Chapter 64 Whoring for nothing
Chapter 64 Whoring everyone for free
Two days later, the Imperial Capital.
In a hidden conference room of the Peninsula Hotel, Wang Xianguo sat in front of a man with a typical Caucasian appearance with an indifferent expression, and listened quietly to what he said.
"So when DSI came to us, as the commercial representative of this project, I did not reach any agreement with him. Of course, verbal perfunctory is inevitable. I believe you can understand this."
"For DSI, behind them is the U.S. Congress. The so-called business methods are not pure, but are some kind of hermeticism based on narrow interests."
"But we are different, we just want to make money."
"So, we hope to restart negotiations on hot isostatic pressing equipment, and we will give certain concessions on price."
This man is Watkins, the business representative of QUINTUS. Compared with his arrogance in the previous rounds of negotiations, he can be said to be as docile as a little sheep now.
There was no other way. The news that China had achieved a breakthrough in the key technology of hot isostatic pressing equipment was like a thunder, which directly shook the entire international market to pieces.
All previous technical barriers and commercial monopolies have become unsustainable, and there is only one effective strategy left:
Export hot isostatic pressing equipment to China as much as possible, seize the market, cultivate habits and dependence, so as not to be completely kicked out of this vast country.
Therefore, as soon as he saw the news, Watkins immediately arranged for experts to confirm the authenticity of the report. Then, before he even had time to pack his luggage, Watkins got on a plane to the imperial capital.
"Mr. Ma, are you kidding me? If I sign such a contract and return to the company, I will be fired directly and even face judicial proceedings!"
DSI's business representative Jack.
"And, we will purchase the accompanying services."
"Calculated in this way, without considering discounts, your company's comprehensive selling price is about 70% of the ordinary contract. In other words, within three years, you can still earn about 20% profit."
"Sure, maybe higher."
After more than ten hours of flying, he finally arrived in front of the real person in charge of the purchase ahead of representatives from DSI, AIP and many other companies.
150 machines, 150 million US dollars, what is the difference between this and giving it away for free?
"fxxk!!!"
Watkins pondered for a moment, and after a few seconds, he nodded solemnly.
Ma Li nodded and said in agreement:
"What you said makes sense. That's why we continue to purchase."
"We sold you an opportunity. If you can continue to maintain technological progress and regain your technological advantage in the future, then you can continue to make money in China."
The numbers he just mentioned are extremely accurate. If the contract is really implemented according to their plan, the deviation rate should not exceed 5%.
A somewhat playful smile appeared on his face, and then he looked into Watkins's eyes and asked slightly teasingly:
"Mr. Watkins, don't you still want to make money on this contract?"
You know, for this kind of large-scale specialized equipment, the most profitable thing is not the equipment itself, but the later maintenance and technical support.
"I think you know very well what you should choose when weighing the two phases."
"Tuition fees. Very interesting statement."
"As long as you accept this contract, in the next three years, we guarantee that we will purchase 30 hot isostatic pressing equipment at a price of 60% of the catalog price."
Obviously, the other party came here urgently to discuss the contract.
"For hot isostatic presses, we are buyers, but for the Chinese market, we are sellers."
Upon hearing this, Watkins sighed.
"Okay, I accept this contract!"
Watkins quietly hid aside and thought sarcastically:
Jack, this time, you were one step behind me after all.
According to the headquarters' calculations, China's total demand for hot isostatic presses is only that much. Now that we have filled them in advance, this market will not be able to accommodate other suppliers in the short term.
However, two days later.
A wry smile appeared on Watkins' face. It was obvious that the horse power in front of him did not understand technology, let alone hot isostatic presses, but he definitely understood business logic.
A shocking piece of news dominated the headlines of major newspapers and media.
"In a non-monopoly market, profits always tend to 0. This is a basic principle of economics. I think you also know this."
Ma Li said matter-of-factly.
"No, this condition is very reasonable. You have to listen to what I have to say."
However, he does not intend to sell his reserve price from the beginning, but will gradually test it out step by step.
"These Chinese sons of bitches, they lied to everyone!!!"
"China has indeed made great technological breakthroughs. We will never deny this. But it is still impossible to completely replace our equipment in a short time."
So, he opened his mouth and said:
"With a zero-amount equipment contract, we want 20 units, and the maintenance fee is 30% off the catalog price."
"On the contrary, the price you pay today can be regarded as tuition."
"These are absolutely unacceptable conditions and we need to talk about it again."
"What we do is just follow the market."
"Otherwise, you don't need to make any more purchases."
"But in a few years, you'll still kick us out, won't you?"
"However, if we take into account the current value of the annuity, we basically have nothing to earn from such a contract."
"Maybe we will lose some time, but you will definitely lose huge cash flow and a considerable paper profit."
"They were acting from the beginning!!"
It is a pity that Wang Xianguo is sitting next to Ma Li. For a shopping mall veteran like him, the outcome of the two sides has been clear from the moment Watkins landed.
"We have already mastered the technology, why do we still want you to make money?"
Sometimes, in order to open up the situation, it is not unfeasible to strategically give away equipment for free.
Ma Li's expression was unwavering. He paused for a moment and said:
"The reason why I want to put forward such a condition is because we have also given a corresponding price."
"Then it depends on your ability."
“That’s pretty much all we need for hot isostatic pressing equipment in the future.”
"Actually, there are no pure buyers and sellers in this transaction."
Looking at the dazzling word "up to 150 million" in the news headline, veins popped up on Watkins' forehead, and he slapped the tea cup in front of him against the wall, smashing it into pieces!
"That's right, it's just that there's no profit to be made."
And he has only one purpose:
Win this contract at any cost, even if the equipment price is 0.
"But if you must refuse to cooperate, what will be the result?"
Watkins shook his head, frowned and replied:
A few hours later, the contract with QUINTUS was signed with great efficiency. When he walked out of the hotel door with a smile on his face, he happened to see Jack in a hurry from the side.
After a moment of silence, Watkins said:
"Mr. Ma, as you just said, this is just an algorithm without considering discounts."
"Huaxia has reached an equipment introduction contract with DSI, QUINTUS, and AIP. Over the next three years, approximately 150 hot isostatic pressing equipment and related maintenance services will be introduced in batches, with a total amount of up to 150 million US dollars."
Obviously, with the current situation in China, it is time to take this step.
Watkins' eyes widened and he looked at Ma Li in disbelief and asked:
“Their demand is never more than 20 units!!”
"They deliberately disguise their market to be extremely small, just to get all suppliers to offer their lowest prices!!"
"No wonder there is no exclusivity clause, they have planned it all."
"They prostituted everyone for free!!"
Chapter completed!