Chapter 437 It’s Easy to Talk
"Mr. Tang, what resources do you need?"
Frolov made the right decision in an instant. He looked at Tang Zifeng and asked seriously.
Tang Zifeng was very satisfied with the other party's performance. In his opinion, it is far easier to deal with liars than with gentlemen. In his previous life, he had been involved in the deception and abduction business, and he knew that liars never exchange for good money. All Frolov wants is profit. If he can create value for Linji Group, Tang Zifeng will not hesitate to give him some benefits.
"Where do you plan to sell the optical machine you ordered from us?" Tang Zifeng asked.
"Europe." Frolov said. Seeing Tang Zifeng's hesitant look, he quickly added: "We recently contacted an old customer in the Czech Republic. I mean, they are our past customers. They needed three heavy-duty grinders, but they couldn't afford a high price, so I decided to get them optical machines from China and CNC systems from Germany to help them assemble these three heavy-duty grinders. "
"Do you have many customers like you?" Tang Zifeng asked again.
"Some." Frolov said. He already somewhat understood what Tang Zifeng meant, so he no longer looked at Tang Zifeng, but answered Tang Zifeng's questions honestly, hoping to exchange for Tang Zifeng's Good impression.
His own family knew his own affairs, and Frolov had been so arrogant before, just to scare the Linji Group. Now that people have found out his details, he no longer has any negotiation capital. If he tries any tricks at this time, he will only be humiliating himself and may also lose possible cooperation opportunities.
There are many companies like Petrov Machine Tool Factory in Russia. Tang Zifeng does not have to cooperate with them, but can choose other more obedient companies to cooperate. The current financial situation of Petrov Machine Tool Factory is very serious, and it has reached the point where it has to cling to any straw. Can Frolov be dishonest?
"How much is the Czech company you are talking about willing to pay for each heavy-duty grinder?" Tang Zifeng asked.
"Within $180,000," Frolov said.
"If we provide finished machine tools, including CNC systems, and hand them over to you at a price of US$150,000 each, and you are responsible for providing debugging and after-sales services to customers, will you accept it?"
"Does the US$150,000 you mentioned include the shipping cost of the machine tool from China to the Czech Republic?"
"...can be included."
"If that's the case, I can accept it!"
"Look, if you had talked to us like this from the beginning, wouldn't it have saved a lot of trouble?" Tang Zifeng said with a smile.
"I'm sorry," Frolov replied with a wry smile.
Tang Zifeng's plan can allow him to earn US$30,000 per machine tool. Three machine tools equal US$90,000, which is considered a good income. But his initial goal was much bigger than this. If he can buy the grinding machine from Linji at cost price, buy the CNC system from a small company in Germany, assemble it himself and then sell it to customers, he can earn at least US$60,000 from a grinding machine. above profit.
Petrov Machine Tool Factory's past strength was also very good. It could complete the machine tool assembly work at a small cost, but it could earn a higher price difference. Like now, it is always a bit disappointing to be directly reduced to a temporary seller and only get a sales commission.
But losses are losses, and it is better to have profits than no profits. Frolov was unable to obtain optical machines for grinding machines from other countries. After being exposed by Tang Zifeng, it would be impossible for him to obtain optical machines from other machine tool companies in China. After all, there are only three or four companies in China that can make heavy-duty grinders, and they must all be related to each other. Tang Zifeng shouted in the group, who else would be willing to cooperate with Frolov?
"Mr. Tang, does this mean that your group will no longer be able to provide us with machine tools and optical machines in the future?" Frolov asked.
Tang Zifeng nodded and said: "That's right. But, Lao Fu, don't get me wrong. It's not that I don't want you to make this money, but I feel that you no longer have the manufacturing capabilities of CNC machine tools. You just need to buy them from different manufacturers." If you purchase optical machines and CNC systems for assembly, the performance of the assembled equipment may not be ideal, right?
"The machine tools of our Linji Group are designed as a whole, and the optical machine and CNC system are more coordinated, which is far better than the machine tools you put together using the CNC system of a small German factory. In doing this, we are also responsible for our customers, right? "
"However, some of our customers are still more willing to accept German CNC systems."
"I think you will have a way to convince them to accept the Chinese CNC system, right?"
"Of course, if there are some advantages in price, I think these customers can also make comparisons."
"As for the price, I want to leave it entirely to Mr. Frolov. No matter what the final transaction price between you and the customer is, we promise to give you a 16% sales commission. What do you think?"
"Are Mr. Tang talking about these three machine tools sold to the Czech Republic?"
"No, no, no, I'm talking about any machine tools sold to Europe through the Petrov Machine Tool Factory."
"Mr. Tang, you want us to become your company's agents in the European market?" Frolov's eyes flashed with a cunning light.
"If you add the constraint of 'one', that's what I mean." Tang Zifeng will not be fooled. There is no need for him to put all his eggs in Frolov's basket.
"If this is the case, the 16% sales commission is a bit low for us." Frolov said, "After all, we are also responsible for the after-sales work of the machine tools, which also requires a lot of work."
"I heard that your factory has more than 2,000 employees. Don't you think it is necessary to find something to do for these employees?" Tang Zifeng responded with a smile.
Frolov is a shrewd businessman, but this is not enough for Tang Zifeng to want to establish a long-term cooperative relationship with him. What Tang Zifeng is interested in is the resources owned by Petrov Machine Tool Factory. Petrov Machine Tool Factory is an old machine tool company. Although it has declined over the years, the original foundation is still there and it is still valuable.
Petrov Machine Tool Factory has more than 2,000 employees, including a large number of skilled workers with experience in machine tool manufacturing, assembly and maintenance. These people can become after-sales service personnel for machine tools.
The Petrov Machine Tool Factory was very prosperous during the former Soviet Union, with customers all over the former Soviet republics and Eastern European countries. Some of its products were exported to Western Europe and some developing countries in Asia, Africa and Latin America. It has extremely rich customer resources, which is why Linji Group What is lacking.
As a Russian company, Petrov Machine Tool Factory has fewer language and cultural barriers with European customers, while Linji Group does not have this convenience.
If we can tie the Petrov Machine Tool Factory to our own tank and sell our products to Europe through this intermediary, it will be of great benefit to the Linji Group's overall strategy. Before this, Linji Group had already decided to cooperate with Petrov Machine Tool Factory. But at that time, it wanted to cooperate on an equal basis, but now, it can be changed to a master-slave cooperation, allowing Petrov Machine Tool Factory to Become a subordinate of Linji Group.
"I hope to increase the sales commission rate to 20%." Frolov said.
"Absolutely." Tang Zifeng agreed very readily. Before Frolov could be happy, he added: "The premise is that you can complete sales of more than 3 million US dollars per year."
"$3 million..., that's a high goal," Frolov said.
Tang Zifeng shook his head and said: "No, no, Mr. Frolov, this goal is not high at all. Think about it, Russia's own machine tool industry has completely declined, but other industries in Russia still have production, do they Don’t you need a machine tool? Chinese machine tools are of high quality and low price, and the after-sales service is considerate... Of course, this depends on the efforts of your factory.
"Sales of 3 million US dollars is just a small amount for a large company. I heard that Russia... is preparing to resume Russia's military industry. I think these military industry companies also need to update a lot of machine tools. Don't tell me You’re not familiar with them.”
Frolov was defeated. He thought he was a rogue enough, but he didn't expect that the young Chinese general manager in front of him was even more rogue than him. Tang Zifeng didn't make any detours, and directly put the stakes out in the open, forcing him to accept. Frolov really didn't know how to bargain with Tang Zifeng.
"If we can achieve higher sales, for example... 6 million, can the sharing ratio between us be adjusted?" Frolov asked.
After Tang Zifeng reminded him, Frolov felt that it seemed possible to complete machine tool sales of US$3 million a year. Russia's military-industrial enterprises have indeed shown signs of recovery recently. After more than ten years of suspension, the production equipment of these enterprises has become old and in urgent need of updating. The financial situation of the Russian government is very pessimistic, and the money it can spend is very limited. This determines that Russian military industrial enterprises cannot afford expensive Western equipment, and buying equipment from the Chinese is an inevitable choice.
If he can join the line of Linji Group and become a middleman for Russian military industrial enterprises to purchase equipment from China, he can expect sales of 6 million or 9 million a year, let alone 3 million.
So, now it's time to talk to Mr. Tang about the issue of sharing. If the other party is too stingy, you may be able to find other Chinese machine tool companies. After all, no company would refuse something like this that can bring business to others.
Tang Zifeng saw Frolov's eyes moving around and guessed what he was thinking. He smiled and said: "It's easy to talk. If you can do us $6 million in business, it's okay to increase your commission to 22%. However, in terms of price, you can't press too hard. You need to have a A transaction price that everyone can accept.”
"Mr. Tang, please rest assured. I still know the price of the machine tools." Frolov said confidently.