Reborn Industrial Tycoon

Chapter 220 Business continues (please subscribe)

Li Weidong waited for more than two hours and finally waited until Ma Dexing finished handling the matter at hand.

"Director Li, wait a minute!" Ma Dexing pointed to the sofa in the office, and then he drank a large glass of water.

"I'm not in a hurry, but you are too busy, right? You haven't had time to drink water all afternoon?" Li Weidong asked with a smile.

Ma Dexing nodded: "If every company could be like you and get another deposit when encountering a trade ban, I wouldn't have to be so busy."

"I came to you just for this matter." Li Weidong paused and asked: "Walmart and Costo haven't notified us to cancel the order, right?"

"No, it probably only happened in the past two days. Although Wal-Mart and Costo are the top retailers in the United States, they don't dare to violate their country's trade ban, right?" Ma Dexing said.

Li Weidong said: "Actually, I want to continue this business between Walmart and Costo."

Ma Dexing was stunned for a moment, then asked: "Are you going to sell those 400,000 toasters to them? Didn't you not lose any money during this trade ban and even make a large deposit?"

Li Weidong nodded: "I have no losses, and I have also made a lot of money, but I feel that this is not how I make the money. I am engaged in industry, not speculation, and I cannot rely on sudden gains every time.

Policy changes, get a deposit from others!

Starting a business is not a one-time deal, you have to take a long-term view. Even if I earn the $11 million deposit this time, what will happen in the future? Customers like Wal-Mart and Costo will probably not order from me again.

Right! So I still want to continue with this order of 400,000 toasters."

"The idea is good, but it's a bit whimsical!" Ma Dexing smiled helplessly: "You are a big entrepreneur and you want to do long-term business, but have you ever thought about it, even if Wal-Mart and Costo dare to buy goods from you, things

It can’t be shipped, our goods can’t pass through other people’s customs at all!”

"Yes, our goods were stuck at just one customs office!" Li Weidong sighed and continued, "So I plan to wait until the trade ban is relaxed, and then ship to Wal-Mart and Costo."

"Waiting for the trade ban to be loosened? Who knows, we have to wait until the Year of the Monkey and the Moon of the Horse! One or two years? Three or four years? It could even be more than ten or twenty years!" Ma Dexing said.

Li Weidong spread his hands: "Anyway, I have received 50% of the deposit, I can afford to wait!"

"Can Wal-Mart and Costo afford to wait?" Ma Dexing asked.

"You've got to the point. The key is whether Walmart and Costo can afford to wait!" Li Weidong paused and then said: "I guess Walmart and Costo are also evaluating how long this trade ban will last.

A long time. And their assessment is more accurate than our guessing here."

Ma Dexing nodded slightly: "That's right, Wal-Mart and Costo are both American companies, and they must know the United States better than us."

Li Weidong continued: "If I had only received an order of one or two million US dollars, then Wal-Mart and Costo might simply cancel the order. After all, these top retailers in the world have sales of three to four hundred US dollars a year.

100 million US dollars, a mere 1.8 million losses, can still be tolerated.

But now that I have received an order of 11 million U.S. dollars, and Walmart and Costo each have 5.5 million, they have to think about it carefully. I guess they are also in a dilemma now. They want to comply with the trade ban and cancel the order directly, but they are reluctant to do so.

This is a loss of 5.5 million U.S. dollars. It is also for this reason that we have not received any news about order cancellations from Walmart and Costo.

I would like to take this opportunity to contact Gordon, the buyer of Walmart, and Hayward, the buyer of Costo, to express to them my willingness to continue completing this order. We can sign a supplementary agreement to extend this order.

After the trade ban is relaxed, I will ship to Walmart and Costo to complete this order.

After all, this is a special period. If I want to implement this idea, I need the approval of your foreign trade department. And for contacting foreign businessmen, you still have to ask your foreign trade department for instructions. It is best to do it through your official channels.

This will save you a lot of trouble in the future.”

Ma Dexing nodded: "Your idea does have some feasibility, but I can't make a decision on this kind of thing. I have to report it to the leader."

…

Li Weidong had known for a long time that there would be a trade ban, so he did not proceed with production after receiving the order.

However, Li Weidong did not intend to give up this order. He built a new factory and planned to recruit another group of workers.

If Li Weidong was the kind of speculator who plays investment, then he would definitely be happy to put the $11 million deposit into his own pocket. However, for an industrialist, he does not bother to make such money.

If Li Weidong wants to make his company bigger and stronger, he cannot covet this small profit.

To put it another way, if Li Weidong used Wal-Mart and Costo's breach of contract as an excuse to accept the deposit of US$11 million today, it would be difficult to get orders from Wal-Mart and Costo again in the future. This deposit would be like a thorn in the heart.

In the hearts of Walmart and Costo.

On the other hand, if Li Weidong is willing to continue to execute this order, even if it takes two years to get the goods, Walmart and Costo will each lose US$5.5 million less. This money will help Li Weidong gain the trust of Walmart and Costo, and pave the way for the follow-up of both parties.

Cooperation provides the basis.

In Li Weidong's view, spending US$11 million to enter the product supply chains of Wal-Mart and Costo is a good deal.

Li Weidong chose to ask for a high deposit at that time, not because he wanted to cheat Walmart and Costo, but because he was worried that the deposit would be less. Walmart and Costo didn't care about the 1.8 million and canceled the order directly, and there would be no subsequent cooperation.

Already.

What's more, the order of 400,000 toasters is not free, Li Weidong still wants to make money.

Calculated based on the current cost price, the profit of a toaster that costs 40 US dollars is very slim, but in one or two years, the situation will be different.

With the gradual rise of China's manufacturing industry, the output of industrial finished products will increase, and the prices of various industrial parts will become lower and lower in the future.

For example, a toaster currently costs US$39, but in one or two years, the cost may drop by US$35, and by then Li Weidong will be able to earn more profits.

It is precisely for this reason that Li Weidong dared to call out the world's lowest quotation of US$40 at the Canton Fair, because Li Weidong knew that the actual shipment of this batch of toaster ovens would have to wait until one or two years later, and at that time various parts

The price will inevitably decrease.

This sales routine imitates a certain brand of mobile phones in later generations. It first launches a flagship phone with extremely high configuration, and then gives a price that is significantly lower than the market, making the cost-effectiveness gimmick. But when the mobile phone is actually mass-produced and shipped, it will take a long time.

After half a year or even a year, the so-called high configuration has turned into a normal configuration, and the price of parts has also dropped.

Li Weidong applied the routine of selling futures mobile phones to toasters and sold a batch of futures small appliances.

…

Early the next morning, Li Weidong was called to Ma Dexing's office.

Ma Dexing said: "I have reported your idea yesterday to the leaders in the department. The leaders attach great importance to it. They think your idea is very good. When we do business with foreigners, it is not a one-time deal.

You have to consider long-term plans.

Moreover, due to this trade ban, those foreign businessmen have also suffered losses and are also victims of the trade ban. After the trade ban is loosened, we will still have a lot of room for cooperation with these foreign businessmen, so the leader has agreed to your request in principle."

"That's great!" Li Weidong let out a long breath.

"But, this trade ban is against our entire country, and your order was applied for from the Canton Fair, so the leaders in the department decided to report this matter to the ministries and commissions, and at least be in charge of the Canton Fair

Deputy Director Sun Xinmin needs to know about this," Ma Dexing said.

"Oh, when will the leaders in the office report to Sun Si?" Li Weidong asked immediately.

Ma Dexing explained: "I came to you specifically to discuss this matter with you. We have just received a notice from the ministry asking the leaders of the department to go to the capital for a meeting. It is probably also about the trade ban.

The leader plans to take this opportunity to report to the leaders of the ministries and commissions in person. Of course, it is not just about you. For example, the 400,000 tons of ethylene project in our province, the chemical raw materials of Qicheng Petrochemical, and the oil exports of Shengli Oilfield will also be reported to the ministries and commissions.

Reported by leaders.

The persons in charge of the projects I just mentioned will also come to Beijing together. If the ministries and commissions want to know the specific situation, they can report the details immediately. So Director Li, I have to work hard for you and come with me.

A trip to the capital!"

…

At the same time, Jiang Aiguo, the foreign trade department of a certain province, was also worried about the trade ban.

"Boss, all the air fryers we produced have been put on the ship, but suddenly there was a trade ban. Foreign businessmen called and said that the order was cancelled. What should we do with this batch of products!" Manager Xue said with a sad face.

"What can I do? I can't predict things like trade bans! And it's not just your company that has encountered this situation. There are many more unlucky than you!"

Jiang Aiguo paused and then said: "In this situation, try to reduce losses as much as possible! Fortunately, your products have just been loaded on the ship. It is still too late to unload them. At most, you will have to pay some loading and unloading fees. If it is halfway through the shipment,

If this happens again on the road, even the freight will be lost."

"Boss, even if we unload the product, no one will buy it!" Manager Xue said.

"Don't you know how to export to domestic sales? At least you can recover some losses, right?" Jiang Aiguo said.

"An air fryer sells for 150 to 60 US dollars, which is equivalent to more than 600 yuan. No one in our country is willing to spend so much money to buy this thing!" Manager Xue said.

"Then store the goods in the warehouse first and sell them later! At worst, when you sell them later, you can give a discount and recover some of the cost."

Jiang Aiguo thought for a while and then said: "Also, when you signed the contract, didn't you receive a deposit from the foreign businessman? Now that the foreign businessman has breached the contract and canceled the order, isn't the deposit yours? How much can you get back, right?"

"Boss, don't mention the deposit. I get angry when I mention it. After the foreign businessmen paid the deposit, most of it was transferred to the Southeast Company in Hong Kong Island to pay the patent fees." Manager Xue said with a depressed look.

"Patent fee? I remember it's 10 US dollars per unit, right? How much deposit did you charge for an air fryer?" Jiang Aiguo asked immediately.

"For an air fryer, we charge a 10% deposit, which is 15 US dollars, but 10 US dollars are paid for the patent fee! Our factory only keeps 5 US dollars. This product worth 150 US dollars has only paid back 3.3

%, but the loss is huge! In the second half of the year, our factory may really suffer from the northwest wind!" Manager Xue complained.

"That's too much!" Jiang Aiguo slammed the table angrily and said, "If we sell the product, we can just pay them the patent fee. Now that we haven't sold a single product, why should we?"

Give them royalties!”

"What the leader said is that since we haven't sold the product, we don't have to pay patent fees at all! That Southeast Company is simply robbing!" Manager Xue added.

Jiang Aiguo narrowed his eyes slightly: "I just received a notice that the ministry asked me to go to the capital for a meeting. I just took this opportunity to discuss with Cai Qianjin and the others. I have to make that Li Weidong spit out the patent fees!"

The second chapter has arrived. Thank you for your subscription. I am not in good condition, so I just wrote two chapters. I am always a little tired at the end of the month. Please bear with me.

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