Chapter 753: There's no point in talking about it
"As a sign of our sincerity, we have agreed to reduce the price level by 10 per cent on the basis of the original ......"
“…… After careful consideration, we believe that a reduction of 15% is also possible. ”
“…… 20%?”
"I think we can cut the price by 30% at most, otherwise we won't be profitable......"
"I've been authorized to reduce the price by up to 35%, and if we exceed that, we'll have to apologize to you......"
"If you're not satisfied, we won't be able to talk about it......"
"We really don't talk about ......"
"Let's go right away!"
At the negotiating table, Albert, Maxwin, and Schleier backed down step by step, constantly issuing warnings, claiming that they could not accept a lower offer, and then repeatedly broke their promises. They both said "leave right away" more than ten times, but in the end their hips were still firmly glued to the stool, showing great honesty.
"Gentlemen, I don't think we need to engage in such psychological tactics. Everyone understands that you should know that you can't achieve real cooperation with negotiation skills. ”
Feng Xiaochen spoke leisurely. Wang Zhenbin has given him the power to negotiate, allowing him to play freely. Wang Zhenbin knew that he had been in the agency for too long, and it would be a loss to negotiate with old foxes in shopping malls like Albert and others, while Feng Xiaochen was working in the company, and what he did every day was to fight wits and courage with people, and he was experienced, so it was undoubtedly the best choice for this little fox to deal with this group of old foxes.
Of course, if Feng Xiaochen's actions violated the principles of the Development and Planning Commission, Wang Zhenbin could correct it at any time, because after all, he is still the nominal chief representative of the Chinese side.
"Yesterday, we have invited you to visit the long-distance natural gas compressor we are testing, you are all bringing our company's technical personnel to come, for the performance and quality of our compressor, presumably your technical personnel have done a detailed evaluation, this evaluation results, I think we both know the results, right?" Feng Xiaochen said.
"Yes, we are very impressed with your progress in compressor technology. We believe that after a period of hard work, your compressor can fully occupy a place in the international market. Albert replied with a dark face. This kind of thing that everyone understands, there is really no need to play any tricks, and at this time, denying the other party's level makes no sense except for wasting time and leaving the other party with an impression that he is very Lo.
Of course, there are still some mysteries in Albert's words. He said that it will take a period of effort, which means that China cannot completely achieve import substitution at present, and China still needs to import compressors.
Feng Xiaochen smiled at Albert and said, "Thank you, Mr. Albert, for your encouragement." Indeed, as you must have already learned, there is still a considerable gap between the performance of our own compressors and the internationally renowned companies where you work, and it is difficult for us to increase our production capacity to meet the needs in a short period of time. Therefore, our cooperation with the three companies is sincere, and we need your help. ”
"That's what we're hoping for. Maxwin quickly chimed in.
Feng Xiaochen continued: "Since we both know each other's situation very well, then in the process of cooperation, we should be more sincere and less concealed. Although there are still some gaps between the compressors we manufacture and yours, we are not ignorant of the manufacturing costs of compressors. We respect your profit demands, but we hope that you will control the profit level within a reasonable range, and not put forward a completely unreasonable price as is the case, which is not a cooperative attitude. ”
"Mr. Feng, I think you may have some misunderstandings about our cost structure. The cost of a product cannot be calculated simply by its manufacturing cost, but by taking into account its R&D costs, as well as the management costs incurred in the manufacturing process. It is after accurately calculating the various costs that we make an offer to your government at a reasonable level of profit. …… Well, well, in fact, the price is still somewhat negotiable, and we have just agreed to reduce the price by 35% from the original level, which is the maximum concession we can make. Schleier said.
"Is it really the maximum concession?" Feng Xiaochen asked, staring into his eyes.
Schleier was a little embarrassed, he dodged Feng Xiaochen's forced gaze, and said sneeringly: "Perhaps, there can be about 5% of the leeway, but then we really have no profit." ”
"What percentage of your R&D costs are in the quotation?" Feng Xiaochen asked.
"This ...... We are inconvenient to disclose. ”
"What about the management costs?"
“……”
"What about the cost of sales?"
“……”
"Is there anything else that needs to be calculated?"
“……”
Feng Xiaochen was aggressive, and Albert and the others were speechless. The so-called issue of R&D cost allocation and management cost allocation is theoretically reasonable, but it cannot withstand scrutiny. It's really that the difference between the price they quoted in the early stage and the actual cost is too big for them to justify.
If the Chinese side does not know how to make compressors themselves, then Feng Xiaochen's questions are ridiculous, and you can't find a flaw in how people answer. People say that it takes 1 million yuan to process a shaft, can you refute it? People say that it takes five years to design a valve and costs more than 100 million yuan, but you are not convinced? It is not uncommon for China to import equipment from abroad in the past, so that people can earn several times or even more than ten times the profit, in the final analysis, it is because you can't, and what people say is right.
But now the situation is different, the Chinese themselves will also build compressors, the performance is similar to the compressors of three multinational companies, people know that it only takes 5,000 yuan to process a shaft, you offer 10,000, people may be able to accept, you offer 1 million, people can not be anxious with you?
"According to our cost accounting, the manufacturing cost of a 20 MW long-distance natural gas compressor unit does not exceed 15 million US dollars, which is still the cost of a single piece production, and if it is converted to mass production, the cost will be lower. Even if the R&D costs, management costs, etc. are added, the quotation of a single unit reaches 25 million US dollars, which is about the same, while your quotation is 140 million, even if it drops by 30%, it still reaches 100 million US dollars, which is equivalent to 4 times the reasonable price. May I ask gentlemen, what is the basis for your calculations?" Feng Xiaochen finally saw the dagger.
"Mr. Feng, your algorithm is unreasonable. Albert felt weak again, and he had to argue. The bottom line he discussed with Maxwin and Schleier was 80 million, and the China Development and Planning Commission had also said the number of 80 million in advance, and now Feng Xiaochen suddenly pressed the number to 25 million, how could they endure it any longer.
"Your country's labor costs are lower than ours, and the quality of the compressors you produce is not as good as ours. In order to guarantee quality, we have to use a large number of mature patents, and these patents are subject to a fee, so ......" Albert said stiffly, babbling.
Feng Xiaochen smiled slightly: "So, what kind of price does Mr. Albert think is acceptable? If you still insist on the quota of 80 million, I think there is no point in us talking about it." ”
"I don't think there's any point in talking about it. Schleier finally stood up, he threw a cold gaze at Feng Xiaochen, and seeing that Feng Xiaochen was unwavering, he turned to Wang Zhenbin again and asked, "Mr. Wang, may I ask whether what Mr. Feng said just now represents the attitude of your government." ”
Wang Zhenbin pretended to be stupid: "Mr. Schleier, what did Mr. Feng say you were referring to?"
"He said that if we stick to the 80 million quota, you are not going to continue the conversation. Schleier said.
Wang Zhenbin said: "What, does Mr. Schleier think there is a problem with this sentence?"
"In the letter sent to us by your government, it was clearly stated that you could accept an offer of 80 million. Now we are showing our sincerity, and you are not recognizing the price. Schleier said.
Wang Zhenbin looked surprised and said, "Mr. Schleyer, when did we say that we could accept an offer of 80 million? We just said that an offer of more than 80 million is unacceptable, and only under 80 million can we have room for negotiation." Now we have formed some consensus on the cost of the product, and in response to this consensus, if you still insist on the price of 80 million, I think we will doubt your sincerity. ”
It's a mouthful, but it's logically self-consistent. Schleier was stunned, only to find out that the Chinese side did not say that it could accept the price of 80 million, but people just said that they could not accept the price of more than 80 million, as for the price below 80 million......
"Our bottom line is 80 million, and below that number, we will refuse to continue negotiations. Schleier said flatly, and at the same time made a gesture that he was going to walk away. This time, he was standing, and his attitude seemed very resolute.
"What do you two gentlemen think?" Feng Xiaochen was unmoved, and instead asked Albert and Maxwin.
"Our opinion is in line with Mr. Schleier, we both think that the price of about 80 million is acceptable, but below this price, we absolutely cannot accept it. Albert and Maxwin replied at the same time.
Feng Xiaochen also stood up and said with a smile: "If that's the case, then I'm very sorry." ”
As he spoke, his gaze seemed to glance inadvertently in the direction of the door of the conference room, which seemed to say: I have already indicated that I am sending off guests, and you can all get out.
Wang Zhenbin also stood up, his attitude was a little more conciliatory than Feng Xiaochen, and he said to several sales directors: "Since there are serious differences of opinion between our two sides, I think it is better for us to put this issue aside for the time being." You can discuss it again, or ask your respective companies for advice. We very much want to cooperate with you, and our door to negotiations is always open to you. ”