Two days later, the Imperial Capital.
In a hidden conference room of the Peninsula Hotel, Wang Xianguo sat in front of a man with a typical Caucasian appearance with an indifferent expression, and listened quietly to what he said.
"...So when DSI came to us, as the commercial representative of this project, I did not reach any agreement with him. Of course, verbal perfunctory is inevitable. Regarding this, I believe you can also understand."
"For DSI, behind them is the U.S. Congress. The so-called business methods are not pure, but rather some kind of closedism based on narrow interests."
"But we are different, we just want to make money."
"So, we hope to restart negotiations on hot isostatic pressing equipment, and we will give certain concessions on price..."
This man is Watkins, the business representative of QUINTUS. Compared with his arrogance in the previous rounds of negotiations, he can be said to be as docile as a little sheep now.
There was no other way. The news that China had achieved a breakthrough in the key technology of hot isostatic pressing equipment was like a thunder, which directly shook the entire international market to pieces.
All previous technical barriers and commercial monopolies have become unsustainable, and there is only one effective strategy left:
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 of 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, Watkins got on a plane to the imperial capital.
After more than ten hours of flying, he finally arrived in front of the real person in charge of the purchase ahead of representatives from DSI, AIP and many other companies.
And he has only one purpose:
Win this contract regardless of the cost, even if the equipment price is 0.
You know, 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 unfeasible to strategically give away equipment for free.
Obviously, the current situation in China means that it is time to take this step.
However, he does not intend to sell his reserve price at the beginning, but to test it step by step.
It's a pity that Wang Xianguo is sitting next to Ma Li. For a shopping mall veteran like him, the outcome of the two sides has been clear from the moment Watkins landed.
So, he opened his mouth and said:
"With a zero-amount equipment contract, we want 20 units, and the maintenance fee is 30% off the catalog price."
Watkins' eyes widened and he looked at Ma Li in disbelief and asked:
"Mr. Ma, are you kidding me? If I sign such a contract and return to the company, I will be fired directly and even face judicial proceedings!"
"These are absolutely unacceptable conditions and we need to talk about it again."
"No, this condition is very reasonable. You have to listen to what I have to say."
Ma Li's expression was 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 guarantee that we will purchase 30 hot isostatic pressing equipment at 60% of the catalog price."
“And we will be purchasing the accompanying services.”
“That’s pretty much all we need for hot isostatic pressing equipment in the future.”
"Calculated in this way, without considering discounts, your company's comprehensive selling price is about 70% of the ordinary contract. In other words, within three years, you can still earn about... 20% profit."
"Sure, maybe higher."
A wry smile appeared on Watkins' face. It was obvious that the horse power in front of him did not understand technology, let alone hot isostatic presses, but he definitely understood business logic.
The numbers 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, as you just said, this is just an algorithm without considering discounts."
"However, if we take into account the current value of the annuity, we basically have no profit from such a contract..."
"Yeah, it's just not worth it."
Ma Li said matter-of-factly.
A playful smile appeared on his face, and then he looked into Watkins's eyes and asked slightly teasingly:
"Mr. Watkins, don't you still want to make money on this contract?"
"We have already mastered the technology, why do we still need you to make money?"
"In a non-monopoly market, profits always tend to 0. This is a basic principle of economics. I think you also know this."
"What we do is just follow the market."
Watkins shook his head, frowned and replied:
"China has indeed made great technological breakthroughs. We will never deny this. But it is still impossible to completely replace our equipment in a short time."
"Otherwise, you don't need to make any more purchases."
Ma Li nodded and said in agreement:
"What you said makes sense, and that's why we continue to purchase."
"But if you must refuse to cooperate, what will be the result?"
"Maybe we will lose some time, but you will definitely lose a huge amount of cash flow and a considerable paper profit."
"Weighing the two phases, I think you know very well what you should choose."
Upon hearing this, Watkins sighed.
"But in a few years, you're still going to kick us out, aren't you?"
"Then it depends on your ability."
"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 advantage in the future, then you can continue to make money in China."
"On the contrary, the price you pay today can be regarded as tuition."
"Tuition fee...an 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 great efficiency. When he walked out of the hotel door with a smile on his face, he happened to see Jack in a hurry from the side.
DSI's business representative Jack.
Obviously, the other party came here urgently to discuss the contract.
Watkins quietly hid aside and thought sarcastically:
Jack, this time, you are still one step behind me after all...
According to the headquarters' calculations, China's total demand for hot isostatic presses is only that much. Now that we have filled them in advance, this market will not be able to accommodate other suppliers in the short term...
...
However, two days later.
A surprising piece of news dominated the headlines of major newspapers and media.
"Huaxia has reached an equipment introduction contract with DSI, QUINTUS, and AIP. In the next three years, it will introduce approximately 150 hot isostatic pressing equipment and related maintenance services in batches, with a total amount of up to 150 million US dollars... "
Looking at the dazzling word "up to 150 million" in the news headline, veins popped up on Watkins' forehead, and he slapped the tea cup in front of him against the wall, smashing it to pieces!
150 machines, 150 million US dollars, what is the difference between this and giving it away for free?
"fxxk!!!"
"These Chinese sons of bitches, they lied to everyone!!!"
“They were acting from the beginning!!”
“Their demand is never more than 20 units!!”
"They deliberately disguise their market to be extremely small, just to get all suppliers to offer their lowest prices!!"
"No wonder there is no exclusivity clause, they have all planned it..."
“They prostituted everyone for nothing!!”
