Chapter 558: The Lice Open Their Mouths
Chapter 558: The Lice Open Their Mouths
When Yin Zhaotang heard that the price of goods had doubled, he frowned slightly and asked in confusion: "Mr. Huang, domestic scientific research is very short of money, right?"
Huang Zhe, He Guangbiao and others looked embarrassed, vaguely feeling that they were being mocked for their insatiable and greedy nature.
Cheng Shuangfu coughed twice and said quickly, "Please forgive me, Mr. Yin. We are indeed short of money for scientific research in China. Many weapons have to be imported from Europe and the United States and then copied."
"In terms of cutting-edge weapons and missile technology, some of them were purchased directly, especially the Hongqi-4."
"The production lines were previously stopped, and they were restarted for the purpose of earning foreign exchange."
“Profits must be guaranteed.”
Weapon expert Liu Feng sat in a corner and sighed secretly: "Let people look down on you, people are poor and have low aspirations, they are just trying to make money."
"For the national defense industry, being self-sufficient and making a little money is more important than personal reputation or gains and losses."
Do Hong Kong businessmen regard them as poor relatives, nouveau riche, and profiteers?
unimportant.
Everyone kept it to themselves.
As long as you can earn foreign exchange, that's fine.
Unexpectedly, Yin Zhaotang changed the subject and raised his voice, saying: "If you want to make money, just double it!"
"For medium- and long-range air defense systems, according to market information, the United States reached an air defense system deal with Japan last year, which included Hawk missiles of the same level as the Hongqi-4. The price of a launch system is 2000 million US dollars, and the price of a single missile is US dollars."
"The Hongqi-4 has been tested in actual combat and has a great record, so we'll double the price to one million US dollars. Pick, a full set of systems, is it only worth four Eagle shells?"
"The Hawks are Raytheon's products from the 1950s!"
Da Pu Niu understood the selling price in the international arms market. As soon as he heard the price was one million US dollars per set, he scolded the big circle boy in front of him.
You can make things, but you can’t sell them?
So crazy!
After hearing Yin Sheng's speech, he felt very excited and clapped his hands and shouted, "Sell it ten times the price, five million per set, buy it if you want!"
Huang Zhe was shocked for a few seconds, picked up the teacup, moistened his dry throat, and said, "Mr. Yin, Japan's purchase price from the United States is a protection fee, which is not accurate."
"In addition, we didn't set the price too high because we wanted to slowly open up the cutting-edge weapons market and attract more customers."
He Guangbiao, who had just come to his senses, hurried to help his leader and said with a smile: "Yes, Mr. Yin, small profits but quick turnover will help build a brand."
The remaining Cheng Shuangfu, Liu Feng and others lowered their heads and pretended to read the documents, not daring to interrupt. Because the direction of the incident was completely beyond their expectations.
What is small profits but quick turnover?
They are "lions opening their mouths wide", not lice opening their mouths wide.
But ironically, the profits from arms were still underestimated, and the final selling price can only be decided by the leaders.
It is not that people in China have never bought arms before, but they are used to buying the previous generation of armor and have never experienced the scenery of the cutting-edge market. For a long time, Chinese weapons are cheap substitutes for Soviet goods, which has long been a consensus in the arms market.
However, the HQ-4 is a new generation of weapon with better performance than the American Eagle air defense missile system. It is the predecessor of the HQ-9, but it does not have anti-stealth capabilities.
The new generation of the United States' "Patriot system" is indeed stronger than the HQ-4, but even the previous generation of Hawk sold for million, so how much would the Patriot sell for?
The most advanced aircraft in the Iran-Iraq battlefield were only the MiG-29 and the Mirage F1, which had no stealth capability. At the beginning of the project, it was built as the cutting-edge of national defense, and the Hongqi 4, which was to be a "super-high and super-speed" aircraft, was just the right professional match for these models.
It can’t be said to be a generation ahead, but it can also kill instantly if it’s “not invisible”!
Yin Zhaotang knew that the Mainland Business Group was worried that the price was too high and would scare away big customers, so he slowly said, "Mr. Huang, you have a misunderstanding of the market."
"Japan is paying protection money to the United States when it purchases from the United States. Can't Iran pay protection money to us when it purchases from us?"
"These weapons have truly protected their national security, oil security and military facilities. In addition, the market for cutting-edge weapons is limited, and small profits and quick turnover are not allowed. If we earn less than we should, people will doubt whether China's technology is reliable."
"Do you understand the brand effect? At most, I will give you some maintenance and upkeep benefits."
The most important thing is that even if the price increases tenfold, it is still several times cheaper than European and American products after the increase.
Huang Zhe hesitated for a moment, then nodded and said, "I respect Mr. Yin's opinion, and I'll offer $500 million per system. If we can sell two, it will be worth our trip." Yin Zhaotang shook his head, "Given the intensity of the Iran-Iraq air war and the ship attack, if we only buy two, it will be hard for the Iranians to explain when we return."
"Mr. Huang, let me be frank. You still have a lot to learn about doing business with foreigners."
People in China know how to do business, and those who go into business are all making a lot of money. It’s just that the senior executives of state-owned enterprises and the older generation of scientific researchers have stayed in a closed environment for too long.
Having just emerged from the planned economy, my thinking is a little slow, I can’t understand the market situation, I can’t estimate my own worth, and sometimes I get startled and jumpy, like a country bumpkin.
Reform and opening up also came step by step. In fact, for those who were paid a fixed salary and engaged in scientific research, the 80s was still a "planned economy".
However, their trip to Hong Kong Island was not in vain. To some extent, they finally experienced the thrill of being an international arms giant.
"J-7 fighter."
"It's designed to defend against the Soviet MiG-21. It was sold to Iraq two years ago for three million US dollars per unit." Huang Zhe discussed the price of the next weapon.
Yin Zhaotang pondered for a moment and said, "Things are different now. Increase the price by one million US dollars and sell it to Iran."
“Is it really rising?”
Huang Zhe was doubtful and worried about gains and losses.
"rise!"
"This is called brand effect. If the anti-aircraft missiles are strong, then the aircraft are not strong either? People who can make shields naturally know how to make guns. The Persians are very smart."
Huang Zhe lit up a cigarette and took a deep breath: "Then it will go up!"
"In addition, starting from the J-7, all weapons below can be sold by Yin Sheng's Zhongyi Group at the factory price. Of course, as I said before, the shipping risk must be borne by your company."
Yin Zhaotang's eyes lit up and he said in surprise, "Thank you, Mr. Huang. Lao Zhong's shelves are finally stocked with new items."
Huang Zhe smiled and said, "The higher-ups are very positive about Zhongyi Group's efforts to facilitate this transaction. They have already held a meeting in advance to discuss it and delegated it to a higher-level weapons agent."
"The next model, the Hongqi-7 short-range air defense system, was previously priced at $ for the whole set, with each missile costing $."
"If this one increases a little less, it will really double." Yin Zhaotang said with a smile. Doubled will be 200,000 US dollars, which is still 100,000 cheaper than the French products of the same level.
"Remember, this will double." Huang Zhe instructed his secretary, and everyone in the room became more and more excited as they listened.
"Price per unit of Hongying-5 short-range air defense missile"
"It's going up by five hundred dollars."
The more conventional the weapon, the cheaper it is and the less room there is for price increases.
Some things can only increase slightly, which means that China has a brand effect, and the real big deal is still cutting-edge products. It is the first time for China to sell cutting-edge products, but for conventional weapons, it is a large wholesaler.
The pricing is very reasonable, and the required changes are smaller as you progress through the course.
Before I knew it, I had sorted out a whole list of more than a hundred pieces of weapons and equipment, and the time had passed by like days going by and months going by, like the stars shining brightly.
"It's getting late, so let's just leave it at that for today. Eat something and continue tomorrow."
Yin Zhaotang crushed his cigarette and suggested calling it a day, and everyone agreed.
Some people put away their documents with excited looks, some people opened their arms tiredly and stretched their bodies, and some people sipped their coffee, holding up the remaining half cup, reluctant to waste it.
Dabu Niu, who was in charge of the reception, smiled happily and said, "Dear leaders, thank you for your hard work. The hotel has prepared meals in the restaurant downstairs. Please come and have a meal."
Everyone looked up at the main seat and declined.
Yin Zhaotang smiled and said, "It's just a home-cooked meal, let's just call it a treat. Leaders, please don't refuse. Eat well and drink well, and you'll be able to work better tomorrow."
Everyone readily agreed and expressed their gratitude.
(End of this chapter)