Dongguan Shoe Factory Boss Hard To Do Business

"Who is willing to do business? It is worse than donkeys, and profits are thinner than paper." This is what journalists often hear about complaints from private entrepreneurs. However, in Houjie, Dongguan, Zhen Kunhong shoes In the eyes of Chen Zonghou, the factory owner, even if it is harder, business will still have to be done.

Chen Zonghou's entrepreneurial story is not complicated. In 2009, Chen Zonghou, who had worked hard for 10 years in Houjie shoe trading company, was determined to start his business with 500 thousand yuan savings and set up "Kun Hong shoe factory". Since 2009, Chen Zonghou has witnessed the demise of numerous shoe factories in Houjie Town because of the business environment less than a year. But with his many years of accumulated professional experience and connections, Chen Zonghou worked hard in the thick street.

"I can't do anything in thick street, no one can answer it unless they want to lose money." Chen Zonghou, a handsome looking person, smokes, lightly.

Profit making

"You can take a taxi to the three market health center of Houjie street." One day in mid July, Chen Zonghou showed reporters the direction of shoe factories on the phone.

Reporters came to the three Tun comprehensive market health station, a small building appeared in front of us. If it is not the recruitment notice on the first floor security door, it is hard to find that this upstairs is a shoe factory with more than 40 people: the two floor, the third floor is the production workshop, and the four floor is the dining hall. Chen Zonghou's office is located next to the two floor workshop: in the 20 square meter office, there are only simple furniture, such as a desk, a black leather sofa, and so on.

There is no computer on his desk. He spent most of his time sitting on the sofa and receiving visitors. When the reporter walked into the office, there were guests from shoe factories, trading companies and suppliers. The shoe factory came to Chen Zonghou for help because of its difficulty in operation.

The guests of the trading company said they had just received an order from a customer in Italy, 45 yuan a pair of shoes, and they had to arrive at the delivery time immediately, but the time limit for the project could not catch up. No, it has to be sent to Chen Zonghou's factory. The price for Chen is a pair of shoes 10 yuan processing fee, a total of 2000 pairs, the day after delivery.

Because the current order is not saturated, Chen Zonghou promised to help. "This price is still small profit for us, but this shoe factory is sure to lose money." He told reporters that the cost of raw materials, transportation and other costs needed 40 yuan, if the factory can do all of its own, there is little money to make. But if you can't do it yourself, you must lose money.

"This is a common phenomenon in shoe factories, which completely disregards its own production capacity and orders desperately at low prices, and finally loses money." He said, "companies are hard to carry, and they need to pick up single workers, hoping that the latter can make money."

The supplier's guest is Chen Zonghou's friend for many years and has been mixed up in the shoe making industry for many years. This time I hope Chen Zonghou can help him out. "The boss of a shoe factory has no orders now. I hope to use my technology and resources to allow me to enter the stock market, help to make orders, and stick to it. Do you think it can be done? "

Chen Zonghou immediately said: "you have no funds, you can not control the financial, it is very difficult to do. And I don't know how long it will last. At last, he asked, "did the boss who pulled you in last time not run?"

Hard business

During the interview, guests kept coming in and out of Chen Zonghou's office. This time they came to find Chen's money. They just helped a group of shoe upper of Kun Hong shoe factory to drill at the end of last month. Chen Zonghou let the wife in charge of Finance settle more than 20 thousand yuan.

Chen Zonghou said that this batch of goods started production at the end of June, such as hot drilling, car vamp and many other links were made by suppliers. In July 3rd, it was officially shipped. The factory received the estimated amount to August 10th, and after July 3rd shipment, there will be a lot of suppliers' money to be paid in advance.

"Let's take you to see the situation of our suppliers." Chen Zonghou came to the factory residence to help their car shoe upper with reporters. This is a typical family workshop. In the first floor of a residential building, there are 3 sewing machines. 7 workers are using hand tools such as glue, scissors, hammers and so on.

"Many of our suppliers are family workshops, two or three small machines, investing 1 to 20 thousand yuan, employing five or six temporary workers. They are very flexible. They can earn money in single season. Their prices are not good because they can not do anything at any time, and they will not pick up the price list. And we can't do that. We have so many machines and staff to support. " Chen Zonghou believes that the shoe factories are sandwiched in the middle, prices of products can not rise, and the cost price can not be reduced.

On the second day, when the reporter came to the office of the two floor of Kun Hong shoe factory, Chen Zonghou was collecting employee ID cards.

"According to the government's request, we should provide social security for new employees. For a long time no one has done it. The attitude of the staff is that if they want to pay, they will not do it. Chen sang thick shook his head and said, "so the money is from us, one person a year more than 4000."

An objective factor of Chen Zonghou's courtesy is that employees are really hard to recruit now, so they have to raise their salary if they want to retain their employees. "We are all fixed wages, and we still pay wages in the off-season."

On the first floor of the company on the recruitment notice, the reporter saw that the front-line workers were treated in the range of 2500 to 3000 yuan, wrapped in food and bags, and the monthly attendance was 80 yuan, with a year-end bonus. "Plus room and board, the average monthly wage of workers is more than 3000 yuan." That's about 15% more than last year. "

Slip away

On the way back from the shoe factory, Chen Zonghou received a call from a trading company customer. He excitedly told the reporter: "there is a big list, to quote the price, see if we can win it!"

Entering the trading company, the boss of the trading company is communicating with foreign customers in English. After sitting for a while, the landlady brought a pair of women's casual shoes with red hemp bottom to Chen Zonghou, "you calculate, quote the price."

Chen Zonghou picked up his shoes and looked at his shoes, and began to skillfully calculate the price. In less than 5 minutes, he wrote the detailed quotations on paper: one face 17.6 yuan, face two 8 yuan, Li 3.7 yuan, Li two 11.2 yuan, LOGO3 yuan, shoes head 3 yuan, Ma Di 12 yuan, big end 8 yuan, other 10 yuan, plus artificial, water and electricity, rent and profit, we have to earn a couple of yuan RMB to do it.

"It's too expensive for me and my client to quote 80 yuan and a pair," said the landlady of the trading company. "I'll let the company take charge of the nuclear price again."

Subsequently, the trading company employees started a nuclear price with Chen Zonghou and kept the price down. After several rounds of confrontation, Chen Zonghou showcase to the landlady: "we offer a minimum price of 100 yuan."

"This price is too high for us to report to our customers. The price quoted in Huidong is much cheaper, "said the landlady.

Finally, the two sides failed to agree, a large slip away from Chen Zonghou's fingers.

Chen Zonghou told reporters that the order had to be RMB 95 yuan, which would cost less than the price. At present, the prices of customers are very low. The price of orders has not risen over the past year.

Huizhou Huidong county is taking a lot of thick Street orders at a low price. Chen Zonghou told reporters that Huidong's labor force is cheap, so it is possible to buy orders at low prices. "Foreigners also know this, but now the European and American economies are not good, their customers can only accept this price, and if they can't do the thick street, they will get to Huidong to do it."

The boss on the road

The topic talked about Rong Ye shoe factory, which just closed in early July.

This factory, established by Taiwan boss, has been in Houjie for nearly 10 years. It is a large factory with more than 200 people. But not long ago, the boss suddenly ran away and owed about 7000000 yuan in arrears, which became a hot topic for Houjie shoe factory owners.

For the reason why the boss ran away, He Ying, owner of the open source Trading (Hongkong) Co., which recently worked with Rong ye, told reporters that last year, foreign customers flew alone, and the company's capital chain had problems and had to borrow usury. This year, shoe factories are not making money. They can't fill the holes. They can only run.

He Ying said that at present, factories are very fragile, the RMB exchange rate is rising, the wages of workers are rising, the cost is rising, but the price of orders is not rising. Under all kinds of pressure, the capital is very tight. Once the customers fly to the bank and the bank can not loan money, it will be very difficult for them to turn over.

In Chen Zonghou's view, the big factories and small factories that can survive now are "small factories turn around and big factories have government support." The middle shoe factory, which is sandwiched in the middle, is very tortured. There are many machinery and equipment and workers. The cost is higher than the small factories in all aspects, and there is no government support and bank loans.

"2 months' rent and 2 months' wages." "After the boss of Taiwan went on the road, he notified his followers that he had been there for many years and asked them to hurry up and sell the machine." Houjie's bosses gathered together to exaggerate the details. But inside, they must be worried about their fate. Who knows who the next one will be?