Chapter 238 Two Hundred Million
[If you find the plot disjointed, exit and reread chapter 237. Over 2000 words have been added at the end.]
When Lawrence announced "General Agent for the O Continent Region," his son was shocked.
Before we came, my father clearly said it was an agent for Country D, so how come it's now the whole of Continent O?
Young Lawrence was puzzled, but he also knew that this was not a good time to ask his father.
"Of course," Lin Shanshan replied, more than she could have asked.
Lawrence cut to the chase, asking, "Madam, what is your offer?"
Lin Shanshan came prepared, having already learned about the economic level of O continent in the 1970s through various channels.
The 1950s to 1970s were the golden age of economic development in Europe, especially after the establishment of the "European Community" in 1967. Country D's development was particularly outstanding, realizing the transformation from a major agricultural country to a major industrial country. During this period, Country D's economy grew 3.5 times.
It peaked in 1973 and then declined. However, it had little impact on those who had already become wealthy.
Currently, the per capita GDP of country D is 5,000 M yuan, which, according to the exchange rate in 1975, is equivalent to about 10,000 Chinese yuan. For a family of three, that would be 30,000 yuan.
In 1975, $1 could be exchanged for ¥1.96663.
However, this is just an average figure. The middle class and the wealthy are far more than that. Even if we take an average family's income of 30,000 yuan as an example, they would have 2,500 yuan in disposable income per month, which wouldn't cost much for food, clothing, housing, and transportation.
Unlike the Chinese, who value thrift and frugality, people from Europe generally prioritize immediate enjoyment. They spend almost all of their monthly income. If they have 2,500 yuan to spare each month, they can easily accept spending 1,500 yuan on a robot vacuum cleaner that can be used for several years.
After all, this is a high-tech product. A mobile phone there costs 4000 RMB and is still in short supply. Therefore, a robot vacuum cleaner priced at 1500 RMB should sell very well.
With a selling price of 1,500 yuan, minus the purchase price of 888 yuan, Lawrence can earn 612 yuan per robot.
With such a large market in the entire continent, even if Lawrence only sells 1 million units a year, he can earn 600 million. After deducting transportation costs, advertising costs, and labor costs, he can make at least 500 million in net profit.
"The entire O continent is such a large market. If I give it to you, I will lose many partners."
Lin Shanshan analyzed the situation calmly.
"Of course, considering Mr. Lawrence's first order of 10,000 units at the Canton Fair, which shows such sincerity, I can grant you the O-Asia agency rights."
Lawrence's face lit up with joy, and even the curls on his head seemed to radiate happiness.
Lawrence was a man of deep thoughts and rarely showed his emotions. He simply nodded politely, signaling Lin Shanshan to continue.
Lin Shanshan held up two fingers and said, "Two hundred million."
Lawrence did some mental calculations of the profit and the result was roughly the same as Lin Shanshan's estimate.
Of the 500 million yuan given out in a year, 200 million yuan was given out, leaving 300 million yuan. Although the amount given out was a bit much, 300 million yuan is still a lot.
If his father hadn't come today, Lawrence Jr. would probably have already signed the contract.
Lawrence shook his head and said, "Too many."
The old fox who has been navigating the business world for many years is indeed not so easily fooled.
“This robot does have a large profit margin right now, but I believe that with O Continent’s current level of technology, once they get the sample, they will be able to produce a substitute within six months.”
"At that time, they were waging a price war, so our profits weren't as high."
"So, two hundred million a year is too much. Madam, I need a more reasonable price."
Lawrence, with a shrewd and calculating air, analyzed the situation.
Lin Shanshan had anticipated this situation.
The price definitely needs to be lowered little by little; it would be too passive to announce the bottom price at the beginning.
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