industrial overlord

Chapter 329 Bargaining
Of course, Hornby understood that Lin Zhenhua's purpose in saying this was to bargain. He is also a veteran in shopping malls, so he would not be fooled by Lin Zhenhua.He smiled lightly and said to Lin Zhenhua: "Young man, the processing fee of 15 US dollars is already a lot. You know, if I move the refrigerator production line to India, even if I only pay 12 US dollars for processing each refrigerator , and they will accept it.”

Lin Zhenhua remembered the allusion that Lao Dao said during the negotiations at Spischer Company the first day, and couldn't help but smile and said: "Mr. Hornby, I have no doubts about what you said. However, you are sure that Indian workers will not use Curry-stained hands to assemble your fridge?"

Belinda also laughed when she heard this, and she said to Lin Zhenhua: "Lin, why do I think you have some prejudices against Indians? You know, although your workers in Jiangnan Province don't eat curry, they eat chili The ability is also very amazing.”

"This can't be compared, right?" Lin Zhenhua said, "Although our workers eat chili, they don't put chili sauce on the refrigerator."

Everyone laughed. Hornby is not an ignorant person. He has heard about the situation of workers in China and India. Although the examples given by Lin Zhenhua are extreme, they also illustrate a situation. That is, the discipline of workers in India is indeed relatively poor.

The choice of a partner is not based on whoever is cheap. The quality of workers, corporate credit, political and social risks, etc. are all things that need to be considered.Hornby did not relocate the factory overseas before because he could not find a more suitable partner.Regarding Lin Zhenhua's business, Hornby had heard from Belinda that he had personally inspected the five-leaf fans and waterfall washing machines produced by Hanhua Home Furnishing Company. It has reached a certain level, which is why Hornby intends to cooperate with Lin Zhenhua.

"Okay, young man, I admit that you are right." Hornby didn't want to continue to go around with Lin Zhenhua, he asked bluntly: "Tell me your thoughts, how much processing do you want for each refrigerator?" fee."

"Buy it now, $25." Lin Zhenhua said.

As for the processing fee, Lin Zhenhua roughly calculated an account.The platform he intends to use to undertake Tiger's refrigerator production business is naturally Jiang Shidian, which has caused the Qinghua Department a headache.Jiang Shidian used to produce 15 refrigerators a year, with about 1000 workers.If the production line is to be expanded to an annual output of 30 units, the number of production workers will increase to about 2500.

If the processing fee for each refrigerator is 15 US dollars, 30 refrigerators can earn 450 million US dollars in processing fees, which is equivalent to 1700 million yuan even if calculated according to the exchange rate. The annual salary of 2500 workers is more than 300 million. Including other production inputs, the annual cost is 600 million. The income of 1700 million is very generous.

However, Lin Zhenhua is a person who is used to seeing big money. He saw that Hornby did intend to move the production to China. How could he let go of such a good opportunity to rip off money.At the same time, he also calculated another account, knowing that even with a processing fee of 25 dollars a piece, Hornby’s profit would be much higher than it is now, who made the workers he uses now are uncles with a weekly salary of 420 dollars What about them?
"The price of 25 dollars is too high, isn't it? You know, I have to bear the round-trip transportation costs." Hornby complained to Lin Zhenhua, "I heard that your factory is in the mainland of China, and there is no Not coastal, I thought, would that affect shipping costs?"

Lin Zhenhua said: "Our company is not fake in mainland China, but we are on the verge of China's largest river, which is the Yangtze River. Sea ships can go directly to Xunyang Port, so the increase in transportation costs is not obvious."

"Even then, I think $25 is too much."

"Then we can step back a little bit, or $24..."

Lin Zhenhua demanded a lot of money, and Hornby sat on the ground to pay back the money. The two calculated with a pen for a long time, and finally reached a compromise, which was implemented at a processing fee of 22 US dollars per machine.

In terms of the cooperation method, Tiger Company's obligation is to provide Jiangshi Dian with raw materials for the production of refrigerators and some finished accessories, and Jiangshi Dian is responsible for assembly.Among the accessories provided by Tiger, the compressor, which is the core component of the refrigerator, is included.The compressors will be produced in the US and shipped to China for assembly.

"Mr. Hornby, do you intend to transfer the production of compressors to China?" Lin Zhenhua asked.

Hornby said: "If it is possible, it is of course better to produce compressors in China, which can reduce the cost of intermediate turnover. But as far as I know, the current production technology of compressors in China is not up to standard. I don't want me to of refrigerators were returned by customers because of a problem with the compressor."

"The production of compressors is nothing more than some patented technologies. If you are willing to transfer these patented technologies to us, I can consider giving up part of the processing costs." Lin Zhenhua said.

Hornby said: "Young man, don't be too greedy. Let's finish the first phase of cooperation first. I think if our cooperation in the complete machine assembly is pleasant, you will talk about the production of compressors." There is a chance."

"Well, okay." Lin Zhenhua nodded and said, he also knew that the cooperation can only be done step by step, and even the things discussed today will not be signed immediately.Hornby still needs to send people to Jiangnan Province to investigate to confirm whether Jiangshidian is capable of undertaking these businesses.In addition, the details of transportation costs, insurance, liability for breach of contract, etc. also need to be deliberated repeatedly before they can be determined. What Hornby and Lin Zhenhua said is just a cooperation intention.

This conversation was very pleasant for both the host and the guest.Hornby made up his mind to move the production line to China. Of course, whether Lin Zhenhua is the final partner is another matter.Lin Zhenhua also verified his judgment from Hornby's reaction, that is, there are indeed many companies in the United States who hope to find foundries overseas. With this information, he began to think about the issue of merging Jiangshi Electric.Jiang Shidian has a ready-made refrigerator production line and thousands of workers with experience in refrigerator production. As long as the management system can be re-established, there is no problem in taking over Tiger's production business.

Xie Yunjuan's trip was not in vain. Hearing that she wanted to buy refrigerators produced by Tiger Company, Hornby immediately said that he would take out two from his inventory and sell them to her, and the price was higher than the market price. It's a [-]% discount.Xie Yunjuan naturally beamed with joy when she heard this. She attributed her good luck to Lin Zhenhua. As for the cooperation between Lin Zhenhua and Hornby, she was not very interested.

After talking about everything, Lin Zhenhua and his party bid farewell to Hornby.Hornby personally sent them to the downstairs of the office building. He shook Lin Zhenhua's hand and said, "Mr. Lin, I am very happy to have the opportunity to cooperate with young people like you. You are the most capable person I have ever met." Chinese."

Lin Zhenhua laughed and said, "Mr. Hornby, you are also the cutest American old man I have ever seen."

"Oh, really?" Hornby laughed loudly. He turned to Belinda and said, "Belinda, do you hear that Lin thinks very highly of me."

Belinda smiled charmingly: "Hornby, I knew this 30 years ago."

Hornby was about to say something sweet when he suddenly saw a few people coming in from the company gate, coming straight in their direction.

"Shit!" Hornby swore angrily. "These bloody union bosses are here to put pressure on me again."

"Oh, are these people members of the trade union?" Lin Zhenhua asked curiously. He had only heard about the powerful trade unions in the United States before, but he hadn't really seen it.With such an opportunity, he was also happy to watch the excitement.

"Let's go first, these people will make endless troubles." Hornby said kindly.

Lin Zhenhua said: "If you have no objection, I would like to see how they make trouble."

Hornby nodded and said, "Well, you can take a look if you want to, but you don't need to tell them anything, these people are unreasonable."

While speaking, those people had already come in front of them. The leader was a young man who greeted Hornby: "Hi, Mr. Hornby, how are you?"

"I'm very good, Mr. McVeigh. It's nice to see you again." Hornby replied with a smile. Although the union came to put pressure on him, these people are also his workers after all. not bad.

"Mr. Hornby, how do you think about the conditions proposed by our union?" McVeigh asked.

Hornby shook his head and said: "McVeigh, I have explained to you many times that the current financial situation of Tiger Company is very bad, and your request for a salary increase cannot be met."

"Well, if that's the case, then we'll have to declare an indefinite strike," McVeigh said.

Hornby nodded and said, "If you think this is a good way, I have no choice but to respect your opinions."

Hearing Hornby's words, McVeigh was stunned for a moment. The few times he came to negotiate with Hornby, although Hornby's attitude was firm, he still desperately persuaded them to resume work as soon as possible.But this time, Hornby's attitude seems to have changed, as if he doesn't care about when they resume work.

"Why, Mr. Hornby, don't you care about our resumption of work?" McVeigh asked.

Hornby spread his hands: "I think it's up to your trade union to decide when to resume work, and I really can't intervene. I can't meet your demands. If you insist that you can't resume work if you don't meet them, then I can't." Just keep waiting."

(End of this chapter)