Sail across the sea

After listening to Bob's words, Dorian laughed loudly: "Little Bob, you are still as good at encouraging as before. Let me think about it, the first time you encouraged me to provide 200 dollars of sponsorship to your team, that was still Ten years ago, right? You know, before that, no one has ever been able to get $200 from me for free.”

Ten years ago...

Gao Fan glanced at Bob, counting his age with his fingers, and couldn't help being shocked.Could this guy be a time traveler too?

Bob spread his hands and said, "But, Uncle Dorian, the advertising value created by our team for your company was more than $2? I think that should be what Uncle Dorian has done in his life." An investment with the highest yield."

"You mean, you and your little Chinese partner can also bring a lucrative investment project to our company?" Dorian asked.

"Yes." This time it was Gao Fan who answered.

"It would be nice to kick Lowe's ass once, of course. But is that a return on investment?"

"Your investment is zero, because we only need Meister to sign a purchase intention with us. If the quality and price we promised can be achieved, then Meister will save a lot in this purchase." Less than $400 million in outlays. Meister has nothing to lose if our commitments are not met.”

"What we have lost is the trust with Lowe's." Dorian said, "As your good friend Little Bob said, you are planning to use the purchase letter of intent you signed with us as a mortgage to Hatch Group Apply for a loan. Then the story will inevitably get out.

"In case you can't do what you promised, but we have expressed our intention to find other suppliers outside of Lowe's Pharmaceuticals, then our cooperative relationship with Lowe's Pharmaceuticals will inevitably be affected."

"Mr. Dorian is saying that you have never shown such an intention in the past?" Gao Fan asked calmly.

"Of course..., this is just a negotiation tactic." Dorian didn't feel embarrassed at all when he was exposed.

Meister has complaints about Lowe's Pharmaceuticals, which is a public matter, and Meister has stated more than once that he will find other suppliers to put pressure on Lowe's.

Things in the mall have always been intrigue like this, letting each other out and putting some pressure on each other is a perfectly normal thing.

Dorian's words just now were just preposterous.He didn't expect these words to fool Bob and Gao Fan, even though he didn't know Gao Fan's business experience, but with Bob's family education, he would definitely not be fooled by him with a few words.

"Meister Company will reap our friendship in this matter. Is the benefit big enough?" Gao Fan did not dwell on this issue, but threw out another reason.

"Ha! What a big breath!" Dorian said exaggeratedly, and at the same time the fat on his face trembled to enhance his performance, "Is the friendship in your company valuable? If I'm not wrong, Your company's current assets will not exceed US$300 million, while Lowe's has a market value of US$300 billion."

Gao Fan was secretly amazed.This fat man looks naive, but he is really a veteran in shopping malls.He should have deduced the strength of Canghua Company from Bob's status in the family and other situations that everyone exchanged just now, and this deduction is quite reliable.

However, since Gao Fan dared to speak wildly, he naturally had his own preparations. He said calmly: "It is true that Lowe's is much larger than ours, but at the same time, Lowe's product line is not limited to vitamins." As far as I know, Lowe’s is currently focusing on pharmaceuticals and diagnostic technology, and vitamin products are only a cash cow project for Lowe’s Pharmaceuticals.”

"So what?" Dorian was unmoved.

Gao Fan said: "This means that Lowe's will not invest too much money and energy in vitamin products. Once there is a strong competitor in the market, Lowe's will decisively give up this market. And my company happens to be It’s such a strong competitor.”

When Gao Fan said this, he was not completely fooling around.He remembered that in later generations, Lowe's Pharmaceuticals finally gave up the vitamin business, but Gao Fan didn't know exactly when.

Lowe's started with vitamins, but the market is limited after all.For example, the current market price of vitamin C is about 1 US dollars per ton, and the global annual demand is less than 10 tons, which means the output value does not exceed 10 billion US dollars.

Such a market is enough to make Gao Fan salivate, but for Lowe's, which has a market value of more than 300 billion US dollars, it is just a piece of chicken rib.

Lowe's decision-makers know that if they want to make a lot of money, they have to rely on medicines, especially medicines for treating various difficult and miscellaneous diseases.After Lowe's made its first pot of gold through vitamins, it focused its development on pharmaceuticals.The value of vitamins to Lowe's is just a cow that can continue to provide cash flow.

Lowe just wanted to drain all the nutrients from this cow, and he didn't want to invest in this cow any more.Lowe’s vitamin production process has not been improved for many years, and once it finds that other companies are trying to improve the vitamin production process, Lowe’s will use various methods to fight against it, including price wars with competitors, or acquisition of each other All in all, it is to lock up this technology so that it can make more money in this market.

It is impossible for ordinary enterprises to defeat Lowe's in the vitamin market by relying on ordinary technological improvements.Lowe's has sufficient funds to support the war of attrition.But if a company can introduce a revolutionary new process that can greatly reduce production costs, Lowe's cannot cope.

Lowe's regards vitamins as a cash cow, and it is acceptable to have less profit in the short term, but it is unnecessary to lower the price to the point of losing money.

The price of vitamin C on the market is 9.5 US dollars per kilogram, and the gross profit is about 2 US dollars.If Govan's company can provide vitamin C at $7.5 per kilogram, Lowe's is unwilling to fight to the death with it.

In fact, later generations of Lowe's gradually withdrew from the vitamin market because of the entry of Chinese companies, which pushed the market profits to the extreme. Lowe's chose to withdraw when it was unprofitable.

"Apart from vitamins, what other products do you have?" Dorian changed the question.

Gao Fan was already prepared, and he replied with a smile: "We want to try all the feed additives. I can assure you that as long as the products we produce, the prices will be more than 15% lower than those of international big-name companies. "

"Okay, Meister is willing to accept your friendship." Dorian replied with a smile.