Rebirth Tokyo 1986

Chapter 38 There are still masters
“Try JCPenney again. If that doesn’t work, go find an emerging retail giant like Wal-Mart. Small retailers should only be used as a last resort.”

Small retailers are too troublesome and prone to all kinds of troubles. Michael wants to achieve rapid expansion so that he can gain more benefits from Matsumoto Manufacturing.

"Oh, is this the product you want to sell? And you're the only one in the United States that has it?"

When the head of JCPenney saw the Fengya suitcase, his eyes were full of surprise. The company is now in a period of transformation and is in need of a flagship product.

This suitcase has great potential to become a hit product, thereby bringing huge profits to the company.

Seeing that Manager Pete was very interested, Michael immediately responded, "Yes, the suitcases are from Japan, and I am the first American to get the agency."

"The Japanese again? They are really good at this."

Americans now have a complicated attitude toward Japan.

Although the Japanese inventions did make things more convenient for them and saved them a lot of money, their inventions were also destroying their own economy, which made many Americans jealous.

The fact that Americans are buying Japanese cars crazily while at the same time frequently smashing, destroying and burning Japanese cars is a concentrated reflection of this attitude.

Michael smiled and said, "Yes, they are really good at it."

"Forget it. This is not our business. Tell me what kind of offer you are going to make to convince me."

Manager Pete didn't want to talk too much about national affairs. He was more interested in making money and hoped to use the suitcase opportunity to climb up.

"The uniform retail price of Fengya luggage in the United States is $199, and my offer is $150; the retail price of Shuying luggage in the United States is $129, and my offer is $85; the retail price of Linglong luggage is $89, and my offer is $55. As for settlement, I have relatively little funds now, and I hope to settle once a month."

The retail price and factory price are directly determined by Masato Takeshita, and Michael has no right to change them. He can only decide how much profit share to give to retailers.

"Okay, I'll report this to my superiors right away. If possible, I hope Mr. Michael can wait in the conference room for a while."

"No problem. I've long wanted to see the difference between retailers and our bank in terms of meeting rooms."

Michael was ecstatic at this moment. He was willing to wait for a month, let alone a short while.

This is one of the three largest retailers in the United States. If the suitcase can be put on the shelves here, it means that the retail market in the United States begins to open up to him, which is a bit like the parts supplier of Apple's industrial chain.

"Well, I want to know too." Pete smiled and then told his secretary, "Chris, accompany Mr. Michael to the conference room first."

"Okay, Manager Pete!"

After watching the two leave, Pete immediately called his immediate superior, Kevin, the manager of the California headquarters.

"It's Pete, what's going on?"

"Well, Manager, I saw a new invention called a trolley suitcase the other day. My instinct tells me that this thing will be a big seller, and I hope to bring the suitcase over to show you."

"Oh, it's you who's chosen. No problem, come over, I'm at the company now."

Peter is a rising star in JCPenney and a young talent that the company values very much. Manager Kevin also appreciates this subordinate and treats him as his confidant, inviting him out for parties whenever he wants.

"Okay, I'll be there right away." JCPenney's headquarters is not far from Pete's store, and it only takes about 20 minutes to drive there. After the two of them arrived at the conference room, Kevin walked up to them kindly and shook hands with them politely.

"Oh, is this the product? It's really great, what a clever idea."

The price of the trolley case could not be hidden at all. Kevin also praised it repeatedly, and then said decisively: "It's fine to settle it once a month. But the price is a bit expensive. I think the price of $199 is 135; the price of $129 is 76; the price of $89 is 47. This is more appropriate, isn't it?"

"OK, alright."

As long as he could open the door to JCPenney, Michael was willing to make less money. He could make up for it with the retailers behind him, and then raise the price at JCPenney when he had enough capital.

"OK, then Pete, you go sign the contract. We need 10 pieces of Fengya, 35 pieces of Shuying, and 20 pieces of Linglong." Jesse Penny has a large family and a powerful business, so she ordered tens of millions of dollars worth of suitcases in one go.

"Okay, Manager Kevin."

Although Michael was excited, he was not overwhelmed by what he saw. He interrupted awkwardly, "Well, sorry. I don't have that much capital. I only have 1 Fengya suitcases."

"Oh, I see. Then can you help us contact the manufacturer? We can pay an agency fee."

Kevin showed his true colors. He had this idea in mind when he knew Michael was short of funds. As a giant retailer, the best option is always to purchase directly from the manufacturer.

"That's fine, but I want 2% of the transaction amount as a share."

Michael realized at this time that he had been fooled. However, after thinking about it carefully, he found that he had no capital to fight against Jesse Penny, nor did he have the right to refuse.

Even if he didn't say anything, others would be able to quickly find the manufacturer of the suitcases, Matsumoto Manufacturing, and easily circumvent the agreement between him and Matsumoto Manufacturing.

"make a deal!"

Although the transaction volume of 2& is also large, it has saved a lot compared to the difference earned by the middlemen. There is no need to offend someone to death, it is just right now.

After signing the profit-sharing contract, Michael quickly adjusted his mindset and told all the information he knew about Matsumoto Manufacturing.

This kind of thing can be easily found out, there is nothing worth hiding.

"Oh, I see. Thank you Mr. Michael for your explanation. Shall we go out for dinner together to celebrate?"

"No, I haven't sold those suitcases yet."

"Don't bother. We'll take your original offer. Here's the check."

Since you have already got a great deal, there is no need to be petty. It is better to be generous, at least you can restore a certain reputation.

"Thank you. I'll obey your command."

Michael looked at the check in front of him with mixed feelings. On the one hand, he blamed Jesse Penny for her ill intentions, but on the other hand, he was grateful for her decisiveness and generosity. He no longer had to work hard to sell the products, and he had more capital to purchase the products.

Michael consoled himself, "Forget it, this is the only way. J.C. Penny is already quite honest. Generally speaking, big companies just do things perfunctorily on the surface and then secretly contact us behind the scenes."

(End of this chapter)