Vol 2 Chapter 723: "Lemon Market"

Qin Hai's remarks sounded like an army of Lu Dashuang, and it was also a kind of difficult, but in fact, there is a tentative element. Qin Hai wants to know whether companies like Tongxin Steel Plant have the ability to improve the quality of steel. This is a question of where to start in the future.
After hearing Qin Hai's words, Lu Dashuang sighed rarely and said, "Brother, why don't you know what you said. If you can make steel better, who wouldn't be willing to do it? One ton of steel can sell for two or three hundred dollars, and there is no difference in cost. However, this kind of thing is easy to say, but who can do it? "
"IMHO, boss Lu, the problem with your steel is actually too much impurities. The scrap steel you received, regardless of carbon steel and alloy steel, was thrown into the electric furnace to be smelted. Steel contains manganese, aluminum and other ingredients, so it will lead to insufficient toughness. You need to find someone who knows a little, to distinguish the scrap steel, it is easy to increase the fracture toughness by half. "Qin Hai said.
Lu Dashuang was surprised: "Brother, you really know how to do it. I have a master here from Xingchuan No. 1 Steel Works. He also said it, but he didn't make it clear to you. Why are you doing this? This one? "
Xin Jinlong smiled proudly: "My brother is the one who specially invited me to identify the steel. We are in real estate. If you don't understand the material, you guys will be pitted."
"Boss Xin laughed and laughed. What are we dealers?" Lu Dashuang accompanied the smiling face, not because he was annoyed that Xin Jinlong said he was a dealer.
Qin Hai said along Xin Jinlong's words: "Boss Lu, let's be honest, we want to get some bargains, but the quality can't be too outrageous. The country requires the house to be built for 70 years. Right? Use your steel. It may not matter to build a bungalow. It is estimated that a six-story building will collapse. Do you mean it? "
Qin Hai's words were shameless. But when Lu Dashuang heard it, it was a matter of confidence. He frowned. Difficult to mumble, "But ... oh ... at this time and a half, where can I find someone who knows?"
"With so many factories in your village, no one has ever hired a skilled technician?" Qin Hai used the radical method.
Lu Dashuang snorted again, then stomped and said:
"It's true. In the past, we also had factories that went to the provincial capital and invited experts to give pointers. Please spend thousands of dollars at a time. At that time, there were few people engaged in steel, and buyers had high requirements for the quality of steel. You ca n’t even get an expert if you do n’t invite it. Later, there are more steel products and buyers are all kinds. Many people do n’t care about quality. Whoever buys is cheap.
There are a few factories that want to make good steel, but you make steel in Xingchuan. No matter how good you make it, people will not believe it, just to see the price, so you are in vain. One to two. Everyone doesn't care what quality is not quality. Anyway ... I didn't fear that you were unhappy when I said that, I really want to buy good steel. Who will come here? "
"Boss Lu ... you told the truth." Qin Hai smiled bitterly, speechless.
If a market loses regulation, the final result is naturally worse than each other until it completely collapses. Just like later generations of online shopping, the merchants still did their best at first, but as more and more merchants sell inferior goods, no one will believe in the good merchants. For consumers, because the quality of the goods cannot be identified, they can only buy cheap. And when businesses can't rely on quality as a means of competition. We can only win by relying on low cost. The end result is that the price in the entire market is getting lower and lower, and the quality of goods is getting worse.
This situation is actually very common. In 1970, an American economist named Akerlof studied the used car market. It is pointed out that in the case of asymmetric information between buyers and sellers, low-quality products will inevitably eliminate high-quality products and eventually lead to the proliferation of inferior products. He called this phenomenon the "lemon market" phenomenon, published a groundbreaking paper, and was awarded the 2001 Nobel Prize in Economics.
Qin Hai has not heard of Akerlof and his lemon market theory, but years of experience in shopping malls have told him that what Lu Dashuang said is true. Xingchuan is famous for producing steel bars. When you come here to buy steel, you are naturally greedy and cheap. If you produce good steel here, people will not believe it.
To reverse this trend, it is necessary to involve the quality supervision department, punish the enterprises that produce low-quality steel, and recognize the enterprises that produce high-quality steel. However, because Xiaogang itself was included in the national elimination scope, it was impossible for the government to come forward to regulate their operations, but to kill them indiscriminately.
If it is really possible to ban all small iron and steel, the small steel mills that produce high-quality steel are also small iron and steel, and it will not be a pity to be banned. The problem is that, due to the failure of local protectionist ideology, and because small steel has a bearing on people's livelihood and employment in a region, the governance of small steel has become a piece of paper.
It is impossible to shut down all small steel mills, and because the small steel mills are illegal and unwilling to conduct quality supervision, it is no wonder that this market does not rot.
"Brother Zong, do you think Mr. Lu's steel can we use?" Xin Jinlong looked at Qin Hai and asked. In order to hide people's eyes, Qin Hai temporarily used the surname of his mother Zong Huiying, so Xin Jinlong called him Zong Brother.
"General Manager Xin, with such steel, I'm afraid of risks." Qin Hai replied.
Xin Jinlong turned his head to Lu Dashuang and said, "Sorry, Brother Lu, you steel, we really dare not use it. I don't know if there are better steels in other factories in your village. We want to go to other factories. You have no opinion? "
Having said this, what else can Lu Dashuang have? Xin Jinlong is a big boss, and Lu Dashuang can't fight with each other's wrists. Buying and selling things can only be targeted at disadvantaged buyers. Who dares to talk to a buyer who is ten times or even a hundred times his size? Play this game?
"Actually, if you value the quality of steel, I would say something awkward. Dongdaogou Village is afraid that none of them can meet your requirements. You are afraid that you have to run for nothing." Lu Dashuang said.
Qin Hai grinned and said, "Let ’s take a look at the situation first. Boss Lu, if you really want to take this order, I will introduce a steelmaking technician to you the next day to help you improve the process and double the quality. It is not a problem. And a good process is more energy efficient than your current process. Your power consumption will definitely drop a lot, and the cost may be even lower. "
"Brother Zong is true?" Lu Da's eyes brightened, no doubt was moved by Qin Hai's proposal.
Qin Haidao: "This matter will be discussed later. There is a saying that boss Lu remembers that now that more and more small steels are being manufactured, we must also choose one. A rebar that breaks with a knock like you, Who dares to ask unless it is a deadly buyer? "
"Brother Zong is right, I have to count this up with the other bosses." Lu Dashuang had a feeling of indifference. If it was not for Xin Jinlong to be by his side, I was afraid that he would pull Qin Hai to worship his brother. .
With the inexperience of business, Lu Dashuang accompanied Xin Jinlong and Qin Hai to visit other small steel mills in the village. The pattern of each steel plant is almost the same as that of Tongxin Steel Plant. The quality of the produced strip steel is also unbearable. Qin Hai also told the bosses of other steel mills about Lu Dashuang's set of rhetoric just now, and the response of each boss was mixed. Some people think that they should think about how to improve the technology, while others pay Qin Hai an unpleasant look, which is obviously annoying Qin Hai.
The purpose of Qin Hai's trip, in addition to grasping the current status of strip steel production, is to understand the psychological intentions of strip steel producers. Human nature is good or evil, which determines different coping methods. Regardless of the conscientious adulterers, severe punishment cannot be overstated, and trying to influence them is whimsical. But if the other party just follows the trend, and there is a desire to get rich through honest management, then give them some opportunities, they will be able to abandon evil and do good, which is much more clever than blindly suppressing.
The great man once said: Who is our friend and who is our enemy? This issue is the primary issue of the revolution ~ EbookFREE.me ~ Many officials do not do things well because they are isolated from the people and cannot distinguish between the people Friend and foe. Since Qin Hai has taken on this heavy task, he naturally has to go deep into the front line to contact his opponents and find a way to turn the enemy into friends. The chief personally asked Qin Hai to do this, and it was in his pragmatic spirit.
In an unpredictable atmosphere, Qin Hai visited various small steel mills in Dongdaogou Village. At noon, he even drank a small wine with several small bosses in the village. He chatted a lot about steelmaking and Experience of doing business. Qin Hai claimed to have been a technician who graduated from an engineering school, worked in a state-owned steel plant in the early years, and also participated in projects to introduce steel equipment abroad. Speaking of the experience of fighting wit with Osor Metallurgical Technology Company in Madrid, he listened to the enthusiasm of a farmer and entrepreneur such as Lu Dashuang, and the worship bar above his head was full.
"Boss Xin, brother Zong, you can rest assured, I will find a way to help someone improve the process, and strive to refining the rebar that you have requested. Come again in a month, and then check the price and discuss the price. how is it?"
After the inspection, Lu Dashuang sent Xin Jinlong and his party out of the village, and vowed to assure them.
Qin Hai laughed: "It's good that Boss Lu has this determination. Rest assured. I will definitely come again after a month. Boss Lu will have to talk and talk." (To be continued)