Chapter 433 Two Choices
Zhang Pei said to Yu Zhan, "This price is too high. Our profit is only about 20%."
Yu Zhan looked at Peter and said in fluent English, "I've already told you on the phone that Liu Man's company was registered less than two months ago. It's a start-up online sales company, and capital shortage is their biggest problem. Chinese online stores focus on small profits but quick turnover. When consumers buy goods, they usually like to compare prices from different stores, so their retail prices are very low. You have also carefully read their agency contract with Xisilan Company. Xisilan Company's shipping price is already very high. Coupled with the high tariffs, their profits are actually very slim."
Peter asked, "What is your expected price?"
Yu Zhan said: "Five percent."
This price was also much lower than Peter expected.
It's not that he doesn't know Liu Lan's actual situation. He can even say that he knows it very well. He has the sales report of Liu Lan's online store for the past six months, and he knows exactly how much profit they have made. In the meeting with Xisilan Company yesterday, he and Huang Shiting also discussed in detail the shipping price and other related issues. He never makes unprepared deals.
At first, the middle and senior management of Xisilan Company did not agree with Huang Shiting handing over the online agency rights to an unknown mainland Internet celebrity. In order to convince the public, Huang Shiting had to increase the company's shipping price to Liu Lan to earn more profits. Now Liu Lan has become a household name Internet celebrity and has successfully transformed into a young calligrapher and actor. More importantly, the sales performance of her online store has been rising month by month. These achievements have convinced everyone in Xisilan Company.
Otherwise, Peter would not consider signing a contract with them. Peter said, "The agency price of Xishilan Company is indeed high, but your contract will expire in February next year. By then, if your performance increase can reach 100%, you can directly sign a first-level agency contract with us."
Yu Zhan translated what Peter meant to Zhang Pei. Zhang Pei was a little tempted. If she could bypass Xisilan Company and sign a contract directly with the headquarters and get the goods from the headquarters, it would undoubtedly reduce a lot of costs. She asked Yu Zhan to ask Peter what the agency price was for a first-level agent.
...
...
Peter said, "It's still 15%. This is the unified quotation within our company. It is the same price no matter which region or country, including Xishilan. There are no exceptions."
After listening to Yu Zhan's retelling, Zhang Pei frowned, "Then our burden for the past five months is too heavy. He said that we can sign a first-level contract, but it's just words. What if he regrets it? We don't have any money in our account. Manman invested all the money in the sponsorship fee of the documentary."
Peter could probably guess from Zhang Pei's expression that she had considerable objections to their agency price. He said to Zhang Pei, "I have considered your specific situation. I can give you 5% of the price, but there are additional conditions. I have two solutions. First, sign a two-year long-term contract with us at a 15% agency price, and everything will remain the same. Second, sign a five-month short-term contract with us at a 5% agency price. This contract expires on the same day as the contract with Xishilan. We directly stipulate the renewal conditions in the contract, which is a 100% sales performance growth rate."
Peter's meaning was clear. If he gave them a low agency price, then Zhang Pei and her team would have to double their sales in the next five months, otherwise he would not cooperate with them again. If they chose a high agency price, there would be no such rigid requirements. At least in the next two years, they would have a strong backing and their business would be stable.
After listening to Yu Zhan's translation, Zhang Pei fell into deep thought.
Peter asked her in a playful tone, "Madam, do you and your daughter have this confidence?"
Zhang Pei looked up and saw the determination and undaunted look in his eyes.
The higher the position, the more approachable and humble they are. They are very polite and will not let others feel the slightest contempt or neglect. Peter's enthusiastic attitude just now gave Zhang Pei the illusion that he was a very easy-to-talk-to person.
Cat'Garden is a world-renowned pet food company with a history of more than 60 years. It has an excellent reputation and a solid position in the industry. Otherwise, there wouldn't be so many people in China counterfeiting their products. It's profitable.
Zhang Pei and Liu Lan's small company is one of Cat'Garden's retailers all over the world. It is only because of the dense population and huge market prospects in mainland China that they are valued by the other party. Their small company has only three formal employees, excluding the workers and the two of them. It is not a big deal at all. The vice president condescended to meet Zhang Pei and was willing to sign a contract with them, which was enough to respect them.
Continue read on readnovelmtl.com
