Rebirth in 1989: Creating the Chinese Technology Empire
Chapter 11 Unimaginable Order: Walmart and Sima compete for air fryers
"Mr. Sam, this is our global patent information. At present, our air fryer has registered relevant patents around the world..."
"Mr. Sam, although our factory is small, we can adopt the OEM model. We have sufficient labor force and enough OEM factories in China. The products can definitely be delivered on time..."
"If it breaks within one year, it will be replaced free of charge, and if it breaks down within three years, it will be repaired for free. This is our promise..."
Huasheng Electronics Factory, Xu Dabao accompanied Sam to inspect the entire Huasheng Electronics Factory, while Xu Huasheng acted as a translator.
Looking at the scale of Huasheng Electronics Factory, Sam couldn't help but frown.This is simply a small workshop.
If the other party didn't have the patent and the actual product, Sam would even suspect that the other party was a liar.
"Mr. Sam, I understand your concerns. We can ask the Shenzhen government to provide supervision. The Canton Fair is not over yet. With such a large order, I think the Shenzhen government will definitely be willing to help..."
Xu Dabao's words made Sam relieved. For such a large order, the Shenzhen government must provide guarantee.With the government guarantee, Walmart will feel more assured.
"Mr. Sam, let's go to the office to talk in detail."
After inspecting around, Xu Dabao said with a smile. Sam nodded and took the translator and David directly into Xu Dabao's office.
Xu Huasheng and David looked at each other and smiled, saying nothing to each other.
While the two parties were chatting, there was a sudden knock on the door outside.
"Please come in..."
Xu Dabao said loudly, Zhang Li opened the door and walked in, looked at Sam and then waved to Xu Dabao, looking very mysterious.
"What's the matter? Say..."
Xu Dabao looked impatient.
"Well, Mr. Xu, Mr. Kevin from Best Buy is here. He wants to meet you and talk about the contract..."
Zhang Li said quickly. Xu Dabao was stunned when he heard this.
"Well, Xiaoli, you take them around the factory first. I'll be there in a moment."
Xu Dabao said quickly.
Sam's translator also whispered in Sam's ear. When Kane from Best Buy arrived, Sam's face suddenly turned ugly.
He didn't expect the people from Best Buy to come so quickly.
"Mr. Sam, why don't you discuss it first? We at Huasheng Electronics adhere to the principle that whoever places the order first will be delivered first. After all, our production capacity is limited now, so I want to go out in advance..."
Xu Dabao stood up and said with a smile.
"Wait a moment, Mr. Xu, I would like to ask, if we place an order now, will we be the first user in the world to place an order?"
Sam asked quickly.
"Yes, you are our first customer..."
Xu Dabao nodded.
"So when we place an order, does it mean that if our order is not delivered, it will not be delivered to other merchants?"
Sam continued to ask.
"Of course, when doing business, there has to be a first-come, first-served basis."
Xu Dabao nodded, which made Sam laugh.
"Okay, Mr. Xu, let's place an order now. Our Walmart wants to order 100 million air fryers. The price is according to the price you mentioned. The FOB price is 60 US dollars. However, you must ensure that it is delivered to us first. If our goods are not available, Before the delivery is completed, delivery to others is not allowed. This condition must be written in the contract..."
Xu Dabao was stunned by Sam's words.
"How many?"
Xu Dabao asked again in disbelief.
"One million units, and this is the first order. If the sales volume is acceptable, we will place additional orders, but you must give us priority in delivery..."
Sam didn't dare hesitate any longer.
If Esbuy makes the first move, Wal-Mart will not be able to seize the opportunity.
Wal-Mart attaches great importance to this air fryer. Although it is only a small appliance, this easy-to-use small appliance can bring huge sales to the store. Wal-Mart has tested this product and found that this product is very attractive to housewives.
As long as these people enter the store, they may buy more things.
"Mr. Sam, no problem. For us, whoever places the order first will be shipped first."
Xu Dabao suppressed his excitement. With 100 million units and an FOB price of US$60, this business was worth US$6000 million.
Although David still has to be given 500 million US dollars, the remaining money is still 5500 million US dollars.
And how much does an air fryer cost?The total cost of all the products is less than 20 US dollars. Yes, that’s the price. If the shipment volume is large, the cost can be reduced even further.In other words, an air fryer can earn you $35.
This order alone will allow Huasheng Electronics to earn a net profit of US$3500 million.
As for taxes, I'm sorry, but now the state encourages companies to export to earn foreign exchange. As long as they can export to earn foreign exchange, not only will the taxes be refunded to you, but you will even receive subsidies.
Now that the country has just reformed and opened up, money is needed everywhere, and many advanced things from abroad are wanted. China is going crazy trying to earn foreign exchange.
And this is just the first order.
Xu Dabao took action and took Sam out of the office to find a government guarantee to sign a contract.As soon as he left the office, Sam saw people from Best Buy approaching, and the leader was Kane, an acquaintance.
Kane's people looked a little unhappy when they saw Sam.
But Sam was all smiles. In this round, Wal-Mart won first. As for when you can get the goods from Best Buy, it depends on the production capacity of Huasheng Electronics Factory.In Kane's view, even if Huasheng Electronics finds an OEM, it will take some time to deliver 100 million units. During this period, Wal-Mart has already used air fryers to increase the number of stores.
"Hello, Mr. Xu, I am the purchasing representative of Best Buy. My name is Kane..."
Kane walked up directly with a smile on his face.
"Hello……"
Xu Dabao said quickly after listening to Xu Huasheng's translation.
"Mr. Xu, we already know enough about your products. Just now your people discussed the price and policy with us in detail. We want to place an order now, but when can Mr. Xu deliver the goods?"
Kane did it directly and neatly. Now he is no longer in the mood to press the price of those few dollars. It is the last word to get the goods first.
"Mr. Kane, this Mr. Sam has already placed the order first. We must supply them first before we can deliver the goods to you."
Xu Dabao said directly, which made Kane's face look ugly.
“How many orders did they place?”
Kane asked subconsciously, and Xu Dabao laughed when he heard this.
"Sorry, Mr. Kane, this is a business secret. I can't tell you, but if you place an order now, we will supply it to you after we complete the supply to Wal-Mart. Before we complete the supply to you, even if Mr. Sam and the others will have to queue up if they place a second order..."
Xu Dabao's words made Kane's eyes light up.
"Mr. Xu, we want to place an order. We want to place an order for 200 million units. Our Best Buy is the largest electrical appliance store in North America, and our shipment volume is definitely larger than Wal-Mart. And we have many stores around the world. Can you give us one first? Supply? We can increase the price a bit, how about $62?"
Kane looked at Xu Dabao and said directly.These words made Kane next to him look extremely ugly.When it comes to electrical appliance sales, Bestma is indeed confident.
Hearing this, Xu Dabao's heart almost jumped. He thought that Wal-Mart had already bought enough, but he didn't expect that Best Buy was even more powerful than Wal-Mart. Whose subordinate is this?And the price has also increased by two US dollars, so 200 million units will earn an additional US$400 million.
Xu Huasheng quickly and secretly pinched Xu Dabao, which made Xu Dabao wake up instantly.
"Sorry, Mr. Kane, you need to be honest in doing business. No matter how many orders you place and what the price is? You must follow the rules. To be honest, Wal-Mart and your Best Buy are not the only ones who have contacted us in the past few days. If the price is high You can get the goods first, so there will be no confusion..."
Xu Dabao said with a smile. Hearing this, Sam breathed a sigh of relief and was glad that he had placed the order earlier.
Kane's face turned serious.You must know that Best Buy's competitors are not only Wal-Mart, but also other competitors.
"Mr. Xu, sign the contract now, 200 million units, 60 US dollars, pay one-tenth of the deposit in advance, and deliver the goods in batches..."
Kane said directly, we can’t wait any longer, we must first grab the goods. One Wal-Mart is already a headache, and we must not let other competitors take the lead.
"No problem. It just so happens that Mr. Sam is a little worried about us and wants our government to provide a guarantee. Let's come together so that everyone can rest assured. After all, this is the first time we cooperate..."
Xu Dabao said with a smile. Kane nodded, then looked at Sam with a look of disgust, scolding Sam in his heart.
David and William looked at each other, and the smiles on their lips were self-evident.
He has made a lot of money. William can earn 2.5 US dollars for an air fryer. An order of 200 million units means 500 million US dollars. This is a huge sum of money for William.
David earns even more. For 100 million orders from Wal-Mart, David can earn 500 million US dollars. For 200 million orders from Best Buy, he can get another 500 million US dollars. In just a few days, he has earned 1000 million US dollars. US dollars, this is faster than winning a lottery ticket.
Sam and William looked at each other, the meaning in their eyes was self-evident.When I return to the United States, I must use the resources I have to promote air fryers. This is not an air fryer. This is my own golden mountain.
Xu Huasheng glanced at David and William, with a smile on his face. The benefits are touching. This is the benefit of a win-win situation.
With the first dividend, Sam and William will definitely try their best to sell air fryers around the world.When the time comes, I don’t have to do anything, and orders will come in a steady stream. It’s such a comfortable life.
The air fryer is just the first step. Huasheng Electronics will have many more products in the future.When the time comes, these people who have tasted the benefits will spontaneously promote Huasheng Electronics' products all over the world, as long as Huasheng Electronics' products maintain their competitive advantage.
"Mr. Sam, although our factory is small, we can adopt the OEM model. We have sufficient labor force and enough OEM factories in China. The products can definitely be delivered on time..."
"If it breaks within one year, it will be replaced free of charge, and if it breaks down within three years, it will be repaired for free. This is our promise..."
Huasheng Electronics Factory, Xu Dabao accompanied Sam to inspect the entire Huasheng Electronics Factory, while Xu Huasheng acted as a translator.
Looking at the scale of Huasheng Electronics Factory, Sam couldn't help but frown.This is simply a small workshop.
If the other party didn't have the patent and the actual product, Sam would even suspect that the other party was a liar.
"Mr. Sam, I understand your concerns. We can ask the Shenzhen government to provide supervision. The Canton Fair is not over yet. With such a large order, I think the Shenzhen government will definitely be willing to help..."
Xu Dabao's words made Sam relieved. For such a large order, the Shenzhen government must provide guarantee.With the government guarantee, Walmart will feel more assured.
"Mr. Sam, let's go to the office to talk in detail."
After inspecting around, Xu Dabao said with a smile. Sam nodded and took the translator and David directly into Xu Dabao's office.
Xu Huasheng and David looked at each other and smiled, saying nothing to each other.
While the two parties were chatting, there was a sudden knock on the door outside.
"Please come in..."
Xu Dabao said loudly, Zhang Li opened the door and walked in, looked at Sam and then waved to Xu Dabao, looking very mysterious.
"What's the matter? Say..."
Xu Dabao looked impatient.
"Well, Mr. Xu, Mr. Kevin from Best Buy is here. He wants to meet you and talk about the contract..."
Zhang Li said quickly. Xu Dabao was stunned when he heard this.
"Well, Xiaoli, you take them around the factory first. I'll be there in a moment."
Xu Dabao said quickly.
Sam's translator also whispered in Sam's ear. When Kane from Best Buy arrived, Sam's face suddenly turned ugly.
He didn't expect the people from Best Buy to come so quickly.
"Mr. Sam, why don't you discuss it first? We at Huasheng Electronics adhere to the principle that whoever places the order first will be delivered first. After all, our production capacity is limited now, so I want to go out in advance..."
Xu Dabao stood up and said with a smile.
"Wait a moment, Mr. Xu, I would like to ask, if we place an order now, will we be the first user in the world to place an order?"
Sam asked quickly.
"Yes, you are our first customer..."
Xu Dabao nodded.
"So when we place an order, does it mean that if our order is not delivered, it will not be delivered to other merchants?"
Sam continued to ask.
"Of course, when doing business, there has to be a first-come, first-served basis."
Xu Dabao nodded, which made Sam laugh.
"Okay, Mr. Xu, let's place an order now. Our Walmart wants to order 100 million air fryers. The price is according to the price you mentioned. The FOB price is 60 US dollars. However, you must ensure that it is delivered to us first. If our goods are not available, Before the delivery is completed, delivery to others is not allowed. This condition must be written in the contract..."
Xu Dabao was stunned by Sam's words.
"How many?"
Xu Dabao asked again in disbelief.
"One million units, and this is the first order. If the sales volume is acceptable, we will place additional orders, but you must give us priority in delivery..."
Sam didn't dare hesitate any longer.
If Esbuy makes the first move, Wal-Mart will not be able to seize the opportunity.
Wal-Mart attaches great importance to this air fryer. Although it is only a small appliance, this easy-to-use small appliance can bring huge sales to the store. Wal-Mart has tested this product and found that this product is very attractive to housewives.
As long as these people enter the store, they may buy more things.
"Mr. Sam, no problem. For us, whoever places the order first will be shipped first."
Xu Dabao suppressed his excitement. With 100 million units and an FOB price of US$60, this business was worth US$6000 million.
Although David still has to be given 500 million US dollars, the remaining money is still 5500 million US dollars.
And how much does an air fryer cost?The total cost of all the products is less than 20 US dollars. Yes, that’s the price. If the shipment volume is large, the cost can be reduced even further.In other words, an air fryer can earn you $35.
This order alone will allow Huasheng Electronics to earn a net profit of US$3500 million.
As for taxes, I'm sorry, but now the state encourages companies to export to earn foreign exchange. As long as they can export to earn foreign exchange, not only will the taxes be refunded to you, but you will even receive subsidies.
Now that the country has just reformed and opened up, money is needed everywhere, and many advanced things from abroad are wanted. China is going crazy trying to earn foreign exchange.
And this is just the first order.
Xu Dabao took action and took Sam out of the office to find a government guarantee to sign a contract.As soon as he left the office, Sam saw people from Best Buy approaching, and the leader was Kane, an acquaintance.
Kane's people looked a little unhappy when they saw Sam.
But Sam was all smiles. In this round, Wal-Mart won first. As for when you can get the goods from Best Buy, it depends on the production capacity of Huasheng Electronics Factory.In Kane's view, even if Huasheng Electronics finds an OEM, it will take some time to deliver 100 million units. During this period, Wal-Mart has already used air fryers to increase the number of stores.
"Hello, Mr. Xu, I am the purchasing representative of Best Buy. My name is Kane..."
Kane walked up directly with a smile on his face.
"Hello……"
Xu Dabao said quickly after listening to Xu Huasheng's translation.
"Mr. Xu, we already know enough about your products. Just now your people discussed the price and policy with us in detail. We want to place an order now, but when can Mr. Xu deliver the goods?"
Kane did it directly and neatly. Now he is no longer in the mood to press the price of those few dollars. It is the last word to get the goods first.
"Mr. Kane, this Mr. Sam has already placed the order first. We must supply them first before we can deliver the goods to you."
Xu Dabao said directly, which made Kane's face look ugly.
“How many orders did they place?”
Kane asked subconsciously, and Xu Dabao laughed when he heard this.
"Sorry, Mr. Kane, this is a business secret. I can't tell you, but if you place an order now, we will supply it to you after we complete the supply to Wal-Mart. Before we complete the supply to you, even if Mr. Sam and the others will have to queue up if they place a second order..."
Xu Dabao's words made Kane's eyes light up.
"Mr. Xu, we want to place an order. We want to place an order for 200 million units. Our Best Buy is the largest electrical appliance store in North America, and our shipment volume is definitely larger than Wal-Mart. And we have many stores around the world. Can you give us one first? Supply? We can increase the price a bit, how about $62?"
Kane looked at Xu Dabao and said directly.These words made Kane next to him look extremely ugly.When it comes to electrical appliance sales, Bestma is indeed confident.
Hearing this, Xu Dabao's heart almost jumped. He thought that Wal-Mart had already bought enough, but he didn't expect that Best Buy was even more powerful than Wal-Mart. Whose subordinate is this?And the price has also increased by two US dollars, so 200 million units will earn an additional US$400 million.
Xu Huasheng quickly and secretly pinched Xu Dabao, which made Xu Dabao wake up instantly.
"Sorry, Mr. Kane, you need to be honest in doing business. No matter how many orders you place and what the price is? You must follow the rules. To be honest, Wal-Mart and your Best Buy are not the only ones who have contacted us in the past few days. If the price is high You can get the goods first, so there will be no confusion..."
Xu Dabao said with a smile. Hearing this, Sam breathed a sigh of relief and was glad that he had placed the order earlier.
Kane's face turned serious.You must know that Best Buy's competitors are not only Wal-Mart, but also other competitors.
"Mr. Xu, sign the contract now, 200 million units, 60 US dollars, pay one-tenth of the deposit in advance, and deliver the goods in batches..."
Kane said directly, we can’t wait any longer, we must first grab the goods. One Wal-Mart is already a headache, and we must not let other competitors take the lead.
"No problem. It just so happens that Mr. Sam is a little worried about us and wants our government to provide a guarantee. Let's come together so that everyone can rest assured. After all, this is the first time we cooperate..."
Xu Dabao said with a smile. Kane nodded, then looked at Sam with a look of disgust, scolding Sam in his heart.
David and William looked at each other, and the smiles on their lips were self-evident.
He has made a lot of money. William can earn 2.5 US dollars for an air fryer. An order of 200 million units means 500 million US dollars. This is a huge sum of money for William.
David earns even more. For 100 million orders from Wal-Mart, David can earn 500 million US dollars. For 200 million orders from Best Buy, he can get another 500 million US dollars. In just a few days, he has earned 1000 million US dollars. US dollars, this is faster than winning a lottery ticket.
Sam and William looked at each other, the meaning in their eyes was self-evident.When I return to the United States, I must use the resources I have to promote air fryers. This is not an air fryer. This is my own golden mountain.
Xu Huasheng glanced at David and William, with a smile on his face. The benefits are touching. This is the benefit of a win-win situation.
With the first dividend, Sam and William will definitely try their best to sell air fryers around the world.When the time comes, I don’t have to do anything, and orders will come in a steady stream. It’s such a comfortable life.
The air fryer is just the first step. Huasheng Electronics will have many more products in the future.When the time comes, these people who have tasted the benefits will spontaneously promote Huasheng Electronics' products all over the world, as long as Huasheng Electronics' products maintain their competitive advantage.
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