"Kimura-san, nice to meet you."
"Shirakawa-san is really young and promising!"
Kimura Eiji, with his Mediterranean hairstyle and shiny forehead, greeted warmly as soon as he met me, then leaned forward and bowed 90 degrees.
"You're too polite, Kimura-san. I'm sure you know that Shirakawa Electric is looking for cooperation in electronic components."
Bai Chuanfeng said a few polite words and then went straight to the point. The company was just starting out, so efficiency was the top priority.
"Of course, Kimura came to bother you today just for this matter." Seeing that Shirakawa Kaede went straight to the point, Kimura immediately perked up.
As he said this, he took out a document from his briefcase and handed it to Baichuan Feng.
It contains some introductory information about Kimura Manufacturing, mainly including the company's qualifications, equipment and well-known cooperative clients.
"We have a large customer base at Kimura Manufacturing, and we provide OEM services to well-known brands such as Pioneer and Aiwa."
Kimura half-bent his body and explained to Shirakawa Kaede respectfully.
“ We understand that your company needs circuit board OEM services, which happens to be the area where Kimura Production excels.
If Mr. Shirakawa has any needs in this regard , please consider our Kimura Manufacturing Co., Ltd. ”
While Shirakawa Kaede was flipping through the materials produced by Kimura, he looked up at Kimura-san who had come to him on his own initiative.
The other party had been keeping a low profile since entering the room, and was now looking at Baichuan Feng with a flattering smile.
"Mr. Kimura, please tell us your offer." Shirakawa Feng closed the documents in his hand. The matter of professional ability will be reviewed by Yamazaki Teru and others later.
"Huh!" Eiji Kimura perked up and sat up straight subconsciously.
Then he took out a quotation from his briefcase and gently placed it in front of Baichuan Feng.
"We, Kimura Manufacturing, have developed two OEM plans for your company.
The first is the single OEM model. All electronic components are purchased by your company and we, Kimura Manufacturing, are only responsible for OEM, with each circuit board costing 2,000 yen.
The second is the full OEM model. Your company only needs to provide design drawings and technical requirements.
All electronic components are purchased and manufactured by Kimura Manufacturing. Each circuit board costs 3,000 yen.
At first glance, these two types of OEM seem to be not much different, but in fact, there are many complicated issues involved.
The first type costs 2,000 yen per circuit board, which seems to be a lot cheaper.
But please note that the electronic components on the circuit board are purchased by Shirakawa Electric itself.
Kimura does not participate in the production and only charges a processing fee of 2,000 yen.
If calculated in this way, the cost of each circuit board must also be added to Shirakawa Electric's own procurement costs.
According to Shirakawa Kaede, the cost of an audio chip on a circuit board is about a few hundred yen.
Including other miscellaneous capacitors, resistors, etc., the total cost would be at least more than one thousand yen.
With more than 1,000 yen in material costs and 2,000 yen in processing fees, the price of the finished circuit board immediately exceeded 3,000 yen.
Comparing in this way, it seems that there is no difference from the second option, and it is even more expensive.
So how can Kimura Manufacturing's quotation be profitable in the second full OEM model? After all, the cost of electronic components is real.
The answer is channels.
As circuit board manufacturers, especially OEMs, they control almost all channels of electronic parts suppliers.
For the same brand, the purchase price of Shirakawa Electric and Kimura Manufacturing differs by at least 15%.
To put it bluntly, it is still about making a profit from the price difference. After all, this is what Kimura Manufacturing does, and its demand is several times that of Shirakawa Electric.
So it's not surprising that it can get a low price.
And for Kimura Manufacturing, which option will bring the highest profit?
Of course it is the second one, which not only earns processing fees but also the difference in material costs.
"Mr. Shirakawa, we at Kimura Manufacturing strongly recommend that you adopt the second option.
Not only is the price low, but it also provides one-stop service.
In this way, your company will no longer need to establish additional procurement channels for electronic components, which will save considerable operating costs.
In addition, we at Kimura Manufacturing also have our own technical team. If your company has any technical problems with its products, we can also provide some auxiliary technical support. "
While explaining the differences between the two options in great detail, Eiji Kimura strongly recommended the second outsourcing method.
When doing business, of course you have to maximize profits.
As Baichuan Feng listened to Kimura's explanation, he also had some thoughts of his own in his mind.
"Mr. Kimura, would you like to hear about the third outsourcing option?"
"Ah?" Eiji Kimura was a little slow to react. He subconsciously glanced at his own quotation.
Where does the third option come from? I just introduced only two options.
"Well... the third option, why don't I tell you about it, Kimura?"
Baichuan Feng felt that he always went beyond the rules of his negotiating opponent, which seemed to be a bit too wild.
But making money is not a bad thing. Saving money is making money.
Eiji Kimura looked at Shirakawa Kaede with a strange look. He originally thought that this young president would be easy to deal with.
I didn't expect that he was more difficult to deal with than most of the people I met. As expected, no one sitting in this position is easy to deal with.
"The third option," Shirakawa Feng raised his finger, "Shirakawa Electric can accept the full OEM model, but the price has to change."
Subconsciously, Eiji Kimura wanted to complain, saying that they had no profit at all with 3,000 yen, and so on, and made many excuses.
"Mr. Kimura, please listen to me before you make a decision." Shirakawa Feng signaled him to be patient.
“The OEM method follows the full OEM model, with Kimura Manufacturing taking full responsibility for the production of circuit boards.
Shirakawa Electric only accepts finished products, and once they pass the tests, the acceptance is completed.
But the OEM fee is not fixed price.”
"Not using a fixed price?" Eiji Kimura asked subconsciously.
“Yes, we adopt a tiered approach to setting the outsourcing fees.
If Shirakawa Electric's order volume is less than 10,000 pieces, the OEM fee will be calculated at 3,000 yen per piece.
However, if Shirakawa Electric's subsequent order volume exceeds 10,000 pieces, and the total quantity is between 10,000 and 50,000, then the OEM fee per piece will be reduced by 3% to 5% on the original basis, and so on.
Of course if the order volume is too large, we can also negotiate a termination line.
This will not only ensure the profitability of Kimura Production, but also allow Shirakawa Electric to place orders with confidence.
Anyway, I won't let Kimura-san lose money." Shirakawa Feng kept explaining the benefits of tiered pricing, and those who didn't know would think he was the one promoting it.
As for Kimura Eiji, the more he listened, the wider his eyes became.
What the hell, is this still possible?
It’s a pity that the businessmen in 1979 still retained a trace of simplicity, but Shirakawa Feng had none of that.