You Have to Spend 20 Times Efforts if You Are in the Second Class
In the market of expensive monitors monopolized by Motorola, low-price monitors designed by“TELE VIDEO”and produced by TAIHAN Electric Wire were certainly popular. Atari made a verbal promise that as long as the monitors passed quality inspections, it would make a large number of orders.
However, it was not easy to pass quality detection. When I brought the monitor samples made by TAIHAN to Atari, they were failed to be turned on, which was quite embarrassing. In the first test, the Atari technicians pointed out some aspects that required improvements, I remembered that I recorded more than five or six pages. I really felt embarrassed.
Since so many problems had been detected with monitors, I had to send them back to South Korea for inspections again. And I had to do it myself without any time to hesitate. Orders must be obtained before Atari changed its mind.
Because Atari had expectations on our monitors. The price that I proposed was 20% lower than that price proposed by Motorola. Even so, I had a net profit of nearly 50%.
Motorola's monitors came off production lines with advanced technology, however, I could obtain monitors of the same quality with only little modifications in my TV production lines. Anyway, however, in order to profit, then, first of all to accept the order, followed by the quality of clearance.
The airline ticket to South Korea was a huge burden for me at that time. It was impossible to fly directly with low costs. Once you bought the cheapest ticket, it took 27 hours to get to Seoul.The plane took off from San Francisco, via Los Angeles, and then stayed in Hawaii, then Manila of Philippines, Hong Kong, and finally arrived in Seoul. Transit hours were more than the flying hours in this route yet it was my only choice. Each time the plane landed in Hawaii on the way back to the United States, I was exhausted and was weak all over, just wanted to sleep on the floor of the terminal building.
International routes were also available in Gimpo Airport then. When I arrived at Gimpo Airport, I should take a taxi to the industrial area where the TAIHAN Factory was located. At that time, there was no bus stop in the airport. People who could afford a plane ticket could also afford to take a taxi at least, and quite a lot of people took their own cars.
However, someone even did not have the above two options. That's me. I had to save KRW 3,000 for taxi. Therefore, I went directly to the Money Exchange once I landed.
“I need money exchange.”
“This is USD 1, are you going to change that?”
“Yes, I just change the money to go to Siheung.”
“It is impossible to get there, if you take a taxi...”
“No, I'll take the bus.”
“Oh? Oh, so...”
The person at the Money Exchange felt embarrassed, and quickly changed the one dollar for me. Then, I carried a big box containing the 19-inch monitor and walked to the bus stop 3km away. The box seemed to be larger and heavier after the 3km.
I spent a lot of efforts and dragged the box towards the bus stop. Those people who took the same flight with me“flashed”away in taxi or private cars. I usually hid behind the big box for the moment, embarrassed. Just hope the monitor could start up normally after this modification ... That was what I was thinking when I hid behind the box.
When I arrived at the factory, I worked with the technicians to find and fix the problems overnight and created new samples. Then, I dragged the big box to take the bus and walked 3km to the airport, flying more than 20 hours to return to the United States.
Unexpectedly, I had to take then plane back just a week later. The reason was that they found new problems. Problems were decreasing each time, and I found hopes. I had go to South Korea 7 times within 6 months.
Finally, technicians from Atari picked out no defects on our monitors, and were gradually moved by my sincerity.
Once they pointed out a problem, I put the rectified monitor in front of them soon. If other problems were found, I would solve them and took them back. Whenever I brought the monitors, they always said:
“Hi, Philip, it's three days. You're talking about going to Korea, haven't been there yet?”
“I started out that day, and after I modified the monitor, I came back today.”
Those technicians opened their mouths wide and could not shut them.
I finally spent out my money after many back and forth between Seoul and Silicon Valley. If I could not solve the problem this time, I had no money to buy the airline ticket to South Korea. I was busy with technicians from TAIHAN to the early morning, and then went to the nearby church with eager. I knelt down in the deserted church and prayed. I said nothing but shouted in my heart:“I believe, I believe.” I felt warm in my heart after praying and thought that I would succeed this time.
I did not go back home after I returned to Silicon Valley but went straight to Atari. Monitors passed the tests. Although problems put forward by the technicians had not been corrected perfectly, they still said that“qualified” and applauded for approval.
“Philip, we are very impressed with your enthusiasm and sincerity. Someone else might have given up long ago. Although still there is one or two small problems, our technicians will tackle them. Congratulations to you to become our supplier of Atari.”
There was so-called“second-class sales” in the successful sales strategy. In other words, in order to compete with the exclusive market occupied by first-class products, we should first admit that we were in the second-class, and should develop a differentiated marketing strategy. If you could take advantage of consumers' uneasiness on the first-class exclusive management, you can certainly ensure that you could survive in the market with later striking.
Among other sales strategies, there were so-called“three-times principle.” In other words, second-class enterprises have to spend 3 times of efforts than first-class enterprises in order to survive.
In those days, it was obviously impossible to compare monitor technology in South Korea with that in Motorola. However, we at least had worked hard in order to be in line with Motorola, and our efforts also had been recognized. I attacked on the weakness of first-class enterprises and succeeded. I adjusted the price by 20% down and the quality was improved to the required level after 7 tests. Game monitors from“TELE VIDEO”were not only in full compliance with the principle of successful sales, but also indicated a greater success.