Chapter 63: Prostituting Everyone for Nothing
Two days later, the imperial capital.
In a secluded conference room at The Peninsula Beijing, Wang Xianguo sat indifferently in front of a man with typical Caucasian appearance, quietly listening to what he had to say.
“...... So when DSI approached us, I didn't come to any agreement with him as the commercial representative of the project, and of course, the verbal perfunctory was inevitable, and I'm sure you can understand that. ”
"For DSI, behind them is the US Congress, and the so-called commercial means are not pure, but some kind of closed-mindedness based on narrow interests."
"But we're different, we just want to make money."
"Therefore, we hope to restart negotiations on HIP equipment, and we will give certain concessions on price......"
This man is Watkins, the commercial representative of QUINTUS, and compared to the arrogance of the previous rounds of negotiations, he can now be said to be as docile as a little sheep.
There is no way, the news that Huaxia has achieved a breakthrough in the key technology of hot isostatic pressing equipment is like a thunderclap, which directly shatters the entire international market.
All the previous technical barriers and commercial monopolies have become unsustainable, and there is only one effective strategy left:
As much as possible, we will export hot isostatic pressing equipment to Huaxia, seize the market, cultivate habits and dependence, and not be completely kicked out by this vast country.
Therefore, as soon as he saw the news, Watkins immediately arranged for experts to confirm the authenticity of the report, and then, he didn't even have time to pack his luggage, so he got on the plane to the imperial capital.
After more than a dozen hours of flying, he finally rushed to the real person in charge of this procurement before the representatives of DSI, AIP and many other companies.
And he has only one purpose:
Win this contract at any cost, even if the equipment price is 0.
You know, for this kind of large-scale specialized equipment, in fact, the most profitable thing is not the equipment itself, but the later maintenance and technical support.
Sometimes in order to open up the situation, it is not impossible to give away equipment in a strategic way.
Obviously, the current situation in Huaxia has reached the time to take this step.
However, he does not plan to throw his reserve price at the beginning, but gradually and tentatively.
It's a pity that Wang Xianguo is sitting next to Ma Li, for an old fritter in a shopping mall like him, from the moment Watkins landed, the victory and defeat of the two sides have been clear.
So, he spoke:
"0 amount equipment contract, we want 20 units, and the maintenance cost is discounted by seven on the basis of the catalog price."
Watkins' eyes widened, and he looked at horsepower in disbelief and asked:
"Mr. Ma, are you kidding? If I sign such a contract and return to the company, I will be fired directly and even face judicial action! ”
"It's absolutely unacceptable, and we'll have to talk about it again."
"No, it's reasonable, you have to listen to me."
Ma's expression was unwavering, and he paused for a moment, and then spoke:
"The reason why I put forward such a condition is because we also give a corresponding price."
"As long as you accept this contract, we guarantee that we will purchase 30 hot isostatic pressing equipment at 60% of the catalogue price in the next three years."
"And we'll procure the ancillary services."
"That's pretty much all we need for HIP equipment in the future."
"In this way, without considering the discount, the comprehensive selling price of your company is about 70% of the ordinary contract, that is, within three years, you can still earn about ...... 20% profit. ”
"Of course, maybe higher."
Watkins had a wry smile on his face, it was clear that the horsepower in front of him didn't understand technology, let alone hot isostatic presses, but he definitely understood business logic.
The figures he just mentioned were extremely accurate, and if the contract was to be executed according to their plan, the deviation rate should not exceed 5%.
After a moment of silence, Watkins spoke:
"Mr. Ma, as you just said, this is just an algorithm without considering discounts."
"However, if we take into account the current value of the annuity, we basically have no money to make on such a contract......"
"yes, I just don't have to make any money."
Ma Li said as a matter of course.
A playful smile appeared on his face, and then he looked Watkins in the eye and asked a little teasingly:
"Mr. Watkins, you don't want to make money on this contract, do you?"
"We've all mastered the technology, why do we want you to make money?"
"When the market is not monopolistic, profits always tend to be zero, which is the basic principle of economics, and I think you know this as well."
"All we do is adapt to the market."
Watkins shook his head, frowned and replied:
"Huaxia has indeed made a great technological breakthrough, and we will never deny that. But if we want to completely replace our equipment, it is still impossible in a short time. ”
"Otherwise, you won't need to make any more purchases."
Ma Li nodded and said approvingly:
"You have a lot of point, that's why we continue to procure."
"But if you have to refuse to cooperate, what will be the result?"
"Maybe we'll lose some time, but you're going to lose a huge amount of cash flow and a decent book profit."
"Weigh the two phases, what you should choose, I think you know very well."
Hearing this, Watkins sighed.
"But in a few years, you're still going to kick us out, aren't you?"
"Then it's up to you."
"Actually, there is no simple buyer and seller in this transaction."
"For HIP presses, we are the buyer, but for the Chinese market, we are the sellers."
"We have sold you a chance, if you can continue to maintain technological progress and regain your technological advantage in the future, then you can continue to make money in Huaxia."
"On the contrary, the price you pay today should be regarded as tuition."
"Tuition...... Very interesting statement. ”
Watkins muttered for a moment, and after a few seconds, he nodded solemnly.
"Okay, I accept this contract!"
......
A FEW HOURS LATER, THE CONTRACT WITH QUINTUS WAS SIGNED WITH GREAT EFFICIENCY, AND WHEN HE WALKED OUT OF THE HOTEL DOOR WITH A SMILE ON HIS FACE, HE HAPPENED TO SEE JACK IN A HURRY FROM THE SIDE.
Jack, DSI's commercial representative.
Obviously, the other party also rushed to negotiate this contract.
Watkins quietly hid to the side, and thought mockingly:
Jack, this time, you're still a step behind me after all......
According to the estimation of the headquarters, the total demand for hot isostatic presses in Huaxia is only so much, and now we have occupied it in advance, and this market can no longer accommodate other suppliers in the short term......
......
However, two days later.
An astonishing piece of news has dominated the headlines of major newspapers and media.
"Huaxia has reached equipment introduction contracts with DSI, QUINTUS and AIP, and will introduce about 150 sets of hot isostatic pressing equipment and related maintenance services in batches in the next three years, with a total amount of up to 150 million US dollars......"
Looking at the glaring wording of "up to 150 million" on the news headline, Watkins' forehead was bruised, and he slapped the teacup in front of him against the wall, smashing it to pieces!
150 machines, $150 million, what's the difference between that and giving it away for nothing?
“fxxk!!!”
"These bitches raised Chinese people, they lied to everyone!!"
"They've been acting since the beginning!!"
"They never demand more than 20 units!!"
"They deliberately disguise their market to be extremely narrow, just to get all the suppliers to come up with the floor price!!"
"No wonder there is no exclusivity clause, they all calculated it......."
"They prostituted everyone for nothing!!"