Reborn Tycoon Rise

After lunch, Lei Ding and Xu Zhi had several more secret talks, mainly discussing product pricing and sales development.

The two had reached a consensus at the dinner table that Xu Zhi was only responsible for production, while Redding, the general distributor, covered taxes, transportation, lower-level dealers and his own profits.

In the end, the two of them reached a simple agreement. The arcade machine of Xiangjiang Cube is priced at US$1,300 in the United States. Midea is only responsible for delivering the product to US Customs, and Redding is responsible for all other follow-up. Snake is US$150 cheaper. , there are still rebates, but they are no longer high. For every arcade machine exceeding 10,000 units, all arcade machines will be refunded US$10, with a maximum cap of 100,000 units.

In terms of profits, Xu Zhi made concessions, but in terms of financial transactions, he won. After the order was placed, Redding had to pay 50% first, then 20% after the goods were shipped from Xiangjiang, and the remaining 30%. You will pay after the product is sold.

The main cost of an arcade machine is actually the motherboard and monitor. The cost of a Xiangjiang Cube is about US$600. Now it sells for US$1,300. A 50% down payment is enough to recoup the cost, and the profit is as high as 100%.

However, compared to Space Invaders, it is still far behind. According to later information, Taitong Company sold 100,000 arcade machines a year, with a net profit of 120 million U.S. dollars. In other words, a successful profit of 1,200 U.S. dollars was still a net profit. The profit is almost twice that of Xiangjiang Cube.

However, the Xiangjiang cube is better than the long stream, and it can survive until the 21st century. Its playability is much better, but it is not suitable for arcades!

In the evening, after everyone had dinner together again, Redding was rarely satisfied with today's negotiation results and kept inviting Xu Zhi to his casino to play for free.

However, Xu Zhi flatly refused. Gambling is an invisible addiction. It does not matter whether the quantity is large or small. If you encounter it, you will be in trouble for a lifetime.

After Redding left, Tom stayed and said to Xu Zhi: "Congratulations, Eric, your company will definitely have a bright future in the future."

Xu Zhi smiled and said: "Thank you, can you tell me what's going on now?"

Xu Zhi had always wanted to ask clearly before, but the principal was present, so it was difficult to ask too many questions.

Tom said: "Ten days ago, Redding suddenly brought someone to my company. He is one of the casino owners in Las Vegas, so he can be considered a client of mine! As soon as he came, I I received him naturally, and at first he asked all about your arcade machines. I thought he wanted to purchase a large amount of them, but I didn’t expect that this was his goal!”

Xu Zhidao: "He is also very discerning, so what is the status of this Redding in the Rockefeller family?"

Tom replied: "His surname is just Rockefeller, and he is no longer a core member of the real Rockefeller family. Otherwise, why do you think he is not involved in the oil industry?"

Although the Rockefeller family was dismembered by antitrust laws, their wealth remained. Standard Oil was dismembered into 37 oil companies, and the Rockefeller family was a major shareholder in each of them.

After decades of development, some have declined, but some have also become stronger. Three of the seven oil sisters that now monopolize the world are descendants of Standard Oil.

The Rockefeller family is not declining, but hiding. Like the Morgan family, it secretly controls all ocean currents in the depths of the ocean.

Seeing Xu Zhi's disapproval, Tom smiled meaningfully: "But don't underestimate Redding just because he is not a core member. Even the peripheral members of the Rockefeller family have much greater influence than ordinary businessmen. Reading owns many casinos and is already a casino tycoon in our industry, but there is no coverage in the media. This is also a powerful force!"

Xu Zhi smiled and said: "That's right. A skinny camel is bigger than a horse. In a family like this, a relative from the surrounding area is probably a super rich man."

Tom nodded and said, "Yes, Redding has great influence in politics and business, and he is also kind in doing business. You can rest assured when you cooperate with him."

"I'm so worried!" Xu Zhi thought to himself, "Who knows if you guys are in the same group."

However, both sides currently have common interests. As long as there are no problems in this regard, there will be no major conflicts!

In the shopping mall, it is always common interests that maintain relationships!

…

The next day, Redding's men went to Midea's warehouse and began to move the arcade machines inside. Although Redding bought all the previous dealers' contracts, some of them had already been sold. After taking over the contract, some of them would be sold according to the original price. The contracts are sold, and the rest is shipped to all the casinos it owns.

Successful businessmen do things vigorously and resolutely. Redding also quickly acquired a large arcade dealer. I heard that the other party didn't want to sell it at first, but Redding's method is very simple. If you don't sell it, I will open it too. The same company focused on your customers and shipped products at low prices. Plus, the prices were quite generous, so the other party gave in.

With channels, transportation, and resources, almost everything is in place in Reading. The arcade machines that the casino cannot digest are transported to some branch dealers. These arcade machines are quickly sold out, and a large number of resale machines are sold out at the same time. Procurement requirements were brought back.

As a result, Xu Zhi quickly received a new order: 10,000 Xiangjiang Cubes and 3,000 Snakes.

After waiting for a few more days, he got such a large order. Xu Zhi was of course very happy. According to the price and agreement, an advance payment of almost 8 million US dollars was directly transferred to Midea's overseas offshore account.

Midea's registration place is actually a tax haven. The tax rate here is only 1.5%. That is, if the company makes a profit of 100 million U.S. dollars, it only needs to pay taxes of 1.5 million U.S. dollars. If some tax avoidance methods are used, or an agreement is reached with the local tax bureau, the tax amount will be reduced. will be lower.

In the past, when dealing with small dealers in the United States, the targets were all Midea's U.S. branches. Those companies were required to pay taxes to the U.S. government, but in fact the bulk of the profits were placed in accounts in tax havens.

The process is also very simple. The cost of manufacturing an arcade machine by Midea Xiangjiang Company is US$600, and then Midea's headquarters (registered in Bermuda) purchases it for US$650, and then sells it to Midea's US branch at a high price. In this way, whether it is Xiangjiang or the US branch, The profits of companies are actually very low, and the bulk of the profits only need to pay a small tax at the place of registration.

Now after the general distributor is confirmed, the process in Xiangjiang is still the same. In the United States, it is completed directly on shore. Whether the subsequent fees are high or low is the business of the general distributor and has nothing to do with Midea.

Of course, there are many tax avoidance methods, such as purchasing orders from Deyi in the United States and purchasing locally in Xiangjiang, which can be tax deducted. However, these will be handled by professional international trade accountants, and Xu Zhi also knows nothing about it.