Font
Large
Medium
Small
Night
Prev Index    Favorite Next

Chapter 752 Had to cut the price

Perhaps in order to further strengthen the feelings of Albert and others, after letting everyone visit the experimental workshop, Yuzhong actually organized a technical seminar, asking the technical experts brought by Albert and others to criticize the design and process of Yuzhong compressors. The Yuzhong design team led by Jiang Yan was responsible for answering the questions raised by the experts. Several sales directors sat at the end of the venue, listening to the enthusiastic discussions between our company's experts and Yuzhong engineers, and felt very uncomfortable, but they could not say it on this occasion.

After the day of discussion, Albert and others declined the banquet arranged by the organizer Yuzhong and returned to the hotel. After a quick meal, the three of them gathered together and began to discuss what they saw today.

"I talked to Tabel. The Chinese started developing a 20-megawatt compressor five years ago. Before that, they only made a 5-megawatt compressor, and it was completed in 1978. Since then, they gave up the product until this time they brought it up again." Albert introduced the news he had inquired to his two companions.

Albert and Tabel had some personal relationships. During the day, Albert seized the opportunity to chat with Tabel for a while and got a lot of information. The older he was, he looked like a child. He told Albert all the things he could say but could not say, which involved a lot of internal information. Of course, Feng Xiaochen and others had carefully considered the arrangement of Tabel to meet with Albert and others. Although he knew that there was a little possibility of leaking the secret, Tabel's words were undoubtedly more authentic to Albert and others. If it were a Chinese who would leak the secret to them, would they believe it?

Hearing Albert's introduction, Maxwin couldn't help but sigh: "Five years ago, that is, they were ready to develop their own compressors from the beginning. It was just because their technology was not yet mature, so they chose to purchase from us."

Albert said: "It is true. Tabel said that their compressors are much worse than the three of us in terms of fault-free working hours, which is why China's official hopes to use imported compressors. After all, the West-East Gas Pipe is a major project that concerns the overall situation, and they cannot tolerate frequent gas shutdowns and maintenance due to equipment quality issues."

"But if our offer exceeds the psychological range they can afford, they would rather choose a domestic compressor, is that true?" Schlaire asked.

Albert said: "They do have this idea. However, Tabel also told me that Yuzhong's production capacity is not enough to support such a large amount of demand. If they cannot buy enough compressors from us, then Yuzhong's own production alone will not meet the project progress needs."

"Great, this is their bottleneck, and we can use this to threaten them." Maxwin said without any concealment.

Albert glanced at him and said lightly: "But there is another bad news. Tabel told me that three months ago, their superiors sent someone to inspect and asked Yuzhong to increase its production capacity by four times. Yuzhong's factory developed a plan, including building a new workshop, purchasing equipment and recruiting a group of outstanding technicians from other companies. Tabel said that he believes this expansion plan is feasible. In fact, after the product design is finalized, expanding production capacity is not difficult."

"That is to say, they were ready to break up with us at that time." Maxwin said. He remembered the letter sent to the three companies a few months ago by the Planning Commission, which clearly stated that if the three companies were unwilling to lower the quotation to below 80 million, China would no longer consider purchasing equipment from them, but would choose other procurement channels. At that time, they thought this was just a threat from China. Now it seems that China is actually preparing.

Schlaire was silent for a while and said, "I discussed it with our company's technicians just now. They believe that the technology mastered by the Chinese is very comprehensive. This can prove that the compressor we saw in the experimental workshop was indeed designed and manufactured by the Chinese themselves, not made by the Marbury Company. This means that the Chinese have indeed mastered the manufacturing technology of long-distance natural gas compressors, and they may get rid of us."

"Indeed, if we stick to a 140 million offer, they will completely throw us away. You know, if they use this money to buy equipment, they can easily quadruple their production capacity so that they don't need us anymore," said Maxwin.

"Yes, when they have mastered the manufacturing capabilities themselves, they will be very clear about the cost of the compressor. If we insist on a quotation of 140 million yuan per unit, it will be a humiliation for them. Chinese people care a lot about face. When they feel humiliated, they may do some irrational behavior." Schlaire said.

Albert sneered in his heart. It was obvious that the Chinese behavior was rational, and Schlaire's aggressive behavior of asking for prices was irrational, but the American was still talking lies with his eyes open. However, it was not the time to argue with Schlaire. Albert sank and said, "So, two, do you think our strategy should be changed?"

"It really needs to be changed, and we can't maintain a price of 140 million," said Maxwin.

"I agree to lower the offer," Schlaire said.

"So, what should our offer be?" Albert continued.

Schlaire said: "According to your previous advice, it will be reduced by 10%. We can take the initiative to propose it, so that the Chinese will feel that they have won face."

"Down by 10%?" Albert looked at Schlaire, his eyes were already showing some sympathy. mdzz, the Chinese have already shown their trump card to us. You are still dreaming of only 10% of the price reduction. Is this a fool? As you said, the Chinese care a lot about face. If you don't give others face like this, you are really not afraid that they will eliminate you directly?

Maxwin also realized that it is impossible to satisfy China by just 10%. He said: "Mr. Schlaire, from the current situation, I think the price reduction expected by the Chinese should be much higher than 10%. They had previously put forward a requirement that it could not exceed 80 million yuan. Although we cannot follow their requirements, we should at least move closer to this level. I think we can consider reducing the price by about 30% and being able to trade for US$100 million, which is a good result for us."

"I object." Schlaire said, seeing the eyes of both colleagues were a little wrong, he quickly took a step back and said, "I mean, we cannot make a 30% price cut at once. We can agree to a 10% price cut first. If the other party cannot accept it, we will give up a little more and agree to a 15% reduction. In short, we should still leave some room for bargaining."

"Okay." Albert and Maxwin surrendered. They still had a little hope in their hearts, thinking that the Chinese might not be so firm. If they agree to reduce the price by 15%, or 20%, they might accept it, so that they can make tens of millions of dollars more profits. As for what if the Chinese don't accept it, then continue to reduce the price. Isn't this the negotiation that you can still swallow what you say, and no one cares.

Once again, Albert took the initiative to find Wang Zhenbin, claiming that he had finally come to China, so he simply took this opportunity to discuss the purchase of compressors with the China Development and Planning Commission. Wang Zhenbin's face just showed a little bit of difficulty, and Albert immediately said that the three companies had discussed it. Considering that China is carrying out modernization and as enterprises in developed countries, they have the obligation to make some contribution to the construction of developing countries, so there is some room for negotiation on the price of compressors.

Wang Zhenbin hesitated and said, "We invite you all to Yubei to ask you to give me some advice on Yuzhong's compressor technology. My leader did not authorize me to discuss price issues with you. In addition, today's agenda is to arrange for you to visit the famous places around Yubei. There is an ancient tomb of the Liao Dynasty 50 kilometers north of Yubei, which is very archaeologically valuable..."

Albert quickly interrupted Wang Zhenbin and rushed to say, "I think we can arrange the technical experts of our company to visit. Mr. Maxwin and Mr. Schlaire will not go. Providing compressors for China's West-East Gas Pipeline Project is very important for our three companies. We need to arrange resources in advance based on your country's procurement intentions, so this matter can be determined as soon as possible, which is the most beneficial for both of us."

"Is that true?" Wang Zhenbin seemed to be convinced by Albert. He thought for a while and said, "Then let's do it. I'll call the Beijing City and ask the leader for instructions. If the leader agrees, I can have a preliminary negotiation with you with Mr. Feng Xiaochen, general manager of the National Equipment Company. The final intention must be asked to go to the Beijing City and then formally negotiate."

The so-called request for instructions from the leader is of course just a step that Wang Zhenbin found for himself. Albert and others are eager to negotiate with China, which is also under the pre-estimation of the leadership of the Development Committee. Companies such as Shimanz dare to quote outrageously high prices. Their trump card is that China can only purchase such equipment from them and cannot find other sources of procurement. Now China has created the same equipment itself, even if it is not perfect, it is enough to make them feel threatened. At this time, they demand to reopen the negotiations and declare in advance that they are willing to make concessions on the price.
Chapter completed!
Prev Index    Favorite Next