Chapter 70: Guaranteeing Festival Supply or Guaranteeing Exports?
In the first transaction, the two parties were also testing and adjusting each other. After Jack borne the freight and corresponding insurance premiums, Huang Feifei's price left him with a profit of about 20%. If the cooperation is happy in the future, a long-term purchase contract will be signed.
, the profit given to him can be increased to 25% or even 30%.
After several rounds of back-and-forth negotiations, Jack accepted the finally negotiated price. What he was most satisfied with was that he would bear the freight.
Let me explain here, in foreign trade business, whoever bears the freight can bear it. Anyway, no matter whether it is the buyer or the seller, whoever bears it will be compensated in the contract price in the end.
Jack has dealt with Asian customers many times. Some customers like to pay their own freight. After receiving normal freight compensation in the contract, the customer chooses the cheapest shipping company in order to get a small price difference.
The consequences of this are often that the goods are damaged or even lost during transportation. As for delayed arrival, that is even more normal. Jack hated this so much that he even canceled the supply qualifications of several suppliers for this reason.
Now that he has to bear the freight himself, he can choose a shipping company he trusts and ensure that his own interests are not harmed.
In particular, the goods he purchases from East Asia are often less than a full box (container), so they need to be transported by LCL, which is time-consuming, labor-intensive, and very troublesome.
Now Huang Feifei has given him the right to choose, so that he can make overall arrangements.
Negotiations continue.
To Huang Feifei's surprise, Jack ordered 200 boxes of original lunch meat and 150 boxes each of teriyaki and smoked meat, which were all within a reasonable range.
However, Jack asked for 500 boxes each of tasteless and spicy flavors, which surprised Huang Feifei. After repeatedly confirming that they were correct, Huang Feifei couldn't help but think of the little boss Sun Dahai.
Could this be his plan?
Susan, the middleman, spoke: "I was in Hawaii a few days ago and specifically asked about a self-service barbecue restaurant, which sells hundreds of cans of various luncheon meats every day.
In the Hawaii area, there are six or seven self-service barbecue restaurants invested by my family. If you add the bars, the amount of goods you bring in is not even enough to consume in my store. Samantha, the goods are shipped to Hawaii by sea.
how much time is required?"
"It will take about two months."
"Jack, please order another one. You sent all the goods to my store just now. I don't know if they are enough to sell for two months. I want them all."
"Susan, the first batch of goods is just to test the waters and test the market's reaction, so the quantity is not important. If you don't believe it, Samantha didn't even question the quantity." Jack explained to Sasan.
Huang Feifei also nodded. This amount is normal for the first transaction.
"Also, how many of your stores buy so much luncheon meat at one time, aren't you afraid of a backlog? Do you no longer sell other brands of luncheon meat in your store?"
Susan's princess disease broke out. She said: "Samantha is my good sister. With her goods, I will definitely not want other people's goods. These goods don't cost much, and I am the only daughter of my father."
, even if he holds it in his hand, he will not say anything about me."
You can't afford to offend the little princess who is in the second grade. Jack decisively changed the subject and asked about the gift basket set.
The gift basket was shaped by Sun Dahai himself. At his request, Master Pu knitted seven or eight shapes in succession according to the shape and size of the cans. Finally, Sun Dahai chose this gift basket.
This basket is not the most beautiful, but it is the most distinctive. It looks like a pig, and after coloring it looks very cartoonish. There are five cans in the basket, which are cleverly tied with bamboo strips. Even if the basket is turned upside down,
The cans won't fall off either.
Sun Dahai asked Master Pu about the difficulty and time required to weave this basket. Master Pu said that it is not difficult, but everyone's habits are different, and it is not exactly the same. People with normal skills do not count the coloring and weaving a basket.
It takes 1 hour.
Sun Dahai waved his hand and said, that's it. Let's practice with 10,000 people first.
As for saying they are not exactly the same, Sun Dahai laughed. What he wants is that they are generally the same but have different details. Otherwise, how can they promote it so much that it is a purely handmade work of art?
Sure enough, Jack was very interested in this basket. He felt that it was similar to the handicrafts of native Hawaiians, and it should be very popular with tourists.
Huang Feifei told him that this is a small village deep in the mountains in the interior of China. It has been handed down for hundreds of years and is purely handmade. There are currently nearly a hundred people working on it day and night.
Huang Feifei said a little coyly: "The number of gift basket sets is limited, and the recommended retail price is US$9.99."
Of course, such an outrageous price must have been set by Sun Dahai. According to Cao Yue, "Dahai's heart is completely black. Could it be that he doesn't understand the concept of U.S. dollars and offers the price in RMB?"
Of course Sun Dahai understands, and he knows even more.
Listen to what Jack has to say: "This price is quite sincere. In Hawaii, a straw hat randomly knitted by the indigenous people costs at least four or five dollars."
Jack asked about the current quantity of gift baskets and re-modified the quantity of the first batch of goods. Original and other three kinds of lunch meat, each required 500 boxes, and tasteless and spicy, each required 1,000 boxes. In addition, there were 10,000 sets of gift basket sets. The contract
The total amount exceeded $110,000.
At this time, Huang Feifei was a little embarrassed.
The Spring Festival is coming soon, and all meat factories now have political tasks to ensure the supply of pork on the market during the Spring Festival.
Although this contract is not large, it still requires nearly 17 tons of clean pork as raw material. (To do some science, this contract has a total of 85,000 cans of luncheon meat, each can is 340 grams. How much pork is needed? Don’t take it directly, because 340 grams
Luncheon meat, not equal to 340 grams of pork.)
In order to build up his brand, Sun Dahai competed for the market from SPAM, which has the largest market share in the United States, so he set the meat content of the delicious series of canned luncheon meats very high, more than 50%. Each can
Canned luncheon meat consumes nearly 200 grams of pork. This contract has a total of 85,000 cans and requires about 17 tons of clean pork.
This is the first time for Huang Feifei to celebrate the Chinese New Year in mainland China. The meat factory has just opened and has no experience in ensuring supply during the Spring Festival. Therefore, Huang Feifei does not dare to sign a contract easily for fear that the supply will not be available by then.
So, Huang Feifei told Jack the situation and made an appointment with Jack to sign the contract in Xiangjiang three weeks later.
…
"Ms. Huang, according to this statement, the main factor that currently restricts you from signing export sales contracts and preparing for export is the supply of live pigs?"
"Yes, Mr. Mayor. The Tianhai Meat Factory has produced more than three tons of lunch meat. If the supply of live pigs is guaranteed, the contract can be completed in about two to three weeks, that is, before the fifteenth day of the first lunar month.
quantity."
"Export earning foreign exchange is the focus of my country's current economic development. Director Peng of the Bureau of Commerce, do you think it is possible to relax restrictions on the Tianhai Meat Factory so that it can better contribute to the country?"
"Mayor, don't worry. We will issue a document after we go back today and try to distribute it to the Tianhai Meat Factory tomorrow. The work of ensuring the supply of the holiday market is important, but the work of exporting and earning foreign exchange is even more important. We must have the ability to contribute to the country
Enterprises that earn foreign exchange through exports have greater autonomy."
The mayor nodded with satisfaction.
The black-faced director of the Agriculture Bureau quickly expressed his loyalty: "Mayor, I have a suggestion. Tianhai is not in short supply of pigs right now. Our other pig farms can also provide Tianhai with meat sources to ensure the production of export goods."
Bruce Lee quickly said: "Mayor, here are two laboratory test reports as comparison information. Please take a look." As he said that, he winked at his secretary Li Yue.
Li Yue took out several copied documents from his briefcase and placed them in front of several leaders.