ebonymovies Chapter 5: Negotiations That Went Too Far!
Chapter 5: Negotiations That Went Too Far!
Twelve hours later, Lax International Airport, Nigeria.
As Shenfei stepped out of the cabin, a wave of heat hit him, followed by the blinding glare of the scorching sun.
The airport is surrounded by low-rise buildings, and slums can even be seen in the distance! And this is Nigeria's capital. The country's backwardness is obvious...
But it is precisely because of this backwardness that this presents an opportunity for low-priced mobile phones, and for Transsion phones.
"Mr. Chen, welcome to Nigeria."
A middle-aged Black man wearing a floral shirt and a gold chain strode over, followed by several burly men.
This is James Wang, who even gave himself a Chinese name, Wang Jianguo. He is of mixed Chinese and Nepalese descent and is one of the largest mobile phone distributors at LAX.
"Mr. Wang, it's a pleasure to meet you." Shen Fei shook hands with him just as warmly.
"Oh my, this must be President Shen! Young and promising, leading the team personally. It seems you have high hopes for the Nigerian market!" James Wang smiled warmly, but a shrewd glint flashed in his eyes.
"The car is ready, let's go to the hotel first. Although Nigeria is a bit backward, the facilities in the city center are quite good."
Shen Fei waved his hand, but said, "No rush, let's check the goods first."
"President Shen is truly a man of action!" James Wang gave a thumbs up, but also agreed, and followed the group toward the warehouse area.
At this point, the mobile phones in the warehouse had been unloaded and neatly stacked on pallets.
James Wang randomly opened a box, took out a Transsion T100, and pressed the power button.
"Dual SIM dual standby, MP3 and MP4 playback, all these functions work perfectly. And there's a 30-pixel camera..." He skillfully fiddled with it, demonstrating his professionalism.
"The configuration is good. But Mr. Shen, the best-selling phone in the African market right now is the Nokia 1100—it's sturdy, durable, and inexpensive. Your feature..."
"We can discuss the price." Shen Fei reached out and took the Transsion T100, and Wang Jianguo instinctively tried to take it back...
"Mr. Wang, what price do you think is suitable? As long as the price is negotiated well, these phones are all yours. There's no need to rush."
Wang Jianguo's eyes darted around, and then a smile appeared on his face: "The wholesale price is $20, I'll take 3, and you don't need to worry about the rest of the work."
But there's one condition: I must have exclusive distribution rights for the Lax region.
$20? That's not even enough to cover the cost.
Li Qing's originally smiling face twitched slightly as he spoke, but Shen Fei stopped him with a look.
"Mr. Wang, we can't do it at this price." Shen Fei smiled as well.
"The wholesale price for this phone from Transsion is $33. The suggested retail price is $50."
As for exclusive distribution rights... of course, but I don't know if you have the capability.
"Of course I have the capability! We're the biggest mobile phone distributor in the area. But $33 is too expensive; I only get Nokia phones for $25 each."
Why does Transsion, a small brand, sell products at a higher price than Nokia?
"But Nokia doesn't have dual SIM dual standby, MP4 playback, or this 30-pixel lens." Shen Fei placed the prototype in his hands again.
"Mr. Wang, have one of your employees try out the shooting effect. I believe most people will definitely like this kind of photography."
Wang Jianguo waved, and the black employees inside came over.
Shen Fei had him stand in the sunlight and took a picture with a Transsion T100 camera.
The photos on the screen were barely passable; the skin tones were incredibly realistic—a whole lump of coal. They were nothing compared to photos taken with mobile phones in later generations.
But it still surprised them greatly, and they wished they could put the phone in their pockets.
It's much better than those Nokia phones that couldn't take pictures.
"That's interesting..." Wang Jianguo stroked his chin and thought about it seriously for a while.
"But $33 is still too expensive. I'll try 5000 units at $30 each first."
"Minimum order of 1 units at $32," Shen Fei conceded slightly. "And we have a new plan: to add charging stations to your stores."
"A charging station?" Wang Jianguo didn't know for a moment, but then he burst out laughing as if he had heard the biggest joke in the world.
Yes, you heard me right.
Frequent power outages in Africa mean many users can't charge their phones, which is the biggest obstacle to widespread mobile phone adoption.
We install charging equipment in your store, so users can charge their phones for just a small fee.
This will not only attract customers and make people aware of your brand, but also generate additional revenue.
Wang Jianguo's eyes darted around again. As a mobile phone distributor, he was well aware of the brilliance of this tactic.
However, this solution will increase additional costs; if it's a diesel generator, it will be a continuous investment.
The total cost will be astronomical!
As for profits, Wang Jianguo chose to ignore them... after all, he is a smart man.
Of course, you can choose to generate electricity from solar power, but solar panels are a new thing, and most importantly, they are expensive and require corresponding batteries.
A device costs money; you need to sell a lot of phones to make it back...
There's a sucker right in front of him; he'll have to take advantage of him.
"Who will provide the equipment? Nigeria doesn't have this kind of advanced industry. An old diesel engine costs thousands of dollars and pollutes the environment... This would be devastating for Nigeria's environment."
Environmental pollution? Wang Jianguo's words immediately made everyone burst into laughter... However, Wang Jianguo and his group remained unfazed.
"Send a telepathic message," Shen Fei said. "You guys take care of the fuel and stuff. You get 60% of the profits, and we get 40%."
"Mr. Shen...you're so straightforward." Wang Jianguo laughed and immediately moved closer to Shen Fei, but was stopped by the security personnel next to him.
Of course, he wasn't angry. He simply waved his hand casually and said, "Then it's settled."
"It's settled then. $32 for 1 charging units. Ship them over as soon as possible."
A draft contract was signed on the spot.
On the way back to the hotel, Li Qing couldn't help but ask, "Mr. Shen, our profit margin on $32 is very thin, and we also need charging stations..."
We lose a lot of money on every single one we sell.
And their agreement seemed too easy to me; I had a feeling something was off.
"Isn't it a good thing that things are going smoothly?" Chen Hai revealed the honesty typical of an engineer.
"Whether there's a conspiracy or not, this is just a test, a small investigation."
Shen Fei looked out the window at the dilapidated streets and shook his head slightly. Having seen the prosperity of later generations, seeing this again...
He simply drew the curtains.
"In Africa, electricity is more valuable than a mobile phone. With charging stations, we can establish direct contact with users. And..."
He paused briefly, then a smile returned to his face: "You think Wang Jianguo will honestly retail it for $50? He'll sell it for at least $60."
What we want is for him to open up the market first and establish Transsion as a high-end brand with more luxurious configurations, a mobile phone exclusively designed for the people of Africa.
Our real goal is to establish our own distribution channels, while simultaneously seeking new opportunities in the promising African market.