Pioneer of the Rebirth Era
Chapter 523: Its important to understand the rules
Yang Dongxu's method of doubling orders is actually very simple. To be precise, it's a bit of an old tune, which is the OEM he has been promoting in the past two years.
Although the Yiwu platform was lively, many orders were received at once. However, a large part of the reason why these foreign businessmen were so generous was because these things were very novel, and they were optimistic about the market in this area.
However, there are only a few businessmen who are optimistic about the market and put all their money into it, so placing an order that seems generous is actually a conservative approach.
These foreigners are not stupid. They basically try to sell the orders they place, that is, they place an order for a batch of goods. After looking at the sales volume, they decide whether to place an order or not. This is the safest way.
If a market does not have a driving force behind the scenes, there will always be a process of adapting to the emergence of new products. This process may be long or short, and during this process, products that could have been popular may very well die because the adaptation time is too long.
However, new products need to be adapted, but old products do not have this concern. Especially Yang Dongxu saw several big international brands among the group of foreign businessmen.
So if the OEM can be negotiated, the order will more than double without any sales concerns. And the way to get these foreigners to place OEM orders is also very simple, saving almost half of the production cost, and the quality is still the same.
Which businessman would not be tempted by this? And all they need to pay for this is a wait of up to one month, and perhaps some additional transportation costs. But this is simply a dime in the face of the huge cost savings.
And now China has launched an export preferential policy, which means that as long as the goods can be exported in exchange for foreign exchange, there will be no tax and even tax subsidies. This will save these businesses a fortune, so it is cost-effective no matter how you calculate it.
However, these foreign businessmen must also have some concerns. After all, in their impression, China is synonymous with poverty and backwardness. They must also have concerns about whether they can complete orders with quality and quantity according to their own requirements.
But this worry can be easily dispelled, that is, this point should be emphasized in the contract, and the responsibilities should be written clearly. If the goods are not delivered, you can ask for less deposit, or even pay a deposit. In short, these are not problems.
The problem is that as soon as these injuries taste the sweetness of OEM in China for the first time, they will be completely addicted and cannot do without domestic OEM companies. In this way, the first batch of OEM companies will definitely be weak in accepting orders.
"Is this okay?" Zhao Dexin listened to Yang Dongxu and looked at him hesitantly.
Although Yiwu is more prepared than Yu Feihong, their current thoughts are still on promoting their own products and getting their products out of the door. As for taking orders from foreign contract manufacturers, few people in China currently have such an idea.
.Even if there are people who dare to think and have the conditions to do it, there are only a few people except Yang Dongxu.
"You should have some good tailors over there, right?" Yang Dongxu raised his chin and said to the Yiwu station.
Although the Yiwu platform was very lively and crowded with people, Yang Dongxu took advantage of his height and saw two middle-aged women taking a piece of cloth, cutting it, and quickly made it into a Chinese tunic suit to show off to foreigners.
The quality of the cloth and the condition of the finished garment.
"There are some clever people." Zhao Dexin didn't understand what Yang Dongxu meant and nodded.
"Let's go over and ask your people to cooperate with me." Yang Dongxu smiled at Zhao Dexin and walked towards the Yiwu booth.
Zhao Dexin frowned and felt a little uneasy. Although twice the order was tempting, the order Yiwu received today was already quite large, so even if he did nothing now, he could still go back and deliver the work.
But if Yang Dongxu had followed Yang Dongxu's advice, the last two orders were not fulfilled, and then the orders that were received were also sold out. It is estimated that the boss would have wanted to kill him after he returned.
But just when he was hesitating, Yang Dongxu used his height and strength to squeeze into the Yiwu booth, and without giving Zhao Dexin a chance to say anything else, he directly started talking in English with a foreigner wearing Nike brand clothing.
The foreigner who was originally listening to the translator stumblingly introducing the products in front of him suddenly lit up when he heard the English of Yang Dongxu, who spoke with a pure London accent, and then chatted with Yang Dongxu while the translator next to him was dumbfounded.
At this time, Zhao Dexin, who had struggled to squeeze in, wanted to say something. Yang Dongxu had already taken the white paintbrush on the table, and with a few strokes, he outlined the separated parts of the jacket and introduced it to the foreigner.
The foreigner's eyes lit up when he saw the pattern that Yang Dongxu casually sketched. He pointed to the style of the pockets that were separated from the jacket, the shape of the cuffs, and the shape of the collar with great interest, and started talking enthusiastically with Yang Dongxu.
One of the two people was drawing and introducing, the other was looking and asking questions. They talked for a few minutes as if no one was watching. Then Yang Dongxu said something to the foreigner, and the two of them looked at the two seamstresses together. This made the people standing aside afraid to speak.
The two seamstresses were instantly frightened and didn't know what to do.
"Can you understand these pictures?" Yang Dongxu turned the clothes parts drawn with chalk in front of him in one direction and showed them to the two tailors.
The two seamstresses looked at me and I looked at you and shook their heads at the same time.
Seeing the reaction of the two people, Yang Dongxu was stunned for a moment, and then he came to his senses. He pointed at the painting on the cloth and introduced it to the two people. In fact, it meant where the pocket should be on the clothes, what kind of cuffs should be, and the collar should be slightly stiffer.
and establish etc.
The two people understood it instantly. This is also the common state of domestic technicians. If you show the professional drawings to the technicians, they may not be able to figure it out. But if you explain your requirements clearly, they will not understand.
If you need drawings, they will be able to process what you want, and it will be no worse than what you can make based on the drawings.
This chapter is not over yet, please click on the next page to continue reading! "Is this possible?" Seeing that the foreigner seemed to be particularly interested in what Yang Dongxu drew, Zhao Dexin quietly tugged at the corner of Yang Dongxu's clothes and asked worriedly.
"We will know soon whether it is successful or not. What you are considering now is how to quote the price."
"Quotation?" Zhao Dexing was stunned for a moment. He was still worried about whether Yang Dongxu was messing around and angering the foreigner. Yang Dongxu seemed to have concluded that this order must be a quotation for him. His mind couldn't keep up for a while.
Yang Dongxu's rhythm.
"Two tailors are working on it. Since you came to host this booth in person, you must have an estimate of the price of the cloth. So take a look at what materials they use, estimate a rough price in your mind, and then add 50% to the cost.
Just report it." Yang Dongxu reminded Zhao Dexin in a low voice.
"Fifty percent!" Zhao Dexin looked surprised. Now Yiwu's small commodity profits are generally about 20%, and clothing is even less than 10%. The sudden increase in the quotation of 50% made him feel that Yang Dongxu was trying to trick foreigners. This was a big deal.
, it might even be a diplomatic incident.
"Fifty percent is still less." Seeing the surprised Zhao Dexin, Yang Dongxu gave him a look that said he was not promising: "There will be some hidden terms in the contract negotiation later. If the negotiation goes smoothly, the profit will be 60-70%
It’s not impossible given the space. And even if a foreigner finds us and makes so much money, instead of being angry, he will be happier.”
Yang Dongxu is very clear about the urinary nature of these brand companies. Although the brands are not as pathologically harsh as luxury goods, many of the eliminated products are directly destroyed, and many of them are reduced in price. Even if the price is reduced, it is more profitable.
The profit of 60% to 70% seems to be a lot for OEM companies, but Nike will earn more. And this is not the real cost written in the contract. For example, the original cost of processing clothing is 50 yuan, which is increased by 50%.
The ex-factory price of this piece of clothing is only 75 yuan. And Nike sells it for at least 300 yuan.
And in most contracts, the manufacturing price will not be written as 75. Instead, it will be written as 105, or even 205. Adding transportation fees and various selling costs, the price of 300 yuan makes consumers feel that Nike is particularly reliable.
In this way, Nike can also declare to the outside world that what its company focuses on is the quality of the brand. Even if each product makes less money because the cost is too high, it will not affect the quality of the cost reduction for the sake of profit. In this way, it can establish a brand with all the internal and external face.
Positive image tea products sell well.
However, these are undoubtedly unspoken rules in the industry, and most people will not understand them if they don’t understand them. So sometimes other companies are jealous when they see this company doing such good business.
So people who were following this company found a buyer and wanted to get the order at a lower price. As a result, the expected success did not happen, and instead there were many cases where they were slapped.
The first reaction of a company that wants to poach someone when encountering this situation is that the buyer's representative has been bribed and must have received a lot of kickbacks. This may be one of the reasons, but it will not be the only reason.
Many unspoken rules and hidden terms in cooperation were the root cause of his rejection.
"Five...50% is still less?" Zhao Dexing looked at Yang Dongxu in astonishment. For a moment, he didn't know whether it was a surprise or an uneasy feeling that Yang Dongxu was bragging.
"We'll talk about this later. When I ask you about the cost later, you tell me the truth and you don't have to hide anything. Then I'll talk to this foreigner. If there are no accidents, we can sign a contract of intent today. Then you go back and prepare. They go back to inspect you.
At the factory, when the time comes, you gather all the skilled workers and show them that the order will basically be gone.”
Yang Dongxu patted Zhao Dexin on the shoulder to tell him to calm down, and then turned his head and started talking to the foreigner again. But at this time, the focus of the conversation between the two people was on the shape of the fabric that the two tailors were constantly cutting out, and the appearance of the finished product after it was made into parts.
above.
Sometimes Yang Dongxu speaks in his mouth and then gestures with his hands for unknown purposes. People next to him are confused, including a foreigner who understands English standing next to him.
But the manager of Nike could understand it, and from time to time he would rub his hands very excitedly, then pick up the scissors next to him and cut them by himself, and then put the cut fabrics together into strange-shaped things, and return them while he was doing them.
Yang Dongxu chatted and asked him to make suggestions.
Both of them spoke very fast, and the movements of their hands were not slow, which made the people around them who didn't understand even more confused. They could only look at these two people with admiration, wondering if they understood that they were stupid.
I understand. But how do these two people who are chattering and doing things at the same time think about how awesome they are? They must look at them with admiration, otherwise won’t others know that they are stupid? So their expressions must be serious, and their eyes must be worshipful.
And the more worship the better.
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