Chapter 860 – Curiosity kills the cat
Before Zhong Qingxian reply, someone by his side asked. “Chairman, this price is too high. Even without adding the cost of the recipe, the production cost of each instant noodle is 2 RMB. How much should we set the retail price? At least 5 RMB? Currently, the retail prices of instant noodles in China is between 0.60 to 2 RMB. Our cost is higher than other brands’ retail prices. How are we going to make money?”
Zhong Qingxian kept quiet. He had thought about the pricing of their instant noodles before and felt if Lehaha is to selling instant noodles, it must be more expensive than Kang Shifu!
Furthermore, the noodles in this packet of instant noodles and flavoring powder packages are bigger. All these can be reduced, and the cost can be lowered to below 2 RMB.
Lehaha already has existing distribution networks. Those beverage distributors can also help them sell instant noodles and there is Tai Hua Supermarkets. These are all Lehaha’s advantage.
The problem now is the price of this recipe. How much should he offer, and what’s the relationship between those two Japanese and Feng Yu?
Feng Yu did not say a word and sipped on his tea slowly. He acted like he was here to introduce both parties, but Zhong Qingxian doesn’t think so.
Feng Yu had brought these two Japanese over personally, and this tells a lot about his attitude. Although the final decision maker in Lehaha is Zhong Qingxian, Feng Yu is the major shareholder. Feng Yu’s assets are several times more than him and it is not a wise idea to offend Feng Yu.
“Manager Feng, how much do you think this instant noodle recipe is worth?” Zhong Qingxian asked.
“Just offer what you think is a reasonable price. I am only introducing them to you, and I won’t interfere with your decision. I got nothing to do with this Qianqian Ramen.” Feng Yu laughed and shook his head.
Zhong Qingxian was relieved. Since Feng Yu is not related to Qianqian Ramen, then it will be easier for him to negotiate.
Zhong Qingxian stood up and walked aside to discuss with the rest of the higher management staff. After 5 minutes, he returned.
“Mr. Mugawa Jiro, Lehaha is willing to buy out these two recipes. We will offer 4 million for your noodle’s recipe and 2 million for each of the flavoring. The total is 8 million RMB.”
“Mr. Zhong, we need to inform you that we are willing to sell these recipes, but we also want the right to use it. However, we will not sell these recipes to anyone or any companies. Our products will also not be exported to China.” Kameda Masao explained.
“Ok.” Zhong Qingxian does not intend to sell his instant noodles overseas and even if he decided to do so in the future, this small instant noodle company is also no match for Lehaha.
“This pricing is lower than what we expected, but Mr. Mugawa Jiro is willing to accept it.” Kameda Masao said to Zhong Qingxian after he discussed it with Mugawa Jiro.
Zhong Qingxian was surprised again. He thought the Japanese will bargain with him, and the offer price in his heart was much higher. Just the noodles technology is worth at least 8 million RMB.
Zhong Qingxian looked at Feng Yu, and Feng Yu smiled.
After both parties finalized the deal, Kameda Masao and Mugawa Jiro returned to their hotel to prepare the documents, and Zhong Qingxian asked his men to prepare the contract. After everyone left, Zhong Qingxian looked at Feng Yu. “Manager Feng, you are close with those two Japanese?”
“I had dealt with Kameda Masao several times, but I just got to know Mugawa Jiro. Their instant noodles taste quite nice, especially their noodle’s texture. That’s why I introduce them to Lehaha.”
“But, I feel that we got the upper hand in this negotiation.” Zhong Qingxian replied.
Feng Yu: “……” What are you thinking? Isn’t it good to have the upper hand in the negotiation?
“No one in Japan is interested in their instant noodles recipes, and they can’t sell it at high prices. But in China, their recipes are valuable. Qianqian Ramen is a small company and they needed money to solve their financial issues. You think you had gotten a good deal, they also don’t think they had suffered any losses.”
Based on Kameda Masao’s description, Qianqian Ramen’s scale is equivalent to a county-level small factory. This 8 million RMB deal and Kameda’s investment is enough to revive this small factory.
After this, Lehaha can develop their own flavors, imitate the other brands, or continue to purchase recipes from other instant noodles company.
Zhong Qingxian nodded. Qianqian Ramen is only a small company, and he thought it is a big Japanese company. But their noodles taste good and should be popular in the Chinese market.
“Manager Feng, what is Kameda’s company dealing with?” Zhong Qingxian asked curiously. He is interested to know more about this Sixth Sense Company, which is also the market leader in its industry.
“Err… this Sixth Sense Company… is mainly dealing with rubber and silicon products and apparel.” Feng Yu rubbed his nose and replied.
“Rubber products?”
“Alright. Let’s not talk about him. How are Lehaha’s developments recently? Are there any problems?” Feng Yu quickly changed the subject as he does not want to tell Zhong Qingxian that Sixth Sense Company is selling sex dolls, and he will ask how Feng Yu get to know him. Zhong Qingxian might even suspect he had bought sex dolls from Kameda before.
“No problem. Our products are very popular, and we should maintain our market share and profits.”
“We are going to spend a lot of new factories, advertising, and introducing new products. We also need to develop new products. The company’s finance should be tight.”
“Yes. Our finances are under a bit of pressure, but it is not a big problem. Furthermore, we can get loans and next year, our overseas sales should increase, and the overseas profits should solve our problem!” Zhong Qingxian replied confidently. Although Lehaha does not have a lot of cash now, their profits from their domestic sales are enough to cover its operational cost.
Zhong Qingxian emphasizes a lot on his products’ sales distribution channels. The local distribution channels are established and had started setting up their overseas distribution channels. The next step is to expand their influence to the counties, townships, and villages.
Those beverage companies are surrounding the cities through the villages? I will expand from the cities outwards and start promoting our products in the villages. Let’s see who the consumers prefer!
Feng Yu chatted with Zhong Qingxian for a while before leaving. It’s been a while since he returns to China, and he still has to visit his other companies.
Kameda Masao and Mugawa Jiro returned and signed the contract with Zhong Qingxian. Once Lehaha had verified the recipe, they will wire the money over.
After the deal was signed, Zhong Qingxian asked after they shook hands. “Mr. Kameda, what is your company selling?”
Kameda Masao looked at Zhong Qingxian. “Manager Feng did not tell you? You can find our products besides the cashiers of most supermarkets.”
After Kameda Masao left, Zhong Qingxian called his secretary over. “Are there any products besides the supermarket’s cashiers under the brand, Sixth Sense?”
Zhong Qingxian’s secretary looked at his boss weirdly. “Boss, you want it? I had bought some yesterday, and it is still in my bag. Should I pass you one box?”
“Bring it over!” Zhong Qingxing was mad. What’s with that expression? You think I will not pay you for that product?
When Zhong Qingxing saw his secretary passed a box of condoms to him, his face turns black. This Sixth Sense company is selling condoms?!
Zhong Qingxian felt embarrassed by the way his secretary look at him…
