Counterattack 1988

Chapter 1474 Variables!

After Wang Lin finished training Deng Dabao, he scolded Mianling and cried again.

The others were a little horrified when they saw it.

In fact, Wang Lin didn't take it to heart, he just talked about it.

It is his consistent style to be strict at work.

After Wang Lin's strict requirements, Deng Dabao, Mian Ling and others really took things seriously in the afternoon.

Even if they got the results of the investigation, they did not report to Wang Lin in a hurry, but carefully verified it, and even discussed it with each other a few times, and then asked Zhou Boqiang for advice.

It was not until the next afternoon that they reported to Wang Lin again.

After listening to the report that day, Wang Lin didn't say much.

After dinner in the evening, he called everyone together for a short meeting.

Because there were not many people, everyone held a meeting in the living room of Wang Lin's room.

Zhou Boqiang asked: "President Wang, have you found the reason why the products of Anfang Factory are not selling well?"

Wang Lin nodded and said, "We'll talk about this matter later. I want to report a major event first. I received a call from Xiangjiang. The international situation has changed suddenly recently. In the next few months, shipping prices may rise. serious."

Zhou Boqiang and others were shocked.

The most concerned thing about foreign trade is the shipping price!
In many cases, sudden changes in shipping prices even affect the success or failure of trade!

Shipping and container prices fluctuate enormously.

For example, in the first half of 2021, the price of sea freight has risen sharply, and the price of containers has risen from more than 2000 US dollars to 2 US dollars.Generally, cabinets must be ordered 2 months in advance, otherwise they may not be available, and the price of the cabinet is not based on the price at the time of booking, but is signed according to the market price one week before delivery.

This involves a lot of business warfare knowledge.

If a company receives a large number of overseas orders when the container price is 2000 US dollars, but because it ignores the increase in international shipping prices, and when he ships the goods, the container price soars to 2 US dollars. at a loss.

For a powerful foreign trade company, take one step and see three steps.

Even if you encounter big fluctuations in shipping prices, you can take timely countermeasures.

In response to rising freight rates, the company should also adjust its strategy in a timely manner, redesign a batch of new products, and appropriately increase the unit price of products to cope with rising costs.

Therefore, at the Canton Fair, there are indeed a lot of external orders, but sometimes, many companies dare not accept orders, especially when encountering large orders, the company will be very cautious when signing orders. On the one hand, we must also consider many factors such as comprehensive freight rates and rising raw materials to measure the size of our own profit margins.

Aixiu Group has been in foreign trade business for many years, and the vice presidents present here certainly know how much fluctuations will be brought about by the increase in shipping prices!
Zhou Boqiang was even more shocked: "Mr. Wang, if the news is reliable, then we have to make adjustments quickly!"

Wang Lin replied calmly: "Jiaxin called me personally, and she has confirmed it from multiple sources. I think the news is reliable. She will come to Huacheng to meet us tomorrow, and she will explain to everyone at that time, Why the price of sea freight has risen sharply in the near future.”

Deng Dabao said: "Mr. Wang, since this is the case, then we have to adjust the prices of the products quickly."

Zhou Boqiang said: "No, the prices of these products we are selling suddenly increase to such a high level, will foreign businessmen not notice it? They have been shopping at the Canton Fair for a while."

Wang Lindao: "Adjusting the price is not the best policy. We can indeed adjust the price, but if others have not adjusted, how do we bill?"

Deng Dabao said: "Mr. Wang, if the price of the container rises too much, we would rather not open an order! The products we sell are low in unit price and large in size, so shipping by sea is not an advantage. If the price of the container is directly How about ten times?"

Wang Lindao: "Mr. Deng's concerns are right. So we need to conduct careful analysis and make corresponding countermeasures."

Cotton Boll said: "Mr. Wang, the increase in shipping prices will inevitably lead to an increase in raw materials. This is predictable."

Wang Lindao: "Yes, what we have to consider is not only the price of containers, but also the rise of raw materials. Although most of the raw materials of our Aixiu Group can be self-sufficient, we still have to be prepared."

Zhou Boqiang said: "Mr. Wang, tell me, what shall we do next?"

Wang Lindao: "For the orders that have been received, we will arrange production and delivery as soon as possible! We will mobilize the production capacity of all companies under the Aixiu Group, and send out the goods before the price of the container rises."

Zhou Boqiang said: "It's not a big problem, we don't have too many orders now."

Deng Dabao said: "Mr. Wang, I think we have to sign the agreement carefully for the next order!"

Wang Lindao: "This is easy to handle. We will use FOB to deliver all future orders."

The buyer pays the freight, also known as FOB, which is the acronym for Free On Board in English, also known as "Free On Board".

FOB is one of the commonly used trade terms in international trade.For transactions conducted on an FOB basis, the buyer is responsible for dispatching a ship to pick up the goods, and the seller shall load the goods on the vessel designated by the buyer at the port of shipment specified in the contract and within the specified time limit, and notify the buyer in time.The risk is transferred from the seller to the buyer when the goods pass the ship's rail during loading.

The expenses borne by the seller are as follows: trailer, customs declaration, and sea freight surcharges, such as THC terminal operation fee, DOC document fee, ISPS security fee, SEAL seal fee, VGM container weight check, etc., as well as expenses incurred due to various reasons , such as customs declaration and inspection, inspection fees, document delivery fees, warehouse rental and cabinet rental fees, etc.

The cost borne by the buyer is the sea freight.

The benefits of doing this are obvious.

Deng Dabao said: "It's okay for us to do this, but we are afraid that the small order customers will be lost."

Zhou Boqiang said: "For the sake of safety, we still listen to Mr. Wang and only do FOB orders!"

Wang Lindao: "We have a shipping company in Xiangjiang. Its business scope is not very wide, but it has been expanding. When Mr. Li arrives tomorrow, she will tell you the areas where the shipping company has business contacts. You must keep it in mind. Come down, within the scope of our own shipping company, we can take orders in other ways. Do you understand?"

Zhou Boqiang said: "Mr. Wang, although it is our company's ship, if the price of the container rises at that time, it will still be our company's money that will be lost."

Wang Lindao: "This is the lesser of two evils. At least it won't lead to nothing."

Zhou Boqiang said: "Mr. Wang, we are such a big company with good news, we should be able to survive this time. I'm afraid other companies will be sad!"

Deng Dabao said: "This news must not be spread outside! We still have to prepare enough raw materials! If everyone in the industry knows, we will not have this advantage. If everyone rushes to buy, the price of raw materials will rise in a few days."

Wang Lindao: "Well, if there is a news channel, we don't need to tell it. People will know it naturally. If you don't have a channel, they will say that you are spreading rumors, and they won't believe it."

Zhou Boqiang said: "We are doing international trade, we are simply relying on the sky!"

Wang Lin laughed and said, "It's enough to have food!"

He suppressed his smile, took out several reports submitted by his subordinates, and said slowly: "Today is the sixth day of the Canton Fair, and the sales of Anfang Factory are not good."

Everyone's emotions also followed Wang Lin's face, ups and downs.

After hearing this, everyone fell silent immediately.

Wang Lindao: "I read your report carefully, and I came to several conclusions. First, the low-end products of Anfang Factory are no worse than other similar products on the market! They are even inferior in terms of materials and craftsmanship. To come out on top."

Deng Dabao said: "Mr. Wang, the quality of our products is definitely not good. Low-end products are not junk products."

Wang Lindao: "Mr. Deng, please listen to me first."

Deng Dabao wiped his face and smiled awkwardly: "Mr. Wang, please continue."

Wang Lindao: "Secondly, the prices of our products are at the upper-middle level among all similar competing products on the market. Some are higher than ours, and many are lower than mine."

Everyone nodded.

Wang Lindao: "Thirdly, our product cannot be sold! It has completely lost to similar competitors."

After finishing speaking, Wang Lin remained silent.

Zhou Boqiang and Deng Dabao exchanged glances, then looked at Tian Jinsheng, Liu Xixian and others.

Tian Jinsheng knew that he couldn't avoid it, so he could only bite the bullet and say, "Mr. Wang, I'm sorry, it's our fault. We didn't do a good job in sales."

Wang Lindao: "What I want is not an apology, what I want is a result. Is there anything you can do?"

With cold sweat in his hands, Tian Jinsheng replied, "Mr. Wang, we will definitely work hard."

Wang Lindao: "You have to take action. The Canton Fair is only nine days away. I want to see your actions."

Tian Jinsheng quickly said yes, and we will discuss ways after the meeting.

Wang Lin asked: "I see that in your report, you mentioned a textile company in Kekexi, whose performance ranked No.1 in the low-end product category. Do you have any information about this company?"

Deng Dabao said: "It's strange to say, Mr. Wang, this Kekexi textile company is coming back to participate in the Canton Fair for the first time! And they specialize in low-end textile products, but I didn't expect them to do so well!"

Zhou Boqiang said: "Ke Kexi Textile Company? Since when did such a company exist in China? A private company? Did it come in through a joint venture?"

Wang Lindao: "When I was wandering around, I saw their stalls. There seemed to be two stalls, right? It didn't look like they came in together. But I didn't pay attention at the time. Is their business so good?"

Deng Dabao said: "They do have two booths, and the booths are not too big, but they can win two booths for the first time, which is very indicative of the problem. I guess that even if this company is newly established, There must be a background. Otherwise, I will check it tomorrow."

Wang Lindao: "Well, I am very interested in this company! It also makes low-end textiles, why can others do better than me?"

(End of this chapter)