When selling massage chairs, we use the method of selling with gold, which is to put it bluntly, giving commissions.

Disposable syringes, infusion sets and other medical equipment are used in large quantities and are purchased uniformly by hospitals, so the target of this sales with gold is naturally also hospitals.

In 1998, China began the national medical insurance reform for urban employees, established a social medical security system, and converted the previous publicly funded medical system into a medical insurance system.

This also means that employees have more choices for medical treatment. Originally, urban employees could only obtain reimbursement by seeking medical treatment in hospitals within the system. It was relatively difficult to seek medical treatment in other hospitals and then return to their own units for reimbursement.

Since the introduction of medical insurance, medical treatment is no longer subject to reimbursement restrictions, and urban workers are more inclined to go to large hospitals with good medical skills and advanced equipment for medical treatment. The clustering of large hospitals for medical treatment also started in that era.

Moreover, at that time, the purchasing power of drugs and medical equipment was in the hands of the hospital itself. The hospital could negotiate purchases directly with suppliers without having to go through the superior authorities or even go through the bidding process.

In July 2000, the country began to pilot a drug bidding and procurement system. Since then, it has been stipulated that public hospitals can only purchase products that have won the bid in the bidding process.

In other words, the bidding departments in various places will first conduct a bidding process and then list out a bidding catalog. If public hospitals want to purchase, they can only choose from this bidding catalog. They can purchase directly, or they can bid again for the products in the catalog.

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In 1999, this policy had not yet been implemented, and hospitals had relatively large autonomy in purchasing. Therefore, the "sales with gold" strategy used by medical representatives was even more effective.

Direct price reduction and commission rebate are two completely different concepts. If the price of a product is reduced by 100 yuan, and if the commission is repaid by 100 yuan, the price paid by the buyer is actually the same, but there is a huge difference in the transaction.

The same 100 yuan is turned into a commission, and the flexibility of use will be much higher.

Therefore, when those 4S stores in later generations sell cars, they will get rebates from the car companies, rather than the car companies directly selling cars at a reduced price.

Selling with gold is an unspoken rule in the pharmaceutical industry. Li Weidong is not a health authority and cannot do anything about it.

And when everyone does this, but you don’t do it, you will definitely be the one who suffers.

So Li Weidong had no choice but to say; "It is unavoidable to have costs in sales, but the accounts must be clear, especially in terms of tax payments. You must not pay a penny less in taxes that should be paid, and you must not use tax avoidance methods that should not be used."

It cannot be used. Only by paying taxes in accordance with the law and regulations can the income be legal."

"I understand. I will tell the finance department to pay special attention to this issue."

Lu Guangming paused and said, "There is one more thing I want to report. Now that the medical device factory has stabilized, I want to start a new project."

"New project?" Li Weidong was slightly startled. He suddenly remembered that Lu Guangming, whom he knew well in his previous life, started his business by making household oxygen concentrators.

So Li Weidong smiled and asked, "Lao Lu, are you trying to make an oxygen concentrator?"

Lu Guangming opened his eyes in surprise: "Chairman, how did you guess that?"
Chapter completed!