Reborn Xiangjiang as a Tycoon

Chapter 27 Negotiation (Part 2)

Akio Nakanishi spoke up and said: "Lin Sang, we need five years to authorize Xiangjiang Cube. Three years is too short, and we want the exclusive agency rights for the entire RB."

"The time can be negotiated, but the exclusive agency rights cannot."

Lin Baicheng shook his head and said solemnly: "Unless your company is willing to pay an exclusive agency fee and the first order quantity is not less than 10,000 arcade machines, the exclusive agency right will not work."

Lin Baicheng needs to protect his own interests. Otherwise, if Taitung Co., Ltd. just buys a few hundred machines after obtaining the exclusive agency rights, he will be at a loss. Although this possibility seems very small, he has to guard against it.

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"There is no problem with the first batch of 10,000 machines, and we can also pay the exclusive agency fee."

Akio Nakanishi nodded in agreement, and then said: "Lin Sang, your company's arcade machine sells for 5,000 Hong Kong dollars in Hong Kong, but it costs 1,500 US dollars externally. We are ordering in large quantities, so the price needs to be lowered."

Lin Baicheng did not say whether he wanted to reduce the price, but asked: "Mr. Nakanishi, first of all, I want to ask, do you want to buy the whole machine directly, or just the motherboard?"

"As long as the motherboard is enough."

Nakanishi Akio replied and said: "Lin Sang, if I want to make you angry, the machine you made is not up to the industry's first-class level. We will make it again after we take the motherboard back."

"No, Mr. Nakanishi, you are telling the truth. How could I be angry?"

Lin Baicheng shook his head. At the beginning, he only had less than one million Hong Kong dollars to build an arcade machine. Of course, he could not use industry-leading accessories. The cost would be too high. What he said was true.

"Our external selling price for the whole machine is US$1,500, and the most important and expensive part of an arcade machine is the motherboard, so even just the motherboard costs US$1,300."

"1,300 US dollars is too high, Lin Sang, 200 US dollars is not enough for the cost of accessories and labor."

Akio Nakanishi smiled and continued: "And even if it is 1,300 US dollars, based on the current US dollar and Hong Kong dollar 1:4.2, it is nearly 5,500 Hong Kong dollars, which is higher than the price your company sells locally in Hong Kong."

"Mr. Nakanishi, you can't calculate like this."

The one who spoke out this time was Liu Yihui, who said: "As you said, our accessories are average, and Xiangjiang's economic level is not as high as RB's, and labor costs are lower. Most of the cost of an entire arcade machine is

It’s on the motherboard, so $1,300 is not high, we always have to make a little profit.”

"Mr. Nakanishi, after all, your company's first order is 10,000 units, so it can't be justified without a discount, so how about the price of 1,200 US dollars? This is already my lowest price."

Lin Baicheng took Liu Yihui's advice and lowered the price appropriately. After all, the other party had a large order of 10,000 units. And this was not his base price. His base price was US$1,000. After all, the cost price of the motherboard was a little more than HK$2,000, which was less than US$500.

.Even if it only sells for 1,000 US dollars, Lin Baicheng can still make half of it, which is 500 US dollars.

"Well, it's only 1,200 US dollars!"

Akio Nakanishi pondered for a while, then nodded and agreed. In fact, Taito Co., Ltd.'s base price did not have any price reduction, that is, the price of the complete machine was 1,500 US dollars, and the motherboard was 1,200 US dollars. He calculated it secretly, took it back and made it, and then used it.

With better accessories, the cost will still not be higher than $1,500.

Taito Co., Ltd. is very optimistic about the game Xiangjiang Cube, so the general manager Akio Nakanishi came to negotiate the exclusive agency rights in person, and the price offered was very high, in order to avoid the recurrence of the "PONG" incident.

"PONG" is a game developed by the American Atari Game Company in 1972. It uses a simple dot-line interface simulation to play table tennis. It is simple but classic and fun.

At that time, Taito Co., Ltd. had the opportunity to obtain the exclusive rights to distribute this game in RB, but because most people in the marketing and sales department believed that this weird thing with a price of up to 800,000 yen and only a TV and a control keyboard was not acceptable.

It would be popular, so in order to share business risks, Akio Nakanishi lobbied Sega to be a joint agent. As a result, this product achieved unprecedented success, and Taito Co., Ltd. made a lot less money as a result.

Taito Co., Ltd. did not want the same thing to happen again, so after many senior executives were optimistic about the Xiangjiang Cube game, Akio Nakanishi went to negotiate personally and wanted to obtain the exclusive agency rights of RB.

"Lin Sang, how much does your company charge for the exclusive agency fee?"

"We need to discuss this."

Lin Baicheng looked at Liu Yihui but did not give an answer immediately. He wanted to discuss it with Liu Yihui. Although he had a price in mind, he was not sure whether the price was appropriate, so it was necessary to consider other people's opinions.

Akio Nakanishi nodded: "Then I will wait for Lin Sang's reply."

Lin Baicheng smiled and said, "I will give you an answer, Mr. Nakanishi, this afternoon."

The negotiation ended here, Akio Nakanishi and the other three said goodbye and left. Lin Baicheng asked Wu Jianjun and Hideyoshi Yamada to take them back to the hotel.

"Lao Liu, how much do you think we should ask for Taidong's exclusive agency fee?"

After the others left, Lin Baicheng asked Liu Yihui.

"Mr. Lin, although I don't know how much RB's exclusive agency fee is in the industry, Xiangjiang Cube is our first game after all. The most important thing now is cooperation and opening up the market, so I don't think this price should be charged.

Too high."

Liu Yihui did not say a specific price, but conducted an analysis.

"It seems we have the same idea, Lao Liu."

Lin Baicheng couldn't help laughing when he heard this, and said: "But it's always good to make more money. When the time comes, let's test it out with a price of 3 million US dollars and see how Taidong counter-offers. As long as the price is not too low,

We can all agree to it."

"Mr. Lin, why don't you license the anti-piracy software to Taidong? A machine costs 300 US dollars, or even higher. If there are really 100,000 machines in a year, that is at least 30 million US dollars in revenue!

"

Liu Yihui nodded and asked the doubts in his heart.

"You think I don't want to make this money?"

Lin Baicheng shook his head and expressed his worries: "I'm afraid that after licensing it to Taidong, the software will be cracked by Taidong, and then Taidong will bypass us and develop an anti-piracy software. By then, we will receive less than 10% of the licensing fee."

How much, there is a question mark."

"That's true."

Liu Yihui was shocked when he heard this. Thinking about it, this kind of thing is really possible, or it will happen 100%. If he were standing in Taitung Co., Ltd.'s position, he would do the same thing instead of giving it to Galaxy Games every year.

Licensing fees of more than 30 million US dollars.

Earning this money yourself will only make it more enjoyable.

In the afternoon, the two parties met again at the factory office of Galaxy Games.

The price of the exclusive agency fee is US$2.5 million. When Lin Baicheng asked for US$3 million, Akio Nakanishi offered US$2 million. It was good that Lin Baicheng did not insist on US$3 million. Obviously Taito Co., Ltd.'s base price was higher than he expected.

should be higher.

However, in order to successfully negotiate the cooperation, Lin Baicheng chose to reduce the price by US$500,000.

The final cooperation reached between the two parties was that Galaxy Games authorized the five-year exclusive agency rights of Xiangjiang Cube Game RB to Taitung Co., Ltd. for US$2.5 million. Taidong Co., Ltd. ordered an initial order of 10,000 machine motherboards at a price of US$1,200 per unit.

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After the contract comes into effect, 50% of the purchase price will be paid down, 20% of the purchase price will be paid after receiving the goods, and the final 30% of the purchase price will be paid one month after receiving the goods.

Both parties hired lawyers to draw up the contract, and Lin Baicheng signed and sealed it. However, Taito Co., Ltd. required Nakanishi Akio to take back the RB and have the boss sign and seal it before it could take effect.

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(End of chapter)