C12 Price Reduction

In the following days, Yuehua and his crew flattened the entire area, much to Chenxuan's surprise. Xiuyuan switched tactics, focusing on finding foremen instead of builders. After Chenxuan's suggestion, they negotiated with drivers who specialized in hauling river sand. They offered $4.50 per truckload, with a unified invoice price of $5.00 from the sand yard. The 50 cents difference was the drivers' profit. Some drivers could haul seven or eight loads a day, which equated to an average person's salary. Naturally, they were eager to participate, as cash was more appealing than cigarettes. Plus, this arrangement promised steady income. With cigarettes, who knew when the next opportunity would come?

It was the morning of July 18th. Chenxuan and Xiuyuan set out early to buy equipment. Over the past few days, they had collected $1,800 and scheduled 450 truckloads for delivery. Based on the timeline, they needed to complete deliveries within five months, as construction projects wouldn't wait indefinitely. They aimed to dispatch three loads a day, a target Xiuyuan felt confident about. After all, he and Yuehua could manage two loads manually.

When Zhizhong saw Chenxuan, he quickly stood up. "Mr. Yang, I've been waiting for your call these past few days!" he said, offering cigarettes to both Chenxuan and Xiuyuan.

Yang Chenxuan took the cigarette and said, "Boss Hu, this is our company's technical expert, also named Yang. He's here to check out which model might be the best fit."

Hu Zhizhong quickly nodded, "Oh... great, great! Nice to meet you, Mr. Yang!"

As he spoke, Hu Zhizhong extended his hand to shake with Yang Xiuyuan. Yang Xiuyuan felt a bit awkward; handshakes weren't common in the countryside, something he only saw occasionally on TV.

After the introductions, the three of them examined the machinery. Yang Xiuyuan watched his son and Hu Zhizhong chat confidently, feeling both proud and envious. He wished he could be as self-assured as his son, able to talk to anyone without hesitation.

Having spent decades working in the fields, he couldn't help but feel a bit inferior around small business owners like Hu Zhizhong. Hu was worth millions, a wealthy man by any standard.

As the conversation wrapped up, Yang Chenxuan looked at his father and deliberately asked, "Mr. Yang, which model do you think is the best fit?"

Before coming, they had already decided on the $1,300 model. Feeling slightly uneasy, Yang Xiuyuan replied, "I think this one should do. The more expensive ones are just longer, and we don't need that much length."

Despite Yang Xiuyuan's nervousness, Hu Zhizhong didn't notice anything amiss. He even assumed Yang Chenxuan held a high position, respecting him even more. After all, the way Yang Chenxuan spoke had a certain authoritative air. "Mr. Yang has a good eye! The motors are all the same, but this one has plenty of horsepower. It can easily handle a few hundred pounds."

Yang Chenxuan noncommittally said, "We need to take it back and test it first!"

Hu Zhizhong thought the deal might fall through again. "Alright, last time you mentioned needing motors, right? We have them in stock now!"

Yang Chenxuan smiled lightly, "No rush on the motors. How about selling this one for eight hundred instead of thirteen hundred?"

"Eight hundred?" Hu Zhizhong looked troubled. "Mr. Yang, eight hundred barely covers the cost of one motor! I'd be taking a loss!"

"We're looking to buy ten units in total, but we'll take one back now to test," Yang Chenxuan said with a cheerful smile.

Yang Xiuyuan was taken aback, his hand trembling slightly. Ten units would be thirteen thousand! He already thought the thousand-plus dollars they had was a fortune, let alone thirteen thousand. Besides, did they really need that many?

Hearing they wanted ten units, Hu Zhizhong was also surprised. This was a big customer!

"Mr. Yang, how about this: I won't insist on thirteen hundred. I'll give you a good deal at twelve hundred, and I can provide an invoice!" Hu Zhizhong said, pulling out a pack of cigarettes and offering four, starting with Yang Xiuyuan.

Yang Xiuyuan took one, and Hu Zhizhong smiled, "Good things come in pairs, right?"

Yang Xiuyuan quickly accepted two more.

Hu Zhizhong handed the remaining two cigarettes to Yang Chenxuan. "Mr. Yang, what do you think?"

Yang Chenxuan accepted the cigarettes, understanding that Hu Zhizhong was hinting at a kickback of two hundred per unit. However, with his father present, and Hu Zhizhong thinking he was just a factory technician, he didn't dare to say it outright.

Yang Chenxuan understood the situation and said to his father, "Mr. Yang, could you go buy a couple of packs of cigarettes?"

Yang Xiuyuan was a bit confused at first since he already had cigarettes on him. But when he saw his son giving him a knowing look, he quickly caught on and agreed, turning to leave for the store.

Once his father was gone, Yang Chenxuan put on a troubled expression. "Boss Hu, it's tricky for me to go back like this. I'm happy with the two hundred-dollar kickback, but you need to give me a better price. If someone questions me, I'll get in trouble."

Hu Zhizhong was now convinced that Yang Chenxuan was a leader at some large state-owned factory, but if he lowered the price, he'd earn less.

"One thousand one hundred eighty dollars, that's as low as I can go without losing money," Hu Zhizhong said, feeling the pinch. "Mr. Yang, I've never sold at such a low price before."

"One thousand eighty dollars, and I'll pay a hundred dollars as a deposit right now to reserve a unit," Yang Chenxuan countered.

At one thousand eighty dollars per unit with a two hundred-dollar kickback, it came to eight hundred eighty dollars per unit. Yang Chenxuan had enough money to buy two units, but the machine's productivity and the market's purchasing power were still uncertain.

Paying the hundred dollars now was a gesture of "good faith," to make Hu Zhizhong believe he'd return to buy ten units later, which would help negotiate the price down.

If he didn't end up buying more, losing the hundred dollars wouldn't bother Yang Chenxuan too much. Ultimately, the price would effectively be nine hundred eighty dollars per unit, a reduction of over three hundred dollars.

Hu Zhizhong was convinced, but at $1,080 per unit, there wasn't much profit margin left for him. They sold only a few of these large machines a year, so they needed enough profit to make it worthwhile.

"Mr. Yang, can you raise the price a bit? You've cut it by ten percent, and I'm really left with no profit!" Hu Zhizhong was wavering. After all, Yang Chenxuan was asking for ten units, and even with a smaller margin, the volume could make up for it. Plus, Yang had already put down a $100 deposit, which was a good sign. If Yang didn't follow through, Hu would still pocket the deposit as profit.

Yang Chenxuan understood Hu Zhizhong's thoughts perfectly: "I'll eventually need up to ten units. If you don't take the deal, someone else will."

"Frankly, I could order these ten units directly from the factory, but there's no local manufacturer here. Otherwise, I wouldn't be negotiating with you."

Hu Zhizhong gritted his teeth. "Alright, but please don't mention this price to anyone else. I've agreed with my competitors that the minimum price for a single unit is $1,200, and $1,100 for two or more. I'm already giving you a $200 rebate, and you're only taking one unit this time. I'm really at my limit here."

Yang Chenxuan believed Hu Zhizhong. In the entire city, there were only two suppliers, and they had agreed on the low price. Buyers had to choose between them, which worked in their favor.

In 2019, this kind of machinery would be pretty common, but back in '92, in a small-town setting, it was definitely considered a big deal. Selling even a dozen units a year would be something to celebrate. "Alright, Boss Hu, don't worry about it!"

Hu Zhizhong was quick to respond, "Shall we start with the paperwork then?"

Yang Chenxuan nodded, "Sure thing. Also, could you help me arrange for a vehicle to go to the next county over?"

Hu Zhizhong grinned, "No problem at all! I'll make sure to get you a good deal on the car, Mr. Yang."