One day in February 1956, Akio Morita, the vice president of Sony Corporation of Japan, came to the United States again. This is his hundredth time across the Pacific Ocean, looking for a market for products. In the early spring of New York, the wind was biting and the pedestrians on the street were very rare. The short stature of Akio Morita, with a small transistor radio, slammed the wind and walked through the streets to visit retailers who might work with Sony.
However, when those retailers saw this little radio, they were both very interesting and confused: “Our Americans have big houses and many rooms. They need beautiful shapes, good sound, and room settings. The big radio. I don’t think there are many people who want this kind of gadget.” Akio Morita is not discouraged, and the extra explanation is often not as good as the one used in the trial. Small and exquisite, easy to carry, free to choose, do not disturb people, is the advantage of small transistor radio. Soon, this “little baby” was accepted by Americans. A dealer with more than 150 chain stores said that he liked the transistor radio very much. He gave him a quantity from 5,000, 10,000, 30,000, 50,000 to 100,000 radios. Quotation.
Akio Morita needs a day to consider. After returning to the hotel, the excitement of Akio Morita was gradually replaced by cautious thinking: he began to feel that things were not that simple. Generally speaking, the larger the order amount, the more money you will earn, so the price will decrease in turn. However, in front of Sony, the monthly production capacity of only one thousand units, accepting 100,000 units of orders by the existing old equipment to complete, it is difficult to go to the sky! This will require new plant construction, expansion of equipment, hiring and training of more workers, which means that a large investment is also a dangerous bet. Because in the unlikely event that the same amount of orders are not available in the coming year, the imported equipment will be idle and a large number of people will be dismissed, which will cause the company to be in trouble and may even go bankrupt. Late at night, Akio Morita continued to ponder over the good policy. He repeatedly imagined the consequences of accepting the order and measured the relationship between price and order quantity. He wants to come up with a beautiful plan to not lose the business and not risk the company before dawn.
He kept calculating on paper, and he painted a U-shaped curve. Looking at this curve, his mind was inspired by lightning. If the order quantity of 5,000 units is used as the starting point, then 10,000 units will be at the lowest point of the curve, and the price will decrease as the curve declines. The lowest point is more than 10,000 units, and the price will rise as the curve rises. The unit price of 50,000 units is more than 5,000 units, and 100,000 units need not be said. The difference is obviously bigger. According to this law, he quickly drafted a quotation. The next day, Akio Morita came to the distribution company early, handed the quotation to the dealer, and smiled and said: “Our company is different, our price is reduced first with the order, and then it goes with The increase in the number of orders. That is to say, the discount for you, within 10,000 units, the higher the order quantity, the greater the discount; for more than 10,000 units, the discount will be less and less as the number increases.”
The dealer looked at the quotation in his hand and listened to the weird remarks of Akio Morita. He felt inexplicable. He felt that he seemed to be played by the Japanese. He tried to control his emotions and said: “Mr. Morita, I made a quick thirty. The dealers of the year have never seen people like you. The bigger the price I buy, the higher the price. This is too unreasonable.” Akio Morita patiently explained to the dealer the reasons for his quotation, distribution. The business listened and listened, and finally understood, the dealer quickly signed a contract with 10,000 tons of radio. In this way, Sony got rid of a dangerous gamble because of a good plan of Akio Morita.