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Chapter 678 Unequal price war

"The vapor deposition process they use has a cost advantage. If their production equipment can reach a production capacity of 200 kilograms per day, then their cost will be less than $8 per gram. If the Chinese labor costs are taken into account

And the environmental protection cost is low, they may even be able to produce it at a price of US$6 per gram." Gen Yoshida reported to Saburo Hanatani.

As a senior carbon chemical expert, it is not difficult for Yoshida Gen to estimate the cost of a production process. If Qin Hai heard these words here, he would first be surprised by the accuracy of Yoshida Gen's judgment, and secondly,

I feel ashamed that Daqin Group cannot achieve such cost control capabilities. Due to insufficient advanced production equipment and lack of experience in process organization, when Daqin Group produces at a production capacity of 200 kilograms per day, the cost cannot be controlled at US$8 per gram.

within, but reached the $10 level.

Daqin Group expanded its production scale, which Yoshida Yuan did not expect. What he heard from Wang Xiaochen was that Daqin Group only had a production capacity of 5 kilograms per day. Some information disclosed to him by Yu Yong also confirmed this statement.

.If calculated based on a daily output of 5 kilograms, the cost of producing graphene for Daqin Group will reach 10 to 15 US dollars, leaving an opportunity for Nitsuka Chemical to take advantage of the gap.

The organic synthesis process used by Nitsuka Chemical has inherent shortcomings in terms of cost. However, if the production scale of the device is larger, it is still possible to control the cost below US$8, so that it can compete with Daqin Group.

Conditions. The information collected from various aspects now shows that Daqin Group actually has the capacity to produce more than 200 kilograms per day, so the assessment of its cost needs to be recalculated.

"If the Chinese production cost is 6 US dollars per gram, Morioka-kun, what price do you estimate they will sell at?" Hanatani Saburo called the sales director Morioka Yoshiki and asked Yoshida Gen to report the relevant production capacity and

The cost judgment was stated once, and then he asked Yoshiki Morioka for confirmation.

"This depends on the sales strategy of the Chinese," said Yoshiki Morioka. "If they are eager to occupy the market, they will probably sell it at a price of about US$10 per gram in order to block us and latecomers like Warren Company.

.If they are eager to recoup their investment, they may set the price at 20 US dollars or even higher, taking advantage of this blank period before other manufacturers have established production capabilities to maximize profits."

"I know this very well." Saburo Hanagani said angrily, "What I'm asking is your own judgment. What strategy do you think the Chinese will adopt."

Morioka Yoshiki said: "As far as we know, their current official quotation is US$100 per gram."

"100 US dollars, this is absolutely impossible!" Yoshida Gen couldn't help but interjected. This price is obviously unreasonable, and no fool can quote it like this.

"It is indeed impossible..." Yoshiki Morioka said depressedly. Of course he knew that Daqin Group's final offer was not like this. He said this just to set the stage. Who knew that Gen Yoshida would be so impatient.

"I'm talking about their official quotation." Yoshiki Morioka emphasized, "They have determined several different discount strategies based on this quotation. The specifics are as follows..."

Then, he introduced the rules about gold membership, diamond membership, etc. to Saburo Hanatani and Gen Yoshida, but he could not tell about preferential policies such as strategic partners because his intelligence system was not yet

Didn't get to this level.

This is what the traditional customers of Nitsuka Chemical have set up for them. For example, Mamon Company has negotiated a "strategic cooperation price" of US$5 per gram with Daqin Group, but in this case Nicol did not ask Morioka

Ji reported that because of the large order quantity, the company got a good discount price, which is slightly better than the price of diamond members. The purpose of Nicol concealing this layer of information is that he is afraid that this ultra-low price will make people lose money.

Nitsuka Chemical stayed away and withdrew from the graphene market. If there were no competitive pressure from companies such as Nitsuka Chemical on Daqin Group, how could Mamon Company obtain such an unbelievable preferential price?

"In other words, the price obtained by Mamon Company is not higher than 25 US dollars per gram?" Saburo Hanatani understood Morioka Yoshiki's introduction and calculated such a price in his mind.

Yoshiki Morioka nodded: "Yes, I estimate that because of their large order volume, it is possible to get a price of about US$20 in the end. This is something Mamon Company hinted to me."

"I think this price is reasonable. Even at this price, the Chinese have more than double the profit, because their production cost is only US$6 to US$8. And the transportation cost of graphene is almost negligible.

." Yoshida Gen said.

Saburo Hanagani said: "Morioka-kun, do you think the price disclosed by Mamon Company is too high? For example, is it possible that the Chinese promised them a lower price, but they made a promise to us?

To hide it?"

Yoshiki Morioka shook his head resolutely and said: "Absolutely impossible. If the price offered by the Chinese is lower, Mamon Company will definitely tell us clearly, because this can force us to lower the price. No user has ever deliberately said that the price is higher.

When it comes to price, they will only deliberately lower the price in order to gain room for bargaining.”

"That's true." Saburo Hanagani nodded, "If that's the case, then if we sell it to them at $18 or $16, they should be interested."

"Currently they have expressed this intention," said Yoshiki Morioka, "but I haven't been able to sign a contract with them because our products have not yet been put into production. The other party said that they would only confirm specific cooperation after seeing our samples.

matters."

"16 dollars..." Yoshida Gen's lips moved, and a wry smile appeared on his face.

"Yoshida-kun, do you have any ideas?" Hanatani Saburo asked.

Gen Yoshida lowered his head and said: "Chairman, according to our current production process, the production cost of graphene per gram is almost US$14. If we sell it at US$16, we will be almost unprofitable. To reduce the cost, we need to

To improve the process, we also need to further expand the production capacity of the production equipment, which requires time...and money."

"We don't have time to wait." Saburo Hanatani said, "Now we must curb the development momentum of Daqin Group and make them reach a deadlock on the issue of graphene. Mr. Morioka, I now authorize you to negotiate with us at a minimum price of 14 US dollars.

European customers are negotiating. Yoshida-kun, you have to continue to work hard and spend three to five months optimizing the existing process in order to reduce the cost to less than 8 US dollars and form an overwhelming advantage over Daqin Group."

"Hi!" Yoshiki Morioka and Gen Yoshida straightened their bodies at the same time and agreed in unison.

Price wars with competitors are nothing new for Nitsuka Chemical. Only by defeating competitors can they maintain high profits. This is something Saburo Hanatani and Yoshiki Morioka know very well.

. Before this, no company in a developing country could allow Nitsuka Chemical to lower its self-esteem and engage in price competition. In this regard, Daqin Group has set a precedent.

Saburo Hanatani knew that Daqin Group was an opponent worthy of attention. This company was able to overcome the difficulties of graphene before Nitsuka Chemical, and it also held back and concealed the major news of the discovery of graphene. It waited until it had mastered the two

The best preparation process has been released to the outside world, which shows that this company has both R&D strength and business acumen. If such a company is allowed to develop, it will be a strong enemy of Nitsuka Chemical in the future.

Because of this realization, Saburo Hanatani would rather lose money and make a profit, but must also snatch customers away from Daqin Group. Under the current production costs, Nitsuka Chemical sells graphite to European companies at a price of US$14 per gram.

Not only will it not make a penny, but it will also have to pay financial expenses, marketing expenses, equipment depreciation, etc. This is against the principles of business operations. But doing so will prevent Daqin Group from making any money, which is enough

.

In Saburo Hanagani's view, Daqin Group's capital is far less powerful than his own. If it delays the graphene project for a long time and is unable to make a profit, Daqin Group will eventually be unable to sustain it and give up on the project. By then, New

Tsukasa Chemical can monopolize this market. As for Germany's Warren Company, although there are rumors that it will enter the field of graphene, Nitsuka Chemical does not believe that Warren Company poses any threat to itself, because the Japanese production

Compared with European companies, costs have always been advantageous.

To take a step back, even if Daqin Group is willing to spend more and refuse to give up the market, this kind of squeeze from Nitsuka Chemical will at least prevent Daqin Group from getting enough returns to improve technology and expand production capacity. In a few years,

When Nitsuka Chemical's own technology is perfected and costs are further reduced, it will still be able to give a head-on blow to Daqin Group.

Throughout the entire plan, Hanatani Saburo relied on the strength of Nitsuka Chemical. He firmly believed that this kind of price war was something Daqin Group could not afford. Nitsuka Chemical had many mature businesses that could generate huge profits for use in the industry.

Support the protracted war on the graphene battlefield. Does Daqin Group have such strength?

Saburo Hanatani only ignored one detail, and that was how much the graphene production cost of Daqin Group was. The cost calculated by Yoshida Gen was based on a daily production capacity of 200 kilograms. In fact, Qin Hai had no

In order to limit production capacity to this level, the production capacity of Daqin Group's production facilities has reached 10 times this number.

A mistake in one detail will determine the failure of a war. Qin Hai's deliberate concealment, coupled with the high-level pride of Nitsuka Chemical towards the Daqin Group, resulted in this price war being unequal from the beginning. (Unfinished

to be continued)


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