Vol 2 Chapter 678: Unequal price war

"The vapor deposition process they use has an advantage in cost. ∈♀ is small. If their production equipment can reach a production capacity of 200 kg per day, their cost will be less than $ 8 per gram. If China is taken into account Human labor costs and environmental protection costs are relatively low, and they may even be produced at a price of $ 6 per gram. "Yoshida reported to Saburo Hanaya.
As a senior carbon chemical expert, estimating the cost of a production process is not difficult for Yoshida Yuen. If Qin Hai heard these words here, he would be surprised at the accuracy of Yoshida's judgment first, and secondly he would be ashamed that Daqin Group could not achieve such cost control ability. Due to insufficient advanced production equipment and lack of experience in process organization, when Daqin Group produced at a capacity of 200 kg per day, the cost could not be controlled within US $ 8 per gram, but reached US $ 10 per gram.
Daqin Group expanded its production scale, which was not expected by Yoshida. The statement he heard from Wang Xiaochen was that the Daqin Group only had a production capacity of 5 kg per day, and some information disclosed to him by Yu Yong also confirmed this statement. If calculated based on a daily output of 5 kg, the cost of graphene production of Daqin Group will reach 10 to 15 US dollars, thus leaving Xinzuo Chemical a chance to take advantage of it.
The organic synthesis process adopted by Nitsuka Chemicals has inherent disadvantages in terms of cost. However, if the production scale of the device is larger, it is still possible to control the cost below 8 US dollars, so it has a higher and lower conditions with Daqin Group. The information collected from various aspects now shows that the Daqin Group actually has a capacity of more than 200 kg per day, so its cost assessment needs to be recalculated.
"If the production cost of the Chinese is US $ 6 per gram, what kind of price do you estimate they will sell?" Saburo Hanaya shouted to the sales minister Kaji Morioka and asked Yoshida to share the relevant production capacity and The judgment of the cost was said again, and then asked Kaori Morioka.
"It depends on the Chinese sales strategy." Morioka Kaji said. "If they are eager to occupy the market, they will sell at an estimated price of about $ 10 per gram in order to discourage latecomers like us and Warren. If they are eager to recover their investment, they may set the price at $ 20 or even Higher, take advantage of this blank period before other manufacturers have not formed production capacity to maximize profits. "
"I am very clear about this," Saburo Hanaya said angrily. "What I ask is your own judgment, what strategy do you think the Chinese will adopt."
Morioka Kaji said: "As far as we know, their current official offer is $ 100 per gram."
"100 dollars, this is absolutely impossible!" Yoshida Yuan couldn't help but interject, the price was obviously unreasonable, and a fool would not be able to quote it like this.
"It's really impossible ..." Morioka Kaji said depressed. Of course, he knew that the final offer of Daqin Group was not the case. He said this just to set the stage, who knew that Yoshida would be so impatient.
"I'm talking about their official offer," Kaji Morioka emphasized. "They have identified several different discount strategies based on this offer, specifically like this ..."
Then he introduced the rules about gold members and diamond members to Saburo Hana and Yoshida, but he couldn't tell me about the preferential policies such as strategic partners because his intelligence system still has Did not reach this level.
This is what the traditional customers of Nitsuka Chemical have given them. For example, Mamon has negotiated a "strategic cooperation price" of US $ 5 per gram with Daqin Group, but in this case, Nicol did not report to Kaji Morioka, but only said that the company had a large order. So I got a good discount, which is slightly better than the price of diamond members. Nicole's purpose in hiding this information. I was afraid that this ultra-low price would make Nitsuka Chemicals discouraged, and then withdrew from the graphene market. If there is no competitive pressure on the Daqin Group by companies such as Xinzuo Chemical, how can Mameng get such a discounted price?
"That is to say, is the price that Mamon Company received is not higher than 25 US dollars per gram?" Saburo Hanaya heard the introduction of Morioka Yoshiki, and calculated such a price in his mind.
Morioka Yoshiki: "Yes, I guess because they have a large order. It is also possible to get a price of about 20 US dollars, this Ma Meng company has hinted to me."
"I think this price is reasonable. Even at this price, the Chinese have more than doubled their profits because their production costs are like 6 to 8 dollars, and the transportation cost of graphene is almost negligible "Yoshida said.
Saburo Hanaya said: "Mr. Morioka. Do you think the price disclosed by Mamon will be too high? For example, is it possible for the Chinese to promise them a lower price, but they made it to us? Concealed? "
Morioka Yoshiki shook his head resolutely and said, "It will never be possible. If the price given by the Chinese is lower, Mamun will definitely tell us, because it can force us to reduce the price. No user has intentionally said high In the case of prices, they will only deliberately say low prices in order to obtain room for bargaining. "
"That's true, too." Saburo Hanaguchi said, "If so, then we sell them for $ 18 or $ 16, and they should be interested."
"At the moment they show such a meaning." Morioka Kaji said, "But I have not been able to sign a contract with them, because our products have not yet been put into production, and the other party stated that we must see our samples before we can determine the specific cooperation. Matters. "
"$ 16 ..." Yoshida Yuan's lips moved and a bitter smile appeared on his face.
"Yoshida, do you have any ideas?" Saburo Hanaya asked.
Yoshida Yuan bowed his head and said: "Chairman, according to our current production process, the production cost of gram graphene is almost $ 14. If we sell it at $ 16, we are almost unprofitable. To reduce costs, we need To improve the process, there is also the need to further expand the production capacity of the production plant, which will take time ... and funding. "
"We don't have time to wait." Saburo Hanaya said, "Now we must curb the development of the Daqin Group and put them to a deadlock on the graphene issue. Morioka Jun, I now authorize you, the lowest price can be $ 14 and European customers negotiate. Yoshida Jun, you have to continue to work hard to optimize the existing process in three to five months in order to reduce the cost to less than $ 8, forming an overwhelming advantage for Daqin Group. "
"Hi!" Morioka Yoshida and Yoshida Yuan straightened their bodies at the same time and agreed in unison.
The price war with competitors is not new to Niigata Chemical. Only by knocking down competitors can you maintain high profits. This is very clear to Saburo Hanaya and Kaji Morioka. Prior to this, no company from a developing country was able to let Xinzuka Chemical step down to compete on prices. In this regard, Daqin Group has also set a precedent.
Saburo Hanaya knows that Daqin Group is a worthy opponent. This company was able to overcome the difficulties of graphene before Nitsuka Chemicals, but also could not bear it, and concealed the major news of the discovery of graphene. I waited until I had mastered the two best preparation processes before releasing it to the outside world. It can be seen that this company has both research and development strength and lack of business acumen. If such a company is allowed to develop, it will be a strong enemy of Xinzuo Chemical in the future.
It is precisely because of this recognition that Saburo Huagu would rather lose money and make money, and he must also grab customers from Daqin Group. Under the current production costs, Nitsuka Chemicals sells graphene to European companies at a price of $ 14 per gram. Not only can it not earn a penny, but it also has to compensate for financial costs, marketing costs, equipment depreciation, etc. This is Violating the principles of business operations. But this can make Daqin Group also make no money, which is enough.
From the perspective of Sanya Hanaya, Daqin Group's capital is far less powerful than itself. If it is delayed for a long time on the graphene project, it will not be able to make a profit, and eventually Daqin Group will not be able to support it and give up the project. By that time, Niigata Chemical will be able to monopolize this market. As for the German company Warren, although it has also been said that it wants to enter the graphene field, Nitsuka Chemicals does not think that Warren has any threat to itself ~ EbookFREE.me ~ Because the production cost of the Japanese is relative to European companies have always had an advantage.
Taking a step back, even if Daqin Group is willing to consume it and refuses to give up the market, this squeezing of Xinzuo Chemical will at least prevent Daqin Group from getting enough returns to improve technology and expand production capacity. In the past few years, when Xinzuo Chemical's own technology was improved and the cost was further reduced, it was still able to give Daqin a headache.
Throughout the plan, Saburo Hanaya relied on the strength of Nitsuka Chemicals. He firmly believes that this price war cannot be beaten by the Daqin Group. Xinzuo Chemical has many mature businesses that can feedback rich profits to support the protracted battle on the graphene battlefield. Does Daqin Group have such strength?
Saburo Hanutani ignored only one detail, that is, how much graphene production cost of Daqin Group. The cost calculated by Yoshida Yuan was calculated based on a daily production capacity of 200 kg. In fact, Qin Hai did not intend to limit the production capacity to this level from the beginning. The production facility capacity of Daqin Group reached 10 Times.
A mistake in detail will determine the failure of a war. Qin Hai's deliberate concealment, coupled with the pride of the senior executives at Xinzuo Chemical for the Daqin Group, led to this price war being unequal from the beginning. (To be continued ...)