself. Replace them all with new ones? I'd lose money on every single one. Then I might as well give up on this business.
Old Liu was telling the truth. Lin Feng also knew that reasoning alone wouldn't work; he had to offer something in return.
"Boss Liu, I have a proposal for you. Listen to it and see if it works. We'll set the warranty period at three months, replacement only, no repairs. From now on, I'll add twenty yuan to the price of each unit I buy from you."
Old Liu's eyes twitched.
"This twenty yuan will serve as a warranty fund. If it breaks within three months and needs replacing, the cost will be covered by the fund. If the fund isn't enough, we'll split the excess 50/50. How about that?"
Old Liu didn't speak, his fingers tapping lightly on the calculator, clearly calculating something.
If the failure rate is zero within three months, then the 20 yuan per unit will be Lao Liu's net profit.
If one out of every fifteen units is faulty and needs to be replaced, the fund can just cover the replacement cost.
If the failure rate is higher than one in fifteen, then Lin Feng and Lao Liu will each bear half of the portion that the fund cannot cover.
"How about it? Are you confident in the quality of the MP3s you're selling?" Lin Feng stared into the other person's eyes.
Old Liu tried to bargain: "Isn't the replacement period a bit too long? How about a one-month replacement-only policy?"
Lin Feng shook his head: "If it doesn't sell in a month, it's the same as having no after-sales service. Let's do it in three months."
Old Liu stared at Lin Feng for a few seconds, then suddenly laughed: "Alright, student, you've got guts. It'll be as you said, a three-month warranty! But we need to draw up a contract, clearly stating which situations constitute 'human-caused damage' and will not be eligible for return or exchange, to avoid any disputes."
"no problem."
Old Liu found paper and pen, and Lin Feng and Old Liu wrote a contract in person.
Old Liu took it, examined it carefully twice, and clicked his tongue twice: "Okay, sign it!"
The two signed and affixed their fingerprints, and the matter was settled.
Subsequently, Lin Feng took out another 20,000 yuan and purchased 50 MP3 players.
When Lin Feng left Taisheng South Road, he had an extra agreement and a stack of warranty cards in his pocket.
Although it incurred additional costs, it resolved my concerns.
He had to make this move.