Extraordinary Genius - Chapter 198 - Sleight of hand tricks
After receiving Feng Yu’s gift, Hou Haitao’s mood was apparently much better.
“I will prepare the importation paperwork? Of course, it is fine. So, will the price be much lower?”
“Much lower? Director Hou, the most I can do is to erase the taxes from the price. Anything more is not possible. I am a businessman, and when doing business, the most important thing is to make money.”
“Manager Feng, we are a military factory. This furnace will improve the military standards of our country. Can’t you make some contributions to China as a Chinese?” Hou Haitao began to use the patriotism card to bargain. He had used this method on a few businessmen before in negotiations.
If you don’t lower your price, then you are unpatriotic!
Unfortunately, this method worked on others but not on Feng Yu! Patriotism? Reducing price means being patriotic?
“Director Hou, you don’t have to tell me that. I am a businessman, and it is impossible for me to not make any money. I will cover the cost of transportation of this furnace. You just transfer your Machinery Company shares to me and give me 15 million Rubles.”
“What? The Machinery Company shares are worth at least 8 million Rubles, and I still have to top up with 15 million Rubles? This second-hand furnace cost over 20 million Rubles, and it is still after tax?” Hou Haitao jumped and shouted.
Feng Yu ignored him and lifted his teacup: “Xiao Liu, please add more water.”
Hou Haitao was breathing hard. This is my office, and Xiao Liu is my secretary!
“Manager Feng, your equipment is second-hand, and everybody knows that second-hand goods are worthless. How can you price it higher than a brand-new machine?”
“You are talking about the new machines of the 1970s model? You want that? That is cheap. You transfer your Machinery Company shares to me, and I will get you that model. Since you don’t want this furnace, I will look for other buyers.”
Feng Yu glanced at Hou Haitao. There was a significant difference in the performance, efficiency, and effects between both models. How can both prices the same? A brand-new Alto cannot be compared to a second or even third hand Mercedes Benz!
“Don’t, don’t be anxious. Can you lower the price further? 15 million Rubles is too much for my factory. How can my factory fork out this amount?”
Feng Yu reluctantly said: “Fine. Since this is not the first time we work together, I will not earn too much from you. The exchange rate between RMB and Rubles now is 1 Ruble to 6.3 RMB. I will round it off to 6 RMN. You just give me 90 million RMB will do.”
The Rubles at that time was still appreciating, and RMB was depreciating. Last year, the exchange rate was 1 Ruble to 6 RMB. Now, the exchange rate was 1 Ruble to 6.3 RMB. At the end of the year, there will be another adjustment of the exchange rates, and at that time, Rubles will start to depreciate.
“90 million? It is too expensive. It is not worth so much! The price should be at 15 million USD.” Hou Haitao shook his head and said.
Damn, this old man was skillful in bargaining. Based on the current exchange rates, this old man was asking for a 40% off Feng Yu asking price.
Actually, even with this 40% discount, Feng Yu still had profits, but the profits were too little and were entirely out of proportion to his investment. Furthermore, 15 million USD was equivalent to only 9 million Rubles. Feng Yu still had to find 4 million Rubles more.
Tai Hua Trading had no more money, and Feng Yu could not owe Kirilenko as he still needs to work with him for future trades. Feng Yu’s ideal price was 13 million Rubles. Kirilenko had covered the transportation cost, and 13 million Rubles was the total cost for this deal. Feng Yu only wanted the Machinery Company’s shares as the profits!
But if he could earn more, why not? His efforts also cost money!
“Director Hou, if you still continue to talk like this then this deal is off. I am not worried about this equipment not selling!”
Hou Haitao: “……”
When he starts to bargain, Feng Yu would say that he would sell the furnace to other factories. Who the hell, negotiate business this way? But this method was still effective against Hou Haitao.
The Aviation Factory was a factory that designs and manufacture aircraft. With this furnace, they could produce the sophisticated parts with raw materials themselves. This will significantly reduce their costs and not afraid of Europe and the US imposing trade embargo on China.
Currently, the Aviation Factory was designing a new aircraft and the required materials used could only develop in the lab and couldn’t be mass produced in the factory as the cost was too high. With the ultra-high powered electric furnace, it can lower the cost of the materials.
Hou Haitao had promised the higher-ups that he could lower the cost of the new jet engine. If he could not get his hands on this furnace, his promise would be broken.
Losing face was a small issue. But if he can’t deliver what he promised, he would be in big trouble!
“Manager Feng, the Aviation Factory’s earnings for last year was not a lot, and we still have to give a part of our earnings to the higher-ups. The price you offered is really too high. I had kept my words and had cooperated with you on getting the Machinery Factory’s shares. Shouldn’t you give some discount?” Hou Haitao said.
Feng Yu sneered: “You are talking as if the Aviation Factory is not making any money. When you buy those shares, I had already given you a huge discount. If I had not help you think of this idea, the higher-ups would have taken away most of your profits. Where would you get the money for this furnace?”
“Then what about the humidifiers and the bladeless fans? You set up a Tai Hua Electrical Appliances Factory, and our factory had lost lots of profits. Did I say anything about this? I even helped you to persuade Li Shiyou. You really think that he would just keep quiet if not for me?”
Feng Yu made a “persuaded” expression and said: “Fine. Director Hou, I will lower the price by 500,000 Rubles. I will not earn a single cent from this deal!”
Hou Haitao’s happiness was short-lived when he heard that the buying price was only lowered by 500,000 Rubles. This price was too far from his expected price.
Hou Haitao started to list the times when he helped Feng Yu. He even mentioned the plaques he gave to Feng Yu.
Feng Yu slowly lower the price bit by bit. Finally, the buying price was bargained for 14 million Ruble, and Feng Yu refuses to budge. Anymore discount Feng Yu would be making losses. He had already lowered the price by 1 million Ruble. It was 6 million RMB!
No matter what Hou Haitao said, Feng Yu does no budge. He even threatens to sell the furnace to other factories.
“Director Hou, I had even included the related technologies, and you still want to bargain? Let’s be fair. If I sell this furnace openly, do you think it will fetch 20 million Rubles? Yes, we do have a good relationship, but business is business unless you agree to one more condition!”
“Don’t say 1 condition. I will even agree to 10 conditions if you agree to lower the price further!”
“Fine. You are the one who said this. Don’t regret! I want you to ……”
“This…… Can this work?”
“Why not? Both of us will benefit from this. I only have this additional condition, and I will lower the price by another 500,000 Rubles.”
Hou Haitao hesitated for a while and raised his head: “Lower another 1 million Rubles. The Machinery Company’s shares and 13 million Rubles for your furnace and the related technologies!”
Feng Yu clenched his teeth and said: “Fine. 13 million Rubles!”
In his heart, Feng Yu was jumping with joy. He did not use a single cent to acquire the Machinery Company’s shares. Kirilenko and Director Hou even had to thank him. This deal was worth it!