After listening to Bob's words, Dorian laughed loudly: "Little Bob, you are still as good at instigating as before. Let me think about it, the first time you encouraged me to provide a $200 sponsorship to your team, it was still
That happened ten years ago, right? You know, before that, no one had ever been able to get $200 from me for free."
Ten years ago…
Gao Fan glanced at Bob and counted the other person's age with his fingers. He couldn't help but be horrified. Could this guy also be a time traveler?
Bob spread his hands and said: "But, Uncle Dorian, the advertising value our team created for your company that time was more than 20,000 US dollars, right? I think that is what Uncle Dorian has done in his life.
An investment with the highest yield.”
"You mean, you and your Chinese friend can also bring a lucrative investment project to our company?" Dorian asked.
"Yes." This time it was Gao Fan who answered.
“It’s great to kick Lowe’s in the butt. But is it a return on investment?”
"Your investment is zero, because we only need Meister Company to sign a purchase intention with us. If the supply quality and supply price we promise can be achieved, then Meister Company will save a lot of money in this purchase.
Less than $4 million in expenditures. And Meister will not suffer any losses if our commitments are not met."
"What we have lost is the trust with Lowe's." Dorian said, "As your good friend Bob said, you are planning to use the purchase letter of intent signed with us as collateral to pay Hatch Group
Apply for a loan. Then the matter will inevitably leak out.
"If you fail to do what you promised, and we reveal our intention to find other suppliers outside Lowe's Pharmaceuticals, then our cooperative relationship with Lowe's Pharmaceuticals will inevitably be affected."
"Mr. Dorian is saying that you have never expressed such an intention in the past?" Gao Fan asked calmly.
"Of course..., this is just a negotiation tactic." Dorian was exposed, but he didn't feel embarrassed at all.
Meister has complaints about Lowe's Pharmaceuticals, which is a public matter, and Meister has stated more than once that he is looking for other suppliers to put pressure on Lowe's.
Things in the shopping mall have always been full of intrigues and intrigues. It is perfectly normal to let each other off and put some pressure on each other.
Dorian's words just now were just strong words. He didn't expect these words to deceive Bob and Gao Fan. Even if he didn't know Gao Fan's business experience yet, with Bob's family education, he definitely wouldn't be able to deceive them.
I was coaxed by him with a few words.
"Meister Company will gain our friendship from this matter. Is this benefit big enough?" Gao Fan did not dwell on this issue, but gave another reason.
"Ha! What a loud tone!" Dorian said exaggeratedly, while the fat on his face trembled to enhance his performance, "Is the friendship in your company valuable? If I guessed correctly,
Your company's current assets will not exceed US$3 million, while Lowe's market value is 30 billion."
Gao Fan was secretly amazed. This fat man looked naive, but he was actually a veteran in shopping malls. He should have inferred the strength of Canghua Company from Bob's status in the family and other situations that everyone had just exchanged, and this
The guess 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 us, but at the same time, Lowe's product line is not limited to vitamins.
Xiang. As far as I know, Lowe’s currently focuses the company’s development on pharmaceuticals and diagnostic technologies, and vitamin products are only a cash cow project for Lowe’s Pharmaceuticals.”
"So what?" Dorian was unmoved.
Gaofan said: "This means that Lowe's will not invest too much money and energy in vitamin products. Once a strong competitor appears on the market, Lowe's will decisively abandon this market. And my company happens to be
He is such a strong competitor.”
What Gao Fan said was not completely deceptive. He remembered that in later generations, Lowe's Pharmaceuticals finally gave up the vitamin business, but Gao Fan was not sure at what time.
Lowe's started with vitamins, but this market is limited after all. For example, the current market price of vitamin C is about US$10,000 per ton, and the global demand is less than 100,000 tons per year, which means the output value does not exceed US$1 billion.
.
Such a market is enough to make Gao Fan salivate, but for Lowe's, which has a market value of more than 30 billion US dollars, it is just a piece of cake.
Lowe's decision-makers know that if they want to make big money, they have to rely on medicines, especially medicines to treat various difficult and complicated diseases. After Lowe's made its first pot of gold through vitamins, it focused its development on medicines.
.The value of vitamins to Lowe's is just a cow that can continue to provide cash flow.
Lowe's just wants to squeeze out all the nutrients from this cow and is unwilling to invest in this cow anymore. Lowe's vitamin production process has not been improved for many years, and once it is discovered that other companies are trying to improve the production of vitamins
Technology, Lowe's will use various methods to attack it, including price wars with competitors, or acquiring the other party's patents and shelving them. In short, it is to lock up this technology so that it can earn more in this market.
money.
It is impossible for ordinary companies to defeat Lowe's in the vitamin market by relying on ordinary process improvements. Lowe's has sufficient funds to support a war of attrition. But if a company can launch a revolutionary new process, it will significantly increase
If production costs are reduced, Lowe's will not be able to cope.
Lowe's treats vitamins as cash cows. A smaller short-term profit is acceptable, but there is no need to lower the price to a loss-making level.
The price of vitamin C on the market is US$9.5 per kilogram, and the gross profit is about US$2. If Gaofan's company can provide vitamin C at US$7.5 per kilogram, Lowe's is not willing to fight to the death with it.
In fact, later generations of Lowe's gradually withdrew from the vitamin market because the entry of Chinese companies pushed market profits to the extreme. Lowe's chose to withdraw when it was unprofitable.
"Besides vitamins, what other products do you have?" Dorian asked a different question.
Gao Fan was well prepared and replied with a smile: "We want to try all feed additives. I can assure you that as long as the products we produce, the price will be more than 15% lower than that of international big-name companies.
"
"Okay, Meister is willing to accept your friendship." Dorian responded with a smile.