Chapter 90 – Technology is most profitable
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Although Feng Yu was not a professional in sales, he had the advantage of the knowledge of future years. Thus, even if he was not able to create some sales miracles but he will never make a loss.
Feng Yu had asked Wu Zhigang to contact the sugar and animal feed dealers from other provinces. The focus on soybean oil was only temporarily. He was confident that this business would be profitable for at least 3 to 5 years.
Before Feng Yu started to promote his sugar, the machines he ordered for the Machinery Factory arrived at Bing City.
Li Shiqiang went to the village and brought the three experts back to Bing City. They were no longer needed at the factory, but Feng Yu still needed them.
“Director Li, the production line had arrived. Please send someone to collect it.”
Li Mingde sprang up from his chair. He was waiting for this news for the many days.
“That’s great. I will ask my men to go over immediately.”
“Director Li, this is the procurement list from our company. Please take a look and make payments.”
Li Mingde was shocked. Why would Feng Yu show him the procurement list? This way, he would know the actual cost of the machines.
Although even if Feng Yu does not tell him about the actual costs, he got his ways to find out. But this was two different things.
Li Mingde took the list from Feng Yu and was surprised that the machines were so cheap!
He could not understand that since the machines were so cheap, even if Feng Yu increased the prices by 20%, he would also agree to it. The budget he got from the City Government was not a small sum.
“Mr. Feng, how much should I pay your company?” Li Mingde asked. If Feng Yu wanted 10%, he would agree to it on the spot. But if Feng Yu wanted more, he would ask the City Government to pressurize him. If he was able to save for the Machinery Factory, that means he was saving money for the City Government.
“It was written on the list. All the equipment cost 2 million Rubles, the transportation and taxes cost 400,000 Rubles. Total will be 2.4 million Rubles. Don’t tell me Director Li does not want to pay? If you don’t want these machines, I can sell these for 3 million Rubles to the factory in Lin Province.”
“I want. Who said that I don’t want these machines? I will send you the money later. No, I will ask my men to transfer the money to you now!”
Li Mingde knew that Feng Yu was not bluffing. Even if these machines were priced at 4 million Rubles, there were a lot of factories queuing up to buy from him. But why didn’t Feng Yu inform him before the machines arrive? He could ask his leaders to make the appropriate arrangements to avoid taxes.
Feng Yu smiled and waved his hand: “No hurry. I have a question. Did any of the staffs in your factory studied in the Soviet Union before? No? Then did anyone of them worked in the Soviet Union before? No? Then can you all handle the setup and calibration of these machines?”
Li Mingde was embarrassed. What Feng Yu said was true. These machines were more advanced than those in his factory. He was not confident of doing the setup and calibration of these machines themselves. Seems like he can only ask his leaders for help to send some engineers from the bigger factories over.
“We will be able to sort this out.”
Feng Yu nodded. This was as what he expected.
“Oh yes, Director Li. I had also purchased a batch of agricultural machines production technology. It includes the design and blueprints of tractors, seeder, rotary tiller, harvester and other types of machines. Are you interested?” Feng Yu asked.
Li Mingde’s breathing grew heavy: “Mr. Feng, are you serious? You have the technologies for these machines?”
“Yes, and not only that. I had also hired 3 experts in machinery design and fabrication. Not only they can help you with the setting up of the production lines and calibration, but they can also help you upgrade your existing machines. Of course, they can also teach these new technologies to your engineers!”
“Then I can only thank you. On behalf of the 800 staffs of the Machinery Factory, I thank Mr. Feng ……”
“Wait a second. Don’t thank me first. Like I said earlier, I had spent a lot for these technologies and had paid high salaries for these 3 experts. Director Li really want to take these away for free?” Feng Yu was frustrated. Didn’t he make it very clear just now? All these costs a lot. Why was Director Li thanking him for?
Li Mingde laughed embarrassedly: “How much more do we have to pay for these technologies and the 3 experts?”
Feng Yu had a satisfied look on his face. That’s right. I did not earn from these machines, and you thought I am running a charity?
“Not expensive. The total is only 3 million Rubles. These 3 experts can work for you for six months, and they will leave after that.”
“How much? 3 million Rubles? Mr. Feng, you can’t ask for such high prices!” Li Mingde was astounded. He did not expect these technologies and the experts to cost more than the machines!
“How was this price too high? If Director Li is not interested, you can tell me straight. I had spent a lot for these technologies and experts, and I did not even earn from you. It is only 3 million Rubles, and our Bing City’s Machinery Factory would be ahead of the whole China and even the whole world with regards to the production of agricultural machinery. Furthermore, there are three experts included to guide you. This is a good thing, and you still feel that this is expensive?” Feng Yu said with a shocked expression on his face.
Actually, these technologies and the machines cost a total of 2 million Rubles. Although these machines were advanced, they were not the latest technology. Kirilenko had quoted Feng Yu 800,000 Rubles for these machines, and 120,000 Rubles was for the technologies’ documents and blueprints.
Of course, Kirilenko had gotten these for much lesser. If these technologies were sold on the open market, it would be sold for much more than 3 million Rubles.
Feng Yu had asked Kirilenko to include the technology prices together with the machines. Although the taxes for doing this would be higher, this would hide the cost of the technologies. It was also not easy for Kirilenko to get his hands on these and there were risks involved too. In future, they might not have the chance too. How could Feng Yu miss this opportunity to make some profits?
“Mr. Feng, we are all Bing City’s citizens, and this was for the good of the city. Can’t the price of the technologies be lower?”
Now Director Li wants to talk about relationships? Who was the one who backstabbed Feng Yu earlier?
“Aiya, I suddenly remembered that I have to make a trip to Lin Province tomorrow. I need to rest early today. So, if there is nothing else, I will make a move.” Feng Yu said and stood up.
Li Mingde stretched out his hands and pressed Feng Yu’s shoulders, pushing him back into the chair: “Mr. Feng, we had not finished discussing yet. Please stay for a little longer.”
Feng Yu said with an angry expression: “What’s there to discuss? You are the one who thinks that this is expensive. No problem. I also felt that the price is a bit high. Maybe those Soviets had cheated me. I will go to Lin Province to ask the factories. If they are also not willing to buy, I will think of ways to refund these. Humph, what “more advanced than China by ten years”, I will not do these types of business with them again!”
“No, no, no. Mr. Feng, please wait for a while. I need to make some calls first. Please stay for lunch at our canteen. I will give you an answer later in the afternoon!”
Feng Yu “reluctantly” agreed to wait for Li Mingde’s good news.
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