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Chapter 753 There is no point in talking about it

"In order to show our sincerity, we agree to generally reduce the price level by 10% on the original basis..."

“…We thought it was possible to consider a 15% reduction.”

“…20%?”

"I think we will cut the price by up to 30%, otherwise we will have no profit..."

"I have received the authorization to reduce the price by up to 35%. If this limit is exceeded, we have to apologize to you..."

"If you are not satisfied, we can't continue to talk..."

"We really won't talk..."

"We'll leave right away!"

At the negotiating table, Albert, Maxwin and Schlaire made concessions step by step, constantly warning, claiming that they could not accept lower quotations, and then again and again, they broke their promises and became fat. The three of them said more than ten times about the words "leave right away", but in the end their buttocks were still firmly stuck to the stool, showing incomparable honesty.

"Sir, I don't think we need to do this kind of psychological tactic. Everyone understands people and should know that real cooperation cannot be reached through negotiation skills."

Feng Xiaochen spoke casually. Wang Zhenbin had handed over the power of negotiation to him and allowed him to play it freely. Wang Zhenbin knew that he had been in the agency for too long and was at a disadvantage in negotiating with old foxes in shopping malls like Albert and others. Feng Xiaochen worked in an enterprise and his daily life was to fight wits and courage with others and have rich experience. It was undoubtedly the best choice to let this little fox deal with these old foxes.

Of course, if Feng Xiaochen's actions violate the principles of the Development and Planning Commission, Wang Zhenbin can correct it at any time. After all, he is still the nominal chief representative of China.

"Yesterday, we invited you to visit the long-distance natural gas compressor we are testing. You all came with our company's technicians. I believe your technicians have done a detailed evaluation of the performance and quality of our compressor. I think both of us know the evaluation results clearly, right?" Feng Xiaochen said.

"Yes, your progress in compressor technology has left a deep impression on us. We believe that after a period of hard work, your compressor can completely occupy a place in the international market." Albert responded with a dark face. This kind of thing that everyone understands does not require any tricks. At this time, denying the other party's level is meaningless except wasting time and leaving the other party with a very low impression.

Of course, there are still some mystery in Albert's words. He said that it will take some time to work, and the implication is that China cannot fully realize import substitution at present, and China still needs to import compressors.

Feng Xiaochen smiled at Albert and said, "Thank you for your encouragement. Indeed, you must have learned that the performance of the compressors we produce ourselves is still quite different from the internationally renowned companies we are in. In a short period of time, it is difficult for us to increase the production capacity to meet the needs. Therefore, our cooperation attitude with the three companies is sincere, and we need your help."

"This is what we hope for," Maxwin quickly echoed.

Feng Xiaochen continued: "Since both of us are very familiar with our respective situations, we should be more sincere and less concealed in the process of cooperation. Although the compressor we manufacture still has some gaps with you, we are not ignorant of the manufacturing cost of the compressor. We respect your profit demands, but we hope that you will keep the profit level within a reasonable range, rather than putting forward a completely unreasonable price as it is now. This is not a cooperative attitude."

"Mr. Feng, I think you may have some misunderstandings about our cost composition. The cost of a product cannot be simply calculated based on its manufacturing cost, but must consider its R&D cost and the management cost incurred during the manufacturing process. It is after accurately calculating various costs that we have submitted a quotation to your government at a reasonable profit level... Well, well, in fact, there is still a certain amount of room for negotiation. We have just agreed to lower the quotation by 35% at the original level, which is the maximum concession we can make." Schlaire said.

"Is it really a maximum concession?" Feng Xiaochen asked, staring at his eyes.

Schlaire was a little embarrassed. He dodged Feng Xiaochen's stare and said silly: "Maybe, there is still room for about 5%, but in this way we really have no profit."

"How much does your R&D cost account for in the quotation?" Feng Xiaochen asked.

"This...we are not convenient for us to disclose it."

“What about the management costs?”

“…”

“Where is the cost of sales?”

“…”

“Is there anything else to calculate the cost?”

“…”

Feng Xiaochen was aggressive, Albert and others were speechless. The so-called issue of sharing R&D costs and management costs is theoretically reasonable, but it cannot stand scrutiny. In fact, the price they reported in the early stage was too different from the actual cost, which was so big that it was difficult for them to justify themselves.

If China cannot manufacture compressors themselves, then Feng Xiaochen's questions will be ridiculous. No matter how people answered, you can't find any flaws. People say that it takes 1 million to process a shaft. Can you refute it? People say that it takes five years to design a valve, and it costs more than 100 million yuan. You are not convinced? In the past, it is not uncommon for China to make several times or even dozens of times the profits. In the final analysis, it is because you don't know how to do it. Everything people say is right.

But now the situation is different. Chinese people can also build compressors themselves, and their performance is similar to those of three multinational companies. People know that processing a shaft only costs 5,000 yuan, and you offer 10,000 yuan, and they may be able to accept it. If you offer 1 million yuan, can they not be anxious about you?

"According to our cost calculation, a 20-megawatt long-distance natural gas compressor unit has a manufacturing cost of no more than US$15 million. This is still the cost of single-piece production. If it is converted to mass production, the cost will be lower. Even if the R&D cost, management cost, etc. are added, the quotation for a single-set unit reaches US$25 million, which is almost the same, but your quotation is 140 million. Even if it drops by 30%, it still reaches US$100 million, which is equivalent to 4 times the reasonable price. Sir, what is your calculation basis?" Feng Xiaochen finally saw the picture.

"Mr. Feng, your algorithm is unreasonable." Albert felt guilty and had to argue. The bottom line he discussed with Maxwin and Schlaire was 80 million, and the China Development and Planning Commission also said the number 80 million in advance. Now Feng Xiaochen suddenly pressed the number to 25 million. How could they bear it anymore?

"The labor cost in your country is lower than that of us, and the compressors produced in your country are not as good as us. In order to ensure quality, we must use a large number of mature patents, and these patents all require payment, so..." Albert said twitchingly.

Feng Xiaochen smiled slightly: "So, what kind of price Mr. Albert thinks is acceptable? If you still insist on the quota of 80 million, I think we will have no meaning to continue talking."

"I don't think there is any meaning to continue talking." Schlaire finally stood up, and he cast a cold look at Feng Xiaochen. Seeing that Feng Xiaochen was unshakable, he turned to Wang Zhenbin again and asked: "Mr. Wang, do you ask if what Mr. Feng said just now represents the attitude of your government."

Wang Zhenbin pretended to be stupid: "Mr. Schlaire, what words did you mean by Mr. Feng?"

"He said that if we insist on the 80 million quota, you won't plan to continue the negotiations," Schlaire said.

Wang Zhenbin said: "What, Mr. Schlaire thinks there is something wrong with this sentence?"

"In the letter your government sent to us before, it clearly stated that you can accept a quotation of 80 million. Now we have shown sincerity, but you do not recognize this price." Schlaire said.

Wang Zhenbin looked surprised and said, "Mr. Schlaire, when did we say that we could accept a quotation of 80 million? We just said that quotation of more than 80 million is unacceptable. Only under 80 million can we have room for negotiation. Now both sides have reached some consensus on the cost of the product. Regarding this consensus, if you still insist on the 80 million price, I think we will doubt your sincerity."

The words were extremely difficult to say, but logically they were self-consistent. Schlaire was stunned and found that China had never said that it could accept the price of 80 million. People just said that it could not accept the price of more than 80 million, as for the price of less than 80 million...

"Our bottom line is 80 million. Below this number, we will refuse to continue negotiations." Schlaire said flatly, and at the same time made a gesture of intending to leave. This time, he was standing and his attitude seemed very firm.

"What about your two gentlemen's opinions?" Feng Xiaochen was unmoved and asked Albert and Maxwin.

"Our opinion is consistent with Mr. Schlaire. We all think that the price of about 80 million is acceptable, but below this price, we absolutely cannot accept it." Albert and Maxwin replied at the same time.

Feng Xiaochen also stood up and said with a smile: "If this is the case, I'm very sorry."

While speaking, his eyes seemed to be inadvertently glancing at the direction of the conference room door, and the meaning seemed to be saying: I have already said that I have sent off the guests, you all can get out of here.
Chapter completed!
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