Trade exhibitions are busy every day, and there are too many merchants to receive.
Especially the number of merchants from Hong Kong, Macao and Taiwan is the largest.
Considering that Shengzi is a hard-working person and he has a language advantage.
That's why Luo Xuan specially called him over.
Anyway, the work at the booth is very complicated, so it wouldn’t be too much to add a few more people, which would be as good as Sheng Tsai’s salary.
As soon as the exhibition opens.
A Hong Kong businessman came to the furniture factory's booth.
This merchant is quite awesome.
Not only does he have rich knowledge and broad vision, but he also has an understanding of the internal operating rules and management concepts of European and American companies.
All very familiar.
After a brief conversation, Luo Xuan had clearly felt that the other party had a thorough understanding of the entire ecological environment of the mainland.
In some aspects, he is even better able to grasp the essence of the problem than Luo Xuan himself.
Perhaps the channels for obtaining information are different.
This Hong Kong businessman with a strong international perspective revealed something vaguely in his words.
People have to admire him with admiration.
Perhaps this is the so-called: not knowing the true face of Mount Lu, just because you are in this mountain.
The Hong Kong businessman's surname was Xiang, so Luo Xuan called him Xiangsheng.
"Comrade Luo Xuan, your factory is located in an inland area. If you start international business, I'm afraid you will encounter many difficulties in the future."
There were other customers in front of the booth, and Xiang Sheng called Luo Xuan "comrade" according to mainland customs.
He saw that Luo Xuan was also a person who could listen to what he said.
Instead, like many heads of other state-owned enterprises in the furniture industry, they are inexplicably and unbelievably wary.
Those people are often full of an incomprehensible vigilance towards everything and everyone outside.
It seems as if every merchant who comes here has bad intentions and ulterior motives.
Xiang Sheng quite admires Luo Xuan's rational attitude in business discussions and discussing matters as they arise.
So he said: "For example, when your furniture factory gets an urgent order, how can you coordinate the train leather in a short time?
Can you also guarantee that the car transportation service company will have trucks for you to use at any time?"
Luo Xuan shook his head: "No."
If you want to apply for train wagons, you need to go through many departments and the procedures are very cumbersome.
Iron Boss does not deserve his reputation for nothing.
Since he is the boss, he naturally has the temper of a boss.
During this period, there was no such thing as "train express".
The boss with absolute hegemony does not care whether the furniture factory is in a hurry or not. How much loss will be caused to the manufacturer after delayed shipments? Such nonsense.
Boss Tie is not in a hurry, but the manufacturer is.
But there's no point in hurrying.
If one of these procedures is missing and one of the procedures is not completed, the goods will not be loaded onto the truck.
Follow their process:
Often when a company needs to use trucks to transport goods, it must apply to the freight department in advance.
Then you have to go to the container terminal with all the procedures and supporting documents to go through the relevant freight train dispatching procedures.
The complexity of these procedures and the cumbersome processes are beyond the imagination of ordinary people.
There is a lot of proof material alone:
Go to the specific person in charge, his personal work certificate, authorization letter from the unit, original review materials, and background certificate.
No one should be missing.
What is the category, quantity, purpose and material of this cargo? Does it need to be equipped with a bulk open car or a sealed car?
The destination to which the goods are sent, the consignee’s certification documents, etc.
What's even more terrible is that there is a rigid rule at the container terminal: in order to use the freight train, the other party must send a telegram to prove that the other party has placed this order and needs this batch of goods.
And in this telegram,
The detailed information of the goods declared must also be completely consistent with that of the consignor.
sometimes,
Even if it's just a word difference, it's just this little reason.
The entire application process will be suddenly interrupted.
This also means: this time, all work is done in vain!
You have to start the process again
Just an international trade, regardless of the amount.
Overseas merchants need to send international telegrams, using hundreds or even thousands of words to list in detail all the cargo information in each order?
Not to mention it would cost a lot of money.
Just think about the whole process, how many translation errors, typos, polyphonic characters, or misunderstandings caused by pure carelessness will occur?
However, there is some information on the telegram that is slightly inconsistent with the shipping applicant's side.
All previous efforts will be wasted.
[This is not an exaggeration. Even in 2007, the buyer still needed to send a telegram to prove it when going to the freight container station for shipment.]
The difficulties mentioned by Xiang Sheng are just one of countless difficulties in conducting international trade.
After hearing Xiang Sheng's words, Li Li patted her chest and rejoiced: "Fortunately, our furniture products have no shelf life, and they are not fast-moving consumer goods that must be put on the market immediately after production."
"I don't understand."
Xiang Sheng explained: "You think of the problem too simply! Your factory's furniture products use solid wood as the base material and paint as the surface coating. Have you considered the moisture content of these base materials?"
Hearing this, Luo Xuan was shocked!
It is the details that determine success or failure!
Tianjing Shixing Furniture Factory, every time it buys logs, it buys them from other timber factories.
As for the logs from the lumber mill, they had been drying under the awning for half a year before they were finally broken down into boards.
The board produced in this way is not easy to deform.
But the climate in Saibei is dry.
The moisture content of those boards usually does not exceed 3% in summer.
If it is winter, the moisture content will be even lower.
As for these details, if you add a cup to sell them, there will be no problem.
But what if the furniture is transported to, for example, Rizhao Port, Nantong Port, or Yangcheng Wharf for shipment to sea?
The furniture has to travel through several provinces.
The time spent on the road can be as short as half a month, or as long as one or two months.
During this period,
The board has fully absorbed the water vapor in the air in the southern provinces.
Are you sure they won't deform?
If these furniture were transported in bulk trains, it would take a month.
Under the southern sun, even with a tarp to cover it, the temperature below was over 40 degrees.
So these furniture, their surface paint.
It can really withstand this kind of test without discoloration or wrinkles.
Or even crack?
I'm afraid it's hard to say.
The chemical paints of this period did not have enough tiny particles, which could easily cause the paint surface to wrinkle.
Moreover, the formulations of stabilizers and thickeners in paint are far less advanced than those of later generations.
Thinking of this, Luo Xuan was shocked!
I was careless before.
Not only because Luo Xuan has basically been unable to calm down and consider these details.
More importantly, there is specialization in the technique.
After all, I am still not professional enough in this aspect, and there are no professional talents around me who can give me advice and be responsible for these technical details.
Now that Xiang Sheng has brought this up, it is something Luo Xuan did not expect before.
So,
Does Xiang Sheng have a way to deal with it?
Another point: in this exhibition, time is money, and everyone competes against time.
This Xiangsheng didn't go out to buy products carefully, but he came here and talked about these things with himself at length?
No need to think about it, he definitely has something up his sleeve.
But what does he want?
Luo Xuan looked at Xiang Sheng with confusion and waited quietly for the next sentence.
"Agency."
Xiang Sheng obviously knew what Luo Xuan was thinking, so Xiang Sheng frankly stated his purpose: "I want to get all the overseas agency rights of your Tianjing Fashion Furniture Factory."
Perhaps Xiang Sheng was worried that Luo Xuan would think that he had too much appetite and would mess up the deal.
So Xiang Sheng added: "Don't worry, I have always pursued a business creed of win-win cooperation and mutual benefit.
If you cooperate with me, you will not suffer any loss."
Xiang Sheng said: "I'm here to propose specific improvement plans for you, as well as some of the most popular furniture styles and patterns in the world, and formulate a sales price system.
As for your supply price, we will discuss it in detail.
From now on, your furniture factory will only be responsible for safe and secure production, and just deliver goods and collect money."
For example, when dealing with different customers in different overseas countries and regions, what kind of pricing strategies, rebate promotions and other marketing plans should be adopted.”
Xiang Sheng smiled slightly: "You don't need to worry about these things. Leave them all to my company."
Li Li interjected: "But we have already signed sales agreements with merchants from Malay and Siam."
"It doesn't matter, just sprinkle some water on it."
Xiang Sheng waved his hand and ignored this: "Our company recognizes these overseas contracts. Now that the contract has been signed, it will strictly follow the terms you signed before. I will never make any changes.
"
Just because the other party would strictly abide by the agreement, Luo Xuan couldn't help but start to feel a little excited.
Just because in Saibei, many times, the contract is just a piece of paper.
You can control gentlemen, but you cannot control non-gentlemen.
It's a pity that no one will admit that he is a gentleman now.
——Everyone is busy fighting gentlemen, so it’s more like that
If you were walking on the road and said "Mr. xx" to a man from Saibei.
The other person in custody slapped him in the face: Who are you calling a gentleman? You are a gentleman, and your whole family is a gentleman!
"How about it?"
Xiang Sheng looked at Luo Xuan with great interest and asked, "I'm interested in your factory's product innovation capabilities.
I fell in love with your factory and its craftsmanship in handling the details of furniture.”
"Also, I admire Comrade Luo very much for your entrepreneurial qualities."
Xiang Sheng smiled slightly: "This is very important. Doing business is doing business. Don't just talk about other things, let alone go online.
How about it, Comrade Luo, are you willing to cooperate with our company?"
Luo Xuan muttered: "I can only agree to take over the overseas sales agency rights with preconditions.
We won’t agree to OEM production. Of course, if we sign another agreement and only do OEM, that’s okay.”
"But I will never agree to hand over the agency rights of our direct-selling products to you and at the same time, OEM production for you."
For this,
Luo Xuan said firmly, "In that case, it will inevitably cause management chaos, and eventually lead to the homogenization of different series of products, or even cross-selling."
After listening to Xiang Sheng,
I couldn't help but be secretly surprised: I didn't see it!
The young man in front of me is really thoughtful.
He couldn't help but think very comprehensively, and knew that the products, styles, and textures of different sales channels were not homogeneous.
What surprised Xiang Sheng even more was: Luo Xuan actually knew about OEM production, this mode of operation?
As expected, the mainland is full of hidden dragons and crouching tigers, so don’t dare to underestimate it.
During this period, there were no foreign investors coming in to invest in setting up factories. At least on the surface, it was impossible to allow foreign wholly-owned enterprises to set up factories.
Because this is a general direction that no one can violate: we will never accept exploitation and oppression by capitalists.
This is a high voltage line.
Just like this Xiangsheng in front of me: he actually understands the trends of the overseas furniture market, as well as the price system and operating model.
Moreover, in Xiangsheng's hands, there are also some latest furniture design drawings.
It stands to reason that he can go to Southeast Asia to find a manufacturer to produce furniture under his own brand name.
You can even open a factory directly.
But he believes that "there are thousands of business channels, and you only want to specialize in one link" and does not want to get involved in the production process.
This is completely different from the concept of "big and comprehensive" pursued by state-owned enterprises.
A company that is good at exerting its expertise in the field of circulation, once involved in the production process.
On the surface, it seems that it has saved a lot of purchasing costs and increased profit margins.
actually not.
Sales-oriented enterprises and production-oriented enterprises require completely different management talents and management concepts.
When opening a furniture factory, it involves whether to buy industrial land or lease a factory building?
Should I sign a bonded agreement with the local government for several years, or file taxes directly?
Also, is the investment environment safe and stable?
There are also trivial matters such as industry and commerce, environmental protection, taxation, daily management of workers, production safety, fire protection, personnel, financial management, smooth supply chain, and logistics transfer.
If there is a slight problem in any link, it will cause the entire production and marketing link to stagnate.
It's not that simple!
Xiang Sheng is good at fighting in the field of circulation. If he is allowed to divert his energy to get involved in the field of production, it will inevitably cause serious distraction.
The result is that the eyebrows and beard are scratched at both ends, and nothing can be done.
According to Xiang Sheng's plan: As long as Tianjing Shixing Furniture Factory's production capacity can keep up, it will be fine if the goods can be shipped in time.
As for Xiangsheng's own trading company, he only needs to pick up the order, declare it to the customs, and finally collect the money.
This is what he should do and what he can do well.
"So how to sign this overseas general agency agreement?"
Xiang Sheng knew that he couldn't fool the other party, and he didn't want to cause trouble.
It's just a businessman's duty to maximize his own interests.
But currently,
Among the organizers of the entire trade exhibition, there is no ready-made contract template for the so-called "Overseas General Agency Rights for State-owned XX Factory Products".
so,
In order to sign this contract, traders and manufacturers must discuss on site and finalize every detail.
"The deposit is 3 million yuan."
Luo Xuan began to ask for a price: "Annual sales in overseas markets must not be less than 5 million."
"What are you talking about? How is it possible to have too much margin?"
Xiang Sheng laughed loudly: "Comrade Luo, our company and your factory have different understandings of cash flow. If I hand over such a large deposit to your factory, how much interest will I have to pay per year?
"
Xiangsheng is a Hong Kong businessman. When he considers problems, he will approach them from a purely commercial perspective.
Luoxuan is a collective enterprise.
Funding needs are not at the top of the list of considerations for such companies: being trusted by their superiors is their top priority.
For example, Tianjing Shixing Furniture Factory has no working capital.
Then just report to the commune and Shilipu Commune and apply for financial support.
There is no need to even reach out to the county.
Shilipu Commune can misappropriate funds from the accounts of other industrial and mining enterprises to furniture factories, and let the furniture factories use them for turnover.
No need to talk about interest!
A brother unit?
After all, everyone belongs to the same boss, and the money in the accounts of industrial and mining enterprises does not belong to them.
Now let them take it out, who dares not to pay?
If it gets aggravated, the Shilipu Commune can even raise funds to support all cadres and workers, including members of the teacher production team.
Hehe, everyone understands.
It goes without saying how important working capital is to a company.
something so important,
On the contrary, it is not a priority for these collective enterprises.
Peeping the leopard in the tube.
Through this incident, we can know: How big the difference between the business philosophy of this Xiangsheng in front of him and that of the furniture factory is!
There are big differences in concepts and different ways of thinking.
But we can only take it slow for a while.
If you want to change these things, it will not be a temporary thing. You can only slowly adjust them in the future.
Just like after the reform and opening up, inland companies want to understand the business philosophy and operational logic of those companies in Ouzhou.
In the end, I went through trading companies in Xiangjiang and Lion City. It took me more than ten years to understand the twists and turns.
In the end, Luo Xuan and Xiang Sheng each took a step back and basically negotiated the terms of cooperation.
The two parties are preparing to sign the agreement.
Unexpectedly,
That Harada guy came running over again with his facial expressions on his face.
The works of brothers from the same discipline have good results and are worth a look.
