Magic Industry Empire
Volume 2 Chapter 82 - Aloof Walmart Chamber of Commerce
Kennard and Sophia returned to the residence that Baron Hannas had prepared for them at night and they felt incomparably tired.
Kennard was alright, but when Sophia removed her shoes, her feet were a bit swollen.
Seeing the feet that had increased by a size, Sophia couldn't help complaining, "This Xu Yi wouldn't be doing this to us on purpose, right? He ran all around for a day and he didn't rest at all, even discussing business during meals, isn't he tired?"
Although Kennard felt tired, he was still better than Sophia. He sat down beside her and said with a faint smile, "This isn't strange, the Frestech Chamber of Commerce developed this quickly is mainly because of Xu Yi. For him to be this busy, it's quite easy to imagine."
"Isn't this too exaggerated?" Sophia muttered, "I don't believe that he is like this every day, so busy that he isn't even able to eat properly. If it really is like this, I think he'll die from exhaustion eventually."
"I think you're exaggerating too much." Kennard tapped Sophia's head with a smile, "Chairman Xu seems to pay attention to exercising, so he's full of energy, how could he die from exhaustion so easily? Other than that, didn't you think it was very interesting following him around today? Not only did we hear something interesting like 'the customers are gods', we've also learned about 'millimeters'. Other than that, we've met all kinds of people and have learned how to solve all kinds of problems. I feel that I've learned more today than an entire month in Anvilmar City."
"Humph, only you feel that way. I only came along just to see the legendary elves, but I didn't see a single elf today. So today didn't have any meaning to me at all!" Sophia pursed her lips and said this.
"Relax. Didn't chairman Xu say that the hundred elves have been sent to live in the Frestech Chamber of Commerce's Falling Rain Valley production base? He will go to the Falling Rain Valley eventually, you'll definitely be able to see them if you follow him." Kennard comforted her.
"I'll go when he goes to the Falling Rain Valley. I won't follow him starting tomorrow, I'm tired just from a single day." Sophia laid down on the bed and looked like she was too tired to move.
Seeing his little sister show this weary form that she wouldn't show in front of outsiders, Kennard couldn't help shaking his head with a smile. Then he looked down at the ground.
In the living room downstairs, Hank Wilson was currently discussing something with Xu Yi.
"Chairman Xu, I'm representing our Walmart Chamber of Commerce to discuss the possibility of cooperation with your Frestech Chamber of Commerce, what does chairman Xu think about this?" Hank Wilson asked.
Xu Yi gave a slight nod, "The Walmart Chamber of Commerce is one of the biggest companies in our Lampuri Kingdom, for our Frestech Chamber of Commerce to catch your eye and want to cooperate with us, it really is our honour. Only, How are you planning to cooperate with us?"
"I think chairman Xu should know that our Walmart Chamber of Commerce has always dealt in groceries and we currently have the largest grocery stores set up in every city of the kingdom, which includes all kinds of products. This time, we want to cooperate with your Frestech Chamber of Commerce in hopes of having your company's magic machines appear in our stores. What does chairman Xu think about that?"
Xu Yi thought for a bit before asking, "This means that your Walmart Chamber of Commerce is planning to buy the household magic machines that our Frestech Chamber of Commerce produces and sell them in the stores under your name? The method of handling this will be like the other products of your store, is that your meaning?"
"Right, that is what I mean." Hank said with a smile, "Chairman Xu, if I may be direct, your Frestech Chamber of Commerce hasn't been established for long and you don't have distribution channels that belong to you in other parts of the kingdom. I can proudly say that our Walmart Chamber of Commerce has the most perfect distribution channels in all of the kingdom, not missing a single one. If you choose to cooperate with our Walmart Chamber of Commerce, I can guarantee that your Frestech Chamber of Commerce's products will appear in every city of the kingdom within the shortest amount of time. I think like this, your sales volume will greatly increase, don't you think so?"
"It's very correct." Xu Yi nodded, "The biggest headache for me right now is indeed distribution channels. The markets of Banta City and the surrounding cities are becoming saturated and the sales volume of our company's household magic machines have been dropping. I'm currently working hard on a way to solve this problem and have considered the possibility of working with your company, but I never thought that our small company would catch your eyes, so I gave up on this possibility. I never thought that you would take the initiative to come to me."
Hank laughed before waving his hand and saying, "Chairman Xu, you don't need to be this modest. Your Frestech Chamber of Commerce is currently very famous in the kingdom and even his majesty has praised your company, so how could you not catch the eyes of our Walmart Chamber of Commerce?" After pausing, he then added, "That means that chairman Xu agrees to cooperating with us?"
"Of course, why wouldn't I agree to something that benefits both of us?" Xu Yi said with a smile.
"Good, then I've brought a cooperation plan that chairman Xu can look over." Seeing Xu Yi agree, Hank immediately took out a document from the bag beside him for Xu Yi.
Xu Yi took it and after seriously reading it, he knit his brows slightly.
This plan was indeed the Walmart Chamber of Commerce's cooperation plan, but the model that was written on it made Xu Yi very dissatisfied.
According to the described plan, if the Frestech Chamber of Commerce chose to cooperate with the Walmart Chamber of Commerce, not only would they have to give priority to the Walmart Chamber of Commerce, they also had to give them a preferential price.
Although bulk purchases giving a preferential price was an unwritten rule of the market, what the Walmart Chamber of Commerce was asking for was too much.
They actually wanted the Frestech Chamber of Commerce to give them a 30% discount on their opening price!
This meant that with the price of a Variable Temperature Magic being thirty gold coins, if the Frestech Chamber of Commerce sold it to the Walmart Chamber of Commerce, the price would be twenty one gold coins! This was a difference of nine gold coins!
Even though it currently cost the Frestech Chamber of Commerce less than ten gold coins to produce and they would still be earning over ten gold coins in profit, this was suddenly cutting their profits in half, which Xu Yi could never accept.
Not to mention that the Frestech Chamber of Commerce's currently produced household magic machines had such high profits because there wasn't a competitor right now.
According to Xu Yi's plan, there would be all kinds of magic machine companies that will appear in the Lampuri Kingdom like the Frestech Chamber of Commerce, then the profit margin of the magic machines would be as low as on earth.
If they kept selling at 30% off, the Frestech Chamber of Commerce would lose money!
Xu Yi put down the proposal and after considering it, he asked Hank, "Vice chairman Wilson, can I ask you something? Is this your final decision?"
Vice chairman Wilson shook his head, "Of course not. The so called proposal is just a plan right now. Chairman Xu, is there anything you're not satisfied with? If there is, you can just tell me. The reason I can this time was just to negotiate with you."
"Instead of asking me what I'm not satisfied with, you should ask me what I am satisfied with." Xu Yi said without any politeness, "To be honest, vice chairman Wilson, I'm very dissatisfied with this proposal. I even think that based on this proposal, your Walmart Chamber of Commerce doesn't have any sincerity in cooperating with our Frestech Chamber of Commerce."
Vice chairman Wilson knit his brows, "Chairman Xu, why do you think this? Of course our Walmart Chamber of Commerce is sincere in cooperating with you. Otherwise I wouldn't have specially come here, even bringing young master Kennard and young miss Sophia to visit."
Xu Yi shook his head, "Let's not mention why Kennard and young miss Sophia came, let's just focus on this proposal. Vice chairman Wilson, do you understand what a discount of 30% means?"
Wilson revealed a look of understanding and said with a smile, "So chairman Xu isn't satisfied with the price. That is simple, we can discuss this. Of course, our Walmart Chamber of Commerce has to earn money as well, so I hope that chairman Xu won't be too excessive."
"Excessive?" Xu Yi slightly knit his brows.
Actually he wasn't most dissatisfied with the price or the priority clauses, rather this proposal from head to toe had the aloof attitude of the Walmart Chamber of Commerce.
Many lines in the proposal had the tone of an order, like the Frestech Chamber of Commerce had to agree with them and there was no room for leeway at all.
Although from an objective analysis, the Walmart Chamber of Commerce was a first class company of the Lampuri Kingdom with the most powerful distribution network, for the Frestech Chamber of Commerce that had no distribution channels for their magic machines, it was a very advantageous matter to cooperate with them. However, Xu Yi very much didn't like this aloof tone and didn't like cooperations where the other side held all the power.
"Alright, we can discuss the matter of the price later, but compared to the price, the partnership model is more of a problem." Xu Yi said with a serious expression, "This proposal states that we have to fulfill the needs of the Walmart Chamber of Commerce first, which I disagree with. Our Frestech Chamber of Commerce is not a factory under your Walmart Chamber of Commerce's name, so the products we produce cannot be given to just your company. So I cannot agree to this clause."
"But chairman Xu, according to what I know, your Frestech Chamber of Commerce only produces around several tens of thousands of household magic machines each month and our Walmart Chamber of Commerce supplies to customers of all of the kingdom's cities. There is a need for hundreds of thousands of units and if your Frestech Chamber of Commerce doesn't supply us first, we won't be able to match the customers' needs and not only will it affect the prestige of the Walmart Chamber of Commerce, it will also affect the customers' trust in your Frestech Chamber of commerce. I think that you're not willing to see this, right?" Wilson paused before saying with a sincere expression, "Chairman Xu, we can discuss the price, but as for giving us priority, there is no discussion."
Xu Yi looked very sincere, but he didn't fear Wilson at all. After thinking about it, he suddenly said with a smile, "If you're worried about not satisfying the needs of the customers, I have a very good suggestion….."
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