Reborn Tycoon Rise
Chapter 84 Negotiation
The lunch that Matthew invited was indeed good. Even Xu Zhi, who prefers Chinese food, had to give this steak a thumbs up.
In the afternoon, the lawyer specially hired by Xu Zhi also rushed over. The lawyer was introduced by Robson. After all, it was a big cooperation, and the signing lawyer of the contract must also be present.
In the conference room, Xu Zhi got the other party’s final quotation:
Xiangjiang cube motherboard: $280
Snake motherboard: $255
Xu Zhi frowned and said: "Mr. Matthew, this price is too expensive. The most expensive Moss 6502 chip on the motherboard is only 25 US dollars, and a few memory chips are only 20 US dollars at most. Others Some of the components are worthless."
Matthew smiled and shook his head: "Mr. Xu, that's not how we calculate our costs. You can't calculate the price of an aircraft based on the price of the materials above, right?"
Xu Zhi smiled and said: "It makes sense, but it is still too expensive. I hope Deyi can give a sincere price. Otherwise, I think RB's factory may be more suitable."
When he heard the word RB, Matthew frowned. In the past few years, RB Semiconductor has developed rapidly and launched a price war against all its American counterparts. The quality is no worse than that of the United States. Under this indiscriminate attack, the United States Semiconductors are losing ground, and even Intel has been losing money in recent years.
TI's main business is not semiconductors, but the company's annual profit is only one to two billion US dollars, while the San Francisco factory is losing millions of US dollars every year. If it continues, the factory may be shut down.
Matthew smiled and said: "I heard that Midea received a lot of praise and orders at the Los Angeles Electronics Show. The current production task must be very tight!"
Xu Zhi nodded and smiled: "Yes, if I change to another company now, I will indeed suffer a lot of losses, but Mr. Matthew needs to think carefully about it. Is it better to make a quick buck at once, or is it safer to make a steady stream of orders?"
Matthew thought for a while and said: "We at Deyi are very sincere in reaching a cooperation with Mr. Xu. We can give another 30% profit on the price, but Mr. Xu must sign a long-term supply agreement with us. All motherboards of Midea Group All orders are produced by us at Deyi!”
Xu Zhi shook his head and refused: "This is impossible. At most, I will give Deyi priority. We will never sign such a binding agreement just because of a small profit. Either we will not do this business, or Deyi will not do it." It’s 20% cheaper. As long as there are no quality problems, TI will get some orders from our company in the future. Besides, even if it’s 20% cheaper, the price may not be comparable to that of RB’s company?”
Matthew frowned and said: "We are not profitable at this price."
Xu Zhi sneered: "Since it's not profitable, there's no need to cooperate!"
Whether an order is profitable or not actually depends on how a company calculates it. In many cases, it is obviously a profitable business, but if the cost of the time when a lot of equipment is idle is included, it is difficult to avoid losing money.
To give a simple example: Many people know that the various targeted drugs that have been scolded by countless netizens in later generations are expensive. The research and development cost of a drug may be as high as hundreds of millions of dollars. However, those who are willing to calculate will know that even if it costs hundreds of millions of dollars, Cost and drug pricing should not be so high. The real reason for high drug prices is that behind a successful drug there are several failed drug research and development cases. These costs are all taken into account, so the price naturally goes up.
Back to reality, the same is true for TI's algorithm. When there are no orders, the cost of not starting work is also included in the order cost, so of course there is no profit.
Seeing that Xu Zhi refused to give in, Matthew was silent for a while. The two parties could not talk about it at all. Deyi wanted to tie up Midea's orders and make profits at the same time. Xu Zhi didn't care who the order was given to. It didn't matter even if the costs were a little different, but a company The most important thing is supplier control. If you are tied to one company, that is the source of all disasters.
Are future generations of Apple awesome? But in the face of Samsung and Qualcomm, no matter how fierce the trouble is, cooperation must be done. Some people may say that this is a technological monopoly and there is nothing we can do about it.
Let’s talk about Foxconn, which was basically cultivated by Apple. At its peak, Foxconn held 60% of Apple’s orders, and then it began to become too big. Sometimes Apple’s requests were also rejected, just because the order was short-lived. No one inside can do it. Of course, in this regard, Foxconn is just complaining, but it still cannot compare to Samsung and Qualcomm.
The negotiation lasted for more than an hour. Due to the huge pressure of no orders, Deyi finally reached an agreement with Xu Zhi, reducing the price by 20% from the original quotation. Xu Zhi also made concessions, and the initial 2,000 motherboards were Pay the full amount first, and only pay half of the deposit for subsequent orders. You will have to wait until the Midea arcade is sold before getting the money back.
Lawyers from both sides were present and the contract of intent was quickly confirmed. The purpose of the lawyers was not to negotiate, but to ensure that there were no legal loopholes in the contract.
The first batch of 100 samples will be shipped to Xiangjiang by air in one week. Motherboards are not heavy but have high value per unit weight, so it is best to transport them by air.
After the subsequent batch orders are produced, they will be shipped to Xiangjiang by air, 100 pieces at a time. The reason for this operation is for safety considerations: the value of several thousand motherboards is too high. If something unexpected happens, even if there is With insurance, the loss of time due to delay will be greater, and no insurance company will compensate for this kind of indirect loss.
In later generations, Apple had such a situation. A container car full of Apple mobile phones had a car accident, and a fire almost burned all the mobile phones. Fortunately, no one was fine, which can be considered a blessing in misfortune. But the losses involved were huge.
But Apple produces hundreds of millions of mobile phones a year, so it doesn't matter how many such accidents occur. Xu Zhi's 10,000 motherboards are probably not enough for a container, so one transportation accident is unaffordable. And from a production perspective, the arrival of batches is also in line with the production sequence, reducing financial pressure.
Fortunately, I brought 10 million US dollars with me to the United States this time, otherwise these negotiations would never have been so smooth.
In the afternoon, on the way back to Los Angeles, there was a traffic jam on the highway. The driver looked at the formation in front of him and said to Xu Zhi and others: "There must have been a car accident ahead. I guess we won't be able to get to Los Angeles until evening!"
Xu Zhi opened the sunroof of the back seat of the limo (limousine), stood up and looked forward. The sky had begun to get dark. It was not very clear, but the traffic jam was probably several kilometers away. However, the convoy did not stop completely and slowly moved forward. OK.
Xu Zhi sat back and said to Lin Siqi: "After returning to the hotel in the evening, I immediately made an overseas phone call to tell He Guoyuan everything about today and inform the company to prepare to test the motherboard that was flown from TI."
Lin Siqi said: "Deyi should also confirm the quality, right?"
Xu Zhidao: "They are them, and we are us. We cannot rely on outsiders, even the Fortune 500, for quality."
Lin Siqi nodded and agreed, "Okay."
Xu Zhi thought of another thing and said: "I saw a TV commercial a few days ago. The American ABC TV station is interested in a short video to celebrate Father's Day. I am a little interested in this matter. Can you help me check the specific information? Details."
Lin Siqi asked: "Are we going to make a movie again?"
Xu Zhi shook his head and smiled: "It's just a short video, maybe only a few minutes. Do you like making movies so much?"
Lin Siqi said: "Yeah, making movies is very interesting, but it's a pity that we can't make them in Hong Kong."
Xu Zhi smiled and said: "Don't worry, there will still be opportunities in the future."
Lin Siqi asked: "But even if our arcade is successful, Jiahe's ban will make it difficult for us to get around it?"
Xu Zhi shook his head and said: "Let's do what we are doing now! I have no interest in Xiangjiang's movies at all. The market is too small. My goal is Hollywood. Can Jiahe's ban order still extend to Hollywood?"
Lin Siqi said: "Are we going to make a movie in Hollywood?"
Xu Zhidao: "We have this plan, but we are not familiar with the place here, so let's do it step by step."
Lin Siqi nodded and said, "Okay, then I'll go to ABC TV tomorrow and ask."
…
It won’t be very good to update during this period because I have to go out on November 1, so I have to save my manuscript now.
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