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After lunch, Reading and Xu Zhi had several secret conversations, mainly to discuss the pricing of the product and the development of sales channels.
The two had reached a consensus at the dinner table before, Xu Zhi was only responsible for production, and Reading, the general distributor, covered taxes, transportation, lower-level dealers and their own profits.
In the end, the two of them reached a simple agreement, the arcade machine of Xiangjiang Cube is sold for $1,300 in the United States, Midea is only responsible for sending the product to the United States Customs, and Reading is responsible for all the other follow-ups, while Snake is cheaper by $150, and the rebate is still there, but it is not high, for every more than 10,000 units, all arcade machines will be returned 10 US dollars, and the maximum 100,000 units will be capped.
In terms of profits, Xu Zhi made concessions, but in terms of capital transactions, he won the victory, after the order was placed, Reading had to pay 50% first, 25% after the goods were shipped from Xiangjiang, and the remaining 30% after the products were sold.
The main cost of the arcade machine is actually the motherboard and monitor, a Xiangjiang Cube costs about $600, and now costs $1,300, and a 50% down payment is enough to pay for itself, and the profit is as high as 100%.
However, compared to the space invaders, it is still a lot worse, according to later data, Taidong Company sold 100,000 arcade machines a year, with a net profit of 120 million US dollars, which means that a successful profit of 1200 US dollars, or a net profit, is almost 2 times that of Xiangjiang Square.
However, the Xiangjiang cube is better than the long stream of water, and it can survive until the 21st century, and its playability is much stronger, but it is not very suitable for arcades!
In the evening, after everyone had dinner together, Reading was rarely satisfied with the results of today's negotiations, and kept inviting Xu Zhi to his casino to play, no money, free to play.
However, Xu Zhi categorically refused, gambling is an invisible addiction, this thing is not large or small, and it will be a lifetime of trouble if it encounters it.
After Reading left, Tom stayed behind and said to Xu Zhi: "Congratulations, Eric, your company will have a bright future in the future." ”
Xu Zhi smiled: "Thank you, now can you tell me what's going on?"
Xu Zhi had always wanted to ask clearly, but the main person was present, so it was not good to ask too much.
Tom said: "This has to be said ten days ago, Reading suddenly brought someone to my company, he is one of the casino owners in Las Vegas, and he can be regarded as my customer!
Xu Zhidao: "He can be regarded as having a vision, so what is the status of this Reading in the Rockefeller family?"
Tom replied, "His surname is just Rockefeller, and he is not a core member of the real Rockefeller family for a long time, otherwise why do you think he is not involved in the oil industry." ”
The Rockefeller family, though dismembered by antitrust laws, still retained its wealth, while Standard Oil was dismembered into 37 oil companies, each of which was the majority shareholder.
After decades of development, some have declined, but some have also become stronger, and now three of the seven oil sisters who monopolize the world are descendants of Standard Oil.
The Rockefellers did not decline, but hidden, and like the Morgans, secretly controlled all the currents in the depths of the ocean.
Seeing that Xu Zhi was a little disapproving, Tom smiled meaningfully: "But don't underestimate Reading just because he is not a core member, even if it is a peripheral member of the Rockefeller family, its influence is much stronger than that of ordinary businessmen, there are many casinos under Reading, and they are already casino tycoons in our industry, but above the media, there is no report, which is also a powerful force!"
Xu Zhi said with a smile: "Also, the emaciated camel is bigger than the horse, and in this kind of family, a relative of the surrounding is estimated to be super rich." ”
Tom nodded and said, "Yes, Reading has a lot of influence in both political and business circles, and he is kind in business, so you can still rest assured that you can cooperate with him." ”
"I'm relieved to be a ghost!" Xu Zhi said secretly in his heart: "Who knows if you are in a gang." ”
However, at present, both sides have common interests, and as long as there are no problems in this regard, there will be no major contradictions!
In the shopping mall, it is always the common interest to maintain the relationship!
......
The next day, Redding's men went to Midea's warehouse and began to move the arcade machines inside, although Reading bought all the previous dealer's contracts, but some of them had already been sold, and after taking over the contract, some of them would be sold according to the original contract, and the rest would be shipped to all of his casinos.
Successful businessmen are resolute in doing things, Reading also quickly acquired a large arcade dealership, I heard that the other party did not want to sell, but Reading's method is very simple, if you don't sell, I will also open the same company, specifically staring at your customers, shipping at a low price, plus the price is also quite kind, so the other party succumbs.
With channels, transportation, and resources, Reading has almost all of them in place, and then the arcade machines that the casino can't digest are transported to some of the sub-dealers, and these arcade machines are quickly sold out, and a large number of re-purchase requests are brought back.
As a result, Xu Zhi's side soon received a new order: 10,000 Xiangjiang cubes and 3,000 snakes.
After waiting for a few more days, Xu Zhi was of course very happy to get such a large order, and according to the price and agreement, the advance payment of almost 8 million US dollars was directly transferred to the overseas offshore account of Midea Company.
Midea's registered place is actually a tax haven, where the tax rate is only 1.5%, that is, the company makes a profit of 100 million US dollars, and only needs to pay 1.5 million US dollars in taxes.
In the past, when I traded with small dealers in the United States, the objects were all Midea's American branches, and those were to pay taxes like the U.S. government, but in fact, the majority of the profits were thrown into the accounts of tax havens.
The process is also very simple, the cost of manufacturing an arcade machine is 600 US dollars, and then the headquarters of Midea (registered in Bermuda) buys it for 650 US dollars, and then sells it to the American branch of the United States at a high price, so that whether it is Xiangjiang or the American branch, the profit is actually very low, and the majority of the profit only needs to pay a small tax in the registered place.
Now after the general distributor is confirmed, the process of Xiangjiang is still the same, and the United States is directly onshore, and whether the follow-up fee is high or low is the business of the general distributor, and has nothing to do with Midea.
Of course, there are many tax avoidance methods, such as orders from the United States Deyi, and local purchases in Xiangjiang can be tax deductible, but these will be taken care of by professional international trade accountants, and he Xu Zhi also knows nothing.