Chapter 104 No compromise and new mutually beneficial cooperation

Chapter 104 No compromise and new mutually beneficial cooperation

Chapter 104 No compromise and new mutually beneficial cooperation
"The U.S. market has just started. Isn't it a bit too early to rush into other markets now?" Yang Wendong said with a smile.

He had actually guessed the purpose of Robert's visit this time. Either he wanted to buy his patent at a high price, or he wanted to obtain the exclusive agency rights in other places.

Or maybe you want to discuss whether it is possible to produce in the United States...

In short, they must have come here because of the huge market potential of Post-it Notes. Before, they might have only been able to see that Post-it Notes would be popular, but now that they have actual sales data, it is estimated that it is much greater than they expected.

There were huge interests involved, so we sent people to Hong Kong to find him.

Robert smiled and said, "That's why we will give you enough funds to ensure that you can increase production capacity at a faster rate.

While satisfying the US market, we can also gradually develop other markets. Isn’t this a good idea to have the best of both worlds? "

"It's indeed a good idea." Yang Wendong said with a smile, "But if I'm short of money, it's not difficult to get a loan from a Hong Kong bank based on my current business situation.

In fact, the factories and equipment you see now were rented or purchased with loans from Hong Kong banks. Bankers are not only found in the United States. "

When you are unable to control the terminal channels, the safest way is to not let one company dominate the channels, unless you are like other factories in Hong Kong and have to rely on channels, then there is no other way.

Giving 3M exclusive distribution rights in the U.S. market was the best choice because 3M had the strength and funds, and they also needed 3M to expand the market so as to obtain maximum benefits for themselves.

But at this time, 3M is not a must. Although Yang Wendong said at the beginning that he would negotiate with 3M about markets outside the United States in the future, it was just talk. Unless there are other great benefits, he will not give 3M the distribution rights in other countries.

Of course, when doing business, you still have to look at the returns. If the benefits are really sufficient, or if it can help you accomplish something vital, then it can be negotiated.

Robin smiled and said, "Eric, the funding we provide is 100 million US dollars, and the interest rate is very low. This amount of money is enough for you to build the largest factory in Hong Kong and purchase a large amount of equipment.

We can even help you connect with American banks and let them lend you money. As far as I know, in Hong Kong, the local foreign companies don't seem to like to cooperate with Chinese companies, right? It's also good to cooperate with American banks."

"Thank you very much for 3M's kindness. Bank of America will not be considered for the time being." Yang Wendong naturally had some thoughts in his mind after hearing this number, but he quickly recovered because he knew the true value of the sticky notes.

Besides, American banks are definitely much stricter. Even if the funds are finally provided, the process will definitely be very slow and far less convenient than the unregulated banks in Hong Kong.

So he said politely: "But whether it is this cooperation or this loan, the interest is not the most important thing."

For ordinary people and ordinary companies doing ordinary business, they naturally attach great importance to the loan interest from banks or other financial institutions. It is not an exaggeration to say that it is their lifeline, including real estate companies.

But for Changxing Industrial, which currently holds patents for a huge bonus market, as long as the interest rate is not too outrageously high, the loan amount is more important.

Hong Kong banks are very cautious about such unsecured loans. Even if they have a record of cooperation with overseas giants, they dare not lend too much and would rather pursue stability. Yang Wendong has no good solution for this. If he were a bank, he would certainly not provide large unsecured loans to industries he does not understand.

In this regard, 3M, a large group that knows all the details, will definitely be much more generous because they know there is almost no risk.

However, for Yang Wendong, this bit of "generosity" was not enough to impress him.

Robert and Robin looked at each other, then said to Yang Wendong: "Perhaps, we should discuss this topic in more depth."

In fact, both of them also knew that they didn't have many cards in their hands that could impress Yang Wendong.

They wouldn't use the US market to threaten the other party, would they? This kind of low-level trick would not only cause huge losses to 3M, but would also have a huge impact on the company's reputation. If they really did this, who would dare to cooperate with 3M in the future?

What restricts capitalists is never conscience but interests. Even if they really do some things, they have to abide by the basic rules, otherwise they will ruin their reputation and suffer greater losses.

This is also the reason why 3M is reluctant to directly infringe on the patent of Post-it Notes. Even though the profits are huge, if it really does so, it will be a huge blow to the company's brand. Obtaining the exclusive agency rights of Post-it Notes is, to a certain extent, a legal and reasonable way to obtain profits from this product. This is the best solution for well-known companies.

"Okay, please come this way." Yang Wendong smiled. Regardless of whether a cooperation intention could be reached, basic face had to be given.

Several people came to the conference room together. Although it was not as good as the environment of an ordinary office building, it was much better than the offices outside or in factories.

Su Yiyi made two cups of coffee and two cups of tea for the four of them, and then sat next to Yang Wendong;
After taking a sip of coffee, Robert asked, "Eric, why don't you just tell me what conditions you need in order for us to be willing to distribute the sticky notes in other countries outside the United States?"

Yang Wendong asked in return: "Which countries do you want the distribution rights for?"

In business negotiations, even if you are unwilling, you cannot refuse outright. It is usually better to be tactful so as to give your partners some face. This is true both abroad and at home.

If you want to be tactful, you must first get a general understanding of the situation. Otherwise, if you don't know anything, your refusal will also be very blunt.

Besides, Yang Wendong also wanted to take this opportunity to test how optimistic 3M was about the post-it notes. Otherwise, even if he said something great about the future of post-it notes, no one would believe him. But since 3M said it, it would be fine, as it would also make it easier for him to get a loan from a Hong Kong bank again in the future.

Robert said, "Europe and Japan."

"Isn't this equivalent to giving you the global distribution rights?" Yang Wendong asked in return.

In this era, excluding the Warsaw Pact, about 30% to 40% of the GDP of other countries comes from the United States. Europe is a little worse, and Japan is much worse. However, Yang Wendong knows that in the next to years, the economies of Europe and Japan will account for an increasingly higher share of the world's total.

In other words, although the US market is the largest now, it will not be in the future.

But in the end, it is a game for these three companies. The GDP of all other countries added together may not be low, but for a product like Post-it Notes that relies on a large number of companies, the value is much lower.

As for Southeast Asia and the Middle East taking off in 20 years, that has nothing to do with Yang Wendong. The patent for post-it notes expired long ago, and these countries don’t even have the concept of patents now.

Robert smiled and said, "But it is also in your best interest. I told you this a few months ago, but your factory was too small at the time, and it was difficult to expand quickly even if you had money.

But now, you have the ability to expand rapidly. I have to say, Eric, you are not only an inventive genius, but also a business genius. "

"Saying this is of no practical help to us." Yang Wendong shook his head and said.

Robert nodded and said, "Well, Eric, tell me your conditions."

"There is one aspect where perhaps we can cooperate." Yang Wendong paused the meeting and said.

"What?" Robert had a happy look on his face. As long as the other party had needs that he could satisfy, there would be something to talk about.

Yang Wendong did not answer directly, but said: "Let me make it clear first. The European and Japanese markets are not discussed for the time being. I can give 3M additional distribution rights in American countries outside the United States."

"Including South America?" Robert was disappointed when he heard that Europe and Japan were not included, but he still asked.

"Yes, including South America." Yang Wendong nodded.

South America at this time had some economic strength. It was not the "sick man of America" ​​that would become decades later, with the largest farmland area in the world but whose own people could not get enough food.

After World War II, many places in Europe and Asia needed to be rebuilt, and various metal ores became popular. South America and a few Asian countries, which have a large number of mineral deposits, have become the "candidate echelon" second only to Western countries. Although it is still far behind Europe, considering the population base, it will also be a good market.

Robert nodded and asked again, "So what do you need, Eric?"

Yang Wendong and Wei Zetao looked at each other, and the latter said, "Mr. Robert, we need 3M to provide us with some glue manufacturing technology and help us build a glue production factory in Hong Kong."

"Glue factory?" Robert was stunned for a moment, then he reacted and asked, "Are you trying to make glue for your mouse catching product? Or sticky notes?"

Only by knowing both yourself and your enemy can you have a good negotiation. As early as the last time he came to Hong Kong, Robert already knew that in addition to sticky notes, Yang Wendong also had a product for catching mice.

However, although 3M has many businesses, it has not been involved in this field. Therefore, he has never asked about it and just "knew" about it.

Both post-it notes and mouse sticky boards require glue, the difference is that the former are less and more expensive, while the latter are more and cheaper.

Yang Wendong said with a smile: "Since we are going to build a glue factory, then of course we have to buy all of them. It would be better if we can complete them all at once."

Under normal circumstances, Yang Wendong would not even dare to think about the most basic glue. Without an industrial chain, even with the will of a country in the future, it would be difficult to build a related factory.

But if you have the cooperation and help of 3M, it will be very easy. In the field of tape glue, 3M can be said to be the global leader. Just giving it some money is enough to help you build a glue factory.

Robert frowned and said, "A glue factory is not as simple as a factory that produces sticky notes. Our company is capable of helping you build a factory, but it is difficult for you to run it well.

The most basic thing is the technical patent. Except for those developed decades ago, most glues in the world are basically protected by patents. If you produce them, you are infringing the rights.

The glue used decades ago is basically outdated. It is impractical, ineffective, and highly polluting. Even if you produce it, you can’t sell it, and it can’t even enter many countries.”

Yang Wendong smiled and said, "Yes, so I also want to ask 3M to buy some glue patents."

"Eric, you have a very complete idea. You want us to help you build a factory and buy our technology?" Robert said with a smile.

Yang Wendong said: "For 3M, which has strong technology and related industries, this is nothing; but what you get is the distribution rights of a huge market like Post-it Notes. I don't think I need to say more about whether this is a good deal for you."

"."After listening to this, Robert did not say anything but fell into deep thought.

Yang Wendong is right!
Even if glue or some high-tech products are difficult to make, it's nothing compared to the market value of sticky notes.

There is no other way. It is just a piece of paper and a little glue. It is a very simple combination. But it is very practical. There are tens of millions or even hundreds of millions of potential customers around the world. It is also an office consumable.
There is no way to accept it. The technology that hundreds or thousands of people have spent years researching has a market value that is not as great as one person's accidental idea.

This is the reality!

Yang Wendong was not in a hurry and drank his tea peacefully.

After a while, Robert asked again: "How do you buy the raw materials? These things are not available in Hong Kong."

"There are some in Japan, the United States, and Europe. I can go buy some." Yang Wendong paused and said, "Although the raw materials are chemical materials, they are not hazardous chemicals, so it is not difficult to enter Hong Kong.

As for the problem of too many types, it is troublesome, but it is not unsolvable. We just need to spend more manpower and energy, and prepare more inventory in the warehouse. "

In fact, Yang Wendong also knew that Taiwan would develop a large chemical industry in a few years, and he could then import from there, and it would be even cheaper. However, there was no point in saying it now, and he would not tell anyone else.

Robert smiled and said, “In this case, your cost may not be cheaper than buying directly.”

"In the short term, you are right. I agree." Yang Wendong nodded and said, "But in the long term, that may not be the case."

It is rather troublesome to build a factory in a place where there is no industrial chain, but if you want to make a big business by relying on sticky notes and mouse sticky boards, then the glue, which has the largest cost, must be made by yourself.

One is to reduce costs, and the second is to prevent the extremely unlikely problem of supply shortage.

Therefore, even if a small glue factory is built in Hong Kong first and relevant talents are trained, it can be prepared for the future; otherwise, when the production of post-it notes and mouse sticky boards increases dozens or hundreds of times, all of one's glue will be dependent on outsiders, and no one knows what will happen.

It’s not too bad. Although glue belongs to the chemical industry, it belongs to light chemical industry and its raw materials are not hazardous chemicals. There is some pollution, but it is not high.

Moreover, there are still many sparsely populated areas in Hong Kong today, so it is still feasible to open factories in such places. Wei Zetao has also inquired with government departments, and the Hong Kong government’s awareness of environmental protection is not very strong at present, as long as it is not hazardous chemicals with highly toxic properties.

Robert thought for a moment and then asked, "How big a factory do you want to build?"

"It doesn't need to be very big. I'm going to build a small one first." Yang Wendong said: "An annual output of 1,000 tons is enough."

The figure of one thousand tons may seem like a lot, but when spread out every day, it is only a little over three tons.

One mouse trap requires about 20g of glue. Today, Changxing Industry produces 2 mouse traps a day, and the daily demand for glue is about 0.4 tons.

But everyone inside knows that the mouse sticky board market is about to explode this year, because Wei Zetao and others have used their connections to find strong distributors in Japan and Europe, and are just waiting for the demand to surge in the summer.

As for sticky notes, there are much fewer on each sheet, but the future demand for sticky notes will be orders of magnitude higher than that of sticky mouse boards. When the production capacity reaches billions, the demand for glue will also be very high.

When he really had no ability, Yang Wendong could only import from Japan, but now that he has the opportunity, he naturally has to seize it and set up his own glue production factory in Hong Kong. Otherwise, as the scale grows, various problems will become more likely to arise.

Therefore, he was willing to give up the Post-it Notes market in America. After all, 3M could make him money. As long as 3M could help him build a glue factory in Hong Kong, he would need to seize the opportunity and learn slowly.

After we have taken control of the first small-scale factory and trained some relevant talents, and our company becomes stronger, we will be able to recruit experts from Japan and the United States, and we can rely on Taiwan for raw materials. Then we can set up our own glue industry in Hong Kong.

Taking a step back, if Hong Kong really cannot develop it, then it can also go to Taiwan where the chemical industry is relatively good. In short, the raw materials of one's core commodities still need to be controlled in one's own hands.

Robert nodded and said, "In theory, this is a good deal. Let me talk to the US headquarters after I return to the hotel tonight."

Yang Wendong also smiled and said, "Okay, I'm waiting for good news, but the premise of this deal is that you really give up some of your patented technology and help us build the factory."

"But the problem is." Robert paused after listening, and said, "It will take a lot of time to help you build a glue factory and train talents. Can we trade with each other at that time?"

Yang Wendong replied: “The South American market will definitely be later than the U.S. market. Now it will take us a long time to satisfy the U.S. market alone.

As long as we are quick enough, we will definitely make it in time. Besides, your US headquarters has not agreed to this matter yet, so there is no point in discussing it too much now."

After thinking for a moment, Robert said, "Okay, then we'll discuss this matter tomorrow."

Yang Wendong reminded again: "Robert, the core of our transaction this time is still about some patents."

(End of this chapter)