"Okay, since the price has been temporarily set, we will discuss the next pricing in half a year." Chen Zhiwen then asked: "Besides the price, there is the payment model."
"Since this is our first cooperation, how about we have an account period of three months? In the third month after your arcade arrives at the port, I will transfer the funds to your designated bank account." Henry Morgan said with a smile.
"Henry, this is not a good cooperation model. In the United States, you can easily sell arcade machines to bars and get all the money on the first day. And the cost of arcade machines is also very high. Doing this, for me, I can't accept it." Chen Zhiwen shook his head and refused.
For a company, a short-term loss is not a problem. No matter how severe it is, it may not necessarily go bankrupt, such as Qi Dezun's Hutchison. But if there is a problem with the capital chain, even if it has been making profits, it will suddenly collapse. collapse. The importance of capital return is fatal to many companies.
"Well, how about I take a step back and pay half of the payment when the goods arrive at the U.S. port, and then wait three months before paying the remaining half?" Henry Morgan thought for a while and said.
"No, my requirement is that after you place the order, you must pay half of the payment, and then pay the other half after it arrives at the U.S. port." Chen Zhiwen said.
"Eric, although I don't do much trading business, your requirements are too strict. If you have to pay the full payment before you can get the goods, what should you do if something goes wrong in the future?" Henry Morgan said with a frown.
"This is not a one-time business, I can still run away." Chen Zhiwen said with a smile: "In our contract, it can also be clearly stated that I will be responsible for the losses caused by various quality problems. I will also work regularly in the United States. Having a group of after-sales engineers stationed here means quality is also very important to me.”
"Okay, let's discuss the after-sales contract through the contract, but this payment model is still unacceptable to me." Henry Morgan shook his head and said.
"There's no rush, let's discuss it slowly." Chen Zhiwen raised his coffee and said with a smile.
Chen Zhiwen refused to give up on the repayment of capital flow. After two days of negotiations, Chen Zhiwen and Henry Morgan finally reached an agreement on the payment model. American dealers must pay 50% of the payment when placing orders, and Hong Kong After the goods are delivered to the port of the United States, the United States will pay another 25%, and the remaining 25% will be paid three months later after confirming that there are no problems.
Within these two days, the two parties also reached a basic framework such as an after-sales agreement and delivery time agreement. The details still need to be polished by specialized lawyers and professional managers.
The delivery price of Snake's arcade machines to the U.S. port is US$2,500, and the cost in Hong Kong is almost US$1,200. In other words, as long as the US places an order, Hong Kong can make a net profit of US$50, and subsequent production Adding transportation, it will take about one and a half months to arrive at the port in the western United States. It may take another week in the east, which means you can get another US$625. After deducting the freight, you can probably earn about US$600.
For the rest, you can only wait three months. This is basically a very good delivery agreement. No industry will really pay you first and then take delivery of the goods, unless it is an accidental small transaction or long-term cooperation. Some payments will need to be delayed.
However, this is also valid for half a year. After half a year, modifications need to be made based on the actual situation. This is also a fair thing. If the sales are hot after half a year, then the next contract will definitely be beneficial to Chen Zhiwen. On the contrary, if the sales are average, it must be The channel side is strong, which is an inevitable rule for any product.
"Henry, if we reach an agreement today, Henry, how long will it take for you to prepare in the United States before I can ship the goods." After setting a rough cooperation framework, Chen Zhiwen asked with a smile.
"It can be done today. If we go by sea, no matter how fast it is, it will still take half a month. In such a long time, it will not be difficult for me to get the first batch of customers in the United States. Besides, even if you arrive first, I Just find a random warehouse and put it there." Henry Morgan said with a smile.
"Okay, I won't ask, you can just be responsible for the channels." Chen Zhiwen nodded and said.
At present, Midea is still in a very weak infancy and does not have that much energy to build channels. Therefore, it is the easiest thing to hand it over to capable dealers. Besides, products like arcade machines will not survive more than ten years. It takes effort to build channels.
And if home game consoles or handheld consoles are developed in the future, by then, with the years of development of arcades, Midea will be much stronger and will naturally develop its own channels, especially home game consoles and handheld consoles, which are home electronic products. , can be sold in supermarkets.
"One more thing, I also need a certain number of arcade machines for publicity and construction channels. Shipping by sea is too slow. Let's ship by air. I estimate that I will need about 500 units. We don't have the air freight. Is it necessary to waste any more time, one person and half?" Henry Morgan asked.
"Okay, no problem." Chen Zhiwen nodded and said. Looking for a professional cargo aircraft, a Boeing 747 cargo plane is enough for 500 units. It only costs about 100,000 US dollars to go to the United States, and half of it is only 50,000 US dollars. It is not necessary. Just spend so much money for such a small amount of money.
The day after the agreement was reached, Chen Zhiwen and Lei Shengli personally took Henry Morgan's team to Midea's factory in Hung Hom. This is an 8-story industrial office building with an area of 20,000 square feet. It is also the company's special purpose for Midea. We bought the land for the production of arcade machines and then designed and built it ourselves. There are 11 elevators to go up and down.
The first floor is the warehouse, where more than 2,000 arcade machines are easily stacked.
"Eric, I seem to have seen a mountain of gold." Henry Morgan touched the outer paper packaging boxes of several arcade machines and said with a smile.
"This Jinshan, as long as your order is enough, it can now produce 300 units every day. If it is not enough, the empty building opposite, with the same design as this building, can be used at any time, and the total production capacity will be increased to 600 units or more. ." Chen Zhiwen said with a smile.
When he originally designed the arcade production capacity, he based it on the historical sales of 100,000 units of "Space Invaders" sold by Japan's Taito Company in 1978. However, considering that his products were more playable, he designed We have prepared twice the production capacity.
And if the annual production capacity of 200,000 is not enough, the industrial land next to it has been bought early, and an industrial building can be built in a month. Anyway, the land value in Hong Kong will continue to appreciate in the future. Even if we prepare ten such industrial buildings at this time The building will be profitable in a few years.
However, this possibility is unlikely. Arcade machines are non-civilian products, and the upper limit is limited. When the production of home game consoles is transformed in the future, ten office buildings may not be enough.
"Sales of 300 units per day? Eric, do you really dare to think that?" Henry Morgan said with a smile.
"Why don't you think about it? There are tens of thousands of bars in the United States, many of which are large bars. Taking into account casinos, the schools you mentioned before, airports, subway stations, shopping malls, etc., theoretically speaking, swallowing 100,000 arcade machines is not The question, the only question, is whether our game is so fun and whether your channels can really cover all these places." Chen Zhiwen said lightly:
"Besides, there will be Magic Cube after Snake, and there will be other games after Magic Cube. If the cost of arcade machines can be further reduced in the future, when some small supermarkets and gas stations can make their money back on arcade machines, then this market will It will become even bigger, maybe hundreds of thousands of sales a year.”
"Hundreds of thousands of units a year?" Henry Morgan couldn't help but change his expression. When he came to Hong Kong before, he estimated that the sales volume would only be tens of thousands of units a year, but now after listening to Chen Zhiwen's words, he also felt that it made sense, and More importantly, as long as the game continues uninterrupted, the industry can become a continuous money printing machine.
"Whether it can be achieved or not, we will see in the future." Chen Zhiwen said with a smile. As long as the sales in the future are really super hot, it will be up to him to control the dealers, but he will only be able to do it appropriately. One can help him significantly increase sales. As a dealer, he is still willing to share the profits, otherwise, all the sales volume he mentioned will only remain theoretical.
"Now I can't wait to go back to the United States to take care of this matter. How about this? I will return to the United States tomorrow, and my assistant will complete the inspection in Hong Kong, right?" Henry Morgan said.
"No problem. Channel construction is indeed the most important thing now." Chen Zhiwen smiled and said: "There are 520 Snake arcade machines in a warehouse here. Let's airlift this batch to the United States?"
"Sheng Chen, if you want to transport it by air, you need to queue up. Especially for such a large quantity, Cathay Pacific may not be able to jump in the queue." Lei Shengli asked.
"It doesn't matter. I will mobilize a cargo plane from the United States to come to Hong Kong. It will arrive the day after tomorrow at the latest." Henry Morgan said with a smile. He had already been equipped with a simultaneous interpreter assistant. After Chen Zhiwen, Lei Shengli and others said When speaking Cantonese, he can also quickly understand what several people are saying.
"OK, good." Chen Zhiwen said with a smile. It is different if he has resources. He can mobilize a large cargo plane to Hong Kong with just one sentence. If he does it, he may be able to do it, but it will cost a lot of money. , just be the one who was taken advantage of once.
Subsequently, the director of the factory began to arrange preparations for shipment, and the logistics department immediately began to prepare customs clearance documents. Even if it is a private jet, the required procedures still need to be followed.
Chen Zhiwen and his team went to the workshop above again. There were hundreds of workers on each floor doing their own things. Perhaps because they knew that the boss and big customers were coming, the entire workshop was cleaned up.
"There are so many people here. The only factory in the United States that I have seen such a dense concentration of workers is at Boeing. Even General Motors' factories don't have so many people." Henry Morgan didn't understand technology or craftsmanship. The visit itself was just for a casual look, so naturally we started talking casually.
"Compared with the United States, the labor force in Hong Kong is estimated to be 30 times worse. The wages of 30 Hong Kong workers may be comparable to one worker in the United States. Therefore, Hong Kong is more suitable for building these projects that do not have much technical content but require a large number of workers. Factory." Chen Zhiwen said with a smile.
"Yes, if this kind of assembly was done in the United States, the cost would be too high." Henry Morgan nodded and said.
"How many people work for you in Hong Kong?" Henry Morgan suddenly asked.
"I haven't calculated this carefully. There should be 20,000 to 30,000 people, right?" Chen Zhiwen said after thinking for a while.
Hutchison Whampoa and the dozens of companies it controls have more than 10,000 employees in total. In addition to Midea's many businesses, Red Bull and the new Very Coke factory that is about to start construction, the total number of employees is almost 30,000. . However, this does not include the number of jobs driven by the industrial chains of these industries, as well as the hundreds of millions of Hong Kong dollars in daily merchandise purchases by Galaxy Trading in Hong Kong a year, which will also bring a huge number of jobs.
"The total population of Hong Kong is only just over 4 million, right? Eric, you have controlled the employment of nearly 1% of the population, which is amazing." Henry Morgan said with a smile.
"It's just a city. Large American companies generally have much greater influence on a city than I do." Chen Zhiwen said lightly.
"Then Eric, you still need to work harder." Henry Morgan smiled and said: "If any of our companies want to achieve the top level, the first step is to have the most stable hometown, where we can advance and retreat. Keshou, although Hong Kong is only a small city, it is also the most important port city in the world. If you really control Hong Kong, maybe in the future, we can cooperate in more fields."
Asking for a monthly ticket
(End of chapter)
