Spark
Chapter 64 Whoring for nothing
Two days later, the imperial capital.
In a hidden meeting room of the Peninsula Hotel, Wang Xianguo sat indifferently in front of a man with a typical Caucasian appearance, listening to him quietly.
".So when DSI came to us, I, as the business representative of this project, did not reach any agreement with him. Of course, verbal perfunctory is inevitable. I believe you can understand this point."
"For DSI, behind them is the US Congress. The so-called commercial means are not pure, but some kind of closedism based on narrow interests."
"But we are different, we just want to make money."
"So, we hope to restart the negotiations on hot isostatic pressing equipment, and we will give certain concessions in terms of price"
This man is Watkins, the business representative of QUINTUS. Compared with the arrogance in the previous rounds of negotiations, he can be said to be as docile as a little sheep now.
No way, the news that Huaxia has achieved a breakthrough in the key technology of hot isostatic pressing equipment is like a thunderbolt, directly shaking the entire international market to pieces.
All the previous technical barriers and commercial monopoly have become unsustainable, and the only effective strategy remains:
Export hot isostatic pressing equipment to China as much as possible, seize the market, cultivate habits and dependence, so as not to 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. Then, before he even had time to pack his luggage, he got on the plane to the imperial capital.
After more than ten hours of flying, he finally rushed to the real person in charge of the procurement ahead of the representatives of DSI, AIP and many other companies.
And his purpose is only one:
Win this contract regardless of the cost, even if the equipment price is 0, it doesn't matter.
You must know that for this kind of large-scale specialized equipment, 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 infeasible to give away equipment in a strategic way.
Obviously, the current situation in Huaxia has reached the time to take this step.
However, he didn't intend to sell his reserve price at the beginning, but to try it out step by step.
It's a pity that Wang Xianguo was sitting next to Ma Li. For a veteran in the mall like him, the outcome of the two sides was already clear from the moment Watkins landed.
So he opened his mouth and said:
"0 equipment contract, we want 20 units, and the maintenance fee will be discounted by 30% on the basis of the list price."
Watkins widened his eyes, looked at Ma Li in disbelief and asked:
"Mr. Ma, are you joking? If I sign such a contract and return to the company, I will be fired directly, and even face judicial proceedings!"
"It's an absolutely unacceptable condition and we'll have to talk again."
"No, this condition is very reasonable, you have to listen to me."
Ma Ma's expression remained unwavering, he paused for a moment, and said:
"The reason why I want to put forward such a condition is because we have also given a corresponding price."
"As long as you accept this contract, within the next three years, we promise to purchase 30 sets of hot isostatic pressing equipment at a price of 60% of the list price."
"And, we'll be procuring incidental services."
"That's pretty much all we'll need for hot isostatic pressing equipment in the future."
"In this way, without considering the discount, your company's comprehensive selling price is about 70% of the ordinary contract. That is to say, within three years, you can still earn about .20% of the profit."
"Of course, maybe higher."
There was a wry smile on Watkins' face. Obviously, 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 are extremely accurate. If the contract is really implemented according to their plan, the deviation rate should not exceed 5%.
After a moment of silence, Watkins said:
"Mr. Ma, you just said that this is just an algorithm without discounting."
"However, if we consider the current value of the annuity, we basically have nothing to earn from such a contract."
"That's right, it's just that you don't have to make money."
Ma Li said of course.
There was a playful smile on his face, and then he looked into Watkins' eyes and asked slightly jokingly:
"Mr. Watkins, don't you still want to make money on this contract?"
"We have already mastered the technology, why should we let you make money?"
"In the case of a non-monopoly market, profits always tend to 0. This is the basic principle of economics, and I think you are also aware of this."
"What we did was just follow the market."
Watkins shook his head, frowned and replied:
"Huaxia has indeed made a remarkable technological breakthrough. We will never deny this. But it is still impossible to fully replace our equipment in a short time."
"Otherwise, you don't need to purchase any more."
Ma Li nodded and said in agreement:
"You make a good point and that's why we're continuing to buy."
"However, if you must refuse to cooperate, what will be the result?"
"Maybe we will lose some time, but you will definitely lose huge cash flow and a considerable paper profit."
"Two-phase trade-off, what should be chosen, I think you know very well."
Hearing this, Watkins sighed.
"But after a few years, you'll still kick us out, won't you?"
"Then it's up to you."
"Actually, there are no pure buyers and sellers in this transaction."
"For hot isostatic presses, we are buyers, but for the Chinese market, we are sellers."
"We sold you an opportunity. If you can continue to maintain technological progress and regain your technological advantages in the future, then you can continue to make money in China."
"On the contrary, the price you pay today should be regarded as tuition fees."
"Tuition. Very interesting statement."
Watkins pondered 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 high efficiency, but when he walked out of the hotel gate with a smile on his face, he happened to see Jack hurrying from the side.
Jack, the business representative of DSI.
Obviously, the other party also rushed to negotiate the contract.
Watkins quietly hid aside, thinking mockingly in his heart:
Jack, this time, after all, you are still one step behind me.
According to the calculation of the headquarters, China's total demand for hot isostatic presses is only so much, and now we have already filled it up ahead of time, and this market will not be able to accommodate other suppliers in the short term.
However, two days later.
An astonishing piece of news dominated the headlines of major newspapers.
"Huaxia has reached an equipment introduction contract with DSI, QUINTUS, and AIP. In the next three years, it will introduce about 150 hot isostatic pressing equipment and related maintenance services in batches, with a total amount of up to 150 million US dollars."
Seeing the dazzling wording "up to 150 million" on the news headline, the veins on Watkins' forehead popped up, and he slapped the teacup in front of him against the wall, smashing it to pieces!
150 machines, 150 million US dollars, what is the difference between this and free gifts?
"fxxk!!!"
"These Chinese sons of a bitch, they lied to everyone!!!"
"They've been acting since the beginning!!"
"Their demand has never been more than 20!!"
"They deliberately disguised their market to be extremely narrow, just to make all suppliers offer the bottom price!!"
"No wonder there is no exclusivity clause, they have figured it out."
"They prostituted everyone for nothing!!"
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