Chapter 64 Cooperation Negotiated
Chapter 64 Cooperation Negotiated
Those who have studied abroad in Europe and the United States know that the food there can be said to be a holy land for weight loss for the Chinese.
The delicious food in Chinese society made George Smith, who could only eat steamed vegetables in his own country, very happy. They ate a variety of delicious food from the stalls and were full in half an hour.
Back at the hotel, Elena made coffee for the three of them.
"Thank you." George Smith said politely to Elena, and then said: "Eric, we should discuss business."
Elena continued to act as an interpreter. After Yang Wendong finished listening, he nodded and said, "OK, we can just follow Hong Kong's conventional export trade model.
I will be responsible for shipment and transportation, sending the goods to the UK customs by sea, and then you will arrange for someone to pick up the goods;
Everything before British Customs is mine, and everything after that is yours. We will calculate the price in Hong Kong dollars.”
"Very reasonable." George Smith nodded, but did not directly tell the price. Instead, he asked, "This thing of yours involves chemicals. Can it be cleared smoothly by British customs?"
Yang Wendong said: "Yes, the main ingredient of the mousetrap is Japanese glue, and this product is also sold in the UK.
There is also peanut oil on the fly trap. Although this oil is not sold in the UK, it is food grade and there is no problem using it as a non-food product.
I have arranged for someone to apply for the qualification to export to the UK. Hong Kong belongs to the Commonwealth, so as long as there are no major problems, the qualification will be obtained soon. "
When Elena told him that there might be a British distributor, Yang Wendong immediately arranged for Zhang Weida to apply for the qualification to export to the UK;
Customs restrictions were not strict during this era, and trade within the Commonwealth was especially smooth. As long as there were no major problems, one could basically obtain a British import license.
Once the British import license is obtained, there will be no problem with other Commonwealth countries. This is also an advantage within the Commonwealth, which is open internally but somewhat closed externally.
A few years later, Japanese electronics companies came to Hong Kong to open electronics factories in order to enter the Commonwealth market. This also laid the foundation for the development of Hong Kong's electronics industry.
After listening, Smith nodded and said, "Very good, what about other European countries?"
Yang Wendong said: "There is no need to rush to other European countries. Let's first develop the British market."
The main reason is that they have no money. It is very time-consuming and costly to apply for export qualifications from the customs of other countries. Not to mention applying after the deal is done, there must at least be some hope.
Today's Europe is not the European Union. There are so many countries with different languages. It is not like the UK, where you can use the language throughout the Commonwealth after applying.
Smith said, "That's right. Once we have achieved success in the British market, it will be much easier to sell in Europe. Then we should discuss the price."
Yang Wendong said: "Mr. Smith, including the cost of shipping, my quote is 5 yuan per mouse trap and 5.5 yuan per fly trap, calculated in Hong Kong dollars.
My suggestion is to adjust the price every three months, but if there is no major fluctuation in exchange rates, shipping and raw material costs, the price will basically remain unchanged. "
Before this meeting, Yang Wendong also made preparations, including asking about the cost of shipping the goods;
Although containers were not yet popular in this era, the cost of ocean shipping was relatively high, but it was also for different items;
The sea freight prices for goods that are fragile, cannot be scratched, are difficult to carry, are large in size, are afraid of humid sea fog, and have odd shapes are very expensive, which is also one of the biggest obstacles to global trade liberalization.
Flat objects like mouse traps are not very heavy and do not require any protection, so the shipping price is much cheaper. After asking for prices, Yang Wendong calculated that the cost of sending a mouse trap to the UK via an express freighter is about a dime, which is much more expensive than the freight rate in the container era, but much cheaper than other commodities.
Smith did not rush to bargain, but said: "My personal feeling is that there will be a certain market for mouse traps in the UK, but it may be a bit difficult to use fly traps, especially in commercial places, which makes people feel uncomfortable."
"I understand. The culture of different places is different. We just need to try our best. Besides, there is also the family market." Yang Wendong nodded and said.
Although fly traps can kill flies, it would still be uncomfortable for guests to see so many flies on the table.
Humans are like this. They don’t care about the flies flying in the sky, but if so many of them appear together, it may make people feel uncomfortable.
The characteristics of mouse traps and fly traps are different. One only needs to be placed in a corner, while the other must be placed in front of people. This is also determined by the characteristics of mice and flies. The former is afraid of humans and will hide and walk in dark places, while the latter simply ignores humans.
Smith nodded and said, "Okay, but I think the price is still a bit high."
The price negotiation lasted for more than an hour, and finally the two parties reached an agreement, and Yang Wendong's previous offer was reduced by another 5 cents.
This price is a little bit higher than selling in Hong Kong, but in order to expand the market, we must give concessions to dealers in the initial stage; later, when there are dealers in several countries, we can reset the price according to demand.
Anyway, neither an exclusive agreement nor a long-term pricing contract has been signed, so the prices may fluctuate in the future.
If exports to multiple countries are good, then the factory will be strong; if not, then the distributors will be strong; this is the eternal theorem of doing business.
"Eric, I will be traveling in Hong Kong for three days. During these three days, please prepare about fifty mouse traps for me and I will bring them back by plane." After negotiating the price, George Smith said with a smile.
Yang Wendong nodded and said, "No problem, I will deliver it personally."
After leaving the hotel, Yang Wendong took out an envelope from his bag, handed it to Elena and said, "Elena, please accept this."
"What is this?" Elena thought to herself and opened it. There were a few banknotes inside. Then she immediately said, "Eric, we have known each other for quite some time. You should know that I will not accept this."
"Of course I understand, but today's matter is different." Yang Wendong shook his head and said, "In our previous cooperation, you could say that we were working for the government or for some poor people;
But this time, you introduced clients to me and translated for me. This is a pure ordinary employment, and your position is not involved, so you should accept the money. This is the income you deserve. "
"Well, that makes sense, but it's too much." Elena said half-agreeingly.
Yang Wendong shook his head and said, "It's not much. You like to help others, don't you also need money?"
(End of this chapter)