"What's your plan for the plush toys inside the machines?"
Lin BaoCheng asked Zhang Sheng. Jupiter Toys couldn't just sell empty claw machines; they needed products inside to be grabbed.
Customers might dislike the supplied toys and replace them with other items, but the company had to provide something. Not all buyers would source their own products. And without toys inside, the machines wouldn't look appealing. Only when customers saw clearly how the claw machine worked would they be more likely to place orders.
Zhang explained his plan:
"At first, we'll outsource plush toys from other factories. If sales prove strong and demand for plush toys rises, and if toy sales bring profit, then we'll acquire a factory dedicated to plush toy production."
"If you think that works, do it," Lin said, nodding. He didn't interfere in minor decisions unless they clearly harmed the company.
"Remember my warning," Lin added. "We sell claw machines with plush toys inside. If customers replace them with cigarettes or other products, that's their business, not ours. We can hint that substitution is possible, but never openly advertise it. Don't give anyone leverage against us."
"I understand the seriousness," Zhang assured him.
"Good."
Lin was cautious because tobacco sales were regulated differently in each country. If claw machines were openly marketed for cigarettes, it would provoke tobacco companies and legal trouble. But selling claw machines with plush toys was safe. What customers did afterward was their responsibility.
The reasoning was simple: adult men rarely cared for plush toys unless buying for children. Cigarettes, however, appealed to countless smokers worldwide. A claw machine offering cigarettes would attract many players.
This broadened the customer base, expanded the market, and increased Jupiter Toys' profits.
Lin asked:
"What's the cost per machine?"
"At present, small‑scale production costs about HK$1,800 each," Zhang replied. "If we order parts in bulk, costs drop. For 1,000 machines, HK$1,700 each; for 5,000, HK$1,600; for 10,000, HK$1,500."
"HK$1,500 is about the lowest possible. To go lower, we'd need 50,000 units or wait for technology and parts prices to fall."
"Not cheap," Lin remarked, raising his brows. Though claw machines weren't technically complex, their costs were close to arcade machines, only a few hundred dollars less.
"How many units do you think we should order?" Lin asked.
"I think 1,000," Zhang said. "Claw machines are new. We don't know if the market will accept them. Better to produce a small batch, test in Hong Kong, then expand if successful."
"You make sense," Lin agreed. "But let's start with 5,000. I have channels in America and Japan. We can trial machines there too. If they fail, that's my mistake, not yours."
Lin had already planned: Starlight Company in the U.S. and ZhiYin Manga's stores in Japan could each place two machines, accounting for hundreds. Through arcade distributors, claw machines could also be tested in game halls, with hints that cigarettes could be used. Smokers would surely play.
Thus, 1,000 units seemed too few. 5,000 machines cost only HK$8 million — a risk Lin could afford. Even if sales were poor, some units would sell. Losses wouldn't be catastrophic.
"Alright," Zhang nodded. Lin was the boss. If he said unsold stock wasn't Zhang's fault, Zhang had no objection.
Lin instructed:
"Tell suppliers we may expand production. Have them prepare stock. Or line up backup suppliers. If claw machines sell well, we must ramp up instantly. You understand?"
"Yes," Zhang said. "The factory will be ready. If needed, we can temporarily convert Rubik's Cube lines to claw machine production."
"Good. Next, build several prototypes. Test them hard. Ensure no problems before mass production."
"Yes, Mr. Lin," Zhang replied.
Afterward, Lin toured Jupiter Toys, treating it as an inspection. Though the company wasn't large, since he was in Hong Kong he had to check occasionally — either personally or through his secretary. Neglect could lead to trouble.