Chapter 33: Chapter 33 (1/2)
”Offering 90%?”
”It's $195, based on C65F series. In other words, a little over 31 cents per part.”
Na Sungji's eyes popped out.
In fact, Na was ready to accept 75% of the Taiwanese part price, at which he thought he could make some profit.
Now, it was 90%! Na opened his mouth out of joy and said,
”Oh, my G.o.d! Thanks so much. How can I repay your benefits like this?”
In fact, Hyunwoo shouldn't be thanked for this. Wasn't he a proud stockholder of N&C? If N&C's profits increased, that was a good thing for Hyunwoo.
However, there was one thing that Na had to keep secret for Hyunwoo's success. It was the fact that Hyunwoo had invested in N&C. If Aurum knew about this, Hyunwoo would not be able to give N&C more benefits while negotiating the unit price.
”Well, my investment in N&C and anything related to the unit price is a secret between you and me. If it is revealed, we could get into big trouble.”
”Of course. I won't even tell my family.”
Hyunwoo nodded his head as if he was satisfied with Na's reply.
”Okay, then. Can you call in the local presidents? I think we have to conclude the contracts at a proper level.”
”Got it.”
Na immediately called in the presidents.
Waiting earnestly for the news, they came to him as soon as Na called them.
Each of them asked the same question to Hyunwoo,
”Did you handle the matter successfully?”
Hyunwoo replied the same thing, ”Yes, I did. We can set the proper unit price and sign the contract.”
Hearing that, one president asked, ”What do you mean by the 'proper' price? You are not talking about 70% of the Taiwanese products, right?”
”70% doesn't make any sense. We can't reach a break-even point with that,” said another.
Hyunwoo nodded his head and said, ”I know that, and I would like to guarantee you as much profit as possible. However, I have to save a.s.sistant manager Kim Yonggu's face, too.”
The presidents watched Hyunwoo's lips, shutting their mouths.
”Let me persuade Mr. Kim to accept 75%. Is that okay with you?”
The presidents could let out a sigh of relief when he mentioned 75% because they could make a profit at that price.
”Thanks so much. We're going to think of you as a savior at that level.”
Hyunwoo continued, ”I'm going to add one more clause to the contract for you. It will say, 'If the suppliers maintain the quality of the parts for one year, Aurum will increase the unit price to 80%.' So, you have to make sure that the quality stays the same.”
”Absolutely!”
”Of course, we're going to reduce the ratio of defective parts to the minimum by hiring quality examiners. As we're beholden to you like this, we can't cause any trouble to you.”
The presidents cheered.
In fact, what Hyunwoo was most worried about was the quality of parts, for there was a possibility that the quality would go down with a lower unit price.
Because Hyunwoo had promised to increase the unit price, they would put in more effort to maintain the quality than before.
”Let me see Kim Yonggu and draft a contract. I'll send the draft to the headquarters in Korea. As soon as they give the greenlight, we will conclude the contract. Please get ready.”
”Thank you!”
Parting with them, Hyunwoo went back to the hotel.
When Hyunwoo arrived, Yonggu, who was waiting for him nervously, approached quickly.
”What happened? Did you change their minds?”
Hyunwoo looked at him, shook his head, and said, ”Looks like it's going to be difficult.”
Yonggu's expression turned hopeless and asked, ”Why?”
”Na wouldn't persuade the presidents. I think we have to give him more benefits. Only then can he move, I think.”
”Benefits? What kind of benefits does he want?”
”How about making a provisional contract for him?”
Yonggu tilted his head and asked, ”Provisional contract?”
”As you know, he hired a new technical expert. If he can introduce the new machines by, isn't it clear that he can improve the quality of the parts?”
That was true. Yonggu knew that Na's products had failed the quality standard by just a little bit.
”So?”
”We're making a contract with him that we'll purchase all of his parts as soon as the parts satisfy the quality standards.”
Come to think of it, Yonggu felt that it was not a difficult matter. As soon as the quality of the parts were guaranteed, there was no reason for Aurum not to use them.
”What if Na doesn't meet the quality standards?”
”The contract will be cancelled automatically, of course. Let me persuade Na on that.”
Yonggu had no reason to reject Hyunwoo's suggestion.
”Okay. How much should we set the unit price then?”
”Na wants us to increase the unit price on the condition that he persuades the local presidents.”
”How much?” Yonggu asked with a tense expression.
”90% of the Taiwanese products,” Hyunwoo said casually.
Yonggu was a bit surprised. It was 5% more than the price he had first mentioned to them. Yonggu hesitated to say okay, but Hyunwoo prodded him, saying, ”I didn't reply to Na because this was something I couldn't decide on my own. What should we do?”
Yonggu was kind of troubled at that, but after some more thought, he felt that it was not something he had to agonize over. It was no more than a provisional contract.
Hyunwoo then said something new to Yonggu, ”If you get a.s.surance from management on that, Na told me he would be responsible for persuading the other presidents. In return, he said 80% of the Taiwanese product was the bottom line on the unit price.
”80%?”
This time, Yonggu's jaws dropped at that because he felt even 85% was something the local presidents could not accept, given that they were holding their heads high right now.
Yonggu nodded his head strongly and said, ”Okay, done deal!”
Yonggu made a draft contract on the spot and emailed it to the team manager. He then called him immediately and said, ”Manager, I've just send you a draft contract. Please review it.”
”Sure, good job.”
After the call, Yonggu waited for his reply nervously.
It was about one hour later when he got a reply from the manager. As soon as he got on the phone, the manager asked him about the provisional contract,
”What is this? A provisional contract?”
”The local presidents here are united like a cartel. Mr. Na proposed a provisional contract on the castor on the condition that he could reduce the unit price of the other parts by 5%. If you don't agree, I'm afraid we have to make a contract on 85% of the unit price as before.”
Yonggu persuaded him with plausible excuses, something even Hyunwoo admitted were pretty persuasive. The manager's tone was cheerful now.
”Really? If we sign the provisional contract, the other factories will lower the unit price to 80%, right?” the manager asked.
”Yes, if you look at the provisional contract, we don't have anything to lose. Though the unit price increased by 5%, I drafted it so that if they don't meet the quality standard, it will automatically fall apart. Please review that section, too.”
”Got it. Sir, this clause is about…” the manager said to the president, holding his phone.
It looked like he had called Yonggu while reporting to the president.
A little later, Yonggu was on the phone with the manager.
”The president signed it. Let me email it to you, so you just go ahead with the contract.”
”Yes, sir.”
After the call, Yonggu clenched his fist and said, ”Wow! We've made it”
Hyunwoo smiled brightly.
Soon, the contract with the signature of the president was emailed, and Yonggu printed it out.
”Shall we meet the presidents again?” Hyunwoo asked.
Yonggu made an awkward expression at that.
”I think I had better not go with you. They might feel bad again when they see me. As the draft contract is done, all you have to do is get their signatures.”
”Okay then. Let me go and meet them alone.”
Holding the contract, Hyunwoo left the hotel.
The local presidents gathered at the N&C factory.
Hyunwoo presented each of them with the contract.
One of them asked cautiously,
”Then, the unit price is as you mentioned…”
”Yes, I've gotten approval of 75% of the Taiwanese product. But if you maintain the product quality for one year, the unit price will increase to 80%. All of this is included in the contract. So, please confirm it.”
They confirmed the contract all at once. Each of them carefully reviewed the clauses, checking the clauses, and even comparing their contracts with each other.
Then, they shook hands and encouraged each other.
”Great! We've survived now.”
”Thanks so much. We all owe it to you, Mr. Jang Hyunwoo.”
Hyunwoo was as happy as them.
But there was one thing that puzzled him about the presidents' att.i.tude.
Now, he felt that he could ask them,
”In fact, there is no big problem even if you don't deal with Aurum, right? Of course, it's better for you to expand your markets, but honestly, I couldn't understand why you were so anxious to conclude the contract with Aurum.”
One of them grinned and answered, ”Actually our contract with Aurum means more than just another market to us. We all want to develop markets in Korea. In that respect, Aurum is opening the door for the Korean market to us. In addition, Aurum has a good reputation, so the successful conclusion of the contract means the recognition of the quality of our products. That's why we were so anxious to get this contract done!”
”Oh! That makes sense,” Hyunwoo said. Only then could he understand their thoughts.
At the same time, he thought about Yonggu.