Reborn as a tycoon in Hong Kong
Chapter 27 Negotiation (Part 2)
Akio Nakanishi spoke up and said: "Lin Sang, we need five years to authorize Xiangjiang Cube. Three years is too short, and we want the exclusive agency rights of the entire RB."
"Time can be negotiated, but exclusive agency rights cannot."
Lin Baicheng shook his head and said solemnly: "Unless your company is willing to pay an exclusive agency fee and the first batch of orders is no less than 10,000 arcade machines, the exclusive agency rights will not work."
Lin Baicheng had to protect his own interests, otherwise if Taidong Co., Ltd. just bought a few hundred machines after getting the exclusive agency rights, he would be at a loss. Although this possibility seems small, it must be guarded against.
"There is no problem with the first batch of 10,000 machines, and we can also pay the exclusive agency fee."
Akio Nakanishi nodded in agreement, and then said: "Lin Sang, the price of your company's arcade machine in Hong Kong is 5,000 Hong Kong dollars, but it costs 1,500 US dollars externally. We are ordering in large quantities, so the price needs to be lowered."
Lin Baicheng did not say whether he wanted to reduce the price, but asked: "Mr. Nakanishi, first of all, I want to ask, are you going to buy the whole machine directly, or just the motherboard?"
"Just the motherboard."
Akio Nakanishi replied and said: "Lin Sang, if I want to make you angry, the machine you made is not up to the industry's first-class level. We will make it again after we take the motherboard back."
"No, Mr. Nakanishi, you are telling the truth. How could I be angry?"
Lin Baicheng shook his head. At the beginning, he only had less than one million Hong Kong dollars to build an arcade machine. Of course, he could not use industry-leading accessories. The cost would be too high. What he said was true.
"Our external selling price for the whole machine is US$1,500, and the most important and expensive part of an arcade machine is the motherboard, so even just the motherboard costs US$1,300."
"1,300 US dollars is too high, Lin Sang, 200 US dollars is not enough for the cost of accessories and labor."
Akio Nakanishi smiled and continued: "And even if it is 1,300 US dollars, based on the current US dollar and Hong Kong dollar 1:4.2, it is nearly 5,500 Hong Kong dollars, which is higher than the price your company sells locally in Hong Kong."
"Mr. Nakanishi, you can't calculate like this."
The one who retorted this time was Liu Yihui. He said: "You also said that our accessories are average, and the economic level of Xiangjiang is not as high as RB, and the labor cost is lower. The vast majority of the cost of an entire arcade machine is It’s on the motherboard, so $1,300 is not high, and we always have to make some money.”
"Mr. Nakanishi, after all, your company's first order is 10,000 units. It can't be justified without a discount, so how about the price of 1,200 US dollars? This is already my lowest price."
Lin Baicheng took Liu Yihui's advice and lowered the price appropriately. After all, the other party had a large order of 10,000 units. And this is not his base price, which is US$1,000. After all, the cost price of the motherboard is a little more than HK$2,000, which is less than US$500. Even if it only sells for US$1,000, Lin Baicheng can make half of it, which is US$500.
"Okay, just $1,200 per unit!"
Akio Nakanishi pondered for a while, then nodded and agreed. In fact, Taitung Co., Ltd.’s base price did not have any price reduction, that is, the price of the whole machine was 1,500 US dollars, and the motherboard was 1,200 US dollars. He secretly calculated that after taking it back to make it, and using better accessories, the cost would still not be high. at $1,500.
Taito Co., Ltd. is very optimistic about the Xiangjiang Cube game, so the general manager Akio Nakanishi personally came to negotiate the exclusive agency rights, and the price offered was very high, in order to avoid the recurrence of "PONG".
"PONG" is a game developed by the American Atari Game Company in 1972. It uses a simple dot-line interface simulation to play table tennis. It is simple but classic and fun.
At that time, Taito Co., Ltd. had the opportunity to obtain the exclusive rights to distribute this game in RB, but because most people in the marketing and sales department believed that this weird thing with a price of up to 800,000 yen and only a TV and a control keyboard was not acceptable. It would be popular, so in order to share business risks, Nakanishi Akio lobbied Sega to be a joint agent. As a result, this product achieved unprecedented success, and Taito Co., Ltd. made a lot less money as a result.
Taito Co., Ltd. did not want the same thing to happen again, so after many senior executives were optimistic about the Xiangjiang Cube game, Akio Nakanishi went to negotiate personally and wanted to obtain the exclusive agency rights of RB.
"Lin Sang, how much does your company charge for the exclusive agency fee?"
"We need to discuss this."
Lin Baicheng looked at Liu Yihui but did not give an answer immediately. He wanted to discuss it with Liu Yihui. Although he has a price in mind, he is not sure whether the price is suitable, so it is necessary to consider the opinions of others.
Akio Nakanishi nodded: "Then I will wait for Lin Sang's reply."
Lin Baicheng smiled and said, "I will give you an answer, Mr. Nakanishi, this afternoon."
The negotiation ended here, Nakanishi Akio and the other three said goodbye and left. Lin Baicheng asked Wu Jianjun and Yamada Hideyoshi to take them back to the hotel.
"Lao Liu, how much do you think we should ask for Taidong's exclusive agency fee?"
After the others left, Lin Baicheng asked Liu Yihui.
"Mr. Lin, although I don't know how much RB's exclusive agency fee is in the industry, Xiangjiang Cube is our first game after all. The most important thing now is cooperation and opening up the market, so I don't think this price should be charged. Too high."
Liu Yihui did not say a specific price, but conducted an analysis.
"It seems we have the same idea, Lao Liu."
Lin Baicheng couldn't help but laugh when he heard this, and said: "But it's always good to make more money. When the time comes, we'll test it out with a price of 3 million US dollars and see how Taidong counter-offers. As long as the price is not too low, We can all agree to it."
"Mr. Lin, why don't you license the anti-piracy software to Taidong? A machine costs 300 US dollars, or even higher. If there are really 100,000 machines in a year, that is at least 30 million US dollars in revenue! "
Liu Yihui nodded and asked the doubts in his heart.
"You think I don't want to make this money?"
Lin Baicheng shook his head and expressed his worries: "I'm afraid that after licensing it to Taidong, the software will be cracked by Taidong, and then Taidong will bypass us and develop an anti-piracy software on its own. By then, we will receive less than the licensing fee How much, there is a question mark.”
"That's true."
Liu Yihui was shocked when he heard this, thinking that this kind of thing is really possible, or it is 100% likely to happen. If he were standing in Taitung Co., Ltd.'s position, he would do the same thing instead of handing over 30 million U.S. dollars in licensing fees to Galaxy Games in vain every year.
Earning the money yourself will only make it more enjoyable.
In the afternoon, the two parties met again at the factory office of Galaxy Games.
The price of the exclusive agency fee was US$2.5 million. When Lin Baicheng asked for US$3 million, Akio Nakanishi offered US$2 million. It was good that Lin Baicheng did not insist on US$3 million. Obviously Taito Co., Ltd.'s base price was higher than he expected. should be higher.
However, in order to successfully negotiate the cooperation, Lin Baicheng chose to reduce the price by US$500,000.
The final cooperation reached between the two parties was that Galaxy Games authorized the five-year exclusive agency rights of Xiangjiang Cube Game RB to Taitung Co., Ltd. for US$2.5 million. Taidong Co., Ltd. ordered an initial order of 10,000 machine motherboards at a price of US$1,200 per unit. .
After the contract comes into effect, 50% of the purchase price will be paid down, 20% of the purchase price will be paid after receiving the goods, and the final 30% of the purchase price will be paid one month after receiving the goods.
Both parties hired lawyers to draw up the contract, and Lin Baicheng signed and sealed it. However, Taito Co., Ltd. required Nakanishi Akio to take back the RB and have the boss sign and seal it before it could take effect.
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