Wang Anshi waited at IBM for a while, and soon an IBM employee talked to him about the agency.
Wang Anshi stated that he needs IBM's exclusive agency rights in mainland China.
The IBM executive in charge of the negotiations, Kyle Henry, listened to Wang Anshi's opinion and said, "Wujiang Company has no problem getting the exclusive distribution rights for IBM-PC in China, but before that, we hope that Wujiang can terminate its cooperation with Hong Kong Kingsoft Company!"
Wang Anshi frowned and said, "Mr. Henry, isn't your IBM company's request a bit unreasonable and unreasonable? IBM has no right to interfere when Wujiang Company cooperates with other companies."
"Because your company's distribution of Super-PC has affected IBM-PC sales!" Kyle Henry said calmly, but his words were domineering and his expression was arrogant.
"Mr. Henry, you're right. That's why you should consider having Wujiang Company distribute IBM PCs. Hong Kong Kingsoft's Super-PC is just a compatible IBM PC; to put it bluntly, it's a generic assembled machine. But Wujiang Company has managed to make it one of the top three PC sellers in China!"
Wang Anshi calmly retorted, "IBM insists that our Wujiang Company terminate its cooperation with Hong Kong Kingsoft. Does this mean that IBM, as the computer industry giant, lacks the confidence to compete with a no-name PC brand?"
Kyle Henry's expression darkened upon hearing this, and he said coldly, "IBM is certainly not afraid of any competitors. However, your company wants to distribute both Super-PC and IBM-PC. I'm afraid that it will be difficult to allocate promotional resources in the future! I suggest that you focus on distributing IBM-PC! As for second-rate brands like Super-PC, IBM can crush them at any time if it wants to!"
Kyle Henry's statement was blatantly a threat.
Given IBM's position and influence in the industry, suppressing a super-PC would be a piece of cake.
Wang Anshi paused for a moment, then asked, "If Wujiang obtains the exclusive agency rights for IBM in mainland China, what will be the revenue sharing ratio between us?"
The production cost of PCs can mostly be calculated.
Therefore, the profit margin of PCs can also be determined.
Kyle Henry said, "The profit split is 1:9. You take 10% of the profits, and IBM takes 90%!"
“Only 10% is too little profit for our company. I can’t make a decision on this matter anymore. I will tell my boss and leave it to him to decide. Let’s talk again next time!” After saying this, Wang Anshi got up and left.
Wujiang Group acts as an agent for Super-PC, and its profit share is 50%.
The first round of negotiations ended in discord.
Upon returning to Wujiang Company in the United States, Wang Anshi immediately called Zhao Ye and briefly described the negotiation process.
Zhao Ye frowned upon hearing this.
This IBM company acts in a domineering and excessive manner.
Being the exclusive distributor of IBM PCs meant he couldn't distribute other PC brands, which was somewhat unacceptable to Zhao Ye.
Zhao Ye found it hard to justify kicking Hong Kong Kingsoft out of the partnership.
Moreover, the profits that Super-PC brings to Wujiang Group are quite considerable.
If IBM were to act so domineeringly towards other Chinese companies, that would be one thing, but to treat Wujiang Company in the same way was unacceptable to Zhao Ye, and he decided to stand up to them. Besides, Wujiang Company had long planned to launch its own brand.
If IBM found out, wouldn't they be furious?
None of these foreign PC brands were any good. In the early 1990s, the government lowered tariffs and removed all restrictions on foreign PC brands entering China. Suddenly, computer manufacturers such as IBM, HP, and Dell joined forces to suppress Chinese PC brands.
Zhao Ye wants to make money from IBM, but there's no need for him to pander to them and abandon his principles.
Moreover, with a profit-sharing ratio of only 10%, Zhao Ye looked down on it even more.
"Mr. Wang, go and negotiate again, and insist on three bottom lines: First, exclusive agency rights; second, the revenue share cannot be less than 25%; third, you cannot interfere with our company's agency of other PC brands. If any of these are not agreed to, then we would rather not be the agent for IBM-PC," Zhao Ye said firmly.
"Okay, boss, I understand!" Upon hearing this, Wang Anshi seemed to have already guessed Zhao Ye's decision and was not surprised at all.
Although Wujiang Group cannot compare with IBM now, Wujiang Company has its own strong advantages, namely Imagine Chinese Character Card 2.0, which occupies the vast majority of the market share.
You have many choices when it comes to computers, but with Chinese character cards, you only have two choices: either choose the Lenovo Chinese character card or the Imagine Chinese character card 2.0.
The Lenovo Chinese character card is a cheap product. Would someone who buys a Lenovo Chinese character card choose an expensive IBM PC? Wouldn't it be better to buy a Super PC that costs over 10,000 yuan?
It is obvious that IBM's best partner is Wujiang Group.
But if IBM insists on bullying its customers because of its size, don't blame Zhao Ye for ignoring them!
The next day, Wang Anshi visited IBM again.
After the negotiations began, Wang Anshi consistently adhered to "three bottom lines".
IBM was naturally unwilling to agree; they wanted to maintain some control.
While the first and third conditions might be somewhat acceptable, IBM would resolutely disagree with giving up 25% of its profits.
Seeing that IBM was unwilling to budge, Wang Anshi said decisively, "In that case, let's cooperate with IBM again next time we have the opportunity. Goodbye!"
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