Reborn Xiangjiang as a Tycoon

Chapter 42 Earn half a small goal

"The exclusive agency fee is US$5 million, the purchase price of 10,000 machines is US$14 million, and the total expenditure is US$19 million."

"At present, Atari's arcade machines are the most sold in China. One unit costs 2,500 US dollars, which is 800 US dollars higher than the lowest price of 1,700 US dollars. There is a brand premium. But even so, the highest price of other brand arcade machines is 2,200 US dollars."

Dollar."

"We have put the game "Xiangjiang Cube" in arcade stores and observed that there is an endless stream of people playing it every day. According to the questionnaire survey, players have unanimously praised it, and all ages like this game."

"We don't sell arcade machines to arcades at the highest price for Atari arcade machines. Even if we sell them at the lowest price on the market, $1,700, we can still make $300 per machine."

"Not counting the purchase price, and not counting additional expenses such as human resources for the time being, our cost is only US$5 million in exclusive agency fees. As long as we sell less than 20,000 machines, we can recover the capital."

"In the current domestic game market, any good game can sell 50,000 units a year. With the popularity of this game, it will not lose to those games at all. It is entirely possible to sell this amount."

"Besides, what we just said was to sell it to the game arcade for the lowest price of 1,700 US dollars, but we will definitely not sell it at this price. 2,000 US dollars is a suitable number. If we sell it for 2,000 US dollars, we can make 600 US dollars for one unit.

, we have already started making money by selling all the 10,000 units we received.”

"Even if the prediction is wrong and the game is not as popular as we predicted, as long as the total sales volume in five years is 10,000 units, then we will not lose money and this business can be done."

"Uncle Tony, what do you think?"

There are some estimated data listed on the paper. Phil Smith likes it as much as he likes it. The arcade machines here in Xiangjiang are really cheap, much cheaper than the price the company gets from Atari and other game companies. Moreover,

More importantly, when purchasing products from Atari and other game companies, you can only get agency rights in a few states, and don't even think about exclusive agency rights nationwide.

"Listening to what you said, this business has a high possibility of making money. I even want to be an agent."

Tony Brown smiled, and then reminded in a low voice: "But the premise is that the game can be popular. Although the players we surveyed in the early stage really like this game, after all, the players surveyed are limited. After expanding the scope to the whole country, there will be

It's hard to say whether it will be popular or not. Once sales are blocked, your loss will be tens of millions of dollars."

"Uncle Tony, you know that I like the game industry, and I like playing games even more. I believe this game will not let me down."

Phil Smith understood what Tony Brown meant. Because he didn't like the traditional industry run by his family, he had received $50 million in support from his father early, which was equivalent to dividing the family. If he lost the money,

Then he can only live on the family fund in the future. The family fund can ensure that he can live a life without worries about food and clothing, but it cannot make him a rich man with control of capital.

Of the US$50 million, Phil Smith spent more than US$10 million to acquire the agency. If he loses more than US$10 million here, he will have less than half of the money left.

Having made the decision, Phil Smith said to Lin Baicheng: "Mr. Lin, I am willing to pay US$5 million for the exclusive agency rights in North America for five years and order 10,000 machines for the first time."

"Nice to work with, Mr. Smith!"

Lin Baicheng did not increase the exclusive agency fee. He stood up happily and extended his hand to Phil Smith.

“A pleasure to work with!”

Both of them shook hands happily.

After the two sat down again, Lin Baicheng said: "Mr. Smith, regarding payment, you must pay the exclusive agency fee after signing the contract, and 50% of the cost of 10,000 machines must be paid first after the contract is signed.

An additional 20% will be paid after the goods arrive, and the final 30% will be paid one month after receiving the goods.”

"That's no problem."

When it comes to fee payments, Phil Smith doesn't bargain.

Lin Baicheng continued: "Furthermore, we will not be able to deliver the goods until three months later. We need to discuss this with Mr. Smith first."

"Three months later? Isn't that too long?"

This time, Phil Smith couldn't help but frowned. He said, "Mr. Lin, can't we advance the delivery time?"

Lin Baicheng shook his head: "Mr. Smith, we need to ship the goods according to the order time. Taidong Co., Ltd. and other orders place orders earlier."

"Well"

Phil Smith pondered for a moment after hearing this, and then said: "Mr. Lin, what if I pay all the payment to your company in one lump sum after signing the contract?"

"Then I will start shipping in one month at the latest, and maybe half a month at the earliest, and try to complete the delivery within one month of starting shipping."

Lin Baicheng was a little surprised when he heard this. After making a secret estimate in his mind, he gave an approximate time. If Phil Smith was willing to pay all the costs at once, he was also willing to ship the goods in advance.

"Okay, then it's settled."

Phil Smith didn't even think about it this time. Since he wanted to bet on the game "Xiangjiang Cube", he didn't mind making a bigger bet and paying all the fees in advance.

Of course, Lin Baicheng was happy to be able to get all the money in advance. He just calculated that in addition to the agency fee of 5 million US dollars, he could earn 8 million US dollars from the 14 million US dollars for 10,000 machines.

With the increase in orders, Lin Baicheng's price from parts suppliers has also decreased. With more than 10,000 units, the cost can be brought to 600 US dollars for a complete machine. However, this is almost the lowest price. If it is lower, it will cost more.

If you buy 50,000 machine parts at once, the cost should be able to be reduced even further.

The total profit is 13 million U.S. dollars. If converted into Hong Kong dollars, based on the exchange rate between U.S. dollars and Hong Kong dollars of 1:4.2, it is nearly 55 million Hong Kong dollars.

One cooperation is an income of half a billion yuan.

After the verbal negotiation, Lin Baicheng called a lawyer to formulate a contract based on the contract signed with Taitung Co., Ltd.

Phil Smith came with a lawyer, and after lawyer Tony Brown determined that there was no problem, he signed the contract and stamped it.

After the two parties signed the contract and officially reached the cooperation, Phil Smith contacted Los Angeles and asked the finance department to transfer US$1,900 to Starship Games' Standard Chartered Bank account.

International remittances are not that fast, and Phil Smith is not ready to return to Los Angeles immediately, so Lin Baicheng personally entertained Phil Smith to visit famous attractions in Hong Kong.

Because the two were close in age and both wanted to make each other's friends, they quickly became familiar with each other and became verbal friends. As for whether they can become real friends, it depends on their future interactions.

.

(Please collect, recommend and invest!)

(End of chapter)