Chapter 201: Tit for tat and no concessions
Pei Wensheng looked a little embarrassed. He came to the negotiation today and raised three items. He had already made concessions on the first two items, and Lu Shan had the final say.
You should listen to yourself on this last one, right?
After thinking about it, Pei Wensheng changed his angle to persuade Lu Shan: "Lianxiang's shipment volume is very large, which can ensure that your factory can operate at full capacity. Isn't this less troublesome than going to other computer companies to negotiate orders?"
"The problem is that after we tie up with Lianxiang, our strategy has to be adjusted to cooperate with Lianxiang, not the entire market. You have the final say on how much to do, and this is not in our interests." Lu Shan did not give in.
Pei Wensheng was speechless. It was already amazing that he could take over all the orders from Lianxiang. But this guy wanted to take over the entire market?
"Then sign a guarantee agreement."
"It's not a question of whether there is a minimum guarantee or not. It's just that we can't agree to this condition."
"Then raise the unit price a bit, that's ok, right?"
"No. We can sign a contract with Lianxiang, and based on the supply volume guaranteed by production, we really can't give up on anything else." Lu Shan also took a step back, because Lianxiang's shipment volume was very large, so doing this would be equivalent to giving priority to Lianxiang. If that still didn't work, then forget it.
The atmosphere suddenly became cold, and Xia Guangming immediately persuaded Lu Shan: "Lu Shan, see if you can sign a contract for this matter, that is, to fully supply Lianxiang for a certain period of time, and the two sides will cooperate for a period of time, and then see what happens next."
"When two people are in love, there has to be a period of adjustment!"
After making a joke, the atmosphere eased a little, and Pei Wensheng was able to interrupt: "We can discuss the validity period of the contract. Let's sign it for five years first."
If you change to other suppliers, you should be thankful, because this means you have a long-term meal ticket.
But Lu Shan was very clear about the subsequent development of technology, and selling himself to Lianxiang for five years was simply a joke.
The PC era will last for a maximum of three years, followed by the mobile Internet era.
Memory is not sold to PCs but to mobile phones.
"It will take at most half a year, but the quantity we need to buy is more than one million pieces at a time! We can produce as much as we can. We can accept loans or provide related equipment to expand production, but we will not accept capital injection. We will pay back the money later, but we will not accept equipment as a stake."
"one million?"
"Yes, one million memory sticks. I think I reported too little. According to the current market development, the demand for laptops has exploded. This number is not difficult to produce."
Pei Wensheng was silent again. He carefully calculated the current shipment volume of Lianxiang, and it seemed that there was no problem. According to the calculation, the shipment volume of Lianxiang's notebooks in 2010 should be 1800 million units, and the purchase volume of one million at a time did not seem to be much.
But this requires payment before delivery, and the corresponding cash must be prepared every time. Lianxiang is currently expanding and its working capital is very tight. In addition, the contract on the road is only for half a year, which is even more unacceptable.
However, from the conditions given by Lu Shan, we can see that Lu Shan is very confident. He did not even accept the investment and asked to pay back the money for the equipment. Lu Shan must feel that his products will not have trouble selling and he can bear the debt of the equipment.
In fact, Lu Shan didn't even want to borrow money, but if he wanted to negotiate, he had to have a way out.
As I said, everything can be discussed, but the initiative must be in your own hands.
If the talks fail, the worst that can happen is that we can just do it our way. Even if it’s a little slower, there will definitely be no better products of the same kind in the short term.
There are still many options in Lushan, and many domestic brands are alternatives.
Although these brands are not as good as Lianxiang now, Lu Shan believes that after cooperating with him, they will be able to surpass Lianxiang.
The atmosphere became cold again. Pei Wensheng did not expect to encounter so many things beyond his authority today. He gritted his teeth and agreed to the first two things, but he had no choice but to agree to the third one.
The negotiations had collapsed, but Pei Wensheng and Lu Shan still said goodbye politely, saying that they would have to study it further when they returned. However, Lu Shan knew that there would not be much change when he returned, and Lian Xiang did not agree with his reasoning.
Xia Guangming discussed this with Lu Shan in detail after Pei Wensheng left. He sincerely hoped that they could have a successful cooperation with Lianxiang along the way.
"Lu Shan, there are actually quite a few benefits to cooperating with Lianxiang, but we may not be able to reach an agreement on time. The six-month contract you gave is a bit too short, two to three years seems more appropriate." Xia Guangming told the truth, "There is no problem with the performance of Bansi's products now, but the strength of the products still needs to be recognized by the market. The products are not well-known, so it would be best if we could take advantage of this opportunity."
Lu Shan nodded and said, "President Xia, you are right. Half a year is indeed too short. I just said that we should give it a try and you can give us your opinions if you are not satisfied. But Minister Pei did not even make any suggestions, which shows that Lianxiang is not prepared at all. In other words, even if they go back to study, they will still ask Bansi Company to supply Lianxiang exclusively in the end."
"But please forgive me for being frank. I can guarantee that Companion Silicon will not lag behind in the next three to five years. Who can say that Lianxiang will still be popular in the next three to five years? I am confident that my product will become famous in less than two to three years."
Xia Guangming is certainly confident in the unrivaled performance of the companion silicon memory, but he hopes that Lu Shan can avoid detours.
"Don't worry, I know what's going on. Thank you, Dean Xia, for your concern. I'm sorry to bother you with this meeting. I'll serve you tea instead of wine!"
"You're welcome, you're welcome. We're all striving for a higher goal, it's not worth mentioning."
... Pei Wensheng returned to Lianxiang Company and gave a detailed report on the meeting. The senior executives were absent-minded at first, but then they listened more and more attentively.
"According to calculations, the performance of BanSi's memory sticks far exceeds that of its peers. Under the premise of the same price, you can't buy 8G of space on the market, and you'd be lucky if you can buy 512MB. The difference between the two is more than ten times.
If Bansilone also makes memory of the same size, the performance will be at least 30% better than the best of its kind.
In short, Lushan's products are indeed unique. If it cooperates with other brands of computer manufacturers, it may pose a threat to our sales."
Pei Wensheng sat down after he finished speaking, waiting for instructions from his leaders.
The head of the company, Liu Wuzhi, spoke first: "Do you think it is possible for Bansi's memory sticks to cooperate with internationally renowned brands?"
Pei Wensheng immediately responded: "It is possible, but overall it is unlikely. Internationally renowned brands have a longer inspection process for suppliers and more stringent supply requirements."
"And now the attitude of Western academic circles towards this product is quite complicated."
“BanSi couldn’t even accept our conditions and wanted to cash out as soon as possible, so BanSi couldn’t wait for the international computer vendors to come up with their own terms.
"Furthermore, the reputation of the companion silicon company is too small, and the production capacity is too low. Even if the product performance is indeed very strong, large companies will not spend time on such small manufacturers."
"At least the supply capacity has to be improved by several levels before we can consider it."
"The last reason is that BanSi is a company from Xiaguo. It is impossible for an international brand to entrust such an important task to BanSi. It is a time bomb for its own brand security. If BanSi runs out of stock for various reasons one day, the consequences will be disastrous."
The head of the company, Liu Wuzhi, continued to ask, "So how likely is it that Bansi will look for a domestic computer manufacturer?"
"It's possible, but there's no need to worry. Because the technical level of other domestic computer vendors is too low. Even if they get the memory sticks from BanSi, the brand is not strong, and their channels for getting other hardware are not as good as ours. They still can't catch up with Lianxiang's product performance. This is true for both professional testing and user experience."
"Therefore, only by cooperating with us can BanSi Company obtain the greatest benefits, the fastest promotion, and the best word-of-mouth endorsement. BanSi Company really does not have many choices." Pei Wensheng said very firmly.
The top management was silent again, and the deputy leader finally spoke: "Minister Pei, what do you think of Lu Shan?"
"I think he is an extremely good scholar. The memory sticks produced by BanSi are undoubtedly excellent. Dean Xia acted as a matchmaker, which means that Xiaguo Academy of Sciences has cooperated with BanSi. So it is very likely that Xiaguo Academy of Sciences is using a better version."
"It is hard to imagine that such a good product is only available in a civilian version. This shows Lu Shan's ability in scientific research as a scholar!"
“But from a businessman’s perspective, he is not very qualified. He has no idea of business rules during negotiations. He is straightforward in his conversations and actions, leaving no room for maneuver. He also doesn’t know how to adapt and seems a bit dull. Of course, this is just my personal opinion.” Pei Wensheng answered one by one.
There was another silence, which was soon broken.
The head of the company, Liu Wuzhi, spoke up: "Since they are all Xiaguo's companies, it is only right that we cooperate well."
Afterwards, Liu Wuzhi withdrew from the meeting and let the deputy leader continue to preside over the meeting. Liu Wuzhi did not have time to listen to the discussion process, he only wanted the result of the discussion.
After Liu Wuzhi left the meeting, everyone discussed the issue more thoroughly.
Everyone was highly unanimous in their opinion that Lu Shan was an academic talent who was still a young man under the age of twenty. Even if he was cared for by a group of elders, he would not be able to act in a way that was completely in his own interests.
Besides, these are all business activities, and elders like Xia Guangming are not well versed in this and cannot give correct guidance.
Lu Shan's character and lack of knowledge are the key points of Lianxiang Company. Such a person holding an excellent product is like a child holding a large piece of gold in a busy city. Everyone will be covetous of him.
Lianxiang held a meeting and decided to take concrete measures to continue negotiations with Bansi Company and find a way to obtain the exclusive supply rights and prevent Bansi Company from supplying other computer brands, especially foreign brands.
Foreign brands may support new domestic brands to compete with Lianxiang. The situation of outsiders entering Xiaguo has become increasingly obvious and is muddying the waters.
After the meeting, specific measures were put together into a report and sent to Liu Wuzhi.
"Lu Shan is a scholar, and our people can't be too scholarly." Liu Wuzhi made two circles and handed the proposal to the vice president.
The vice president and senior management took a look and saw that the two circled places had changed the minimum purchase quantity from 10,000 to 100,000. This showed that Liu Wuzhi trusted Lushan's products so much that he had no problem paying the money first.
The second circle is really confusing.
(End of this chapter)
