Chapter 524 It Is Important to Understand the Rules

Yang Dongxu's method of doubling the orders is actually very simple. To be precise, it is a bit of an old tune, that is, the OEM he has been promoting in the past two years.

Although the Yiwu platform is lively, it has received a lot of orders at once. However, the reason why these foreign merchants are so generous is largely because these things are very novel and they are optimistic about this market.

However, there are only a few merchants who are optimistic about the market and are willing to take a gamble, so the seemingly generous orders are actually conservative.

These foreigners are not stupid. The orders they place are basically for trial sales, that is, they place an order for a batch of goods. It is safest to decide whether to add more orders after seeing the sales volume.

If a market does not have a behind-the-scenes promoter, it will always take a process of adaptation to the emergence of new products. This process may be long or short, and in this process, products that could have been popular may die because of the long adaptation time.

However, new products need to adapt, but old products do not have this concern. In particular, Yang Dongxu saw several international brands among the group of foreign merchants.

So if the OEM can be negotiated, there will be no sales concerns and the orders will more than double. The method of getting these foreigners to give OEM orders is also very simple, saving almost half of the production cost, and the quality is the same.

Which businessman would not be tempted? And for this, they only need to wait for up to one month, and some transportation costs may increase. But this is just a penny compared to the huge cost savings.

And now China has introduced export preferential policies, which means that as long as the goods can be exported in exchange for foreign exchange, no tax will be charged, and there will even be tax subsidies. This saves these merchants a lot of money, so it is a good deal no matter how you calculate it.

However, these foreign merchants will definitely have some concerns. After all, in their impression, China is synonymous with poverty and backwardness. Whether they can complete the order according to their requirements and quantity, they will definitely have concerns in their hearts.

But this concern is also easy to dispel, that is, to emphasize this point in the contract, write the responsibilities clearly, and if it doesn’t work, you can ask for less deposit when the goods arrive, or even pay a deposit. In short, these are not a problem.

The problem is that as long as these external injuries taste the sweetness of OEM in China for the first time, they will be completely addicted and cannot do without domestic OEM companies. In this way, the first batch of OEM companies will definitely be overwhelmed with orders.

"Will this work?" Zhao Dexin looked at Yang Dongxu hesitantly after listening to him.

Although Yiwu is much more prepared than Yu Feihong, their current idea is still to promote their own products and let their products go out. As for taking orders from abroad as OEM companies, there are currently few people in China who have such an idea. Even if there are people who dare to think and have the conditions to do it, there are only a few people except Yang Dongxu.

"You should have a few good tailors over there, right?" Yang Dongxu raised his chin and said to the Yiwu station.

Although the Yiwu platform was very lively and surrounded by many people, Yang Dongxu still saw two middle-aged women who took a piece of cloth and cut it open, and quickly made a Zhongshan suit to show the quality of their cloth and the quality of the finished suit to the foreigners.

"There are a few clever people." Zhao Dexin nodded without understanding what Yang Dongxu meant for a while.

"Let's go over there. Let your people cooperate with me." Yang Dongxu smiled at Zhao Dexin and walked towards the booth in Yiwu.

Zhao Dexin frowned and felt a little uneasy. Although the doubled orders were very tempting. But the orders Yiwu received today were already not small, so even if he did nothing now, he could still go back and report.

But if he listened to Yang Dongxu, the doubled orders would not be achieved in the end, and the orders he got would also be lost. It is estimated that his leader would want to kill him after he went back.

But while he was hesitating, Yang Dongxu used his height and strength to squeeze into the Yiwu booth, and did not give Zhao Dexin a chance to say anything. He directly talked to a foreigner in English who was wearing Nike brand clothing from head to toe.

The foreigner who was originally listening to the translator stumbling to introduce the products in front of him, his eyes lit up instantly when he heard Yang Dongxu's English with a pure London accent, and then chatted with Yang Dongxu in a babbling manner while the translator next to him was stunned.

At this time, Zhao Dexin, who had squeezed in with great effort, wanted to say something, but Yang Dongxu had already taken the white paintbrush on the table and outlined the disassembled parts of the coat with a few strokes, introducing something to the foreigner.

The foreigner's eyes lit up when he saw the pattern that Yang Dongxu had casually sketched. He pointed to the pocket style, cuff shape, and collar of the coat with great interest and talked to Yang Dongxu enthusiastically.

The two talked for a few minutes while one was drawing and introducing, and the other was looking and asking as if no one was around. Then Yang Dongxu said something to the foreigner, and the two looked at the two female tailors together. This frightened the two female tailors who were standing aside and dared not speak, and they didn't know what to do.

"Can you understand these pictures?" Yang Dongxu turned the clothing parts drawn in chalk in front of him in a direction to show the two tailors.

The two female tailors looked at each other and shook their heads at the same time.

Seeing the reactions of the two people, Yang Dongxu was stunned for a moment, and then reacted. Pointing at the painting on the cloth, he started explaining it to the two people, actually explaining where the pocket should be on the clothes, what the cuffs should look like, the collar should be slightly stiff and upright, and so on.

After this explanation, the two people understood it instantly. This is also the general state of domestic technicians at present. If you show the professional drawings to the technicians, they may be confused. But if you explain your requirements clearly, they can process what you want without the drawings, and it is no worse than the things made by comparing the drawings.

"Will this work?" Seeing that the foreigner seemed to be particularly interested in what Yang Dongxu drew, Zhao Dexin quietly pulled the corner of Yang Dongxu's clothes and asked worriedly.

"We will know whether it will work in a while. What you are considering now is how to quote."

"Quote?" Zhao Dexing was stunned for a moment. He was still worried that Yang Dongxu was messing around to anger the foreigner. Yang Dongxu seemed to have determined that this order would definitely be successful and asked him to quote. His brain was a little bit unable to keep up with Yang Dongxu's rhythm for a while.

"Two tailors are working on it. Since you are here to host this booth in person, you must have an estimate of the price of the cloth. So look at what materials they use, estimate a rough price in your mind, and then add 50% to the cost and quote it." Yang Dongxu reminded Zhao Dexin in a low voice.

"50%!" Zhao Dexin was shocked. The profit margin of small commodities in Yiwu is generally around 20%, and clothing is even less than 10%. The 50% increase in the offer made him feel that Yang Dongxu was going to cheat foreigners. This was a big event, and it might even be a diplomatic event.

"50% is still too little." Seeing Zhao Dexin's surprised face, Yang Dongxu gave him a look that said "Don't be so useless": "There will be some hidden clauses in the contract later. If the negotiation goes smoothly, it is not impossible to have a profit margin of 60% or 70%. And even if foreigners find us making so much money, they will not be angry, but will be happier."

Yang Dongxu is too clear about the nature of these brand companies. Although brands are not as morbidly harsh as luxury goods. But most of the obsolete products are directly destroyed, and there are not a few that are reduced in price. Even if the price reduction is more profitable.

60% or 70% of the profit seems to be a lot for OEM companies, but Nike will make more. And this is not the real cost written in the contract. For example, the original cost of processing clothing is 50 yuan, and the ex-factory price of this clothing is only 75 yuan after adding 50% profit. Nike sells it for at least 300 yuan.

And in most contracts, the ex-factory manufacturing price will not be written as 75. Instead, it will be written as 105 or even 205. In this way, the price of 300 yuan plus transportation costs and various sales costs makes consumers feel that Nike is particularly real.

In this way, Nike can also declare to the outside world that what its company focuses on is the quality of the brand. Even if each product makes less money due to high costs, it will not affect the quality of the cost compression for the sake of profit. In this way, both the inside and the face are all there, and a positive image can be established. Tea products are sold well.

However, these are undoubtedly the unspoken rules in the industry, and ordinary people will not understand them if they don’t understand them. So sometimes other companies are jealous when they see that this company is doing so well.

So the people who followed this company found buyers and wanted to get the order at a lower price. As a result, the expected success did not appear, but there were many cases where they were sprayed.

When encountering this situation, the first reaction of the company that wants to poach the buyer is that the buyer's representative has been bribed and must have received a lot of kickbacks. This may be one of the reasons, but it will not be the only reason. Many unspoken rules and implicit clauses in cooperation are the fundamental reasons why he was rejected.

"Fifty-fifty is not enough?" Zhao Dexing looked at Yang Dongxu in astonishment. For a moment, he didn't know whether he was surprised or nervous, thinking that Yang Dongxu was bragging.

"Let's talk about this later. When I ask you about the cost later, you tell me truthfully without hiding anything. Then I will talk to this foreigner. If there is no accident, we can sign a letter of intent today, and then you go back to prepare. They go back to inspect your factory, and then you gather all the skilled workers to show them. Basically, this order will be there."

Yang Dongxu patted Zhao Dexin's shoulder to signal him to calm down, and then turned his head to talk to the foreigner again. However, the focus of the conversation between the two people at this time was on the shapes of the fabrics that the two tailors kept cutting out, and the appearance of the finished products after they were made into parts.

Sometimes Yang Dongxu was talking and gesturing with his hands, and the people around him were confused, including the foreigner who knew English.

But the manager of Nike could understand, and from time to time he rubbed his hands excitedly, then picked up the scissors next to him and started cutting, and then put the cut fabrics together into strange shapes, and talked to Yang Dongxu while doing it, asking him for advice.

Both of them spoke very fast, and their hands were not slow, which made the people around who couldn't understand even more confused. You can only look at these two people with admiration. If you understand, it means you are stupid. But these two people who are talking and doing things are so awesome no matter how you look at them. You must look at them with admiration, otherwise others will know that you are stupid, right? So your expression must be serious, your eyes must be admiring, and the more admiring, the better.