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Chapter 474 – Good Cop Bad Cop (Part 2)
After Feng Yu finished, he looked at Li Mingde. Li Mingde immediately got the hint. He did give the other party had a chance to speak: “The cars we sold to Russia were much more expensive than what we offered you. Also, we are able to make some profits because of the export tax exemptions. Now, our Machinery Company is not making money, and we might even make losses. We are also not a wholly private company. Other than Manager Feng and Manager Fu, Bing City Government is only a shareholder of the company. We also represent China.”
The other party wanted to say something, but Feng Yu continued: “Our Bing City Machinery Company have employed a few thousand workers. If we include the retired workers and the workers' families, it will be tens of thousands of people depending on our company. If base on what you wanted, we should sell you the vehicles at a loss, then how are we going to pay the workers' salaries? How will our workers' families survive?”
“Manager Feng, listen to me. We have never say that you should sell us the cars at a loss. We only hope that you will lower the prices. After all, we are spending the government's money.”
Feng Yu really wanted to tell him that they are spending our taxpayers' money.
“Then how much do you want?”
“190,000 RMB and it will still be 1 free vehicle for every 10 cars purchased. Also, every 100 vehicles, you have to give us one more luxury edition Olympic model.”
d.a.m.n. This price was almost the Machinery Company's cost of production.
Before Feng Yu could answer, Li Mingde declined this proposal: “Sorry. 190,000 RMB and an additional condition of buy 100 free 1 vehicle are not acceptable. We refuse to accept this! We had made it very clear. Our company also need to feed a lot of people. We would rather not sell our vehicles than to sell our cars at a loss.
Furthermore, it is not like our cars could not find buyers. Other than the Russians, we had received two orders from other cities. Their prices were much higher then what we offered to you. 200,000 RMB per vehicle and 1 free vehicle for every 10 purchases. This is our best offer.”
“Manager Feng, didn't you say that you will support China's military and will give us a good offer? How come you are singing a different tune now?”
Feng Yu pretended to be troubled and looked at Li Mingde: “Old Li, why not we give the army a few more Luxury editions of the Olympic model? We should take up their additional condition of 1 free vehicle for every 100 purchases. We will just accept this loss.”
Li Mingde saw Feng Yu's hand gestures below the table and said righteously: “Manager Feng, you are not the one who call the shots at the Machinery Company. I am the General Manager, and I should be in charge of running the company! How can I answer to the workers if we are going to sell it at such low prices?”
“Old Li, how can you say this? I am the main shareholder of the company, and this is settled. I call the shots in the company! General Gan, let's sign the contract now.”
General Gan and the rest were stunned. What contract? Did we even agree to your terms?
But the generals saw Feng Yu and Li Mingde started to argue. If they continued to press the prices down further, the talks would break down. The higher-ups had told them that the top officials like Songjiang Motors vehicles. They had even praised these vehicles publicly. How can they not purchase a batch of these vehicles?
In the meeting room, the Major Generals who did not even get an opportunity to speak were frustrated. It seems like they no longer had the chance to talk in this meeting!
Li Mingde saw the generals did not agree immediately, he continued with his act: “Manager Feng, you cannot sign this contract. I am the General Manager, and I need to be responsible for the company. Manager Fu also had not agreed to this deal!”
“Eh….. We had agreed that I am the one in charge of sales. Even if Manager Fu is here, he also has to listen to me!” Feng Yu said in an unpleasant tone.
General Gan turned to the one beside him: “The two of you should have a chat with Manager Li.”
Two Major Generals stood up and dragged Li Mingde out of the meeting. On the way out, Li Mingde starts to curse and swear at Feng Yu.
Feng Yu was speechless. This Li Mingde was putting up a performance, or he was taking this opportunity to curse him?
“Manager Feng, those unimportant people had left. Can we continue with the minor details of the contract?” General Gan smiled.
“What minor details do we need to discuss?” Feng Yu frowned. This old man still want to haggle?
“The terms will remain the same. Our purchases are tax-free!” General Gan had said this confidently. This was his final card up his sleeves. Tax-free. You should lower your rates further.
General Gan did not want to mention this term. But he knew that Feng Yu would never lower the price if he did not add in this offer into the deal.
Feng Yu raised his eyebrows. Waive off the tax? If this offer was offered to him two years later, it would be very attractive. But this year, the Machinery Company's automobile arm does not need to pay any taxes!
“I'm sorry. Our automobile factories do not need to pay tax this year!” Feng Yu replied calmly.
General Gan was in a daze. What? They do not need to pay taxes? He turned to the other Major Generals and saw that they were also in shocked!
“Manager Feng, if we are going to purchase more vehicles, can you give us a better price?” General Gan was no longer confident.
Feng Yu tapped on the table: “All of you should know what the actual rate is I am quoting you. It is less than 170,000 RMB. This amount is the same as your estimations of our cost. All of you had seen how Old Li reacted just now. I had only agreed to give you the Luxury version of the Olympic model, and he wants to complain to the Hong Kong shareholder. If I were to lower the price further, how will the workers view me?”
Feng Yu knew clearly that the military could afford to spend money in this era. China had been generous with their military spending. The rates he offered to the military was lower than what he provided to CCTV. If he were to lower the prices further, he would really make a loss.
It was just like what Li Mingde said just now. He would rather not sell than to sell these vehicles at a loss!
Despite getting some additional advantageous from this deal, General Gan was still not satisfied. His higher-ups were willing to accept this price, but it will also reflect the fact that he was not able to bargain it lower.
“Manager Feng, the Machinery Company also make motorcycles, right? The military also needs motorcycles. Why not you give us a few motorcycles as free gifts?” General Gan suddenly thought of this idea.
Feng Yu replied with a painful expression: “Fine. For every 100 vehicles, I will give you a motorcycle.”
“Manager Feng, your business is so successful. Don't be so stingy. For every 100 vehicles, give us 10 Songjiang 125cc motorcycles.”
“Impossible! Two Songjiang 125cc motorcycles are my limit!” Feng Yu replied.
“Add in 2 more Songjiang 100 cc motorcycles. The army will not forget your contributions! We will give your Machinery Company a plaque!” General Gan waved his hand and said.
d.a.m.n. It's only a plaque. You think the Machinery Company is a state-owned enterprise and need these plaques to get projects?
“Unless the army is willing to help us advertise.” Feng Yu threw what he wanted at General Gan.
“Huh? We help you advertise? No. How can the army help your company advertise?!” General Gan was going crazy. How could this Manager Feng make such suggestions?
“I do not need you to say anything. I just need the permission to publish some photographs. For example, soldiers standing beside our vehicles. The vehicles do not need military registration plates and will not state which unit the vehicles are from. Is this not allowed?”
“Ermmm…… Fine. Then for every 100 vehicles, give us one more Songjiang 125 cc.”
“I cannot give you one more Songjiang 125 cc motorcycle. I can only give you one more Songjiang 100cc motorcycle for every 100 vehicles.”