【39】Value Investing

【39】Value Investing

If the ±0.001mm precision fully automatic imported winding machine is regarded merely as a cost expenditure, then its true value content is missed. In today's manufacturing industry where profits are increasingly scarce, this tenfold higher precision than domestic equipment is actually the most sensible value investment for enterprises - it not only boosts efficiency in the short term, but also builds an insurmountable technical barrier for competitors in the long term.

Manufacturers are well aware of the truth that no one is willing to discuss openly: We are paying an astonishing "precision tax" in silence by using equipment with insufficient precision. This includes: 5%-8% material waste per batch, tens of thousands of yuan in labor re-inspection costs per month, customer claims due to quality fluctuations, and the most fatal one - high value-added orders that are forced to be abandoned due to precision limitations. According to statistics, factories using ordinary precision equipment accumulate hidden costs equivalent to 2-3 times the equipment value within three years. The more far-reaching impact is that enterprises are firmly locked in the low-end market and are trapped in an endless price war.

The case of a certain new energy technology company in Zhejiang is highly instructive. The company operated two production lines simultaneously: one using domestic equipment with a precision of ±0.01mm, exclusively for the mid-range market; the other using imported high-precision equipment with a precision of ±0.001mm, targeting the high-end market. Financial data shows that although the high-precision production line had a 40% higher equipment investment, the product premium reached 25%, customer loyalty increased threefold, and more importantly, this production line contributed 85% of the company's profits. The company's general manager admitted: "At first, I thought high-precision equipment was too expensive, but now I realize that enterprises without high-precision equipment truly cannot afford the opportunity cost."

We can achieve a revolutionary improvement in precision due to a profound understanding of "precision economics". The equipment adopts a modular design, with the lifespan of key precision modules increased to five times that of traditional equipment; the intelligent early warning system can predict precision degradation 500 hours in advance, avoiding sudden quality accidents; the cloud-based big data analysis platform can automatically optimize precision parameters based on production data. These innovations not only ensure ultimate precision but also reduce the comprehensive usage cost of the equipment by 35%, allowing precision investment to yield excess returns.

Don't be deceived by the equipment price; learn to calculate the cost of insufficient precision. The value of ten times higher precision will continue to generate excess returns for you in the next ten years.