Rebirth 2004: I can make money by writing.
Chapter 178 The First Export Order
Hao Qiang was surprised to hear the good news from Lin Yan, the vice president of the motorcycle company, and asked, "Oh, how many cars? Who is the customer?"
Lin Yan excitedly reported: "Boss, 10,000 cars!
It is a European customer, Motoadventure, a large motorcycle sales chain company headquartered in Germany, with stores in many European countries.
There are also many electric motorcycle companies in Europe, such as KTM, Zero Motorcycles, Govecs, etc.
People in some European countries also like electric motorcycles very much, and it is not only the Chinese who like them.
Of course, their production costs are much higher, mainly due to high labor costs.
"Okay, very good, but be aware of the contract risks, especially the settlement method."
"Yes, the customer requires delivery within six months. If the delivery is delayed by one day, the compensation will be 0.1%, with a maximum compensation of 10%. We feel this is reasonable and the other party is sincere.
Since we are a new customer, we require a deposit of 50% of the total payment, and the payment method is wire transfer;
Before shipment, after receiving the bill of lading, the other party is required to pay the balance, and the payment method is l/c;
Before shipment, the customer requested a third party inspection. The trading method was FOB, the unit price was US$370, and the contract amount was US$370 million.
If you have no objection, I will sign it."
The trading method FOB, the full name is "Free On Board".
The FOB price only includes the cost of transporting the goods to the designated port of shipment, and does not include the cost of loading the goods, insurance and sea transportation costs.
That is, the customer is responsible for shipping costs and insurance.
Of course, Hao Qiang's company is responsible for the transportation costs from land to the port, as well as cargo inspection, customs clearance fees, terminal fees and other costs.
In this way, Hao Qiang's company has lower risks, and once the goods cross the ship's rail, the risk is borne by the buyer.
If pirates steal goods or the ship sinks, it will have nothing to do with Hao Qiang's company.
Corresponding to this trade method FOB, there are CIF foreign port delivery method and EXW ex-factory price method.
The current exchange rate of US dollar to RMB is relatively high, reaching 8.08.
The unit price of f1 is 370 US dollars, equivalent to 2989.6 yuan, which is slightly higher than the domestic factory price of 2800 yuan.
The slightly higher part is actually the FOB fee and management fee.
If the quotation is high, foreigners are not stupid. They will not buy it on behalf of domestic companies and then re-export it.
After listening to Lin Yan's words, Hao Qiang felt that the details of the contract were clearer, and replied solemnly: "Okay, then you can sign it."
Such a large order needs his confirmation, instead of Lin Yan signing on behalf of the company without Hao Qiang knowing anything.
The boss is also afraid of encountering unreliable customers.
Fortunately, electric motorcycles are not customized products, so even if foreigners don’t want them, they can still be sold.
Customized non-standard equipment, such as oil drilling platforms, cannot be sold at all.
Lin Yan received the boss's confirmation and replied happily, "Okay, after the contract is signed, I will urge the customer to wire the money as soon as possible."
"Well, thank you for your hard work." Hao Qiang replied happily and ended the call.
The export process is rather complicated and is currently at the stage where both parties are negotiating quotations, orders and payment methods. After the contract is confirmed, Hao Qiang's factory will begin production, stocking and packaging.
Wait for the third party inspection entrusted by the customer. After the inspection is passed, charter a ship and book a space, arrange shipment and loading, and then complete customs declaration after loading.
Whether commodity inspection is required depends on the customs department.
If it is the fob method, chartering a ship and booking a container is not the business of Hao Qiang Company, just cooperate with the freight forwarding company.
Of course, the balance payment is required after the bill of lading.
However, the process is not yet complete. There is still export tax rebate and foreign exchange settlement required before the process is considered complete.
Export tax rebates can be quite a bit of money, and the rebate rate is generally calculated based on value-added tax.
Currently, the value-added tax on electric motorcycles is 17%, and the export tax rebate rate is 17%.
That is, the export price is 3000 yuan, and the export tax rebate is 510 yuan, which is a considerable amount of money.
Not all products are eligible for export tax rebates. It depends on the product. For example, raw materials, low-end products, and very low added value are not encouraged to be exported by the country, so there is no export tax rebate for such products.
Therefore, some companies export products at cost price, but make money by relying on export tax rebates.
The total comprehensive cost of Hao Qiang's company's 10,000 F1 cars is estimated to be 20 million yuan.
The contract value is US$370 million. Including export tax rebates, the pre-tax profit is approximately RMB 1497.8 million (excluding the cost of the FOB process).
After taking into account the FOB expenses, this large order also generated a pre-tax profit of approximately 1400 million yuan.
The export tax rebate rate is high these days, and the country encourages exports to earn foreign exchange.
In the next few years, the value-added tax continued to decline, and the export tax rebate rate also gradually decreased to 15% and 13%.
For some products, the export tax rebate policy has even been cancelled.
So, these days, being able to export is very profitable.
have to be aware of is,
Future Group currently does not have import and export trade qualifications. If you entrust an agent to do customs declaration, you must use the entrusted company's letterhead to declare customs, and you will need to pay an additional customs declaration fee.
It is relatively easy to apply for import and export qualifications at present, but it would have been very difficult a few years ago.
As long as you get a large export order, it will not be a problem to apply for qualifications based on the order.
This also has an advantage, which is that a portion of foreign exchange can be retained for purchasing imported goods without going through a trading company.
At the same time, the group will need to add two or three more trade personnel to be responsible for this work in the future.
Hao Qiang never expected that there would be a big surprise on the third day of the exhibition, which he had never thought of.
This is recognition of the company's products!
It gave him a great sense of accomplishment.
It was around five in the afternoon, almost time to get off work.
Financial manager Jiang Ying came to Hao Qiang's office and told him that Future Motorcycle Company had received a wire transfer totaling US$185 million.
Now that the money has arrived, we have to quickly arrange mass production and place orders for parts from suppliers.
Since the F1 was finalized in early September, we have been working on the fixtures and fixtures, but they are not yet completed.
If mass production cannot be achieved, not only will the deposit be returned, but the company will also have to pay a penalty for breach of contract, which will be a huge loss.
This is no small matter.
Therefore, until mass production and inspection are completed, the money cannot be said to be secure.
The next morning,
Hao Qiang came to the group headquarters and presided over an emergency production meeting for F1.
Those present included the group's human resources director Qiu Xueya, motorcycle company's deputy technical manager Zheng Yi, workshop supervisor Liu Xiang and other management personnel.
At the meeting, Hao Qiang said solemnly: "The company has just received a large order for 10,000 F1 cars for export, with a delivery time of 180 days.
If delivery is delayed, the company will lose 3 yuan for every additional day.
In fact, our delivery time has to be shortened to 150 days, which is very tight.
At present, our biggest problem is that the tooling and fixtures have not been completed and mass production has not yet been achieved.
Manager Zheng, you have to work overtime to catch up.
Manager Qiu, you can arrange for worker recruitment and training.
So, excluding the preparation time, the production time may only be 3 months.
Producing 3 F1 cars in three months has exceeded the company's current production capacity plan.
Manager Liu, you need to deduce the production plan from the back to the front.
During this period, overtime work must be done. Everyone should work harder. Overtime pay will be based on company regulations, and the company will provide free midnight snacks and fruit in the evenings.
Next, everyone discussed for about ten minutes and quickly ended the meeting.
Before long, all employees in the company knew that a large order had arrived and they had to rush the work and arrange overtime.
With orders, everyone works very hard.
Plus, there is overtime pay, which gives us more motivation to work.
After the meeting, Hao Qiang drove his Cayenne to the exhibition.
The Porsche 911 has been paid for and the paperwork has been completed.
However, you have to wait until the end of the show to get the car, after all, they only have one display car.
Hao Qiang also understood, so let's give it two more days.
After a Porsche 911 is sold, visitors are no longer allowed to enter the car to view it. The staff puts a sign in front of the car saying "This car has been sold and is for viewing only."
When Hao Qiang arrived at the company's booth, he saw a banner hanging in front of the booth: "Congratulations to Future Technology Group for a successful start and the export order of 10,000 electric F1 motorcycles."
The banner did not reveal the order amount or customer information, nor did it indicate that this was the only order.
However, this eye-catching banner is enough to attract buyers' attention and make them pay more attention to F1.
"Boss, you're here." Li Feiyu saw Hao Qiang and greeted him.
"Well, how's it going today?"
"It's much better than the past two days. There are more people asking about it. From yesterday afternoon till now, we've received three domestic orders for a total of 300 vehicles."
Hao Qiang was slightly surprised when he heard this: "Oh, it's pretty good."
Li Feiyu commented: "After hanging up the banner, it had a certain impact.
Of course, the product itself has to pass the test.”
Hao Qiang nodded, looked for a while, and then left to visit the equipment manufacturer.
During the first three days, there were too many spectators and he didn't want to join in the fun.
There were relatively fewer visitors in the last two days, so we could take a closer look.
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