Who would still start a business seriously after being reborn?

Chapter 676 Capital in the Left Hand, Hardware in the Right
"Cooperation?" Feng Shangen looked at the cover of the proposal and said, "My internet cafe has already joined the Momo Internet Cafe Alliance. The system, procurement, and operation all follow the alliance. I'm afraid there's not much room for cooperation between us."

"Mr. Feng, please don't rush. Take a look at our terms first." Gao Shunzong's smile remained unchanged as he said frankly, "We've looked into it. Mr. Feng owns 37 internet cafes with over 10,000 computer terminals. With the widespread use of large-scale games like World of Warcraft, hardware upgrades must be a considerable expense for you, right?"

Feng Shangen's brow twitched; these words had indeed struck a nerve.

He's currently struggling with the budget for upgrading the graphics cards at several of his main internet cafes.

Upgrading just the graphics cards for 10,000 computers would cost nearly ten million.

Gao Shunzong keenly caught the fleeting expression on his face and continued, "We can replace all the hardware in Boss Feng's internet cafes with brand new mainstream configurations at half price, including motherboards, CPUs, memory, and graphics cards. Furthermore, we promise that we will be responsible for all subsequent hardware upgrades indefinitely, still at half price."

"Half price? Permanently?" Feng Shangen finally couldn't help but pick up the proposal, quickly flipping through it. His face was filled with disbelief as he muttered, "How can there be such a good deal? President Gao, what are you after?"

"We only want a long-term and stable partnership," Gao Shunzong said sincerely. "In return, we hope to obtain 10% of the shares in Mr. Feng's internet cafe business. We solemnly promise that we will not participate in the daily operation and management. All operational decision-making power of the internet cafe still belongs entirely to Mr. Feng. We are only financial investors and will share in the future revenue growth of the internet cafe."

"A solemn promise?" Feng Shangen frowned slightly.

These four words sound just like those scammers and scoundrels on TV shopping channels, don't they?

However, a 10% stake, without involvement in management, can solve the biggest operational burden for the next few years and retain control of the internet cafe.

These terms are so generous that it's impossible to refuse.

"Mr. Gao, forgive my bluntness," Feng Shang'en put down the business plan and looked at Gao Shunzong, saying, "What is your company's motive for such a large investment?"

"We at Gaoping Capital are committed to value investing." Gao Shunzong's voice carried a convincing calmness as he smiled and said, "We are full of confidence in the future of China's internet, including offline terminals, so we hope to cooperate deeply with Mr. Feng."

Feng Shangen pressed his hand on the plan and fell silent.

Gao Shunzong didn't urge him, but patiently sipped his tea, occasionally glancing at the bustling street scene outside the window, looking calm and composed.

Time passed by, and only the low hum of the air conditioner and Feng Shangen's slightly heavy breathing remained in the meeting room.

His mind raced as he calculated things.

Momo Alliance has indeed brought stable customer traffic and brand effect, but the hard nut of hardware costs still has to be cracked by themselves. Especially now, since World of Warcraft became popular, there are more and more games of this kind, especially Perfect World at the beginning of the year, which made them realize the power of hardware devouring beasts.

Half price... permanent half price... this means that for the next few years or even longer, he can cut this biggest cost expenditure in half.

The money saved is real money.

A 10% stake, no involvement in management... control is still in your own hands, which doesn't seem like a bad deal.

But what exactly is Gaoping Capital after?

Perhaps, as they say, they are optimistic about the long-term value of offline terminals and want to make a long-term financial investment.

Besides, he was introduced by his superiors, so he wouldn't do anything to harm himself, would he?

Various thoughts collided fiercely in his mind.

Ultimately, the desire to reduce costs and increase profits, as well as the lure of the huge pie of half-price forever, gradually overwhelmed the initial vigilance and doubts.

He took a deep breath, looked up at Gao Shunzong, and said, "Mr. Gao, do you have a specific contract? I'd like to see it."

Gao Shunzong smiled even more sincerely and said, "Boss Feng is indeed a wise man. Cooperating with us is definitely a win-win situation."

Feng Shangen then asked, "Is this 'half price for life' and 'no involvement in management' written into the contract? The contract terms must be clear; there can be no ambiguity."

“Of course!” Gao Shunzong immediately gestured to his assistant to bring out the formal contract that had been prepared in advance and handed it to Feng Shangen, saying, “All promises will be converted into legally binding contractual terms to protect Mr. Feng’s rights. You can review it carefully.”

Feng Shangen reviewed the contract word by word. The contract prepared by Gaoping Capital was very well done, almost completely replicating the previously promised conditions. The wording was precise, the rights and responsibilities were clear, and there were no obvious traps.

Feng Shangen's last remaining doubts vanished.

“Since Mr. Gao is so sincere, then…” Feng Shang’en picked up the pen and finally signed his name on the contract and stamped it with the company seal.

Gao Shunzong looked at the signed contract, his smile widening.

He extended his hand and shook hands firmly with Feng Shangen: "Mr. Feng, it's a pleasure to cooperate with you! Our hardware replacement team will contact you as soon as possible to determine exactly what hardware you need to replace, and then we will give you a quotation. Once you have the quotation, you can check the market to see if our offer is half price."

"Okay." Feng Shangen was also excited.

Just as Feng Shangen saw Gao Shunzong off and began to envision a bright future where hardware costs would be halved, a storm sweeping through the entire computer hardware market arrived without warning.

As if by prior arrangement, several major players in the global hardware industry have successively issued price adjustment announcements.

The first to launch an attack were the two dominant players in the chip industry.

Intel and AMD announced almost simultaneously that, due to the continued tight supply of silicon wafers, a core raw material, and the huge investment in advanced process technology research and development, they will make strategic price adjustments to their mainstream consumer CPUs and corresponding motherboard chipsets.

Despite the euphemistic wording of the announcement, the signal received by the market was clear.

That means a price increase, ranging from 15% to 25%, with the increase being particularly noticeable for high-end models.

The market has not yet fully digested this shock, and even bigger waves are on the horizon.

Global memory giant Samsung Electronics then issued a statement, stating that due to the imbalance between global DRAM memory chip supply and demand and the impact of upstream wafer fab capacity, it has decided to adjust the prices of its entire range of memory products.

When the media and distributors saw the leaked internal price adjustment letter, the entire market was in an uproar.

The average increase was as high as 25%!

These monopolistic giants at the top of the industry chain have long been accustomed to controlling pricing power by virtue of their technological barriers and market dominance.

They don't care about the complaints from downstream manufacturers and consumers, because they know that as long as market demand exists, no matter how prices fluctuate, those who want to buy will eventually buy.

Especially given the strong demand for hardware upgrades driven by popular games like World of Warcraft and Perfect World, there is even more justification for these price increases.

Suddenly, the domestic computer parts market was in a state of panic.

Zhongguancun, Huaqiangbei, and other nationally renowned electronics distribution centers seemed to be shrouded in gloom overnight.

The shop owners behind the counters looked worried as they stared at the new price lists from their suppliers, constantly making phone calls. "Mr. Li, yesterday's prices are invalid. Yes, prices have gone up across the board, with memory memory seeing the biggest increase. Samsung is leading the way, and Kingston and ADATA will definitely follow suit."

"Brother Wang, it's not that I don't want to give you the goods, it's just that the prices upstream have gone up too high. If I give you the goods at the original price, I'll lose a fortune."

"Stock up, stock up quickly! Judging from this trend, prices are going to rise further. Let's stock up on graphics cards first!"

This wave of price increases has left internet cafe owners and individual users who were planning to upgrade their graphics cards and memory feeling extremely distressed.

Forums and QQ groups are filled with complaints and helplessness.

"Damn it, are they trying to kill me? I just got paid and wanted to upgrade my CPU, and now the price has gone up by two hundred?"

"Is Samsung ripping people off? Selling memory sticks like they're gold bars?"

"Damn it, my internet cafe was supposed to upgrade a batch of machines next month, and now the budget has been completely overrun..."

"Intel and AMD are joining in too. These capitalists are despicable. I guess I'll just get a used one first..."

Amidst this wave of complaints, Feng Shangen, who had just signed the contract a few days earlier, felt a strange sense of relief after his initial shock.

He picked up the contract from Gaoping Capital on the table, then looked at the news about the soaring memory prices that popped up on his computer screen, and his throat felt a little dry.

"This...this price increase is just the right time..." he muttered to himself.

If he hadn't signed this contract, his hardware upgrade plans for his 37 internet cafes would have faced enormous financial pressure in the face of this sudden industry-wide price surge, and might even have been forced to be postponed or scaled back, directly impacting customer traffic and revenue.

Now, with Gaoping Capital's permanent 50% price guarantee, it means that no matter how much the external market price soars, the hardware cost he needs to pay is locked at half the price level before the price increase.

This sudden industry storm instantly washed away the last trace of unease and doubt in his heart, replacing it with a sense of relief that he had turned misfortune into blessing.

He picked up the phone, dialed Gao Shunzong's number, and said with a hint of flattery, "Mr. Gao, have you seen the news? This market is really... Sigh, will our hardware replacement plan be affected by the price increase?"

On the other end of the phone, Gao Shunzong chuckled and said, "Don't worry, Mr. Feng. This price increase is precisely the time to demonstrate the value of our cooperation. Rest assured, the team will expedite your hardware replacement plan as quickly as possible. We are trustworthy."

"Okay, okay." Feng Shangen was completely relieved.

After hanging up the phone, Gao Shunzong walked to the window, looked at the bustling traffic below, and a smile of complete control flashed across his face.

They control capital with their left hand and hardware with their right.

What can a market-oriented company like Momo Group use to compete with them?
Meanwhile, in the office of Momo Group's headquarters in Jingzhou, Cheng Yi stared coldly at the price increase news popping up on the screen.

He knew better than anyone that this was far more than just a coincidence of market supply and demand fluctuations.

Rising hardware prices are squeezing the profit margins of all internet cafe owners, while also raising the barriers to entry for the industry.

Meanwhile, Gaoping Capital seized the opportunity to offer a half-price deal, and with this shift in power, the allure increased exponentially.

Most importantly, by raising prices and then offering a 50% discount, Microsoft's investment would be even smaller.

Just as the hardware price surge was causing widespread panic in the market, Microsoft's XP Speed ​​Edition advertising campaign, coupled with Samsung's nationwide network of distributors, spread rapidly like wildfire.

Say goodbye to lag! Factory optimization gives your old computer a new lease on life!

Huge billboards stand in the core business districts of various cities, and posters are plastered all over computer malls, digital plazas, and even computer repair shops in some towns.

The advertisement is visually striking: on one side is an old computer that runs slowly and lags, and on the other side is a smooth-running XP Speed ​​Edition system with a simple interface.

The label next to it prominently displays the words "[Officially Authorized, Free for Two Years]".

Samsung's distribution channels played a crucial role at this time.

These outlets, which extend to districts, counties, and even townships, mainly sell Samsung monitors, memory, mobile phones, and other products. They already have close ties with local small computer companies, internet cafe owners, and even individual users.

At this moment, they have transformed into the forefront of promoting XP Speed ​​Edition.

The sales staff at the agency held up beautifully printed brochures and used the simplest language to persuade potential customers.

"Boss, take a look at this. It's a system that Microsoft made specifically for our old computer. It's much faster than the Momo system you're using now. It's genuine, and there's a promotion right now: use it for free for two years."

"With this installed, your old machines can last another three years, saving you money on hardware replacements. With component prices so high now, it's more cost-effective to replace the system than upgrade."

"We are an official Samsung distributor and a genuine Microsoft licensee. It's absolutely reliable, very stable after installation, and games run smoothly without any lag."

These sales representatives' sales pitches precisely addressed two core pain points for users in the current market environment.

Cost pressures caused by rising hardware prices.

Lag issues caused by insufficient performance of older equipment.

These sales promoters all have tasks to complete, so they don't care whether it's false advertising or not; they just want to get users to install it first.

The best thing about computer users is that once they install an operating system, as long as there aren't any major problems, they generally don't want to switch to another one, since moving it around is too much of a hassle.

"Damn, graphics card prices have gone up so much, I can't afford to replace them. How about I try installing this Microsoft Speed ​​Edition? I heard it's pretty well optimized."

"Samsung's distributors are all promoting it this way, so it must be reliable, right? After all, it's an official Microsoft product."

"If it can really make my old machines run Perfect World smoothly, then I'll really save a lot of money."

In an instant, inquiries, requests for trial use, and even direct requests to install XP Speed ​​Edition flooded Microsoft's channels and Samsung's distributors from all directions.

At this moment, in an old, dilapidated office in Zhongguancun, Yanjing City, a chubby, dark-skinned man in his thirties was operating a computer that was lagging like a PowerPoint presentation when he angrily slapped himself across the face.

"Teacher Luo, please don't do this, Teacher Luo." His employees rushed over to stop him.

Sigh, their boss is great in every way, except that he's too stubborn. He even takes pictures of the dust in the company with a microscope and categorizes it into different grades.

(End of this chapter)