Gu Qing Company, founded by Mr. Gu with national capital, mainly exports bulk bristles. However, due to weak funds and lack of guarantee of fair competition, it has been unable to obtain the export trade that it relies on for survival and development for a long time. a place.
After being unable to succeed with the "close attack" for a long time and unwilling to accept the challenge, Mr. Gu thought of "distant friendship" and wanted to find friends and form trading partners among American businessmen who are the world's major marketers of bristle. He traveled across the ocean to inspect the American market. After many twists and turns, he finally got in touch with the "Kong Company" known as the American bristle king, and began negotiations to determine the fate of Guqing Company.
"Bristles are my country's main export product, and many companies in the United States are involved." Mr. Gu started by stating the business situation.
“Our company is aware of this.” President Kong Company responded smoothly.
"Your company is the largest enterprise dealing in bristle in the United States. It does not seem to be directly involved in the trade of Chinese bristle." Mr. Gu approached the core issue.
"We have several agencies and intermediaries engaged in this trade, many of them are you Chinese. Although our company did not directly send people to operate it, we finally achieved benefits." explained Kong Company President road.
“I firmly believe in this. But agencies and intermediaries have their own interests to consider. If they care too much about their own interests, they will not choose the best quality products and the most suitable prices. Because buying mid- to low-grade goods at low prices and then selling them at mid-to-high-end prices will make more money,” Mr. Gu clarified the essence of the problem.
"You mean that our company ended up buying goods that were not of the best quality at a higher price?" President Kong Company asked seriously.
"That's right. Please see, this is a sample of our company. Our company has been supplying this kind of bristle to customers. If you are interested, please take it to your company for comparison." Mr. Gu said Just handed over the sample.
The president of Kong Company took the sample and saw that it was indeed neat, flexible and shiny. He asked with satisfaction: "Can you guarantee that the goods you provide are the same as the sample?"
"We can definitely do this." Mr. Gu said with certainty.
The agreement was successfully reached. Mr. Gu then requested a loan of US$1 million from the president of "Kong Company", using the company's assets as collateral, and guaranteed that it would be used for bristle production and would not be used for other purposes.
After Guqing Company obtained this revolving credit loan, it immediately increased its capital turnover strength. Since then, it has continued to win in the export trade of high quality and low price, and two years later it became the main producer of bristle in China. Exporters made "Tiger Brand" bristles quickly famous overseas. For a time, whenever Chinese bristle is mentioned in the international market, the first thing that foreign businessmen think of is "Tiger Brand".
After "Gu Qing Ji" and "Kong Company" cooperated for a period of time, both parties wanted to burn bridges, get rid of each other, and monopolize the international market of pig bristles. After several secret encounters, the battle became increasingly clear: the American "Kong Company" wanted to find a better cargo owner; the Chinese "Gu Qingji" wanted to find the best buyer. Although both parties wanted not to break up for the time being, during the negotiations, "Kong Company" relied on its tough status as the American bristle king and was determined to bully the weak; "Gu Qingji" did not accommodate or beg, and insisted on fairness and mutual benefit. Both sides are unwilling to give in, and the deadlock is obviously difficult to break.
Mr. Gu is determined to strike first and then go to the United States to fight a decisive battle close to his opponent in order to gain profits nearby. Based on its strength in exporting bristle in recent years and the quality and reputation of its bristle, Mr. Gu chose "Ocean Company", a strong competitor of "Kong Company", as the target of negotiation.
“I want to find a better buyer for Tiger Bristle.” Mr. Gu said straight to the point.
"If you cooperate with us, Mr. Gu, what do you want to get?" the president of "Ocean Company" asked.
“Fairness means the equality of interests and obligations of both parties.” Mr. Gu said clearly.
"How can we realize this wish?" the president of "Ocean Company" asked again.
“Joint operation allows the inputs and outputs of both parties to correspond. In other words, invest more and receive more, invest less and receive less.” Mr. Gu said without being humble or overbearing.
"Wouldn't it be great to be like the Kong Company in the past? The Americans will pay and the Chinese will deliver the goods. Of course, the proportion of the share can be changed, how about it?" The president of "Ocean Company" is greedy for simplicity. say.
“There is a flaw in the past approach. Both sides think they have the advantage of controlling the other party, and both want the other party to benefit less.
We want to form an equal trade relationship with your company to change this situation. "Mr. Gu said frankly.
"I don't see what benefit it will bring to both parties after the change. "The president of "Ocean Company" did not let go.
"The benefits are obvious. You bought the best goods, we found a good buyer, and both parties share the monopoly advantage of Tiger Bristle Management. . Don't your company want to win in the competition with "Kong Company"?" Mr. Gu said confidently.
"Please talk about your plan. "The president of Ocean Company asked a little relaxedly.
"Both parties will invest half of the money to establish Sino-US Ocean Company. We are responsible for the purchase and processing of bristles, and you are responsible for transportation and sales, sharing the profits equally. "Mr. Gu explained his idea completely.
"Compared with the two, transportation and sales have heavier responsibilities, and the profits should be shared more. "The president of "Ocean Company" said in a bargaining manner.
"I think that for trading partners, it is not necessarily appropriate to get a little more from the other party, and it is impossible to get a lot. There is another better way, which is to make full use of the market advantage of the monopoly Tiger Mane and strive for excellent prices. In this way, the profits will be greatly increased and the share of sharing will also increase. "Mr. Gu argued hard.
"That's it. But the inputs of both parties are different, and the outputs should also be different. Haven't you repeatedly emphasized fairness? Why don't we start from now?" The president of "Ocean Company" insisted on his own opinion.
"Yes We have different estimates of the proportion of investment in supply and sales. But this is not the most important thing. The most important thing is friendly cooperation and equal treatment for others. We believe that your company has this sincerity. To show our sincerity, we can lower the share ratio, just 48% to 52%. Please stop bargaining. "Mr. Gu said magnanimously.
"Okay! We will draw up a joint venture agreement as mentioned today. "The president of "Ocean Company" smiled with satisfaction.
Sino-American Ocean Company was quickly established. In order to increase capital investment, Mr. Gu used famous brand products to obtain several low-interest credit loans from American finance, allowing Tiger Mane has been put into the international market in greater quantities, and the price has been increasing year by year through associated companies.
Under the established market situation, it is business to attack nearby competitors and be friendly to potential enemies far away. It is a good strategy to distinguish objects and treat them separately in negotiations, but when implementing them, it must be reasonable and natural as the ancient art of war reminds us.