Material Empire

"The vapor deposition process they use has an advantage in cost. If their production equipment can reach a production capacity of 200 kilograms per day, then their cost will be less than $8 per gram. If you consider the labor cost of the Chinese And environmental protection costs are low, they may even be produced at a price of 6 US dollars per gram." Gen Yoshida reported to Saburo Hanatani.

As a senior carbon chemical expert, it is not difficult for Yoshida Yuan to estimate the cost of a production process. If Qin Hai heard these words here, he would first be surprised at the accuracy of Yoshida Yuan's judgment, and secondly, he would feel ashamed that Daqin Group could not achieve such a cost control ability. Due to the lack of advanced production equipment and lack of experience in process organization, when Daqin Group produces at a production capacity of 200 kilograms per day, the cost cannot be controlled within 8 US dollars per gram, but reaches the level of 10 US dollars.

Daqin Group expanded its production scale, which Yoshida Gen did not expect. He heard from Wang Xiaochen that the Daqin Group only had a production capacity of 5 kilograms per day, and some information disclosed to him by Yu Yong also confirmed this statement. If the calculation is based on the daily output of 5 kg, the cost of producing graphene for Daqin Group will reach 10 to 15 US dollars, thus leaving an opportunity for Xinzuka Chemical to take advantage of it.

The organic synthesis process adopted by Xinzuka Chemical has inherent shortcomings in cost. However, if the production scale of the device is larger, it is still possible to control the cost below 8 US dollars, so that there will be conditions to compete with Daqin Group. Now the information collected from various sources shows that the Daqin Group actually has a daily production capacity of more than 200 kilograms, so the evaluation of its cost needs to be recalculated.

"If the production cost of the Chinese is $6 per gram, Morioka-kun, what price do you think they will sell at?" Saburo Hanatani called Yoshiki Morioka, the sales director, and asked Yoshida Gen to share the relevant production capacity and The judgment of cost was said again, and then he asked Yoshiki Morioka for proof.

"It depends on the sales strategy of the Chinese." Morioka Yoshiki said, "If they are eager to occupy the market, it is estimated that they will sell it at a price of about US$10 per gram in order to prevent us and latecomers such as Warren's company. .If they are eager to recoup their investment, they may set the price at $20 or more, taking advantage of the blank period before other manufacturers have established production capacity to maximize profits.”

"I know this very well." Saburo Hanaya said angrily, "I'm asking about your own judgment, what strategy do you think the Chinese will adopt."

Morioka Yoshiki said: "As far as we know, their current official quotation is US$100 per gram."

"100 dollars, this is absolutely impossible!" Gen Yoshida couldn't help interjecting, this price is obviously unreasonable, and it is impossible for a fool to quote like this.

"It's really impossible..." Yoshiki Morioka said depressedly. Of course he knew that the Daqin Group's final offer was not like this. He said this just to set the stage. Who knew that Gen. Yoshida would be so impatient.

"I'm talking about their official quotation." Yoshiki Morioka emphasized, "They have determined several different discount strategies based on this quotation, specifically as follows..."

Then, he introduced the regulations about gold membership and diamond membership to Saburo Hanatani and Gen Yoshida, but he couldn't say anything about preferential policies such as strategic partnerships, because his intelligence system was not yet available. Didn't go down to this level.

This is what the traditional customers of Xinzuka Chemical have set up for them. For example, Marmon has negotiated a "strategic cooperation price" of US$5 per gram with Daqin Group, but Nicole did not report this situation to Yoshiki Morioka, but said that the company got the order due to the large order quantity. A nice discounted price, slightly better than the diamond member price. Nicole's purpose of concealing this layer of information is that he is afraid that the ultra-low price will deter Xinzuka Chemical and withdraw from the graphene market. If companies such as Xinzuka Chemical hadn't put competitive pressure on Daqin Group, how could Mamon Company have been able to obtain such a heaven-defying preferential price?

"That is to say, the price Marmon got is no higher than 25 US dollars per gram?" Saburo Hanatani understood the introduction of Morioka Yoshiki, and calculated the price in his mind.

Morioka Yoshiki nodded: "Yes, I guess because of their large order quantity, it is possible to finally get a price of about 20 US dollars, which Marmon hinted to me."

"I think the price is reasonable. Even at this price, the Chinese have more than double the profit because their production cost is like $6 to $8, and the transportation cost of graphene is almost negligible." ’” Yoshida Gen said.

Huagu Saburo said: "Morioka-san, do you think the price disclosed by Marmon Company is too high? For example, is it possible that the Chinese promised them a lower price, but they made a price to us?" to hide?"

Yoshiki Morioka shook his head resolutely, and said: "It is absolutely impossible. If the price offered by the Chinese is lower, Marmon will definitely tell us, because this can force us to lower the price. No user has ever deliberately said that the price is too high. When it comes to prices, they just deliberately say low prices to get room for bargaining.”

"That's true." Saburo Hanagu nodded. "If that's the case, then we sell it to them for $18 or $16. They should be interested."

"At present, they have expressed such meaning." Morioka Yoshiki said, "But I have no way to sign a contract with them, because our products have not yet been put into production, and the other party said that they have to see our samples before confirming specific cooperation. matter."

"16 dollars..." Yoshida Gen's lips moved, and a wry smile appeared on his face.

"Yoshida-kun, do you have any ideas?" Hanaya Saburo asked.

Gen. Yoshida bowed his head and said: "Chairman, according to our current production process, the production cost of graphene per gram is almost 14 US dollars. If it is sold at 16 US dollars, we are almost unprofitable. To reduce the cost, we need Improving the process, and further expanding the production capacity of the production facility, will take time ... and money."

"We don't have time to wait." Huagu Saburo said, "Now we must curb the development momentum of the Daqin Group and let them reach a deadlock on the graphene issue. Morioka-kun, I now authorize you to negotiate with us at a minimum price of 14 US dollars. Negotiations with European customers. Mr. Yoshida, you have to continue to work hard and spend three to five months to optimize the existing process in order to reduce the cost to less than 8 US dollars and form an overwhelming advantage over the Daqin Group."

"Hi!" Morioka Yoshiki and Yoshida Gen straightened their bodies at the same time and agreed in unison.

Price wars with competitors are not new to Xinzuka Chemical. Only by knocking down competitors can one maintain high profits. Saburo Hanatani and Yoshiki Morioka are very clear about this. Before this, no enterprise from a developing country could make Xinzuka Chemical put down its arrogance to engage in price competition. In this regard, Daqin Group is also a pioneer.

Saburo Hanagu knew that the Daqin Group was an opponent worthy of attention. This company was able to overcome the difficulty of graphene before Xinzuka Chemical, and it also forbears to hide the important news of the discovery of graphene. It waited until it 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 an enterprise is allowed to develop, it will be a strong enemy of Xinzuka Chemical in the future.

Just because he realized this, Sanlang Huagu would rather make a profit at a loss than snatch the client from the Daqin Group. Under the current production cost, Xinzuka Chemical sells graphene to European companies at a price of US$14 per gram. Not only can it not earn a penny, but it also has to pay financial expenses, marketing expenses, and equipment depreciation. Violating the principles of business operation. But doing so can make the Daqin Group unable to make money, which is enough.

In Hanagu Saburo's view, Daqin Group's capital is far inferior to his own. If the graphene project is delayed for a long time and cannot make profits, Daqin Group will eventually be unable to support it and give up the project. At that time, Xinzuka Chemical will be able to monopolize this market. As for the Warren Company in Germany, although it has also been rumored that it will enter the graphene field, Xinzuka Chemicals does not think that Warren Company poses any threat to itself, because the production costs of the Japanese have always been lower than that of European companies. All have advantages.

To take a step back, even if Daqin Group is willing to consume and refuse to give up the market, the squeeze of Xinzuka Chemical will at least prevent Daqin Group from getting enough returns to improve technology and expand production capacity. In the past few years, when Xinzuka Chemical's own technology is perfected and the cost is further reduced, it will still be able to give Daqin Group a head-on blow.

In the whole plan, Saburo Huagu relied on the strength of Xinzuka Chemical. He firmly believes that this kind of price war cannot be fought by Daqin Group. Xinzuka Chemical has many mature businesses, which can return huge profits to support the protracted battle on the graphene battlefield. And does the Daqin Group have such strength?

Saburo Huaguli only ignored one detail, that is how much the graphene production cost of Daqin Group is. The cost calculated by Gen Yoshida is based on the production capacity of 200 kilograms per day. In fact, Qin Hai did not intend to limit the production capacity to this level from the beginning. The production capacity of Daqin Group’s production equipment has reached 10% of this figure. times.

A mistake in detail will determine the failure of a war. Qin Hai's deliberate concealment, coupled with the arrogance of Xinzuka Chemical's senior management towards Daqin Group, led to an unequal price war from the very beginning.