instant noodle richest man

With a slight skeptical look in Iwada Satoshi, Boss Jia completed the first half of the OEM negotiations with Nintendo.

First of all, Boss Jia’s Daqian determined the contract to produce 5 million N64 units within three months. If the task cannot be completed, he would have to pay a liquidated damages of one hundred US dollars per N64.

To be honest, this liquidated damages are fair and not too high.

In order to help Daqian produce, Nintendo needs to do its best to assist Daqian's production work, such as providing a full set of drawings, parts that only Nintendo has, as well as ordering channels for various parts, and twenty front-line production engineers as assistance.

At the same time, Nintendo also needs help Daqian purchase more than 100 professional equipment, which cannot be bought even if you have money. Nintendo must come forward to get it.

Anyway, Nintendo needs to provide all the help to Daqian as much as possible. Boss Jia believes that Nintendo will definitely do it. After all, they are the ones who urgently need N64, and they will not destroy Daqian's production.

"Iwata, the details of the contract have been very complete. We have no objection, but I don't know how much price Iwata is willing to give!" After discussing the details of the contract, the most critical pricing issues remain.

Boss Jia asked lightly.

"Well..." Iwada Satoshi hesitated for a moment, because Nintendo had its own production factory, and the previous production tasks of the console were all completed by Nintendo himself.

Although about 60% of the parts are purchased from suppliers, there is no doubt that these consoles are produced by Nintendo itself.

Therefore, Nintendo has never had the experience of giving the entire machine to others for OEM, so naturally he doesn't know how to quote.

So, Satoshi Iwada began to calculate the cost of producing an N64 himself, which was $152.75.

The N64 is priced at $199, so an N64 has a profit of $46, which seems pretty good.

But this is just an illusion, because the price N64 is not for dealers, after all, dealers also have to make money, so the actual factory price is US$169.

It seems that there is still a profit of $16, but if you include various taxes and fees such as consumption tax, value-added tax, customs duty, etc., then the profit of $16 will be almost exhausted, and Nintendo will even have to subsidize nearly $10 per machine.

It can be said that Nintendo will lose money for every machine sold.

In fact, Nintendo could have set the price a little higher, but the price of PS is $199. If Nintendo is higher than this price, then it will not be competitive in terms of price.

So Nintendo can only lower the price to $199 to compete with PS.

Of course, everyone doesn’t have to think that Nintendo is a fool to do this, because the profits in this industry have never been on game consoles. Almost all game consoles have been sold through the past and the present.

After all, the real profits in the console industry lie in the game itself.

For every game sold by N64, Nintendo can get about $10 in profits, which means that as long as you sell a game, the cost of missing N64 will come back.

After that, every extra game sold will be Nintendo's net profit, and it is obvious that players cannot buy only one game for one game console, so as long as the game console can be sold, Nintendo can make a lot of money.

Ahem, getting back to the point, when it comes to price, Iwada began to think about it. With Nintendo's technology and equipment, as well as the ultimate cost compression strategy, the cost of each machine is nearly $153, so this price is probably difficult to achieve.

Daqian obviously won’t do a losing deal.

Or give him $160?

Iwada Satoshi muttered in his heart, but if this happens, the cost of N64 will be increased by another $7. Yamauchi Hiroshi knows it, and he is afraid he will be beaten to death.

However, even the purchase price of $160 is probably low, because if this order is handed over to other companies to produce, they may offer a price of $200 or more. After all, not everyone can minimize the cost like Nintendo.

But if the price is given at $153, then Daqian will definitely not do it. Hey, how to give the price? It’s so difficult for me!

Iwada Satoshi's heart was full of twists and turns, and finally decided to quote according to his own production cost. If Da Qian thinks it is low, he will talk.

"We can buy each machine for $152!" Iwada Satoshi said at last.

"This is too low!" Boss Jia immediately wailed, "Iwata Jun, you know, we Daqian produces game consoles for you from scratch. We have to spend money to buy new equipment. Your price of $152 is really too low. We can't make money at all, and we have to lose money!"

"Sure enough, the other party refused..." Iwada Satoshi sighed, and felt that his price was a bit too much, so he gritted his teeth and tried to be scolded by Yuki Yamauchi and said, "Then it's $155, this is the highest price I can give, otherwise I really... Alas, Jia Jun, tell me the truth, the production cost of $152 is our own production cost, Nintendo's own production cost. The price I give you is even more than our own production cost. We are already very sincere!"

"This way..." Boss Jia pursed his lips, as if he was in extreme thinking and planning, and finally said, "Okay, we can barely accept this price, but Nintendo must promise us that after the order is completed with 5 million, we must continue to give us N64 orders, and the number of orders cannot be less than half of the total sales of N64."

"Otherwise, I will catch all the equipment I bought to produce N64 and put it there as air!" Boss Jia sighed.

"This..." Iwada Satoshi hesitated for a while, and then said, "If this is the case, the price must return to the price of $152, and the order price must be recalculated every six months. After all, the international electronic components price is constantly falling, and the cost will continue to fall. Our purchasing price must also change. We cannot make N64 at a loss forever."

"Okay, I can promise you!" Boss Jia thought for ten minutes before finally agreeing to Iwada Satoshi, but Iwada Satoshi still needs to ask for instructions from Yamauchi Hiroshi.

Iwada Satoshi thought that when Hiroshi Yamauchi saw this contract, the acquisition price was even higher than his own production price, his eyes would be furious.

However, I didn't expect that Yamauchi Hiro agreed very calmly. I think Yamauchi Hiro also understood that time is the most important cost and I don't want to waste time, so I agreed so readily.

So the next day, the two parties happily signed the contract, and then Boss Jia left Nintendo in a hurry, saying that he was going to arrange the purchase of equipment and raw materials, and that he would negotiate with some suppliers to try to lower the price again.

But what Iwata Satoshi didn't know was that after Boss Jia left Nintendo, he sat directly in his car and ordered his secretary to issue the production plan that had been prepared long ago to various companies under the Daqian Group Army.

In the end, these companies will send the finished products produced to Tianxing Machinery, who will be responsible for the final production and assembly.

There is no way. With the development of these companies, everyone is hungry and many companies have no meat to eat. Boss Jia, as their big boss, must be responsible for finding food for them.

"Chairman, our production costs have been calculated!" A few days later, the secretary handed over a report that was accurately calculated to 5 digits after the decimal point to Boss Jia. Boss Jia lowered his head and looked at it. The final total production cost was US dollars."

"It's still too high!" Boss Jia sighed, then shook his head and said, "Tell me about the company below. You still have to find a way to reduce the cost by $10. After all, all the chips are given to everyone by the head office at the cost price. They can't play tricks with me. I think there is at least $15 in this price. You can't be too damn. Don't think that I'm the boss, so you can bully me!"