Chapter 83 Business Negotiation and Deli Brand
Seeing Yang Wendong’s straightforward denial, Robert confirmed his judgment. However, due to his responsibilities, some things still need to be confirmed, so he asked: "In terms of price, Ai Rick, why don’t you listen?”
Yang Wendong shook his head and said, “This is my career, and I’m not going to turn it into cash directly.”
There’s something more important. One point is that if it is a one-time transaction with a large amount, and the Hong Kong media knows about it, it is very likely to provoke people from the gang, which is a bad thing for you.
But if you develop slowly by relying on your own industry, gangsters will generally not be too jealous.
After all, the existence of Chinese factories is the foundation for the British Hong Kong government to maintain stable public order. They will not allow gang members to destroy factories at will. Otherwise, factory owners like Li Jiacheng would not be able to develop.
Robert smiled, then stretched out his right hand, spread his 5 fingers, and said: "My offer is 500,000 US dollars. Such a large amount of money is enough to make Eric your name in the United States, Europe and even the United States." Anywhere, you can live a life in style.”
“For $500,000, 3M is indeed courageous.” Although Yang Wendong was not prepared to sell the patent, his heart trembled when he heard the price.
500,000 US dollars is equivalent to less than 3 million Hong Kong dollars. This is a sky-high price in Hong Kong. Li Jiacheng is known as the plastic king. It is estimated that the net profit for a year is almost this amount.
However, compared with the future income of sticky notes, this is child's play. Even if the plastic flowers are currently popular, the short-term market may be larger than that of sticky notes, but it is still incomparable in the long term.
Robert put down his hand and said with a smile: "It seems that Eric is the same as me. We are both able to recognize the huge commercial value of post-it notes."
500,000 US dollars is not a lot of money even for 3M Company. It was a small amount. Before coming to Hong Kong, they also seriously discussed the commercial value of post-it notes internally, and finally decided to cut the knot quickly and buy the patent first at a high price.
Otherwise, if other companies or businessmen discover it and get there first, they will miss a good opportunity.
Yang Wendong nodded and said: "Yes, I naturally know its value, but its value also needs a strong channel to promote it, so what I hope is that we can have a perfect relationship. Cooperation. "
"Okay, I think so too," Robert followed: "I hope Eric can authorize it to be sold and produced by us. In return, you will receive a sum of funds first. , plus a commission for every sticky note.”
"This won't work." Yang Wendong shook his head and refused, and then said: "First of all, I will not authorize you to produce it, nor will I authorize it to anyone else. Post-it notes can only be produced by me, and then I will give them a negotiated price. Sell it to you. "
To make a career in Hong Kong, when real estate is not yet very large, Yang Wendong needs factories to protect himself.
Factories can create employment for a large number of people, and the Hong Kong government also needs to win over large factory owners in order to stabilize management.
The more wealth you have, the bigger the factory will be to create a balance. Otherwise, if you have a lot of money but nothing, you may just be a lamb to be slaughtered.
This kind of thing may not go to the worst, but as long as there is a possibility, Yang Wendong needs to try to avoid it.
Robert frowned and said: "Eric, I also know a little about Hong Kong's industry. There is no paper mill or glue base, and it is far away from the American market. In terms of economic returns, it is very uneconomical."
Yang Wendong said with a smile: "But our labor costs are low. As for the transportation problem, the sticky notes do not take up a lot of space, and the shape is suitable for transportation. It only needs to be waterproof, and the transportation cost is not high.
< br>I must ask for this, otherwise, how will I know how much has been sold at the sales terminal? "
This is actually the most important thing. If you authorize the production, the devil will know the sales. How many? If someone underreports half of the figure, can you still go and verify it?
Seeing Yang Wendong’s strong attitude, Robert said: “3M’s board of directors hopes to obtain the production rights. Since you said so, Eric, I will discuss this matter with the company after I return to the hotel in the evening. Negotiate.”
"Okay." Yang Wendong smiled and said: "One more thing, I can only give you the exclusive rights to operate in the United States at the moment."
"Why is this?" Robert quickly said: "Although we, 3M It is an American company, but it has sales channels all over the world."
"I know." Yang Wendong nodded and said, "But it is impossible for any product to be launched on the market at the same time. You have also seen the production capacity here. It is estimated that even one state in the United States cannot satisfy it.
So the road has to be taken step by step. It will take a long time for me to increase production capacity. Let’s satisfy the U.S. market first, and then consider other countries.
When the production capacity is sufficient and our products have made achievements in the United States, how about we negotiate for agency rights in other countries? ”
In the previous sticky mouse board, he only cooperated with customers in the United Kingdom and Japan, rather than having exclusive agency rights. This was because they were only small traders with imperfect channels. Giving exclusive agency rights was a waste of his own resources.
But 3M is different. For such a large company, if it wants others to vigorously promote its products, it must provide exclusive distribution rights. This is good for both parties.
However, there must be a limit. You cannot give too much at once. It is enough to give it to the largest market in the United States first. We will not consider it now for the future.
As for our own production capacity, that is also true.
"Eric, you are really cautious." Robert naturally understood what Yang Wendong meant, and then said: "I understand what you mean, and I will report this matter to the headquarters in the evening.
Since it is produced by you, will the selling price remain the same as before? ”
“Yes, 50 sticky notes for 1 dollar, but it will be changed based on future sales. "Yang Wendong nodded and confirmed.
The price is the same for the time being. If the sales volume in the future is much higher than the production capacity, then he will consider raising the price.
On the other hand, if his production capacity is sufficient in the future, then he will consider the maximum There is a possibility of profit-making and price reduction. In short, everything is subject to the market rules of supply and demand balance.
Robert thought for a moment, and the preliminary information he came here today can be considered completed, so he said: "Okay, then. Eric, that's it for today. We will discuss further when I get new authorization tomorrow. ”
"Okay." Yang Wendong nodded.
It is very difficult to negotiate business with people who are not the boss, because the parties involved cannot make a decision immediately.
But this is also the norm in doing business. The boss is usually the last to come forward, or even not come forward, otherwise he will be busy to death.
Many times, it is normal for a cooperation negotiation to take several months, which is the struggle between the people behind the two parties.
Fortunately for Yang Wendong, he can decide immediately. In addition, he is very confident in the future business development of sticky notes, so many things can be settled easily.
...
The next day, Robert did not come to the factory again, but Yang Wendong went to the hotel to discuss. He had seen everything there was to see at the factory, and the hotel environment was more suitable for the two of them.
This time Robert made coffee for Yang Wendong and said with a smile: "The coffee in Hong Kong tastes pretty good. Before I came here, I brought some instant coffee because I was worried that there would be no good coffee here. "
"Hong Kong is one of the largest trading port cities in the world. As long as you have money, the quality of life will not be worse than that in big cities in Western countries," Yang Wendong said with a smile. The cost of information communication in this era is particularly high, as is the cost of media publicity. Therefore, many people’s understanding of other places may be decades ago.
Robert smiled and said: "Yes, the buildings and businesses next to the hotel make me feel like a Western city;
But the place we went to yesterday was near your factory. It feels like the United States a hundred years ago in history books.”
Yang Wen. Dong nodded and said: "So, I insist on producing by myself, so that I can create a lot of jobs in Hong Kong."
Although he has the idea of stabilizing his position by creating a lot of jobs, Yang Wendong himself I really want to give those poor squatters a normal job.
Perhaps with my current meager strength, I can’t do much, but at least it’s okay to give me a full meal at noon; I don’t know how many families, including a few people and children, I work hard every day just to fill my stomach.
He once suffered such a sin, and now, he hopes that fewer people will be like him in the future.
Robert praised and said: "It's very good, but I only thought about financial gains yesterday, and I feel a little ashamed."
"You are also working for the company to strive for higher interests, and that is correct. ." Yang Wendong smiled.
In this era, there are many "Madonnas" in Europe and the United States, mainly because in order to "show benevolence and righteousness", Western countries began to promote various "for the future of mankind" rhetoric, which caused many of their own people to fall into it. .
Although most people will not become unselfish so easily, they can more or less have compassion for other poor people.
"Well, let's get down to business." Robert then said: "Eric, I contacted the US headquarters last night. They agreed to your plan, but they want 20 years of exclusive distribution rights in the United States. In addition, We want priority for distribution rights in Europe."
"We have a saying in Chinese, called the lion's big mouth." Yang Wendong translated it in a simple way, and then asked: "Can your headquarters still be there? Open a bigger door? "
20 years of distribution rights is not the upper limit of 3M. That is because the patent is only valid for 20 years. After 20 years, any factory in the world can legally produce sticky notes. , even the inventor Yang Wendong could not stop it.
As for the priority of European distribution rights, it is the same logic, because on this earth, excluding the Warsaw Pact countries, Europe and the United States together account for 80% of the global economy, and other places are of little significance.
Robert said with a smile: "It's all negotiable. We are just putting forward our demands. Besides, if the demands are high, you will naturally get more benefits."
"If that's the case, it's no different from selling the patent to you." Yang Wendong shook his head and said.
"Well, in business, everyone is a businessman, just to maximize profits." Robert said: "At least we are one step closer to cooperation now. Now, you can say your I have an idea.”
Yang Wendong nodded and said: “My request is actually very simple. I can give you the exclusive rights to operate in the United States for 5 years. Within 5 years, the sticky notes can only be sold by you in the United States. .
Europe, Asia, South America Or Africa, at least it has nothing to do with you in this negotiation. According to what I said yesterday, other places will wait until the results of the U.S. market come out and my production capacity is sufficient before considering it.”
Robert frowned and said: "Five years is too short. If we spend a few years of hard work sending post-it notes to everyone in the United States who may be customers, when the five-year period is over, you will take back the distribution rights. Then didn’t we do it in vain? ”
"It makes sense. We can sign another agreement separately. In five years, you will have priority in the US market. How about it?" Yang Wendong said calmly.
Actually, he also knows that only five years is too short. Even in the era of information explosion, it will take at least two or three years for a product to mature the market.
In other words, it is very likely that a large amount of investment will be made in the early channels, and you may not make any money. You will just wait for the channels to be laid out and then make money.
If Yang Wendong is a distributor, his own channel may generally agree and earn a little bit; but large channel dealers do not focus on short-term profits. They have strong resources, and it is also costly to use such resources. In terms of energy and cost, if you want to promote something, you must pursue long-term benefits.
Robert thought for a while and said: "It requires at least a 10-year authorization, plus the priority of a five-year agreement, otherwise the headquarters will not be able to agree."
"It's not impossible." Yang Wendong thought for a moment and said, "But I need you to lend me a sum of money."
In fact, it doesn't matter to him, five or ten years, as long as the cooperation is good, there is no better way. 3M is a better choice.
“Borrow money?” Robert asked in surprise.
“Yes.” Yang Wendong nodded and said, “You have seen the situation in our factory, and I have nothing to hide. I know that with 3M’s channel capabilities, we can quickly bring in a large amount of goods. Order;
But the production capacity of my factory is far from enough, so I need some funds to purchase equipment again in advance to meet the demand of the American market in the future, which is good for both of us.”
< br>
"It makes sense." Robert asked again: "How much capital is needed?"
Yang Wendong asked back: "It depends on how much you can purchase in the first batch. I will then make a decision. With the size of 3M Company, it should Will you do a preliminary market survey?"
"Well, okay, maybe borrowing money, but at least it has to be mortgaged?" Robert couldn't make a decision, but he had to ask these things clearly.
"Yes, but I don't have any mortgage!" Yang Wendong was very honest.
Robert paused and said: "The patent for sticky notes is also a value and can be mortgaged."
"This won't work. The mortgage of the patent will not be considered." Yang Wendong shook his head and said.
The patent is mortgaged, and if it gets tripped up in the future, it’s over. In the shopping mall, this kind of thing is normal. As long as it can happen, Yang Wendong will not agree to it.
Robert frowned and asked: "There must be a mortgage, right?"
Yang Wendong smiled and said: "How about using the profits from our future cooperation in the U.S. market as a mortgage?
< br>The amount of funds can be further negotiated.”
"I can't make the decision." Robert nodded and said, "Then I will talk to the US headquarters tonight and tell you the result tomorrow."
"Okay, I think this will definitely be a win-win model. "Yang Wendong said with a smile.
Robert agreed, and then thought of something and asked: "By the way, what is the brand of this post-it note? Your company's name is too awkward to translate into English, and it is not suitable for use in the United States or even in the United States. Promotion in other non-English speaking countries.”
Yang Wendong replied: “I have already registered a name called deli, D, E, L, I. This will be the brand of post-it notes in the future.”
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(End of this chapter)