The rise of nanometers

Chapter 75 OEM Contract

A vice president of Midea Group came to Shanmei with his team.

Unlike other companies, they do not want technology licensing, but intend to let Snail Industrial OEM.

So they came a day early.

The headquarters of Snail Industry is currently only a seven-story mixed-structure building next to the highway in Pubian Town, with two office buildings under construction next to it.

Wang Guoqing came here from Foshan very quickly. He was not nervous about this negotiation because Midea itself does not have a pot factory and its products are all OEM.

On the other side of the entrance of Snail Industrial is a construction site with harsh noise, but there is no dust from the construction site. A row of sprayers are set up around the site, spraying water mist continuously.

Regarding Snail Industry, Wang Guoqing had seen the other party's information. It was a wholly-owned subsidiary of Suiren Company and mastered a new technology called "silicon nano-coating".

This new technology has brought a new qualitative change to the other party's non-stick pan products. Even the multi-layer coated non-stick pans produced by the likes of Deutsche Zwilling can hardly compete with Snail's new technology.

That kind of coating that can resist scratching with sharp metal tools suddenly makes the gap between it and the products on the market widen.

Especially after last year's tainted milk incident, the country has gradually become more concerned about the quality of daily necessities.

The perfluorooctanoic acid residue in the Teflon coating and the lack of durability of the ceramic coating have basically become the Achilles heel of old-fashioned non-stick pan manufacturers.

Even the domestic cookware giant Supor has been conducting crisis public relations, but in the face of such quality doubts, even DuPont, which supplies Teflon coating raw materials, has also given some test reports, but they also seem to lack confidence.

Because DuPont's own butt is not clean, the Americans themselves will make a movie "Dark Waters" in the future, specifically to expose DuPont's Teflon factory, which discharges PFOA wastewater directly into the river.

The domestic non-stick pan companies were transferred from foreign industries and naturally inherited DuPont's direct sewage discharge.

Perfluorooctanoic acid wastewater is extremely harmful to organisms. Before improving the process, Teflon coatings generally used perfluorooctanoic acid as an auxiliary agent.

After this incident was exposed by Time Blog, non-stick pan companies came under great pressure, and the market is currently being eroded by the snail industry.

For Supor, one of the competitors, when he saw that the opponent was defeated, he was naturally secretly happy in terms of beauty.

After Chang Fuguo and Wang Guoqing met, they did not mince words and directly stated the conditions of both parties. The conditions offered by Snail Industry were that the OEM price was 75% of the retail price. Deposits were not accepted. The production volume must be determined one month in advance and then the percentage would be paid. Department store items.

Regarding these conditions, Wang Guoqing also felt the tyranny of Snail Industry. However, now that the knife is in the hands of Snail Industry, the conditions are more stringent, but at least the Midea non-stick pan brand can be preserved.

Faced with Chang Fuguo, who refused to back down, Wang Guoqing contacted the headquarters several times during the process. After more than five hours of back-and-forth negotiations, the two parties finally finalized the contract.

The terms of cooperation are also very simple. The OEM fee is 72% of the retail price. Pay first and then manufacture. If the money is not enough, the work will not start.

This is also the general terms of Suiren Company. They do not accept deposits for any orders. This is mainly to guard against those guys who specialize in crooked ways.

When many companies do business, due to the huge competition, they will give buyers many preferential conditions, such as paying a small amount of money to get the goods.

This kind of behavior is actually very dangerous, because once the other party has evil intentions, there is no way to prevent it.

Suppose a buyer defaults on tens of millions of dollars in payment, transfers his goods, funds, and assets, and then calls all suppliers to a meeting and says that our company is going bankrupt. Now I give you two choices.

First, if I file for bankruptcy directly, no one will get a penny.

Second, I will give you some compensation and the debt will be settled.

How do you choose? It is estimated that nine out of ten suppliers can only choose to suffer this dumb loss and write off the accounts with a little money.

Because it is useless to sue, the other party has no money at all, and the real assets have been transferred long ago. This is the trick of Lao Lai.

There are even legal entities and shareholders of some companies who are simply old farmers who are approached by scammers to sue the other party. The old farmers will not only lose their money but also their lives.

As for those who have been executed for breach of trust, they may have never left the local area in their entire lives and are not afraid at all. Will they be restricted from buying firewood, rice, oil, and salt? Obviously, daily life will not be restricted.

The scammer successfully escaped and bypassed his legal liability in all matters.

If you meet someone more sinister, they will even threaten you with the debt and ask the supplier to give him money to make a comeback (make another mistake).

Therefore, in order to avoid future troubles, Suiren Company adopts a no-default transaction method and does not allow buyers and dealers to default on payment.

Even the contract with Norinco requires payment and delivery without giving the other party the opportunity to take credit, because state-owned enterprises are sometimes unreliable. For example, China Railway likes to default on payment.

In this era where money is owed to you, if you don’t want to be someone else’s cash machine, it’s best to clear both money and goods. Even if you lose some customers because of this, it’s not a big deal.

After all, companies that require deposits for goods are likely to have internal problems. Such companies will not cooperate.

After negotiating the contract, Chang Fuguo glanced out the window and found that the sun had set, and the sunset was like an orange-red quilt.

"Mr. Wang, let's have dinner at our company tonight!"

Wang Guoqing thought for a while. He returned from Shanmei at this time and would probably not arrive at the Foshan headquarters until late at night. He nodded: "That will cost Mr. Chang money."

"please."

Assistant Chang Fu Guohe took Wang Guoqing and his party to the Jingye Hotel in Pubian Town. This is actually the canteen and guest house of Suiren Company. It is not open to the public and is exclusively for internal use of the company.

He ordered the hotel manager to prepare rooms for Wang Guoqing and others, and then cooked two tables of Shantou specialties as official entertainment.

"Is the restaurant in this hotel so busy?" Wang Guoqing asked curiously.

Chang Fuguo smiled and replied: "Mr. Wang doesn't know something. This is an internal hotel of the company. These are employees of the nearby Suiren Company."

"That's it." Wang Guoqing suddenly realized.

Arriving at the private room on the second floor, the group sat at two tables, and soon a waiter came to deliver the food.

Chang Fuguo poured a bowl of Luhe tea for Wang Guoqing: "Mr. Wang, try the Shanmei specialties."

Wang Guoqing looked at the green tea soup in the bowl. It was the first time he drank this kind of tea, so he took a sip. As soon as the tea soup was in his mouth, a raw and vegetable flavor filled his mouth, making it easy to swallow.

"Here, this is Luhe Salted Chicken."

"Huh?... Not bad." It was also the first time for Wang Guoqing to eat this kind of home-cooked side dish in an official reception.

The meals on the table are all home-cooked dishes with local characteristics, such as Luhe salted chicken, stuffed tofu, stuffed bitter melon, pickled vegetables and bitter melon and mackerel fish soup, fried shrimp cakes, stir-fried beef with kale and so on.

It’s not the same as those big fish and meat dishes, and there’s no wine either.

As if seeing Wang Guoqing's doubts, Chang Fuguo explained with a smile: "Mr. Wang, our company does not allow drinking on official business. After all, drinking can easily cause trouble. Abalone, ginseng, wing belly and the like are okay if you indulge in them occasionally, but eating them every day is not good for the body." Great."

"Haha, Mr. Chang is right." Wang Guoqing picked up the tea soup and toasted with tea instead of wine.

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