Reborn in Hong Kong as a Tycoon

Chapter 42 Earning Half a Small Goal

"The exclusive agency fee is 500 million US dollars, the purchase price of 1400 machines is 1900 million US dollars, and the total expenditure is [-] million US dollars."

"Currently, Atari's arcade machines sell the highest in China. One set costs US$2500, which is US$1700 higher than the lowest price of US$800. There is a brand premium in it. But even so, the highest price of arcade machines of other brands is also sold at 2200. Dollar."

"We have observed the game "Xiangjiang Cube" in an arcade store, and there is an endless stream of people playing it every day. According to the questionnaire survey, the players have unanimously praised it, and all age groups like this game."

"Let's not sell arcade machines to game halls at the highest price of Atari arcade machines. Even if we sell them at the lowest price of $1700 in the market, we can still earn $300 per machine."

"Not counting the purchase price, and not counting additional expenses such as human resources for the time being, our cost is only 500 million US dollars for the exclusive agency fee, as long as we sell less than [-] units, we can get back the cost."

"In the current domestic game market, any good game can sell [-] units a year. With the popularity of this game, it will not lose to those games at all. It is entirely possible to sell this amount."

"Besides, what we just said is to sell it to the game hall at the lowest price of 1700 US dollars, but we will definitely not sell it at this price. 2000 US dollars is a suitable figure. And if it is sold at 2000 US dollars, one can earn 600 US dollars If we sell all the [-] units we got, we will start making money."

"Even if the forecast is wrong and the game is not as popular as we predicted, as long as the total sales volume in five years is [-] units, then we will not lose money, and this business can be done."

"Uncle Tony, what do you think?"

There are some estimated data listed on the paper. How Phil Smith likes it, the arcade machines in Xiangjiang are really cheap, which is much cheaper than the company's price from Atari and other game companies.And more importantly, getting goods from Atari and other game companies can only get the agency rights of a few states, and the exclusive agency rights in the whole country are even unthinkable.

"Listen to you, this business has a high possibility of making money. I even want to be this agent."

Tony Brown smiled, and then reminded in a low voice: "But the premise is that the game can be popular. Although the players we surveyed in the early stage really like this game, after all, the survey players are limited. Whether it will be popular or not is hard to say. If the sales fail, your loss will be tens of millions of dollars."

"Uncle Tony, you know that I like the game industry, and I like playing games even more. I believe this game will not disappoint me."

Phil Smith understood what Tony Brown meant. Because he didn't like the traditional business run by his family, he received 5000 million dollars in support from his father early on, which was equivalent to separating the family. If he lost the money, then He can only rely on family funds to live in the future.The family fund can guarantee him a comfortable life, but it cannot make him a rich man with capital.

With 5000 million US dollars, Phil Smith spent more than 1000 million US dollars to acquire the agency company. If he loses more than 1000 million US dollars here, then his remaining money will be less than half.

With a decision made, Phil Smith said to Lin Baicheng: "Mr. Lin, I am willing to win the exclusive agency right in North America for five years for US$500 million, and order [-] machines for the first time."

"Congratulations, Mr. Smith!"

Lin Baicheng didn't increase the exclusive agency fee, stood up very happily, and extended his hand to Phil Smith.

"Happy cooperation!"

Both of them happily shook hands.

After the two sat down again, Lin Baicheng said: "Mr. Smith, regarding the fee payment, you must pay the exclusive agency fee after signing the contract, and you must pay 50% of the cost of 20 units after the contract is signed. Pay 30% after the goods arrive, and the final [-]% payment needs to be paid one month after receiving the goods.”

"That's no problem."

Regarding the payment of fees, Phil Smith did not bargain.

Lin Baicheng continued: "What's more, we won't be able to deliver the goods until three months later. I need to talk to Mr. Smith about this first."

"Three months? Will it be too long?"

This time, Phil Smith couldn't help but frowned, and he said, "Mr. Lin, can't we advance the delivery time?"

Lin Baicheng shook his head: "Mr. Smith, we need to deliver the goods according to the order time. Taito Co., Ltd. and other orders are placed earlier."

"Uh"

Phil Smith pondered for a while when he heard the words, and then said: "Mr. Lin, what if I pay all the purchase price to your company in one lump sum after signing the contract?"

"Then I will start shipping in one month at the latest, maybe half a month at the earliest, and try to complete the delivery within one month of starting shipping."

Lin Baicheng was a little surprised when he heard the words, and after secretly estimating in his heart, he gave an approximate time.If Phil Smith is willing to pay all the expenses at one time, he is also willing to ship to the other party in advance.

"Okay, then it's settled."

Phil Smith didn't even think about it this time. Since he wanted to gamble on the game "Xiangjiang Cube", he didn't mind betting bigger and paying all the fees in advance.

Of course Lin Baicheng was happy to get all the money in advance.He just calculated that in addition to the agency fee of 500 million US dollars, he can earn 1400 million US dollars out of the 800 million US dollars for [-] machines.

With the increase in orders, Lin Baicheng's price for getting goods from parts suppliers has also decreased, and more than 1 units can completely reduce the cost to US$600 for a complete machine.However, this is almost the lowest price. If it is lower, you will have to buy [-] machine accessories at a time. At that time, the cost should be able to drop even further.

It adds up to a total of 1300 million U.S. dollars in profits. If converted into Hong Kong dollars, based on the exchange rate of 1:4.2 between U.S. dollars and Hong Kong dollars, it is nearly 500 million Hong Kong dollars.

One cooperation is half a billion in revenue.

After the oral negotiation was completed, Lin Baicheng called a lawyer to formulate the contract using the contract signed with Taidong Co., Ltd. as a sample.

Phil Smith came with his lawyer, and after the lawyer Tony Brown confirmed that there was no problem, he signed and stamped the contract.

After the two parties signed the contract and formally reached a cooperation, Phil Smith contacted Los Angeles and asked the finance company to transfer 1900 US dollars to the Standard Chartered Bank account of Galaxy Games.

The speed of international remittances was not so fast, and Phil Smith was not planning to return to Los Angeles immediately, so Lin Baicheng personally entertained Phil Smith and went shopping at the famous scenic spots in Xiangjiang.

Because the two are close in age and both want to make friends with each other, the two quickly got acquainted and became friends verbally.As for whether they can truly become friends, it depends on the future relationship between the two.

　(For collection, for recommendation, for investment!)
　　


(End of this chapter)