…
Silence. The whole office fell into silence. When Olila stood up and was about to open the door to see the guest out, Boss Jia finally spoke!
"20%!" Boss Jia said calmly.
"What?" Olila was stunned for a moment. He didn't understand what this 20% that suddenly appeared meant.
"I mean, I can reduce Nokia's manufacturing cost by 20%," Boss Jia said calmly.
"Are you kidding?" Olila looked at Boss Jia Yapeng as if he was an idiot. "Nokia's manufacturing cost has been reduced to the minimum. No one can reduce Nokia's manufacturing cost by more than 20%!"
"I can!" Boss Jia tapped his finger on the armrest and said in the most unquestionable tone, "According to our market research, Nokia's best-selling model this year is the Nokia 2150."
"The Nokia 2150 in the EU market is priced at 2,459 USD. The actual manufacturing cost is about 1,800 USD to 1,900 USD. Am I right?" Boss Jia asked. Olila did not speak.
Silence was a tacit agreement.
"That's right!" Olila nodded and said, "But it's not difficult to get these numbers. You Daqian also make mobile phones. You can calculate these numbers with a little market research!"
"Then what if I tell you that I can provide you with a Nokia 2150 for 1,400 USD? Would you believe me?" Boss Jia asked with a smile.
"That's impossible. That's impossible!" Olila said without hesitation. As a production company, if they wanted to increase their profits, they could only use the two methods of open source and throttling.
Open source was what everyone had been doing. It was also the most important thing.
But reducing costs was also important.
Nokia had been tirelessly researching how to produce a stable mobile phone at the cheapest price. When the Nokia 2150 was first designed, the manufacturing cost was as high as 2,500 USD per unit.
But after three months of cost reduction, the manufacturing cost of the 2150 was finally reduced to 1,820 USD per unit. For Nokia, this was an achievement that everyone in Nokia was very proud of. This was the highest cost reduction in Nokia's history.
Therefore, Nokia patted its chest and guaranteed that the cost price of $1,820 per unit would not change for at least a year. But now, Jia Yapeng told him that he could produce a 2150 for 1400 USD, saving 420 USD again. How could Olivia believe this?
"I never tell lies!" Boss Jia smiled and said, "If you don't believe me, I can sign an agreement with you. As long as Nokia sells us the GSM baseband at the cost price, then starting from October, I can continue to supply Nokia at the price of 1400 USD!"
"What? Are you saying that you will supply Nokia with the price of 1400 dollars? Aren't you giving me a way to reduce the cost …" Olila realized that she seemed to have misunderstood Jia Yapeng.
"Haha, in fact, Nokia is really good at reducing costs. If the factory is in Finland, then the Daqian will reach this level at most. But if the factory is set up in Hua Xia, the cost of 1400 USD won't be a problem! "Boss Jia laughed.
"I see!" Olila nodded. If the production site of the mobile phone was changed, then it was not surprising that the cost could continue to be reduced. After all, the workers in Hua Xia had very low wages, but the workers in Finland had very high wages. Finland was also a society with high welfare.
But even if the production site was changed, the cost of 420 USD could still be reduced. This still made Olila feel very crazy.
"Are you sure that you can stabilize the supply at 1400 USD?" Olila couldn't help but ask again.
"I promise that Nokia only needs to provide the GSM baseband and a few other parts and technical drawings that Daqian can't produce at the moment. Everything else can be handled by Daqian. Moreover, I guarantee that the price of the goods will be 1400 USD. If the price is lower than this, or if the goods can't be delivered on time, Daqian can compensate Nokia's loss according to the price!"
"These can be written in the contract. We are fair!" Boss Jia added.
"Then the Daqian's GSM communication baseband that Nokia sold to you also has to be sold to you at the cost price!" Olila was silent for a long time and asked this question again. This question made Boss Jia feel relieved. It seemed that the deal was done.
"As long as the profit doesn't exceed 20% of the cost, it's enough!" Boss Jia laughed. "These are two deals. Let's split them!"
"In that case, I won't provide Daqian with the baseband and other parts at the cost price. But Daqian has to provide us with the parts that don't include the baseband at the price of 1128 USD. Nokia can install the baseband ourselves. We don't need Daqian to do it!" Olila pondered for a moment. He felt that if he provided the baseband to Daqian at the cost price, and sold the baseband to Daqian at the 20% profit, then Daqian might play tricks with him.
So Nokia decided to do this deal in a more secure way.
"So, Mr. Olila agreed to sell the GSM baseband to Daqian!" Boss Jia's face finally showed a smile.
"The premise is that you have to guarantee the supply to us at the price. Otherwise, I will immediately stop selling the baseband to you!" Olila said proudly.
"Understood!" Boss Jia laughed.
Aurelia laughed along with her.
Boss Jia was very clear. When Boss Jia told Olila that he could reduce Nokia's production cost by 20%, saving a total of 400 USD, he would definitely win this negotiation.
Any company couldn't resist the temptation of a 20% cost reduction, even if the cost was the possibility of cultivating a strong competitor.
Who cares? Let's earn the profits in front of us first. This was a huge profit of hundreds of millions of USD!
To be on the safe side, when Nokia and Daqian finally signed the OEM contract, Nokia only handed over the Nokia 2150 model to Daqian. Obviously, they wanted to test the quality of Daqian and see if Daqian could really achieve a stable supply.
Boss Jia actually didn't lose out. After Boss Jia and Nokia signed the cooperation agreement, Boss Jia summoned Leng Xexin as soon as he returned to China.
"I got you a good deal!" Boss Jia threw the cooperation agreement between him and Nokia to Leng Xunxin. Leng Xunxin read the whole contract as fast as he could and then said excitedly, "Chairman, you are so awesome. We were just fighting with Nokia a while ago, and now you have got all the production orders of Nokia's mobile phone. We can make at least 400 dollars in profit from this mobile phone!"
"That's right. This Olila thought I was giving him money. In fact, he is the one giving me money!" Thinking of this, Boss Jia couldn't help but start to laugh.
In addition to the baseband, 80% of the parts of the Nokia 5120 had been produced by Daqian. Who knew how much the real production cost was?
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