Becoming Rich with Daily Scavenging APP Chapter 517: Medical Equipment Factory

But in this eting, no new opinions were proposed. It was the sa old talk: orderly competition, don’t overheat.

Of course, the most important thing is to avoid involving offline physical stores in the subsidy battle.

Because all major brands are offering too high subsidies now, the platforms themselves cannot bear all the costs.

So part of the subsidy costs need to be borne by the participating stores.

This has caused the actual expenses of the rchants to increase.

The intention now is not to shut down offline stores due to subsidies, which would be a black cody.

Chen Yiyang has no issues here. He always uses the platform’s own money for subsidies, with rchants paying at most advertising fees.

Although this puts the most cost pressure on him, it’s also the fastest way to grow.

Now the daily transaction volu of Yiyang Flash Sale has surpassed that of Baole. and caught up with Taobao Flash Sale and Ugly Group.

Of course, Baole. is now completely a vassal of Taobao, so being surpassed by Chen Yiyang is quite normal.

After attending the eting, Chen Yiyang rested for a night and the next day saw so opportunistic intelligence.

Today’s intelligence: dical Equipnt Company seeking buyers: A foreign dical equipnt company’s factory in the country is looking for a buyer, purchasing this factory now would be an opportunistic success.

Contact information is attached on the second page.

dical Equipnt Company?

Chen Yiyang was quite interested when he saw today’s opportunistic intelligence.

The dical industry is considered quite a profitable sector.

Of course, the disparity between the upper and lower limits in this industry is very large.

Companies at the upper limit can achieve profit margins of seventy to eighty percent.

While those at the bottom may struggle to cover even tomorrow’s research costs.

The reasons for this discrepancy, besides differences in technical capabilities, are also related to the dical equipnt itself.

Before engaging with this company, Chen Yiyang had an expert co and explain the ins and outs of the dical equipnt industry.

In the comrcial market, the more specialized and less understood by outsiders the field, the more prone it is to corruption.

The most important reason being that the specific value of goods in these fields is hard to define.

For example, a company might launch equipnt claiming to effectively treat a serious illness.

These devices are priced high, but the exact efficacy is hard to determine.

Because severe illnesses themselves are hard to cure, only symptom relief can be promised.

This leads to situations where even if this equipnt is used, a patient dies, it’s not necessarily the equipnt’s fault.

Even with cancer, many people sotis live longer not undergoing treatnt.

In this undefined domain, deciding whether to spend money, and how much, becos a dilemma.

Abroad, especially in North Arica.

It’s common for large pharmaceutical companies to sell useless drugs or equipnt to hospitals through bribery, lobbying, and colluding with industry associations.

In the dostic market, the sector was indeed chaotic a few years ago.

The saleability and pricing of dical equipnt was entirely dependent on the rapport between dical representatives and hospital managent.

As long as the relationships were in place, the products could be sold.

The opportunistic intelligence recomnded dical Equipnt to Chen Yiyang. This factory was originally a partnership between a foreign dical equipnt company and a dostic shell company to save costs.

The initial purpose of the company was to produce equipnt dostically, avoiding high tariffs and transparent brand pricing, thereby creating a large manipulable profit margin.

All technologies used by the factory were sourced from abroad.

For convenience, these technologies were directly permanently licensed to the factory.

But as the factory began producing goods for sale, circumstances changed.

The dical industry began combating corruption,

and major hospitals, to avoid trouble, opted for internationally renowned major brands with transparent pricing.

This way, even if audited, it’s easier to explain.

No matter the equipnt’s utility, the pricing wasn’t an issue.

So dostic equipnt, even at half the price of foreign equipnt, struggled to sell.

dical Equipnt’s products, although the factory is foreign-funded, the brand is dostic.

The original hope of dical Equipnt was to sell products through relationships with hospital managent.

In recent years, everyone feared trouble and chose foreign, particularly European, major brands.

This put the factory in an awkward position.

The foreign investors thought it best to sell the factory.

Despite high tariffs, products from Europe could still be sold.

Dostic production lacks tariffs, yet products don’t sell.

"Eh."

After understanding the relevant information, Chen Yiyang was puzzled.

If that’s the case, why does the opportunistic intelligence suggest this factory can be picked up cheaply?

Could there be future changes?

But Chen Yiyang, being unversed, couldn’t predict any major changes in the dical equipnt industry.

Anyway, the factory is valued around a billion.

Chen Yiyang decided to buy the factory first.

He had previously invested in films and companies in Europe, and had considerable funds in European accounts, just right for spending.

After purchasing the factory, Chen Yiyang summoned its current manager.

"Hello, Mr. Chen." A man nad Lu Cheng walked into Chen Yiyang’s office as the factory’s current manager.

"Sit." Chen Yiyang gestured for Lu Cheng to sit, then asked, "The factory’s ownership has already been transferred to , I don’t understand the dical equipnt industry well, so you will continue to be in charge of the factory."

"Thank you for your trust, Mr. Chen." Lu Cheng hurriedly replied.

"By the way, I want to ask about our factory’s product competitiveness in the dostic dical equipnt industry?"

Uh.

Lu Cheng was stumped by Chen Yiyang’s question.

This boss really doesn’t understand a thing yet spends money to buy the factory.

Isn’t he afraid of losing money?

Or perhaps, he’s already lost money.

Lu Cheng himself doesn’t have much confidence in his own factory.

"Our factory’s products are actually very competitive in terms of technology."

Lu Cheng began introducing the factory’s situation to Chen Yiyang, "Many technologies we have either purchased from abroad or gained permanent authorization.

We’ve also ford our own R&D team to localize, optimize, and upgrade the relevant equipnt.

I can guarantee that from the product’s perspective alone, our products are absolutely amongst the top international tier."

"So, the products are great but just don’t sell?" Chen Yiyang swiftly identified the crux.

"It’s not entirely like that." Lu Cheng said awkwardly, "The main issue is that our dical equipnt units are priced at 40 to 50 million each.

For dical equipnt of such price, even large hospitals have extrely limited annual procurent quantities, and such high-level procurents generally have to be publicly disclosed; our company does have shortcomings in brand awareness."