Return to Hong Kong Island for a Century

Chapter 380 The Price Butcher (5000+ words)

William approached the group and discovered that they were all talking about Li Song!
"Mr. Li's strength is beyond doubt!" The speaker appeared to be an overseas Chinese from Southeast Asia.

"Of course, look at the workmanship of this plane."

"The Panda aircraft boasts the highest safety rating among similar products!"

"Of course! Once Mr. Li's commercial airliner is manufactured, we'll try to become his agent!"

"Baron!" The men greeted William as he approached.

William, relying on his noble status and influence in the colonies, is now considered a big shot in the dealer circle!

Of course, William now has money in his hands. In the short period of time since the last dealer conference, he has sold 50,000 BMW motorcycles.

William represents several countries, and although these countries are poor, there are still quite a few wealthy people in these places.

Earning 10 pounds per vehicle is equivalent to 500,000 pounds.

Moreover, William also collaborates with insurance companies and banks.

Our monthly sales now exceed six thousand, and they continue to rise!
William has now started selling three-wheeled motorcycles, which are more popular than two-wheeled ones!

Because three-wheeled vehicles can carry more passengers.

Even during Africa's rainy season, tricycles can travel freely.

Because during the rainy season, when encountering bad roads, passengers get off the bus and walk or help lift the vehicle!

It's much better than those four-wheeled cars!

Furthermore, to make it easier to lift the vehicle, the tricycle is specially designed with handles, which are wrapped in rubber.

A two-wheeled vehicle can carry a maximum of six people, while a three-wheeled vehicle can carry more than a dozen people.

Moreover, freight volume in Africa is not very large.

Whether it's buying or selling goods, because of poverty, we don't have much capital.

William is now planning to become a distributor for vans, and also for the London market.

Because it's cheaper than a small notebook!

Anyway, Daiying Motors is finished!

William began by saying, "The aircraft's frame uses a one-piece stamping technology."

"This will make the aircraft's structure more stable, safer, and lighter, which will reduce fuel consumption!"

"Of course, this structure also has a drawback: once damaged, the repair costs will be very high!"

"The reason BMW didn't adopt this technology is because it's for the customers' benefit!"

"Mr. William knows so much!"

"Mr. William, you have quite a few competitors this time!" the others chimed in.
"Hmph, a bunch of country bumpkins who can't stand seeing others make money." William knew, of course, that he had many competitors, and that some people were envious of his success.

"Let's go inside and take a look at the car!" someone said.

Everyone came into the warehouse, and right at the entrance was a sports car demo car with a huge sign: BMW B1 Coupe. It was all green, a very rare color.

The spotlights shone on the car, and the doors were frameless.

"Wow!!" The person who entered the door had their eyes light up!
Then, looking around again, there was a row of cars inside the spacious factory building.

Because this is a converted industrial plant, it looks very long.

Bright lights, dark floors, and car paint reflecting the light.

William hurried to look at the vans; he also liked the sports cars, but business was more important!

Bilingual introduction in Chinese and English!

William saw the cast iron engine, the rear-wheel drive, and then the six-speed transmission.

Then he opened the car door himself and carefully looked inside.

The seats are removable, and the rear seats can be lifted up directly.

Another modification option is to remove the rear seats and replace them with two metal benches on either side. These benches can be lifted up, thus creating a truck.

Just put it down and you can attract customers!
The number of people that can be seated depends entirely on the driver.

William's eyes lit up when he saw the modifications; this was the dream car that people in Africa loved.
Furthermore, there are roof racks, and the vehicles exported to Africa have been reinforced, meaning that those who are not afraid of death can sit on the roof.

Of course, it's more secure to put luggage there, and that way more people can fit in the car.

Tool cart!!

William discovered that this vehicle could be used not only as a truck but also as a utility vehicle.

Moreover, this five-seater model has a strong market presence in London.

Because this type of car is small and has many functions!

Meanwhile, an Amer dealer was looking at these vans.

I think these vans should sell well at Amer International.

Firstly, this van can be used as a truck, a work vehicle, and also as a motorhome.

It can also be used as a temporary stall for selling goods.

Every year, many people in Amer go bankrupt.

Regardless of the reason for bankruptcy, they will face a series of problems.

If your bank account is frozen, you can't use your credit card!
Then, if you go bankrupt, you won't be able to rent a place or find a job.

This is why homeless people in America have a hard time getting back on their feet once they lose their credit!

Because once you lose your credit, you can't do anything.

They could only go to receive relief food.

Some people suggest going to a shelter, but shelters also have conditions.

Moreover, the lower levels of Ami's society are governed by gangs.

Does it look familiar?
That's right, it's the kind of Hong Kong Island was like in the 80s and 90s.

It also seems to be a reflection of the fact that imperial power in ancient Eastern powers did not extend to the countryside.

For officers like Ah Mei, even if they wipe out a gang, new gangs will quickly fill the vacancies!

Of course, not to mention that CIB personally sells tobacco, FAI collects protection money from gangs, and even traffics people to some islands.

So some homeless people might like this kind of van, because real motorhomes are very expensive, and this kind of van is a good alternative.

Because there are still some homeless people who hope to turn their lives around.

Of course, we should check the price first!

Comparatively speaking, customers in Southeast Asia have more confidence in BMW's products.

In addition, a van was lifted up so that everyone could see the chassis.

I saw those large steel plates.

The van uses a solid axle suspension at the rear, with five leaf springs as the elastic element!

This is a technology used only on trucks.

It also uses rear-wheel drive technology.

Customers in Southeast Asia expressed great satisfaction.

Because Southeast Asian customers mainly transport people and goods.

Among these distributors, there are also people with secrets.

The people with notebooks are here to gather intelligence.

Because BMW motorcycles have had a huge impact on Japan's motorcycle industry.

BMW now sells nearly 100,000 motorcycles overseas every month.

And it's still growing rapidly!
It's worth noting that the motorcycle market used to be dominated by small Japanese brands.

BMW motorcycles have been able to capture such a large market share so quickly.

On one hand, there's the price-performance ratio; the BMW 90cc motorcycle is priced the same as the Honda 50cc!
Thus, the profit margin for BMW motorcycles is quite considerable.

Unfortunately, the steel used in the notebook was priced at international prices, at four hundred US dollars per ton.

The steel used in BMW motorcycles is much cheaper than this.

Another factor is labor costs. The average monthly salary at the small office is close to 250,000 yen, which is roughly 2,000 yuan.

What is the average wage in mainland China now?
Another point is that BMW Motorrad is a relatively new company, unlike established companies like those in Japan, which have a lot of responsibilities and burdens.

Of course, the most important aspect is another one: BMW motorcycles adopt a dual settlement model of cash and goods.

Small businesses simply cannot do this!
Small businesses have considered using a combination of cash and goods for settlement.

However, this also involves upstream material processing companies.

In addition, it also involves fluctuations in material prices.

If the price is high when the materials are traded, the price is low when they are returned.

So who bears the price difference? Is it the factory itself or someone else?

Not to mention the Middle East, where the fighting is raging and the uncertainty surrounding the prices of various materials and fuels is increasing.

When the little boy saw these vans, he knew that BMW was targeting his industry again!

Because the cars from Japan are marketed in the international market primarily based on cost-effectiveness!
The notebook has also successfully gained a foothold in the international market with its cost-effectiveness.

Moreover, with rising oil prices, the cost of owning large-displacement cars in Western countries is constantly increasing, and customers are increasingly favoring cars with higher cost performance!
At this critical juncture, BMW launched several new products.

The people in the notebooks observed and took notes, their faces full of worry.

William spotted the car at that moment!

Eyes light up!
I really like the design of the car.

William carefully examined the specifications of these cars.

After seeing the cars, William felt that they had great potential in London, but also felt that the £500,000 he had brought was not enough.

Because I not only saw some nouveau riche, but also some people with similar backgrounds to myself!
This car dealer conference uses a deposit system, which means that whoever pays the largest deposit will be exclusively authorized to sell in that area!

At the end, William saw two more off-road vehicles, one called a city SUV and the other a hardcore off-road vehicle, and finally a pickup truck!
These three cars were simply featured on a huge poster; no specifications for the three cars were provided.

"William, I think we can talk!" Just as William was about to try and build a relationship with Li Song, someone spoke up behind him.
“Henry, I know what you’re up to. I’m your rival.” William said irritably when he saw the man behind him, Henry, who held a knighthood.

“William, look at those Scottish savages over there. I think we really need to cooperate,” Henry said.

The relationship between Scotland and England is quite complex. The Scots are descendants of native tribes, while the English are Saxons from continental Europe.

It's somewhat like a bondservant and the eighth term of conscription.

Ah!
However, in modern society, the slaves have turned the tables. In World War I and World War II, not only did many nobles die in battle, but their wealth was also seized, since inheritance tax is not low!

Of course, the relationships between England, Scotland, Wilson, Northern Ireland, and so on are even more complex.

“Damn barbarians!” William saw the men Henry had mentioned.

"These barbarians only have money in their eyes!"

"And I also know that one of us has obtained the exclusive global sales rights for the Starliner!" Henry added.
"Huh!" William has been busy developing markets in Africa lately and rarely has the opportunity to return to London.

Of course, we were also short of money. We were all from the elite circle, and while others wore the latest fashion items, we wore those old things.

William can afford to buy those latest fashion items, but right now he's more focused on making money.

"Furthermore, Parkson is preparing to acquire Land Rover and Jaguar, and retain the relevant factories."

"Therefore, we must obtain the sales rights for BMW cars."

"Otherwise, it will be too late once the news gets out!" Henry added another piece of information!
“Alright!” William naturally understood what he meant when he heard this.

Once the acquisition is completed and the factory is retained, BMW sales in London will certainly proceed smoothly!
Moreover, BMW's acquisition of these two car brands clearly indicates its intention to enter the high-end car market.

William then thought of the BMW SUV promotional posters he had seen; perhaps they were for the new brand he had acquired.

More importantly, as long as Li Song acquires these two brands and retains the relevant factories, BMW cars will have unimpeded access to their home market of London.

As a nobleman, William certainly knew what it was all about the London-based Starliner agency!

Because these smaller jet airliners are more profitable.

So William agreed immediately.

"We English must not let those barbarians from Scotland steal the cake that's already in our mouths!" Henry nodded when he saw William agree.

“Now I need to see Mr. Li alone!” Henry said again.

“Hmm!” William naturally knew that Henry’s family still had some influence in London, and also had considerable influence in Egypt.

Li Song stood there for more than an hour, and finally picked up almost all the people.

At this moment, Tian Jiahui walked over and said, "Boss, that's about it!"

"Let's go then!" Li Song nodded.

The dealer conference was held in another factory building within the same factory where the exhibition vehicles were located.

This place will be used as a flagship store for BMW, providing a one-stop service for sales, maintenance, and after-sales.

As for the warehouse, it will be located in the Kwai Tsing area!
Welcome to Hong Kong Island!

"I am Li Song, the chairman of Parkson Company. I believe many of you are acquaintances of mine!"

"I believe everyone already has a good enough understanding of car performance!"

"First, I'd like to announce the price, which is what everyone is most concerned about!"

“The factory price for a five-seater manual transmission is eight thousand US dollars!” Li Song said.

At that time, the first-generation Accord sold for HK$80,000 to HK$100,000 on Hong Kong Island, about US$20,000 on American International Group, and about 800,000 to 1 million Japanese Yen in Japan.

The Honda Daihatsu, sold in London, cost over £8,400, which is the price it ultimately pays to the customer. (See image at the end of the chapter)
At that time, the exchange rate of the British pound to the US dollar was around two points.

That means a six-seater minivan can sell for $20,000.

"Five seats, automatic, nine thousand dollars!"

"Seven seats, manual transmission, ten thousand dollars!"

"Seven-seat automatic, eleven thousand US dollars!"

"Nine seats, manual transmission, twelve thousand US dollars!"

"Nine-seat automatic, thirteen thousand US dollars!"

"A 1.5-liter manual transmission sedan, with a factory price of $10,000."

"A 1.5-liter automatic sedan, $12,000."

"A 2.0-liter manual transmission sedan, with a factory price of $13,000!"

"A 2.0-liter automatic sedan, with a factory price of $14,000!"

The price set by Li Song is very sensitive because customers always compare prices when looking at cars!
For example, the difference between a 1.5-liter manual transmission and an automatic transmission is only one thousand dollars!
People who drive automatic transmissions look down on those who drive manual transmissions.

The difference between a seven-seat manual transmission and a five-seat automatic transmission is only one thousand dollars.

The price difference between the seven-seat automatic and the five-seat automatic is $2,000.

In such a comparison, it's easy to spend more money to buy a bigger car.

"The sports car you see here is one I designed myself; the base model has a factory price of $100,000!"

"It is equipped with the same six-cylinder horizontally opposed engine as the Panda aircraft!"

"We at BMW want to make sports cars that ordinary people can afford!" Li Song knew that Lamborghinis and similar cars cost tens of thousands of pounds, but they had the brand prestige.

The factory price is $100,000. With tariffs and other fees, the cost reaches over $100,000. Then, with the distributor's profit, the final selling price is basically around $200,000.

It's still one-third cheaper than traditional luxury cars!

Li Song plans to acquire Jaguar and then focus on manufacturing high-end sports cars, which will be produced in London!
Land Rover, on the other hand, makes high-end off-road vehicles.

There's no way around it; car brands from London already have a price advantage!
I'll design it myself and then have it manufactured in London!
Li Song didn't expect this sports car to sell very well; its main purpose was to disrupt the market and enrich the product line.

To be honest, this sports car looks really good.

The performance is not bad, it's just that the brand doesn't offer any premium.

Anyway, once the configuration and price of this car are made public, other luxury car buyers will start to have doubts.

Moreover, as a world-renowned writer, Li Song's personal design of the sports car also adds an artistic element to its appeal!

Because most wealthy people buy things to save face.

And a car designed by Li Song himself, so you won't lose face driving it.

In addition, the price is two-thirds, or even less than two-thirds, of other luxury cars!

Then some wealthy people will definitely choose it!

At the dealer conference, the attendees were in an uproar after Li Song announced the price.

Although everyone knew that BMW would follow the same approach as BMW motorcycles, the price of the cars exceeded everyone's expectations.

The expressions on the faces of the people in the notebook changed immediately!
Some people left in a hurry!
"The meeting will now be chaired by Manager Tian, ​​General Manager of Parkson Company." Li Song then handed over the rest to Tian Jiahui.

"Mr. Li!"

"Mr. Li!" Li Song had just handed the microphone to Tian Jiahui when he stepped down, but William stopped him!
More reporters wanted to conduct interviews, but were kept outside the cordon.

"Baron!"

"Mr. Li, this is Sir Henry!" William was extremely anxious because BMWs would sell like hotcakes throughout Europe at this factory price.

Because the wealthy and rich only make up a very small percentage of the world's population, even in Europe.

A van that costs $9,000, but less than £4,000.

Although this car only has five seats, is a manual transmission, and doesn't have a sunroof, it does have air conditioning!
However, its ex-factory price is less than four thousand pounds.

No one will mind!

William believes this car will be a huge hit, so he's very anxious now.

(End of this chapter)