121: Cooperation secured, huge profits

Expanding production doesn't mean it takes years to build a factory; as long as the money is in place, everyone knows the speed of construction in China.

After pondering for a moment, Cooker said, "Chen, I agree with your proposal in principle."

"We can pay you a deposit first to use for expanding production, but I want exclusive usage rights for the next three years."

Upon hearing Cooker say this, Lu Weiqi did not understand what he meant by exclusive usage rights.

Did it mean it couldn't be used by other companies besides the Fruit Company, or did it mean only the Fruit Company could use it, and even Red Star couldn't?

"Mr. Cooker, what do you mean by exclusive usage rights?" Lu Weiqi asked aloud.

"Lu, what I mean is that for the next three years, Red Star can only supply us, the Fruit Company, exclusively. You cannot supply battery cells to other mobile phone companies. Of course, this does not include your own Red Star."

Lu Weiqi breathed a sigh of relief. Fortunately, this foreign devil hadn't lost his mind. If he had said that even Red Star couldn't use it, he would have been shown the door immediately. Red Star wasn't some classified startup; how could it be possible that they couldn't even use their own products?

"Chen, however, I'm afraid I cannot accept this price. If the price can be kept within 10 us dollars, I think we can say we have a happy cooperation."

"No, 40 us dollars at the lowest." Chen Chen held firm to this price of 40.

"Chen, I am talking about the price after the production expansion. If it is still this price after the expansion is completed, then there is no need for us to continue talking."

Cooker shook his head. This Chen Chen was really trying to treat the Fruit Company like a sucker. 40 us dollars? Why not just rob them!

Chen Chen stood up and walked to the side with Lu Weiqi, whispering, "Old Lu, if I hold firm at 40 us dollars, will it drive this old devil away?"

"General Manager Chen, the price is too high. Loosen up a bit. In fact, we would make a huge profit even at anything over 10 us dollars."

Chen Chen shook his head. He had finally caught an opportunity to fleece someone, so he had to make the most of it. However, it was likely that the Fruit Company really couldn't accept this price. The lowest price he and Lu Weiqi had discussed two days ago was actually 10 us dollars, which would yield a 100% profit margin. Producing one unit for the Fruit Company would essentially mean the Fruit Company was paying for another unit for Red Star.

After returning to his seat, Chen Chen said to Cooker, "Mr. Cooker, I just discussed it with the CEO of Red Star, and our new quote for you is 28 us dollars. This price is already very sincere."

Cooker kept shaking his head. He had already investigated before coming; the cost for Red Star to produce a single battery cell definitely did not exceed 10 us dollars. After mass production, the price would be even lower. Even adding in research and development costs, they couldn't just open their mouths like lions and ask for 28 us dollars.

"Chen, 12 us dollars."

"26 us dollars."

"12.5 us dollars."

"25.5 us dollars."

Seeing the two of them bickering like children while haggling, Shen Rou translated continuously, while Lu Weiqi held back laughter on the side. It seemed that General Manager Chen was determined to take a slice out of the Fruit Company.

"Chen, 15 us dollars. I need at least 30 million units per year!"

Finally, Cooker became a bit impatient. For someone of his status to be haggling with a small company like this was truly beneath him. Shouldn't this work be done by a procurement officer?!

"Mr. Cooker, 23 us dollars. You have no idea how much capital we have invested in this battery!" Chen Chen still held firm to a high price. It was clear that 15 us dollars was not his limit; if they talked a bit more, he would decisively agree at 18 us dollars.

"17 us dollars, and the Fruit Company will pay a deposit for 1 million units first, um, in full."

"20 us dollars, and you must pay a deposit for at least 10 million units first, also in full."

When they finally talked it down to 19 us dollars, Cooker refused to go any higher, but Chen Chen was already overjoyed in his heart at this price.

The ex-factory price was less than 50 rmb, and it would be even lower after expanding production, while the selling price was over 150 rmb. In other words, as long as the Yangtze River New Energy Company took on the Fruit Company's order, it would instantly transform into a large company with annual revenues of billions or even tens of billions.

The kind with an even higher profit margin than its parent company, the Red Star Group!

Making money isn't shameful. Using the foreigners' money to invest in China's own industries—how could that be called aiding the enemy?

This is called robbing the rich to help the poor! Who told the Fruit Company to have such high profit margins? If I don't fleece you, who else should I fleece?

Moreover, the first batch of full payment for a deposit of 5 million battery cells was also very important. With this money, the Yangtze River New Energy Company could quickly carry out expansion. This is called using the Fruit Company's money to do the Fruit Company's business.

Cooker was now thinking that he would probably have to raise the price of the long-endurance version of the Apple phone by another few dozen us dollars. If the procurement price was expensive, he would just earn it back from the consumers by multiplying it several times over.

The face-slapping scene that had been anticipated did not appear. Those who could reach Cooker's position were not to be trifled with. His mention of acquiring the Yangtze River Battery patent was just a passing remark; if it could be discussed, he would discuss it, and if not, he wouldn't.

There was no such thing as relying on the Fruit Company being a big corporation to directly force Red Star to transfer technology. If that were done, the Fruit Company's reputation would likely be ruined.

In the future, if any company had new technology, how would they dare to cooperate with the Fruit Company?

The details of the cooperation still needed to be negotiated by specialized personnel from both sides, but the general framework had already been agreed upon.

The Fruit Company would pay a deposit in full for 5 million battery cells to the Red Star Yangtze River New Energy Company at a price of 19 us dollars (tentative; details will be discussed to two decimal places), with an annual procurement volume of no less than 30 million units. For the next 3 years, Red Star may not sell Yangtze River Battery or battery cells to any mobile phone company other than the Fruit Company (Red Star's own usage is not restricted).

In addition, Red Star must provide no less than 3 million battery cells to the Fruit Company before March 2014, and Red Star must also complete the first phase of factory construction and start production before August 2014.

Chen Chen could understand these additions, especially the part about starting production and supplying before August. Normally, the Fruit Company's autumn launch event is in September or October. Before the launch, the new phones would start mass production, naturally requiring Red Star to provide battery cells.

After seeing Cooker off, Chen Chen and Lu Weiqi burst into laughter right in the meeting room.

They had really made a killing!

Calculating based on 30 million units per year, the Yangtze River New Energy Company alone could bring the company billions in profit!

And the initial construction didn't even require Red Star to pay a single cent!

With sufficient funds, the Yangtze River New Energy Company could proceed to the next stage of development, increasing research and development for other battery models and constructing production lines, laying a certain foundation for future Hongxing Automobile.

However, just as Red Star was discussing the expansion of the factory construction internally, a piece of gossip began to circulate on the internet again.

The cause was that someone had photographed Cooker leaving Red Star, looking radiant in the car. No one knew what had made him so happy.