Chapter 754 They are younger
The negotiations can be said to have ended in a bad mood. When everyone walked out of the conference room, Albert and Maxwin could at least force a smile and shake hands with Wang Zhenbin and Feng Xiaochen to say goodbye. Schlaire was full of anger and stood beside him with anger, ignoring Wang and Feng. This was because he was in a foreign country and was unfamiliar with his place. If he was in a familiar place, he might have left directly. Now he had to wait for the car arranged by Qi Ruicang to take him back to the hotel.
In contrast, Wang Zhenbin and Feng Xiaochen were much more relaxed, especially Feng Xiaochen, who seemed to have made a lot of money. Every pore was smug, which made Albert have the urge to duel with him.
Back at the hotel where he was staying, Albert and Maxwin washed up briefly and came to Schlaire's room. As soon as they entered the door, they were stunned. They saw pillows, seat cushions, tea cups, pencils and other items scattered on the carpet, and there were also a few water traces. It was probably because the owner threw the tea cup out. Schlaire was sitting on the sofa, holding a bottle of wine in his hand, blushing and obviously feeling a little drunk.
Albert couldn't help but curl his lips. It was only ten minutes after everyone came back. This guy ruined the room and even took a break from his busy schedule to get himself drunk. Alas, the American style of a man really needs to be hit hard. There is no such smooth business in the business world. I can't stand it. What else do you do?
"Sit down, do you want to come some? There is still some in the wine cabinet."
Seeing the two peers entering the door, Schlaire did not lose his minimum politeness. He sat on the sofa without moving his nest, but pointed to the wine cabinet and signaled that the two peers could go and get red wine. In the past two years, Yubei has been opening up to the public. The hotel Schlaire and his friends are staying at is the best foreign-related hotel in the city. The rooms are equipped with small bars and various drinks in the refrigerator. Of course, the price is more than three times higher than in the supermarket.
Albert and Maxwin both waved their hands to decline Schlaire's kindness, and then found a place to sit down. Albert glanced at Schlaire, who was still angry, and said softly: "Mr. Schlaire, should we reconsider our strategies for the Chinese?"
"What else to discuss? I will leave China tomorrow. Tongyong will never trade with the Chinese again. Let their western and eastern aura be lost to the point of being a ghost!" Schlaire said viciously.
Maxwin coughed softly and said, "Mr. Schlaire, I don't think we should be influenced by emotions at this time. Haven't you noticed that the Chinese named Feng intends to anger us?"
"Intentionally irritate us? Why?" Schlaire asked.
"Because he doesn't want to make this deal," Maxwin said.
"It happens, I don't want to. At this point, I'm very honored to have the same opinion as him." Schlaire said in a sarcastic tone.
Albert said: "Mr. Schlaire, I think our demands should be different from those of Mr. Feng, and the demands of Mr. Wang and Mr. Feng of the China Development and Planning Commission are also different. I have learned that the institution Mr. Feng is a China Equipment Industry Group Corporation, which specializes in equipment manufacturing."
“So what?”
"It is clear that he hopes that the China Development Planning Commission will collapse with us, so that the Chinese will have to rely on their own strength to build these compressors, which will allow the equipment industry companies to obtain more orders, and Feng's personal performance will be improved as a result."
"You mean, if we talk to us, he will be able to get benefits?" Schlaire began to pay attention.
Albert said: "Yes, Yuzhong's compressor R&D project was initiated by Mr. Feng. If the Chinese ultimately had to rely on Yuzhong to provide the compressor, Mr. Feng would be praised by his leaders for his foresight. On the contrary, if the China Development and Planning Commission finally adopted our compressor, the Chinese compressor R&D project would lose its meaning and Mr. Feng would also be criticized."
Schlaire thought about it and felt that Albert's words seemed to make some sense, and his anger disappeared a little. He said: "No wonder this young man is so arrogant. It turns out that his purpose is to ruin things. In this way, if we refuse to continue negotiations with the Chinese authorities, he will benefit the most."
“That’s exactly that.”
"So, what are your opinions?"
"Resuming negotiations and accepting China's conditions." Albert said decisively.
"Suppress the price below 80 million?" Schlaire asked.
Albert shrugged and said, "I just discussed with Maxwin. The appetite of Chinese people is probably bigger than we imagined. They will never accept the price of 80 million. We have to thank God for being able to make a deal for 70 million."
"I'm worried that they can only accept 60 million, or even lower," Maxwin said depressedly.
"But, at such a low price, why should we cooperate with them?" Schlaire said unangrily.
"60 million is still profitable," said Maxwin.
"But if we agree to accept the price of 60 million, they will definitely ask us to reduce it to 50 million." Schlaire said.
Albert said: "It depends on our negotiation skills. However, the Chinese have built their own compressors. At this time, even if they press the price to 40 million, I would not be surprised. After all, 40 million is still profitable for us. Our R&D costs are already sunk costs. Whether we can share them in the equipment, these costs have been paid. If we refuse to cooperate with the Chinese, we will not even have this profit."
"We would rather lose both sides than lower the price to this level, which will make them more arrogant," Schlaire said.
"No, Mr. Schlaire, I think that we should accept lower prices, and lower prices will be more beneficial to us," Albert said.
"Why?" Schlaire was confused. Nothing was cheaper but was more beneficial to the seller.
Albert said quietly: "Because they are younger."
"What does it mean?" This time it was Max and Schlaire who asked together.
Albert said: "When we visited the Chinese compressor test drive yesterday, I don't know if you noticed that their research team is full of young people. Even their model chief designers are only in their 30s."
“So what?”
"And what about our team? What is the average age of our engineers?"
Schlaire was silent. Of course he knew what the situation of Tongyong's engineer team was. It was not that Tongyong Company did not have young engineers, but in general, the average age of the team was relatively high. In fact, it was not just Tongyong. In the whole United States, plus the whole Europe, there were very few young people engaged in the machinery industry. Young people in Europe and the United States prefer the financial industry, and some young people have entered the IT industry. The machinery industry is already in decline, so no young people are willing to jump into this pit.
Albert sneered: "Their team is very young, has potential and has motivation. If we provide them with opportunities, they can catch up and surpass us in a few years. The compressor technology we currently have is still in the 1970s. The new generation of compressor technology has only completed theoretical designs and has not been converted into actual products. The Chinese have already caught up with them. There is no generation difference between their current technology and us. At best, it is just a gap in experience.
If we want to maintain our technological advantages over the Chinese, we must immediately start developing the next generation of products and prevent the Chinese from following up development. If the talks with the Chinese fail and the Chinese have to rely on their own strength to make these compressors, then this group of young people will have the opportunity to fully display their talents. On the contrary, if we reach cooperation with the Chinese and reach cooperation at very low prices, the Chinese will no longer need to make compressors by themselves, and these young people will be idle."
"This..." Schlaire was shocked by Albert's idea. He had to admit that Albert's idea was more mature. If the three companies boycott China, then the Chinese would make great efforts to develop this kind of compressor. It is not difficult to achieve breakthroughs based on the existing foundation of the Chinese. This is equivalent to forcing the Chinese to make progress. Conversely, if they promise to provide products to China at an extremely low price, which is even lower than the prices built by the Chinese themselves, then the Chinese would not need to develop technology by themselves, and the three companies would win a precious time difference and throw the Chinese away again.
"Albert, what do you suggest us do?" asked Maxwin.
Albert said: "I thought that Shimanz could provide China with unlimited long-distance compressors at a price of US$30 million per unit. This price is our breakeven point, and we will lose net losses if it is lower. With the current technical conditions of the Chinese, their product costs cannot be lower than this level. If we quote this price to the Chinese, they will inevitably give up their efforts to make compressors, or leave at most one or two orders for their own people, and such orders are not enough to support them in the next round of research and development."
"Each unit is 30 million..." Schlaire and Maxwin were both stunned. This was a rhythm of selling with tears. Just to make the other party's R&D collapse, is it worth it to make such a big concession?
Chapter completed!