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Chapter 145 Labor Cost Advantage
"Great, Mr. Lin, your company's R&D capabilities are truly amazing!!!"
"You pay more attention to details than many island companies. Excellent."
Takeo Imai praised Lin Kaifeng's spirit of detail without reservation.
The disposable chopsticks produced locally in the island country do have many of the quality issues raised by Lin Kaifeng.
Even though the government has repeatedly ordered that chopsticks produced by disposable chopstick companies must be sterilized and carefully processed.
But not all companies will follow official requirements.
In order to seek maximum profits, disposable chopstick factories of all sizes have sprung up like mushrooms in the island country.
By the mid-1960s, the number of disposable chopsticks consumed by the island nation in a single day was astronomical.
From initially providing it to diners for free, merchants now charge diners a purchase fee.
The consumption is too great and I really can’t afford to send it away.
Seeing that Imai Yufu was already interested, Lin Kaifeng smiled and said, "If Mr. Imai is interested and wants to buy a large number of these disposable chopsticks, we might as well adopt a special transaction method of bartering."
"Barter for something?"
The more Imai Takeo listened, the more confused he became.
Lin Kaifeng said: "Your country has been producing and selling disposable chopsticks by itself for a long time. I think Mr. Imai must have many concerns in his mind. Can such high-priced disposable chopsticks be sold?"
"Are the quality of the imported disposable chopsticks as good as I said? It doesn't matter. I will sell a certain number of disposable chopsticks to Mr. Imai, and Mr. Imai will settle the transaction amount through the conveying equipment according to the transaction amount of the chopsticks."
In the mid-1970s, the Japanese people had increasingly higher demands for quality of life. They not only wanted to eat well, but also to eat exquisitely.
Against this background, ham sausage was born.
Purchasing the island country's ham sausage canning production line requires a large amount of foreign exchange reserves.
Northern Machinery Company only has domestic currency and does not have a penny of foreign exchange on its books.
Lin Kaifeng had enough money but was unable to convert it into foreign currency.
He planned to exchange a certain number of disposable chopsticks for two sausage canning production lines from Takeo Imai.
"Well..."
Imai Yuo lowered his head and hesitated.
After decades of doing business, this was the first time that Takeo Imai encountered such a strange way of doing business.
Neither money nor important industrial equipment is needed.
Instead, we need a ham sausage canning production line.
Takeo Imai is a frequent visitor to the Canton Fair and has been attending the spring and autumn Canton Fair since five years ago.
I have met a large number of representatives from Longguo enterprises.
I have never met a representative like Lin Kaifeng.
The sales model and the way of negotiating business are completely different from those of other Dragon people.
We are well aware of the eating habits of island countries and the development of disposable chopsticks.
Even the island country knows that it produces ham sausage.
It can be seen that this person put a lot of effort into the investigation.
Either they have been to the island country in person, or they have arranged for other Dragon people to go to the island country for a business investigation.
otherwise.
It is impossible for Lin Kaifeng to know so many details.
Imai Yufu said in a tone that brooked no argument: "I can exchange the ham sausage filling production line for the disposable chopsticks produced by your company, but you must deliver the goods first. After receiving the goods and inspecting them to confirm that there are no problems, I will send the ham sausage production line to you."
"no problem."
Lin Kaifeng agreed readily.
Compared with the hundreds of millions or even billions of profits from sausage every year, these are now just trivial matters.
Afterwards, Yuo Imai and Kaifeng Lin entered the bargaining stage.
According to Takeo Imai.
The price of a ham sausage filling production line is about two million US dollars.
Lin Kaifeng wants to introduce two canning production lines. The purchase funds plus other miscellaneous expenses will require 4.5 million US dollars.
Knowing that Yufu Imai deliberately asked for a high price, Lin Kaifeng did not hesitate and kept lowering the price.
The two of them exchanged sharp words.
In the end, Lin Kaifeng paid the price by supplying six million pairs of disposable chopsticks to Imai Yufu.
Signed a contract to introduce two sets of ham sausage production lines.
It is promised that six million pairs of disposable chopsticks will be delivered to Takeo Imai before February next year.
Within one month of receiving the goods, Takeo Imai needs to complete the production of two canned sausages.
The two production lines must be delivered to Longguo in April next year.
Otherwise, it would mean that Takeo Imai has breached the contract.
Lei Zesheng, who came to act as a witness, was stunned.
I witnessed with my own eyes the agreement between Lin Kaifeng and Imai Yufu on exchanging disposable chopsticks for a sausage production line.
After Imai Yufu left with satisfaction, Lei Zesheng pulled Lin Kaifeng to a secluded place and asked incredulously: "Why did Imai Yufu agree to the price of 60 cents so readily?"
The exchange rate between domestic currency and US dollars is 1 to 2.
60 cents is equivalent to 1.2 yuan of domestic currency.
The information about disposable chopsticks was found by Lei Zesheng on behalf of Lin Kaifeng.
Lei Zesheng knows better than Lin Kaifeng about the market sales situation of disposable chopsticks in the island country.
The chopsticks provided to customers by snack stands, restaurants, and ramen shops cost about 30 to 50 cents when converted into domestic currency.
Lin Kaifeng sold disposable bamboo chopsticks for 1.2 yuan.
It is more than twice as expensive as the disposable chopsticks produced in the island country.
Is Yuo Imai a fool?
How could he agree so readily?
"The disposable chopsticks purchased by Yufu Imai are not for ordinary hotels and restaurants. I am sure that he will give priority to supplying them to high-end restaurants after receiving this batch of disposable chopsticks."
Lin Kaifeng explained with a smile.
Wherever there are people, there will inevitably be the concept of hierarchy.
Among the countries surrounding Dragon Country, the classification of island countries is the most stringent.
The more developed the economy, the more serious the phenomenon.
During the booming years of the island nation's economy, ordinary islanders bought large quantities of all kinds of luxury goods in order to improve their status and use luxury goods to embellish their identities.
Eat out at fancy restaurants from time to time and order expensive sushi takeout.
There is also a clear hierarchy in the island nation's catering industry.
There are many mid- to high-end restaurants, hotels, and sushi restaurants.
Disposable tableware is also required inside.
In terms of commodity production, the island country has always been known for its high quality and low prices.
But today, things are starting to look different.
Since the 1970s, the island nation's economic development has been faster than a rocket.
It is claimed that all the funds in the island country's hands can buy half of the land in the world.
The land price of a single metropolitan area is enough to cover the land price of the entire United States.
Under such circumstances, the island nation's labor costs began to soar.
Good quality and low price are no longer the labels of island country products, and the disposable chopsticks produced in island countries have shown uneven development.
The expenditure on raw materials is minimal, while the labor cost is getting higher and higher.
This is also why there are so many shoddy disposable chopsticks in the island country.
There is no other reason.
Save labor costs.
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