Chapter 817 Selling a pile of scrap iron to you
After hearing Ning Mo's words, Rafner became silent. He unconsciously held a pen and gently twisted it in his hand, as if he was thinking about something.
Ning Mo and Zhao Yang didn't say anything, sitting there looking at their noses and their noses, as if they were entering a state of meditation. This is the case with negotiations. When others don't speak, if you rush to speak, it means that you are eager to make this deal, and they can take the opportunity to threaten you. On the contrary, if you stay silent, they will not know what trump card you have. Only when you talk further can you have an advantage.
Doble was not bound by this psychological fraud because he was a broker and talking from both ends was his duty. He looked at both sides and said to Lafner: "Mr. Lafner, I feel that the price Mr. Ning quoted is sincere. As far as I know, neither Simmark nor Danieli has produced equipment of this specification. If you want to order from them, their offer will definitely be more than 100 million US dollars. Mr. Ning's offer was 48 million, and he also promised to give a 15% discount, which is 40.8 million. This is more than 60% lower than the European price. I think there is no cheaper price in the world."
Lafner glanced at Doble, then turned his head to look at Ning Mo. Ning Mo also smiled coldly, which seemed to mean that he didn't care whether he could do this business. If Lafner was not jealous, they would have to slap their butts and leave.
"Doble, Mr. Ning, I have no objection to this price." Rafner spoke with a little helplessness in his tone. "What I am worried about now is that I cannot afford such a fund to purchase Chinese equipment. After buying the equipment, I will also expand the factory, recruit workers, and purchase raw materials. These are all costly. If a set of equipment costs $40 million, I will not have the money to do other things."
"Mr. Lafner, isn't the steel market very good now?" Doble asked.
Lafner shook his head: "No, you can only say that the current steel sales situation is very good, but our profits are not very high. Now all of India are small steel factories, and everyone is holding down prices from each other, leaving a very small profit margin."
"But, I think the price of steel in India is not low," said Doble. "As far as I understand, India now costs 20,000 rupees per ton of rebar, while China is less than 15,000 rupees. My Chinese friends asked me if I want to sell Chinese steel to India, but unfortunately the country does not allow it."
Lafner's face was a little embarrassed because these steel companies were the most supportive of the policy of restricting steel imports. He said quietly: "India has its own national conditions, and our production costs are higher than China, so it is normal for steel prices to be high. As steel companies, we have not made much profit."
"Okay." Doble also knew that this topic could not be discussed. From a nationalist standpoint, the Indian government restricted steel imports to protect the local steel industry, which was understandable. He turned to Rafner and asked: "Mr. Rafner, if you think the price offered by Mr. Ning is too high, then what should you think the appropriate price should be?"
"I hope it's not more than $20 million," said Rafner.
"$20 million? How is this possible!" Doble jumped, "Mr. Rafner, you should know that this price is insincere."
Lafner also felt that his request was too much, and he said: "I'm very sorry, Doble, I know the price is a bit low, but that's the case for our company. If it exceeds $20 million, we will have difficulties in our finances."
Doble's face looked as ugly as if he had eaten bitter gourd. He knew that Ning Mo's offer would have some room, but it was impossible to drop from 48 million to 20 million. He turned to Ning Mo and said what Rafner meant, and then said, "Mr. Ning, I'm sorry. Maybe I should talk to Mr. Lafner first and then invite two to India. If I had known that Clark's financial situation was so bad, I wouldn't have touched this business."
Ning Mo's heart was also running wildly. Meow, I've traveled all the time and ate so many unpalatable curry rice. Just tell me this? Qin Chong said that it would cost at least $30 million to produce a set of equipment. I also have to count my profits and the commission to give you Doble. Even if the transaction is 35 million, I feel unhappy. This surname is good. If you say it exceeds 20 million, I won't consider it. I will sell you 20 million and I will give you scrap iron. Do you want it?
"Zhao Yang, let's go, what's there to talk about with a poor man?" Ning Mo said and stood up, not wanting to pay attention to Rafner, so he called Zhao Yang and was about to leave.
Zhao Yang also stood up, but frowned and hesitated. Ning Mo looked at him and asked strangely, "Zhao Yang, what else do you think?"
Zhao Yang said: "Is what I said just now 20 million US dollars? According to the exchange rate, it looks like 160 million RMB."
"Yes, but you can't get the price at all." Ning Mo said.
Zhao Yang said: "I just thought about it and thought that if you buy second-hand equipment at this price, it might be enough."
"Second-hand?" Ning Mo suddenly felt a sudden reaction. Yes, it would cost 30 million US dollars to ask Qin Chong to turn out the old drawings to produce a new set of equipment. If he found a set of second-hand equipment to sell it to Lao La, he would accept it at a price of 20 million yuan. Hey, didn't he think about selling a pile of scrap iron for Lao La just now? What a foreseeable idea.
Thinking of this, he turned around and said directly to Lafner: "Mr. Lafner, it is absolutely impossible to buy a brand new set of equipment at the price you mentioned. But if we have used equipment in our hands, the performance is completely up to the requirements you mentioned, and the quality is guaranteed to be used for five years, do you want it?"
Ning Mo dared to say this, but it is also well-founded. In the past few years, backward production capacity was eliminated in China, and many small electric furnaces, continuous casting and rolling equipment in small steel parts factories were removed. Some of these equipment were already old and disrepaired, and they were rebuilt as scrap iron after being removed. Some equipment was actually quite new, and it only took five or six years, far from reaching the scrapping period, but it had to be demolished due to environmental protection requirements.
When Ning Mo talked about this with the heads of metallurgical companies and engineers, they all looked regretful. They said that such a good thing was obviously useful, and it was a pity to just remove it as scrap iron. Out of this mentality, the equipment removed by many companies was not immediately sold to scrap purchase stations, but was temporarily stored in the warehouses of these companies. Ning Mo had enough confidence to buy these equipment from them at a price of tens of millions of yuan, brushed paint and shipped it to India, and sold it to Lafner for 160 million yuan. The profit was almost half-earned, and it was even worth selling new equipment.
"Second-hand equipment?" Rafner's eyes lit up, and he stared at Ning Mo and asked, "What is the situation of the second-hand equipment you mentioned? Can you make sure that their performance is intact?"
"No problem!" Ning Mo pulled Zhao Yang to sit down again, and restored his previous confident attitude, "Old La, let me tell you, China has been upgrading its steel industry in the past two years. Small companies like your Clark Company that produces about one million tons of steel a year have all been eliminated in China. Why? Because your production equipment is backward, your technical level is low, your energy consumption is high, your pollution is high, and your product quality is poor. In short, it is lack of competitiveness..."
While he was talking here, Doble was interpreting it to Rafna. This handsome Indian guy had some talent for simultaneous interpretation. Rafna heard Ning Mo scold his company like a parallel sentence, his face turned red and white, and his expression was so exciting. He knew that the other party was telling the truth, but is it really appropriate for you to reveal the shortcomings of others like this?
Ning Mo said a long list of questions, and finally changed the subject and returned to the topic: "So, our country has stopped production, and their equipment is not allowed to be used for production anymore. But, think about it, the rise of these steel companies in China is just after the 1990s. How old can the equipment used in their enterprises be? I have seen many companies. The electric furnaces they eliminated, even casting machines, look like new. If it is not a policy restriction, it will be fine for them to use these equipment for another 30 years. I think you India should not have such restrictive policies. I buy their equipment and sell it to you. A set of 20 million US dollars is refused. What do you think?"
"Are you sure those devices are like new?" Rafner asked in disbelief.
"I'll guarantee my personality!" Ning Mo replied without blinking. This sentence has been said countless times in his business career, and his personality has been used as a table cloth for many times. He has long been shut down due to the owed fee. However, now in India, no one knows his background, so he took out his personality from the bottom of the insole and endorsed his words.
Rafner frowned and pretended to be reluctant, saying, "I really don't have much interest in second-hand equipment. However, if the price is relatively low, we can buy a set and use it for a while. The price of $20 million is really too high. If it only costs $10 million, I think it's OK."
When he said these words, his eyes kept secretly glanced at Ning Mo. Ning Mo noticed his small move and smiled in his heart. With his years of experience in business, he knew that the other party was insincere at this time. Obviously, the proposal for second-hand equipment had attracted the other party's interest, and the price of 20 million was within the other party's psychological acceptance. The other party said these words just to deceive himself again to lower the price. But the other party was not at ease, for fear that such a quote would make him dissatisfied and leave.
Chapter completed!