Chapter 816: Our equipment is cheap

While China's economy is developing rapidly, India's economy is also continuing to develop at a relatively high rate. In 2001, Goldman Sachs economist O'Neill proposed the concept of BRICS, spelling together the English initials of Brazil, Russia, India and China, called BRIC, which is similar to the word brick in English, which is the origin of the concept of BRICS. Later, South Africa was added to the concept, forming the BRICS for short.

Of course, there are reasons why India can be among the BRICS. India is the only country in the world with a population of more than 1 billion people after China, and its GDP has reached 2.4 trillion US dollars in 2017 after several years of development, ranking seventh in the world, higher than Brazil, Italy, Canada, South Korea, Russia and other countries, and only a few percentage points between Britain and France.

In the early 90s of the last century, India began to implement trade liberalization and economic reforms, the market gradually became active, the demand for raw materials increased sharply, and the steel industry also ushered in a golden period of development. According to statistics, India's steel production capacity increased by 12 million tons between 1990 and 2000, making it one of the top 10 steel producers in the world. By 2017, India's crude steel output exceeded 100 million tons, making it the world's second-largest crude steel producer, just 730 million tons behind China, which ranked first......

India's steel production is divided into two systems, one is seven large joint steel mills, the technology is more advanced, the production integration is high, its production capacity is equivalent to about 40% of the country; the second is a large number of small and medium-sized iron and steel enterprises, the technical level is uneven, a considerable part of which in China belongs to the legendary "strip steel" production enterprises, this part of the small and medium-sized steel enterprises production capacity, accounting for about 60% of India's steel production capacity.

The Clark Iron and Steel Company, which Doble brought Ning Mo and Zhao Yang to visit this time, is a medium-sized steel enterprise with an annual output of about 1.2 million tons. As India's domestic steel market continues to boom, Clark intends to expand its production capacity and hopes to introduce a complete set of equipment including steelmaking, continuous casting, and rolling. When Doble heard the news, he hurriedly came to the door, saying that he had a way in China and could get the cheapest equipment for Clark's company.

Raffner, the president of Clark's company, was skeptical and agreed to talk to Doble's "friends". Doble was overjoyed when he received the reply, because he didn't know which Chinese friend to talk to about the steel equipment. He called Ning Mo with the mentality of trying it out, asking him if he had any friends in this regard, Ning Mo patted his chest on the other end of the phone, saying that he was a child of iron ore and knew the leader of all steel equipment companies in China, and it was enough to find him Ning Mo if he wanted to buy steel equipment.

In this way, Ning Mo and Zhao Yang bought plane tickets and flew to New Delhi, and Doble drove them in a commercial vehicle to the city of Birwala in Madhya Pradesh, where Clark was located, and then went straight to Clark to visit.

"Are you Mr. Ning Mo, the chairman of Moyang Trading Company?"

Ravner met Ning Mo and his party in his office, and when they first met, Ning Mo made a very good impression of Ravner, because he looked extremely rich, and this is often a symbol of strength.

"When I heard that Mr. Ravner wanted to purchase a set of steelmaking, continuous casting and rolling equipment from China, I happened to know the CEOs of many metallurgical equipment companies. Mr. Ravner will tell me what specific requirements you have, and I will contact you and I will definitely negotiate the most suitable price for you. "Ning Mo's mouth is a big package. This is the experience he learned from Feng Xiaochen, even if you only sell leftovers, you must have the confidence to blow it into a foreign trade tail list.

Doble took on the role of translator, and when translating Ningmo's words into Hindi, he did not correct Ningmer's boasting, and even added some content to him.

Ravna is also a person who rolls over from the mall, how can it be so good, he smiled slightly, and said: "Mr. Ning, we only have the intention of purchasing equipment, but we are not sure whether it is from China, Europe or Japan. Personally, I am more inclined to European equipment, such as Simal and Danieli, and I trust their technology more. ”

If you go to 20 years ago, Ning Mo didn't know how to answer when he heard Raffner say this, and at that time he hadn't even heard of the names of companies like Simar and Danieli. But in the years that helped Han Jiangyue manage the new hydraulic company, Ning Mo could be regarded as blending into the circle of heavy industry. Hydraulic parts are widely used in metallurgical equipment, and some domestic metallurgical enterprises have introduced equipment from abroad, and they often consider the use of domestic accessories when carrying out maintenance, including hydraulic parts produced by new hydraulics. Ning Mo himself had followed the engineers of New Hydraulics to some metallurgical enterprises, and heard of names such as SMS and Danieli in them, and knew that these were all well-known metallurgical equipment manufacturers in the world, at least so far, there is still a big gap between the technical level of similar enterprises in China and them.

In addition to learning about technology and branding, Ningmo also learned the experience of domestic substitution in New Hydraulics. When Han Jiangyue went to sell hydraulic parts to domestic enterprises, one of his favorite reasons was that the new hydraulic products were more than half cheaper than their foreign counterparts, and the quality was only one or two percent worse at best. At this time, hearing Ravna loading a fork in front of him, Ning Mo also smiled faintly and said: "Mr. Ravner, the Simak and Danieli you are talking about, their equipment is indeed good. But, to put me mildly, can you afford it?"

As soon as these words came out, Zhao Yang laughed directly beside him. Doble was also stunned, quickly held back a smile, and translated the sentence into a euphemistic way for Ravna. Even this euphemistic version immediately turned a little green when he heard Raffner's ears feel like there were thorns in his ears.

"So, is your Chinese equipment cheap?" Ravner asked.

Ning Mo raised his head confidently and said, "Of course. Let me tell you like this, if the same set of equipment, if SMS sells for 100 million, China will be 50 million at most, and all kinds of accessories will be given away for free, unlike SMS like SMS, who dare to ask you for 50,000 US dollars with a doorknob. ”

"So, what is the price of a set of electric furnaces, continuous casting and rolling equipment with an annual output of 400,000 tons?" asked Ravna.

Ning Mo really did a little homework before leaving, his information came from Qinzhou Heavy Machinery Factory, this company is also one of the customers of New Hydraulics, and it is not difficult for Ning Mo to get a quotation from them.

"A set of 400,000 tons of equipment is quoted at $48 million, which includes transportation costs and installation costs, but the civil construction of the plant is not included. Ning Mo said.

In fact, Qin Chong no longer produces metallurgical equipment with an annual output of 400,000 tons, and the price Ning Mo said was specially calculated by Qin Chong's engineers for him, and also specifically explained that if the other party really wants this level of equipment, Qin Chong may need to go to the archives to find old drawings to produce for them. In recent years, China's steel production has been rising at the same time, but also to speed up the elimination of backward production capacity, many small steel plants with an annual output of hundreds of thousands of tons have been ordered to stop production, this kind of small equipment naturally has no market.

Hearing Ning Mo's offer, Raffner's eyebrows jumped, obviously a little moved. SMS and Danieli have good equipment, but the price is just as advanced as technology. He had previously inquired about the price of these two companies, and the price offered by the other party was more than 100 million US dollars, and as Ning Mo said, even adding a doorknob would cost money, and if it involves maintenance and other operations in the future, the cost will be very considerable.

The Chinese offer more than 50% lower than SMS, and also claim that the accessories are given away for free, which can save a lot of money. As for the quality of the equipment, Lavner is also a knowledgeable person, and knows that it is not much worse than the Europeans. Metallurgical equipment manufacturing has been regarded as a sunset industry, Western countries are mainly in some cutting-edge equipment still maintain an advantage, like this in the West and even China has been eliminated small equipment, who can be more advanced than whom?

"Mr. Ning, the price you mentioned is just the factory's quotation, right?" asked Ravner tentatively.

Ning Mo nodded and said, "Yes, this is just a quotation from the factory. If Mr. Raffner is interested, the price can be negotiated again. For the sake of Sino-Indian friendship, I can persuade the manufacturer to give Mr. Raffner a relatively high discount. ”

That's the rule of doing business, you have to leave a little room for the other party to bargain, so that the other party will feel that they are making a profit. If the reserve price is quoted at the beginning, and then bite it and resolutely do not reduce the price, even if the other party pinched his nose and admitted it, he was not happy. When you don't see the promotion of Singles' Day on the domestic website, it is often three or five folds, which makes people feel excited, in fact, these prices have risen a few days in advance, and the price before the price increase is not much different after the discount, and what customers buy is just an illusion.

The illusion is also beautiful, so many people are tired of chopping their hands, isn't it because they are looking for this illusion that they have made a profit?

Raffner felt in his heart that the price of $48 million was already a good conscience, but he still had to ask if there was room for counteroffer. Hearing Ning Mo say that it was negotiable, he asked calmly: "So, how much can I discount?"

"5%, what do you think?"

"This concession is so small, a mere $2.4 million, and it doesn't ease the pressure on us. ”

"So, what about 10%?"

"Unattractive. ”

"I gave it a free and subsidized all my commissions to Mr. Ravner, and I gave them a 15% discount, which is the bottom line, and if you say it's not suitable, I have no choice at all. ”

Ning Mo pretended to be distressed, but his heart was beautiful. Qin Chong's engineer said that such equipment can be won for 30 million. Even if he lowers the price of Raffna by 15%, according to the quotation of 48 million, he will eventually have 40.8 million, and the profit is as high as 10 million, and it is still in US dollars, which is much more profitable than selling stone.

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