Chapter 678: Unequal Price War

"The vapor deposition process they use is cost-effective. If their production plant can reach a production capacity of 200 kilograms per day, then their cost will be less than $8 per gram, and if you take into account the low labor costs and environmental costs of the Chinese, they may even produce it at $6 per gram. Gen Yoshida reported to Saburo Hanaya.

As a veteran carbon chemical expert, estimating the cost of a production process is not difficult for Yoshidagen. If Qin Hai heard these words here, he would first be surprised by the accuracy of Yoshida Yuan's judgment, and secondly, he would be ashamed that the Great Qin Group could not achieve such a cost control ability. Due to the lack of advanced production equipment and experience in process organization, Daqin Group's production capacity of 200 kilograms per day could not be controlled at all, but reached the level of 10 US dollars.

Daqin Group expanded its own production scale, which Yoshida did not expect. The statement he heard from Wang Xiaochen was that Daqin Group only had a production capacity of 5 kilograms per day, and some information that Yu Yong revealed to him also confirmed this statement. If calculated based on a daily output of 5 kilograms, then the cost of Daqin Group's graphene production will reach 10 to 15 US dollars, thus leaving an opportunity for Niizuka Chemical to take advantage of the void.

The organic synthesis process adopted by Shintsuka Chemical has inherent shortcomings in cost. However, if the production scale of the device is larger, it is still possible to control the cost below 8 US dollars, so that there are conditions to compete with Daqin Group. Now that the intelligence gathered from various sources shows that Daqin Group actually has the capacity to produce more than 200 kilograms per day, then the assessment of its cost needs to be recalculated.

"If the cost of production for the Chinese is $6 per gram, Morioka-kun, what price do you expect them to sell?" Saburo Hanaya called Yoshiki Morioka, the head of sales, and asked Yoshida Gen to explain the judgment on production capacity and cost, and then asked Yoshiki Morioka for confirmation.

"It depends on the sales strategy of the Chinese." Yoshiki Morioka. "If they're in a hurry to capture the market, they're going to sell it at around $10 a gram in order to deter us and latecomers like Warren. If they are in a hurry to recoup their investment, they may set prices at $20 or even higher, taking advantage of the gap before other manufacturers have yet to build production capacity and maximize profits. ”

"I know that very well." Saburo Hanaya said angrily. "I'm asking about your own judgment, what strategy do you think the Chinese will adopt."

Yoshiki Morioka said: "As far as we know, their official offer for the outside world is currently $100 per gram. ”

"$100, it's absolutely impossible!" Yoshida Yuan couldn't help but interject, this price is obviously unreasonable, and it is impossible for a fool to quote like this.

"It's ......really impossible," Yoshiki Morioka said depressedly, of course he knew that the final offer of the Daqin Group was not like this, he said this just to foreshadow, who knew that Yoshida Gen would be so impatient.

"I'm talking about their official offer." Yoshiki Morioka emphasized. "They decided on several different discount strategies based on this offer, and the specific ...... was like this"

Then, he introduced the regulations on gold membership and diamond membership to Saburo Hanaya and Gen Yoshida, but he couldn't say anything about preferential policies such as strategic partners, because his intelligence system had not yet penetrated to this level.

This is what those traditional customers of Shintsuka Chemical have set for them. For example, Mamun has negotiated a "strategic cooperation price" of $5 per gram with Daqin Group, but Nicol did not report this situation to Yoshiki Morioka, only saying that the company has a large order quantity. So I got a good discounted price, which is slightly better than the price of the diamond membership. Nichol's purpose in withholding this information. I am afraid that this ultra-low price will discourage Shinzuka Chemical and withdraw from the graphene market. If there is no competitive pressure on Daqin Group from companies such as Xinzuka Chemical, how can Mameng Company get such a preferential price?

"In other words, the price that Mammon got was not higher than $25 per gram?" Saburo Hanaya understood Yoshiki Morioka's introduction and calculated such a price in his mind.

Yoshiki Morioka nodded: "Yes, I guess because they have a large order volume." It's also possible to end up with a price of about $20, which is something that Marmon hinted at to me. ”

"I think the price is reasonable. Even at this price, the Chinese have more than double the profit, because their production cost is also $6 to $8, and the transportation cost of graphene is almost negligible. Gen Yoshida said.

Hanaya Saburo said, "Morioka-kun." Do you think the price revealed by Mammon will be too high? For example, is it possible that the Chinese promised them a lower price, while they hid it from us? ”

Yoshiki Morioka shook his head resolutely and said, "No way. If the Chinese offer a lower price, the company will definitely tell us clearly, because this can force us to lower the price. There has never been a case where a user deliberately says a high price, they will only deliberately say a low price in order to get room for bargaining. ”

"That's just as well." Saburo Hanaya nodded, "If that's the case, then we sell it to them for $18 or $16, and they should be interested." ”

"So far, they're saying that." "But I haven't been able to sign a contract with them yet, because our products haven't been put into production yet, and the other party said that they would have to see our samples before they could determine the specific cooperation." ”

"$16 ......" Gen Yoshida's lips moved, and a wry smile appeared on his face.

"Yoshida-kun, do you have any ideas?" Saburo Hanaya asked.

Yoshida Yuan bowed his head and said: "Chairman, according to our current production process, the production cost of each gram of graphene will reach almost 14 US dollars. If sold at $16, we are almost unprofitable. Reducing costs requires process improvements, as well as further expansion of the production capacity of production units, which will take time...... And funding. ”

"We don't have time to wait." "Now we have to curb the momentum of the Daqin Group and bring them to an impasse on the issue of graphene." Morioka-kun, I now authorize you to negotiate with European customers for as little as $14. Yoshida-kun, you have to continue to work hard, and spend three to five months optimizing the existing process, so as to reduce the cost to less than $8, and form an overwhelming advantage for Daqin Group. ”

"Hey!" Yoshiki Morioka and Gen Yoshida straightened up at the same time and agreed in unison.

The price war with competitors is not new to Shintsuka Chemical. Only by knocking down competitors can they maintain high profits, which Saburo Hanaya and Yoshiki Morioka are very aware of. Prior to this, no company in a developing country had been able to let Niizuka Chemical put down its position to compete on price, and in this regard, Daqin Group was a precedent.

Saburo Hanaya knows that Daqin Group is an opponent worth paying attention to. This company was able to overcome the difficulties of graphene before the new mound chemical, and also held back, concealed the heavy news of the discovery of graphene, and waited until it mastered the two best preparation processes, and then released it to the outside world, which shows that this company has both R&D strength and business acumen. If such a company is allowed to develop, it will be a strong rival of Shintsuka Chemical in the future.

It is precisely because of this realization that Saburo Hanaya would rather lose money and make money, and must snatch the customer from Daqin Group. Under the current production cost, Shintsuka Chemical sells graphene to European companies at a price of $14 per gram, not only does it not earn a penny, but also loses financial expenses, marketing expenses and equipment depreciation, etc., which is contrary to the company's business principles. But this can make Daqin Group also unable to make money, which is enough.

In Hanaya Saburo's view, Daqin Group's capital is far less abundant than its own, and if it drags on the graphene project for a long time and fails to make a profit, Daqin Group will eventually be unable to support it, so it will give up the project. At that time, Shintsuka Chemical will be able to monopolize this market. As for Germany's Warren company, although there are also rumors that it will enter the field of graphene, Shinzuka Chemical does not think that Warren has any threat to itself, because the production cost of the Japanese has always been advantageous compared with European companies.

Taking a step back, even if Daqin Group is willing to consume and refuse to give up the market, this squeeze of Xinzuka Chemical can at least make Daqin Group unable to get enough returns to improve technology and expand production capacity. In a few years, when Shinzuka Chemical's own technology is perfected and the cost is further reduced, it will still be able to give a head-on blow to Daqin Group.

In the whole plan, what Saburo Hanaya relied on was the strength of Shintsuka Chemical. He firmly believes that this kind of price war is something that Daqin Group cannot afford to fight, and Shintsuka Chemical has many mature businesses that can return huge profits to support the protracted war on the graphene battlefield. And does Daqin Group have such strength?

Saburo Hanaya only ignored one detail, that is, how much is the cost of graphene production for Daqin Group. The cost calculated by Yoshida Gen is based on a production capacity of 200 kilograms per day, and in fact, Qin Hai did not intend to limit the production capacity to this level from the beginning, and the production capacity of the Daqin Group has reached 10 times that figure.

A mistake in one detail can make the difference between the loss of a war. Qin Hai's deliberate concealment, coupled with the arrogance of the senior management of Shintsuka Chemical for the Daqin Group, the price war was in an unequal state from the beginning. (To be continued......)