222 Contracts finalized
In order to determine the details of the cooperation, the lawyers prepared more than 60 pages of contracts for the agreement, including the location of each billboard in the stadium, the time of camera exposure, and the advertising in the TV program during the off-season.
Moreover, as the sole sponsor of electrical appliances, all the electrical appliances in the Olympic stadiums and the residences of athletes, journalists, and volunteers are all Midea brands, including the air conditioners that have not yet been finished by Midea.
Ten million dollars spent, but very cost-effective, the 84th Olympic Games as a turning point in the history of the Olympic Games, the publicity effect of the major sponsor brands is very obvious, in addition to the reform of advertising, the most fundamental reason is that this is the Olympic Games held in the United States, attracting a large number of American people's interest, and the United States is the largest market for almost any product in the world.
As for whether the price is high, anyway, Coca-Cola spent $12 million, and Fujifilm paid $7 million, and whether it is cost-effective depends on the effect of the advertisement!
On the other hand, this is also the first time since the reform and opening up of the mainland to participate in the Olympic Games, the government attaches great importance to this, in the mainland where entertainment programs are tired, an Olympic Games has attracted almost all the attention, any brand advertising at this time, will be a great profit.
For example, Jianlibao spent 250,000 yuan to sponsor the Olympic Games in 84, and then successfully developed, and ten years later, the market share ranked first in the country.
And this time, Xu Zhi has almost swept all the billboards that have won gold in the mainland in history, as long as the Olympics are over, the Midea brand will be famous in the mainland!
......
After taking care of Los Angeles, Xu Zhi returned to New York, and He Guoyuan had already arrived at the hotel, and this time his mission in New York was to negotiate with RCA.
Although it is strange why Midea needs to buy 3 million different color tubes at one time, as an order with a total transaction value of more than 300 million US dollars, RCA is still very cautious and sent the vice president of the company's electrical department to discuss the matter.
After nearly a month of negotiations, He Guoyuan's negotiations with RCA have basically completed the details, 3 million 14-29-inch color tubes, with a total value of up to 370 million US dollars, but such a big deal, the final signature must be completed by Xu Zhilai himself.
RCA's headquarters are located in New York, and Xu Zhi personally visited the most inventive company in the United States, and Wade Beltz, the head of the company's television business, also accompanied Xu Zhi to visit RCA's laboratory:
The first black-and-white television was born here!
It was also here that the first color television set was born!
The first solar cell!
The first military inventory management computer!
The first LCD screen
Too many firsts and too many honors, the former RCA company's mainframe computer is second only to IBM in the market, but because of the wrong choice of strategic route, and in order to protect the profits of its own color tube market, the development opportunities of the LCD industry are maliciously stifled.
Today, although RCA is still one of the top 50 large companies in the United States, it has lost its edge, and its diversified development has failed.
Wade Beltz took Xu Zhi and others around the building, and after returning to the reception room, he said: "Mr. Xu, we are very cautious about cooperating with your company, but your company's requirements for liquidated damages are too high!"
"I think it's just the opposite, I think this liquidated damages are still too low!" Xu Zhi said with a smile: "Mr. Beltz, our company's products involve arcade machines, over the years, arcade machines belong to the emerging market industry, the profits are very high, and the main component of the arcade machine is the color picture tube, originally our company's procurement is to RCA, Hitachi, Sharp and other companies at the same time to issue purchase orders, but now in order to save procurement costs, decided to purchase from a company.
The main purpose is naturally to save costs, but at the same time it also bears a lot of risk, once the supply of color tubes is not available, the production of our arcade machine will be suspended, the loss of which can be very large, in order to avoid this situation, it is necessary to pay a higher liquidated damages. ”
Wade Beltz nodded: "I can understand this, but your company also requires that the contract restricts that only the color tubes of Wanwan Taoyuan Branch must be purchased, which is why, our RCA has several production bases around the world, and the quality is absolutely fine." ”
Xu Zhi shook his head and said: "We only accept Wanwan's products because I don't believe in the efficiency of Mexicans, I think Mr. Beltz should know better than me!"
Wade frowned, this is indeed a problem, from the end of the 60s, Japanese TV began to rampage into the American market, RCA's market share is declining, in order to reduce the cost of production in the United States, the company began to invest in the construction of factories in underdeveloped areas more than ten years ago, with the intention of reducing production costs.
RCA also chose Wanwan, Mexico, Romania for investment, but the final production cost is the lowest is still Wanwan factory, although Mexico is close to the United States, but the local political corruption, gangsters, and personnel quality are low, not only the cost has not been reduced, but there are often some quality problems, and the tossing of the United States high-level headaches.
Xu Zhi said: "Our order this time has fully taken into account the production capacity of your company in the Wanwan factory, an average of 1 million color tube orders per year, with an annual production capacity of 5 million units in the Taoyuan factory, it is completely digestible, of course, if your company is really unwilling, we do not force it, I think the Japanese company is very willing to accept this order." ”
"Mr. Xu, this order is not a problem at all!" As soon as Wade heard that Xu Zhi planned to contact the Japanese company, he immediately said without hesitation: "I personally agree to this contract, as long as the board of directors of my company approves it next time, we can officially sign the contract." ”
"Nice, then I wish us a happy cooperation!" Xu Zhi stood up with a smile and shook hands and said.
"Happy cooperation!" Wade also stood up and shook hands, and at the same time put down a big stone in his heart, since receiving such a large order contract from Midea Company, he has been negotiating with He Guoyuan non-stop.
With a total order volume of 370 million US dollars, even if He Guoyuan lowers the price, the profit can be as high as 10%, and the average net profit is at least 10 million US dollars a year.
For RCA's annual profit of more than 300 million US dollars, this is nothing, but the company is currently losing money in a large number of branches, relying entirely on the huge profits of NBC TV station to stop losses, if you can get a large order from this Asian customer, not only the color TV department can turn losses into profits, but more importantly, you can find a long-term partner in Asia, which is the most important.
It's just that the other party's liquidated damages requirements are a bit high: if RCA can't provide the color tube on time, it needs to compensate half of the price of the color tube.
Under normal circumstances, this kind of requirement is too high compensation, but considering the huge profit of the other party's arcade, if this kind of thing really happens, the other party's loss must not be small, so from this point of view, a high proportion of liquidated damages is not excessive.
Xu Zhi glanced at He Guoyuan, and said to Wade: "Okay, then I won't bother, I've been playing in New York for the past few days, and I hope to get the news from your company's board of directors as soon as possible!"