Chapter 356 Order Signing
Although the Russian diplomatic team has already made plans to purchase trucks, the Russian military is also very satisfied with the production speed of trucks.
But for a big deal, negotiations will naturally not be so quick.
Under the leadership of Benz, the Russian diplomatic delegation visited the tire production workshop, car body assembly workshop, vehicle assembly workshop, etc., and even visited the Diesel engine plant located next to Benz Automobile Factory.
Diesel Engine Factory is the designated engine supplier of Benz Automobile and is the largest and most advanced engine manufacturer in Australasia.
It is no exaggeration to say that the various types of engines produced by the Diesel Engine Factory are supplied to various large heavy industry factories such as shipyards, automobile factories, military factories, machinery factories, and airship companies. They are the most indispensable engines in the power field of Australasia. indispensable enterprises.
Russian representatives believed that Russia's industry was second only to Britain, France, Germany and the United States, but when they saw Australasia's advanced industrial system, they understood Russia's current backwardness.
It is no exaggeration to say that compared to Australasia, Russia only leads in terms of overall scale in industry.
It was impossible not to envy the Russian delegates when they saw Australasia's factories making full use of assembly line production.
Although a long time has passed since the birth of the assembly line, assembly line production is no stranger to major European countries.
But in fact, there are not many factories that have truly popularized assembly line production, and most of them are concentrated in emerging industrial powers like the United States and Germany.
Old powers like Russia don't have many factories using assembly lines for production. Even many factories are still using older technologies, which are decades behind assembly line production.
But it’s not easy to get change. After all, there are too many old-fashioned factories like this in Russia, and many capitalists are unwilling to use new technologies.
After all, new technology requires the purchase of new equipment. New equipment is a huge amount of money, and it is unnecessary expenditure for those capitalists.
Amidst the surprise and admiration of all the Russian representatives, Benz took them to visit the entire automobile factory, and then led them back to the conference room.
Everything that needs to be inspected has been completed, and the next step is to discuss the specific details of the car order.
After everyone had sat down, Benz then smiled and said, "Everyone, we are very optimistic about our cooperation with your country. Can you tell us your country's specific requirements?" "Mr. Benz, from your factory
. We are satisfied with the production technology and production speed. To be honest, of course we are willing to cooperate with your factory and sign the purchase order for the car quickly. But you also know that the financial situation of our government is not very good. In the field of trucks, In terms of the selling price, can your factory make bigger concessions?" The Russian military was the first to speak, affirming the advanced production technology of Benz Automobile Factory, but it also did not forget to fulfill its responsibilities and keep the selling price of the truck as low as possible.
Benz breathed a sigh of relief at the words of the Russian representative. According to the attitude of the Russian representative, half of the truck purchase order has been basically completed.
Arthur and Benz had long expected that the Russians wanted to lower prices. After all, people usually need to bargain when buying vegetables and meat, not to mention the large share of trade between countries.
Slightly reducing the selling price can reduce the total price by tens of thousands.
For the Russian government, whose current financial situation pales in comparison, this is certainly a money-saving opportunity that cannot be missed.
"This is natural, Your Excellency General. We attach great importance to cooperation with your country. According to your Majesty's order, we will provide you with the lowest selling price of Benz trucks, B1 type truck is 520 Australian dollars, and B2 type truck is 710 Australian dollars. Comparatively Judging from the prices provided by European factories to Britain, France and Germany, this price has been reduced a lot." Benz's assistant directly stated the price of the car that Arthur had decided in advance.
This selling price does not deceive the Russians. Compared with the selling prices provided by European factories to Britain, France and Germany, it is generally lower than dozens of Australian dollars.
Of course, it cannot be ruled out that the reason for this phenomenon is the gap in per capita income between Europe and Australasia.
European factories have to pay workers more, which also means that the cost price of cars and trucks produced by European factories is higher than that of Australasian factories.
The price quoted by the German factory to the German government is 7,500 marks (£375, AU$750) per B2 car, which is about 40 Australian dollars more expensive than the price quoted by Australasia to Russia.
The British factory's quotation to Britain and France is 380 pounds and 760 Australian dollars per B2 car.
The reason for this gap is that the British per capita income is higher than that of Germany, and the cost of workers is also higher than that of Germany.
By comparison, Australasia's offer to Russia is already very low, and it seems to be a very good deal.
You know, the official external price of the B2 truck is as high as 800 Australian dollars, and the price of the European powers is already much cheaper.
After all, the major powers are the biggest customers of automobile factories, and Britain, France and Germany are the most powerful countries in the world, so they still have to give them the face they deserve. Although the price offered by Benz Automobile Factory is already very conscientious, the Russian delegation is obviously not satisfied and wants to lower the price further.
"Mr. Benz, this price is still too high for our finances. We need a larger number of trucks. I hope your factory can lower the price a little more based on the friendly relations between the two countries." Russian Military Representative Fang said: "If the price is fair, I promise your factory that we will win orders for at least 10,000 trucks from China. And, these 10,000 trucks are not all. If the effect of truck equipment troops is really good, we will I will also purchase trucks from your factory."
"Then what price does your country think is appropriate?" Benz thought for a while and asked with a smile.
"In my opinion, the price of B1 truck at 450 Australian dollars and B2 truck at about 650 Australian dollars is very suitable. If your factory agrees, then we can sign the order immediately." The Russian military representative said without hesitation.
This bargaining is not ruthless. On top of already rock-bottom prices, both types of trucks are slashed by sixty or seventy Australian dollars.
The cut price is even close to one-tenth of the selling price of the two trucks, and has almost reached the cost price of the two trucks.
"Your Excellency General, we cannot accept such a price. We are willing to continue to lower the price based on the low selling price, but you must know that building a truck is not easy, and the materials and time spent are definitely not comparable to ordinary cars. . The price we offered has actually given away most of the benefits, and we did this considering the good diplomatic relations between Russia and Australasia." Benz quickly spoke up, interrupting the Russian officer's question Price proposal.
"As for lowering prices again, I will tell you everything about your country, General. On the basis of ensuring that we do not lose much, the minimum selling price of B1 type trucks is 500 Australian dollars, and the minimum selling price of B2 type trucks is 690 Australian dollars. ."
"This price is the lowest price we can give based on the current situation of our automobile factory. We really can't give a lower price, which is already close to the cost price of the truck." It seems that he is afraid that the Russian officers will continue to cut prices. price, Benz added.
For such a price, the Russian officer was already happy in his heart, but on the surface he still pretended to be calm and said with a pained face: "This is indeed not our ideal price. Considering the good relationship between us, this way The price is acceptable to us.”
"Mr. Benz, I wonder when the order for the car will be officially signed? And when will it be delivered to us?" the Russian officer continued to ask.
"It depends on the number of trucks your country wants to buy, General. But I assure you, even if your country buys 10,000 trucks, we will deliver them to your country within half a year." See the selling price of the trucks. It was finally finalized, Benz and his subordinates finally breathed a sigh of relief and said quickly.
With overtime production, it is not difficult to complete the order of 10,000 trucks in half a year.
Even if you include the transportation time, half a year is enough.
"That's good, Mr. Benz. To be honest, before we came to Australasia, the number of trucks we discussed to purchase was five thousand. But I think five thousand trucks are not enough to completely change the transportation status of Russia. I will try my best to fight domestically and change the order quantity of trucks to 10,000." The Russian officer nodded with satisfaction and said with a smile.
Being able to deliver trucks within half a year is great news. Because truck orders from Britain, France, and Germany are basically delivered within half a year, Russia cannot fall behind in terms of time.
After negotiating for a while, the truck purchase orders from Russia and Australasia were officially signed.
According to the agreement between Benz and the Russian military officer, the taxi purchase order is temporarily set at 5,000 vehicles. After Russia agreed to increase the number of trucks it purchased, the order was changed to 10,000 vehicles.
Of these 5,000 trucks, Russia will purchase 1,000 B1 trucks and 4,000 B2 trucks.
If the order quantity is 10,000 units, then the quantity of both trucks is doubled.
When the order was signed, both the Russian officer and Benz smiled, thinking that they had taken a big advantage.
Although the Russian officers were indeed aggressive in bargaining, Benz was able to agree to such a price for the truck, which meant that the car factory would not lose money by selling the truck at such a price.
In fact, this is indeed the case. Thanks to the relatively low labor costs in Australasia, the production costs of the two types of trucks are A$450 and A$580 respectively.
Even for orders from Russia, where prices are already ridiculously low, the car factory can earn profits of AU$50 and AU$110 per vehicle respectively.
Not to mention the higher-priced orders from Britain, France and Germany, the profit of any one order can be as high as hundreds of thousands of Australian dollars.
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(End of chapter)