Return to 88: Starting from Marrying My Sister-in-law

The price of chips is actually very easy to negotiate.

Not to mention that Lu Yang has already sent Xiao Jun to Wanwan.

We are also in talks with Falianke at the same time.

Although it seems like they are trying to use Fa Lianke to bargain, fake negotiations can also become real ones.

If Sun Yansheng was smart enough.

You should know that when C-Cube is no longer the only company in the world that can produce MPEG standard decoding chips, their monopoly on the VCD chip market will naturally come to an end.

Seek proactive price reductions.

What they should do now is to maintain their dominance in the VCD chip market.

The little prodigy represented by Lu Yang, BBK, is the ally they cannot lose.

"Before I came here, I spoke to Mr. Duan on the phone and persuaded him not to give up the chips you provided and to seek new chip suppliers."

"Although the GL-450 chip you provide is expensive, you are the first international company to make MPEG standard video decoding chips, and it is most compatible with the current VCD video playback format in our mainland. Even Mr. Jiang's invention was originally inspired by you, Mr. Sun. I also admit that in terms of video fluency and audio quality, your chip is better than the new MPEG standard video decoding chips currently on the market."

"But Mr. Sun, you have to know that our country is still a developing country that has just solved the problem of food and clothing and embarked on the road of development. Ordinary people may not be able to save a four-digit deposit in a year."

"But Mr. Sun, the MPEG standard video decoding chip that you C-Cube exported to us cost as much as 168 US dollars, which is more than 1200 yuan."

"Such a high price is also the culprit for the fact that when our joint venture, Wanyan Company, launched a new video decoding chip based on your MPEG standard, the product had superior performance and simple operation, far surpassing the old-fashioned video recorder equipment on the market, but its sales volume never increased. Mr. Sun, do you admit it?"

Lu Yang did not raise any charges, he was just stating a fact.

However, Sun Yansheng smiled and said, "Let's talk business, Brother Lu. If your company has a product that has unparalleled performance and is irreplaceable, then Brother Lu, what would you choose? Are you willing to give up the pursuit of high profits?"

Capital chases profit.

If there are competitors in the market, they may even launch a price war in an attempt to expand user data.

on the contrary.

They have already occupied the high ground and monopolized the market. They can obviously reap the harvest at will, but they are taking the initiative to put down their sickles. Is this behavior appropriate?

If Lu Yang answered him, it would be appropriate.

Then the only answer is: "hypocrisy".

He would also look down on Lu Yang here. If he didn't even have the courage to tell the truth, then there would be no need to continue the negotiation.

Lu Yang shook his head and said with a smile: "Indeed, from a business perspective, Mr. Sun, your C-Cube company used to have a monopoly on MPEG standard video decoding chips, so you dared to ask for 168 US dollars per chip, and we did not bargain at the beginning.

This is a moment.

Mr. Sun, you, C-Cube, once had a monopoly in the market for MPEG standard decoding chips, but now your monopoly is in jeopardy.

That's why I'm here and standing in front of you.

Haha, from a business perspective, should we redistribute the market share of your C-Cube's MPEG standard decoding chips in mainland China?"

Just because of the words "business is business", Lu Yang's tone at this moment was obviously a little impolite.

Go to hell!

Since we are not talking about the basis for friendly cooperation between the two sides, let’s just speak with strength.

Sun Yansheng raised the wine glass and shook the scarlet red wine inside. After a moment of silence, he said unhappily, "Brother Lu, can I take it that you are threatening me?"

Lu Yang still smiled and shook his head: "This is not a threat."

This is a fact.

The world's largest market for MPEG-based video decoding chips is in China. Since the advent of VCD players, they have exploded in the mainland market, accounting for more than 75% of the world's MPEG-based video decoding chips. The top three companies in terms of shipments, from top to bottom, are Little Prodigy, BBK, Xinke Electronics, and Wanyan Electronics, the first company to sell VCDs.

From the above data, we can see that Lu Yang can represent at least two companies, one is Little Prodigy, and the other is BBK...

Just now Lu Yang was saying that he had spoken to Duan Yongping on the phone before coming here, asking him not to rush to find a cheap buyer and to wait until he finished talking with C-Cube first.

So is this a threat?

This is not a threat!

C-Cube cannot lose the chip market in mainland China, just as the Western world cannot lose Jerusalem.

If the talks fail today.

Once Lu Yang returns, what will be the consequences if Xiao Shentong and BBK, the two leading VCD companies, give up using C-Cube's decoding chips and choose MPEG standard decoding chips from other new forces?
There is no need to think about it, just look at Sun Yansheng's face now.

But Lu Yang was still adding fuel to the fire: "Oh, by the way, before I came here, there was a company called Xinke Electronics in Pengcheng. Although the products of Xinke Electronics have not been on the market for long, their VCDs have a relatively low price and currently have a large market share. But Mr. Sun, guess who they are currently negotiating with for chip supply?"

Xianke Electronics has been pursuing the low-cost and civilian route since its inception.

For every unit sold, they can even lose 1 to 200 yuan per unit. It doesn't matter whether they make money or not. What they want is to quickly capture high profits and grab market share.

Of course, such an approach also requires confidence. Manufacturers without confidence will definitely not do such a thing.

However, even for an excellent electronics company in Guangdong Province like Xinke Electronics, which was established in 1988, it would be difficult to bear this situation for a long time, and the pressure on the capital chain would become greater day by day.

But what if production costs could suddenly be reduced on a massive scale?
The launch of MPEG-based decoding chips by Falcon and the successful tape-out of MPEG-based decoding chips by other chip manufacturers around the world have provided great opportunities for Sinco Electronics.

As a VCD player manufacturer that pursues the cheap and popular route, it doesn't really matter if the chips it chooses are a little worse in terms of audio and video fluency and stability. However, if the purchase price can be reduced by hundreds of yuan, it will definitely be a matter of great significance.

Not only did it change the loss situation in an instant.

And the profits will be considerable.

Even for Xinke Electronics, there is a wider room for price reduction in the upcoming VCD market price war and to occupy the VCD market share.

So with so many benefits and significance, will it still choose a partner like C-Cube whose single chip is expensive?
impossible.

Absolutely impossible.

No matter how eloquent Sun Yansheng was, no matter how capable he was, he could not keep this partner and could only watch him leave.

Sun Yansheng's face turned the color of liver. He stared into Lu Yang's eyes and said, "In Mr. Lu's opinion, how much do you think is a reasonable price for our C-Cube GL-450 chip? And what about the new generation standard decoding chip GL-480? How much is it for us, Mr. Lu?"

Lu Yang smiled and stretched out his hands. His ten fingers were slender. He clenched one hand into a fist and then opened it.

Sun Yansheng's frown relaxed slightly when he saw this, but he still said with some doubt: "A single chip, GL-450, 50 US dollars? GL-480, 100 US dollars?"

If it was this price, he could accept it. It was even slightly higher than the bottom line price in his mind.

Lu Yang shook his head: "No, Mr. Sun misunderstood, I was talking about RMB."

"Pfft...cough..."

Sun Yansheng nearly choked to death on his own saliva. He coughed several times, his eyes almost popped out, and said angrily, "Are you kidding me? This price is simply impossible. We at C-Cube cannot accept it because the cost price of producing it is not enough. No, do you understand? No, I am saying No to you."

Let his saliva fly and his face become even uglier.

Lu Yang was also indifferent, and just said lightly: "Mr. Sun, you used to have a monopoly on MPEG standard decoding chips, which was equivalent to a seller's market, so you had the final say, but it has now turned into a buyer's market, so it should be us who have the final say."

"A single chip, GL-450, costs 50 RMB, and the new generation GL-480 costs 100 RMB."

"This is my bottom price, and it also guarantees your profit point. Don't tell me about losing money. It doesn't exist at all. I know the production price of a single MPEG chip better than you do."

"I would like to give you a piece of advice, Mr. Sun. You should take a long-term view. The era of huge profits from a single chip is over. However, as long as the market share of chips increases and the shipment rate is improved, your basic profits can naturally be guaranteed. In essence, I hope this is a win-win cooperation."

"No, no, no, I said no."

Sun Yansheng was not willing to accept this result at all.

Ren Luyang's words were all nonsense.

He just shook his head.

Then he turned around and threatened Lu Yang: "You in mainland China do not have the ability to produce MPEG chips, so the buyer's market you mentioned does not exist at all."

"Since we are friends, I can give you a reasonable discount."

"How about this, a single chip, GL-450, 45 dollars, GL-480, 75 dollars, OK?"

"Although I am Chinese, I still remember a saying from our ancestors: He who knows the current situation is a hero. I have just said my sincerity. For a single chip, GL-450 is 45 US dollars, and GL-480 is 75 US dollars. Its price is very reasonable."

"If you still don't accept it, Mr. Lu, then I can only regret it. I will unite with other chip manufacturers in the world to ban you."

Sun Yansheng said proudly: "Since we are both Chinese, I will provide another piece of news to Mr. Lu for free. Although the world player revolution started in your country, the whole world has also seen the advancement of VCD format players based on the MPEG standard. Sony, Philips, Panasonic and other international manufacturers are also stepping up their VCD product line layout. The first batch of MPEG chips have been sent to them by our C-Cube.

If you lose our chip supply now, the scale of the VCD market in mainland China will be gradually reduced. One day in the future, Sony, Philips, Panasonic and other international manufacturers will have their VCD brand machines appear on the display stands of stores in your country. You will lose your market dominance and will not even have qualified chips. How can you compete with them! ? "

“No, no, no.”

"Based on your strength, it's not shameful to admit your own shortcomings, Mr. Lu."

This Sun Yansheng is indeed a pure businessman who does everything for profit.

His blood is so cold that he has almost forgotten who his ancestors are.

Lu Yang said coldly: "I would also like to advise Mr. Sun. Not to mention that it is not easy to ban it, the rest of the world's chip manufacturers will not give up their interests for the profits of your C-Cub. Even if you can really do this, what will happen?"

"We can make our own MPEG decoder chips even without yours. I believe Mr. Sun should have heard about it. Our New Century Group currently has a laboratory that studies MPEG decoder chips and semiconductors. Even our friendly company, Senco Electronics, is planning to set up its own MPEG decoder chip laboratory. They are currently discussing the introduction of Senco's technology and setting up a joint factory in mainland China to produce MPEG decoder chip product lines."

"Mr. Sun, your threats may only backfire. In two years at most, if you lose our Chinese market, what will C-Cube have left?"

This result.

It's like both sides stab me and I stab you, and in the end both sides suffer.

Now it depends on who gives in first.

After Lu Yang finished saying this, he closed his mouth and began to slowly sip the red wine in his glass.

On the contrary, it was Sun Yansheng who began to have dense beads of sweat on his forehead.

He knew very well that he had no ability to ban the young prodigies headed by Lu Yang, BBK and other leading VCD companies in mainland China.

And even if he could do it, he would never do such a thing as killing 1000 enemies but losing 800 of his own, and the C-Cube board of directors would not agree to him doing so.

Lu Yang was also very clear that within a short period of time, no country, including himself, could solve the problem of self-production of MPEG standard chips.

So?

The two were just talking nonsense just now, but even though they were just talking nonsense, their power cannot be underestimated.

Because when truth becomes false, the false becomes true.

No one can be sure whether the other party still has chips in his pocket.

Sun Yansheng said helplessly: "A single chip, GL-450, 20 US dollars, GL-480, 35 US dollars, Mr. Lu, this is my last bottom line..."

Lu Yang drank the red wine in his glass in one gulp and said cheerfully, "Deal."

20美金一枚的GL-450芯片与35美金一枚的GL-480芯片，基本上已经能对上前世97年的C-Cube公司芯片价格出库数据。

It is now the winter of 1993, two months away from the end of the year.

It is in line with my expectations for this chip negotiation.

"Although in terms of price, the new MPEG video decoding chip from Falianke Electronics may have a better price, but I have to say that Mr. Sun, your C-Cube is the leader in this industry. The MPEG standard decoding chips you provide are much better in quality and stability. I hope we can continue to have a pleasant cooperation."

Lu Yang took the initiative to smile and stretched out his hand towards the other party.

Mr. Sun smiled bitterly and extended his hand to Lu Yang: "Brother Lu, if you make things difficult for me, aren't you afraid that I will also make things difficult for you on the road to privatization of Wanyan Company?"

Lu Yang’s desire to spy on and possess Wanyan Electronics was well known to everyone, not to mention to passers-by, but several shareholders on the board of directors were definitely aware of it. . . .

(End of this chapter)