After lunch, the group rested briefly and then headed straight for the other party's headquarters building around 2 PM.
After a brief exchange of pleasantries, they entered the conference room. The other party was quite large, with seven or eight people, each holding a blue folder, looking ready for anything. General Manager Liang asked with a smile if the accommodations and meals were suitable, while General Manager Cai remained silent.
"Mr. Kuntai, you visited our factory yesterday and have a good understanding of our company's strength. As a world-class integrated circuit company, I believe that if you are not satisfied here, then I'm afraid no other company can satisfy you," General Manager Liang said with considerable pride.
"Regarding the price, we reported to the chairman last night. He is very willing to help small businesses. If you can sign an order of one million pieces, the price is negotiable."
“That’s right. This deal isn’t for short-term transactions; we’re mainly hoping to have a long-term client,” Mr. Cai said with a smile.
Lu Feng felt something was off when he heard this. Yesterday, President Cai's attitude was very tough, but today the wind suddenly changed. This rapid change made Lu Feng feel uneasy. He glanced at Zhu Lidong and Liu Cheng. Zhu Lidong clearly sensed that something was wrong as well.
"Thank you anyway. Price is one aspect, and product specifications are another. We've prepared a document for you to take a look at. We hope that all parameters can meet a high standard, since this will be our first batch of phones, and we hope that the quality can be guaranteed." As Lu Feng spoke, he reached out to Liu Cheng and took the folder.
After handing it over, Mr. Cai looked through it. There were two documents, one in Traditional Chinese and one in English. The product's standard data was in accordance with Ericsson's production standards, with a focus on product stability.
Lu Feng was very clear that the most difficult thing for them was stability, as their production processes and technologies still lagged behind those of Europe and the United States.
As Mr. Cai looked at the content, he frowned inwardly. The various parameters and standards were very professional. He looked up at Liu Cheng and found it hard to believe that someone who could write such professional content came from a small tribe in a poor place.
Mr. Liang asked in a low voice, "How is it?"
"The standards are very high, and the requirements for random inspections are very stringent. Even Ericsson wouldn't want to do this job!" Mr. Cai replied quietly.
Mr. Cai said it wasn't outrageous. Even standard products produced on an assembly line need a certain degree of robustness. The lower the robustness, the better the product quality. With their current capabilities, they can certainly meet Lu Feng's standards, but if they produce ten pieces, the compliance rate will be at most forty percent.
To put it simply, if a production line uses the same standards, out of every hundred products produced, one will have various problems. If it's just a single part, the problem might not be too big, but the finished product will be quite problematic.
Just like cars, out of a hundred cars, there will inevitably be one with a lot of problems, with all the faults concentrated on that one car. This is unavoidable, and it tests the manufacturer's assembly and overall quality control. These are things that a new manufacturer can never do.
Mr. Cai looked up at Lu Feng and said, "If I'm not mistaken, Mr. Kuntai's standards should be from Ericsson, right? Don't worry, our prices are definitely lower than Ericsson's, and our delivery standards are definitely on par with Ericsson's. As for random inspections, that's no problem either."
Anyway, no matter how outrageous Lu Feng's demands are, just agree to them without hesitation.
Hearing that the other party was so agreeable, Lu Feng smiled and said, "You guys are indeed a big company. It's so easy to talk to you. As for the price, one hundred and fifty US dollars per set is fine, right?"
“We really can’t do it at this price.” Mr. Liang hurriedly said from the side, “According to the current market price, it is basically around three hundred US dollars. Even Nokia and Ericsson, which have their own patent rights, can only do it for two hundred US dollars at most. So our price is two hundred and eighty.”
Lu Feng was not comfortable with the price of 280 US dollars. The cost of Nokia and Ericsson was less than 100 US dollars. The other party was simply treating him like a fool. General Manager Zhang, who had been silent all along, spoke up to help lower the price.
Negotiating a lower price is quite difficult. Mr. Liang and Mr. Cai believe that if the price is lowered too quickly, the other party will think there is still room for negotiation. It's like bargaining when buying clothes. Both parties have to go back and forth piece by piece until the final transaction is completed, and only then will the buyer feel that they have gotten the lowest price.
The two sides argued in the meeting room all morning, and after various price reductions, the price was finally reduced to two hundred and sixty US dollars. It was already dinner time. Mr. Cai sat there with a bad look on his face. He closed the folder in front of him and said in a deep voice, "We are doing this to help small businesses develop and we are thinking about you. Don't think I'm a nice guy. Mr. Kuntai, you have gone too far."
“We also think the price is too high, and we haven’t offered a sincere price,” Lu Feng replied, standing up.
The atmosphere was tense between the two sides. General Manager Cai turned around and left. General Manager Liang hurriedly came over to smooth things over, smiling broadly and saying, "I'm sorry, he was in a bad mood. That's how it is when you're in a tech job. I'm sure your engineer knows this well. They're all straightforward and say what they think. Let's eat first."
General Manager Liang has a very good personality and knows how to take people's feelings into consideration. He constantly comforts Lu Feng and occasionally pulls General Manager Zhang aside for a few words, making him feel like one of their own.
“I hope you can understand. We are doing our best to bring down the price. As I told you yesterday, this project was approved by the chairman. Now that we have invested so much, if the first batch of products loses money, he won't be able to explain it.” General Manager Liang followed Lu Feng patiently like a little follower. “Since he is General Manager Zhang’s friend, I will definitely do my best to help you bring down the price. This is in keeping with the word ‘friend.’ However, there is a cost issue involved.”
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