Rebirth of the Industrial Tycoon

Chapter 589 Entrepreneurs must be moral

Naravani is worthy of being an Indian. He does not consider integrity when doing business. Even if he has signed a contract, he has no intention to abide by it.

When Nanzhou Heavy Industry agreed to the quotation of 60 million US dollars, Naravani did not intend to actually fulfill the contract, but wanted to make a profit by asking the price from both sides.

This is the way of doing business with Indians. Just signing a contract is not safe. If the money is not in hand, there will always be variables.

That afternoon, Li Weidong received a call from Naravani.

Naravani, please let us go. Li Weidong put down the phone and said with a gloomy face.

Ding Youliang noticed that Li Weidong was in a bad mood, and asked, Is there any change in this order? Probably not, after all, the contract has been signed.

Remember what I told you before, you have to be careful when doing business with Indians. To be honest, I wouldn't be surprised if Indians don't follow the contract.

Li Weidong sighed softly, and then said; The soldiers come to cover the water and earth, go and see what's going on, I hope it's just this Naravani who wants to have dinner with us and make contact.

Li Weidong and Ding Youliang came to the hotel where Naravani lived, and then met Naravani.

After some pleasantries, Naravani said, Mr. Li, I think the content of our previous contract should be slightly changed.

Sure enough, the order has come out again. Li Weidong snorted coldly in his heart, and asked, Mr. Ravani, how do you want to change it?

I don't think the current price is suitable, and it should be changed again. Naravani said.

Does Lavani think that the price of 70 million is still very expensive? Li Weidong smiled slightly and continued; I think that Lavani should have done market research before we signed the contract.

For products with the same specification and quantity, the price quoted by other companies should not be lower than 100 million US dollars. Our price is already the lowest. Otherwise, Mr. Ravani would not sign a contract with us, would he?

The low price does not mean that I am satisfied with the price. I think there is still room for price reduction. Naravani said shamelessly.

Li Weidong shook his head, and directly refused: Mr. Ravani, I don't agree with you. 70 million US dollars is already our bottom line, so I don't intend to lower the price.

In that case, I regret to tell you that this order has been cancelled! Anyway, I haven't paid the money yet, and canceling the order is no loss for us. Naravani said, picking up the coffee cup, leisurely He took a sip, looking indifferent.

Li Weidong also knew that Naravani was just posturing, so he said: Mr. Naravani, I want to remind you that we have signed the contract. Although you have not paid the deposit or payment, according to the contract According to the regulations, if either party cancels the contract unilaterally, they need to pay a liquidated damages of 10 of the transaction amount, which is 7 million U.S. dollars!

This order was originally paid in full before delivery, and the risk borne by Fukang Engineering was much lower, and the penalty for liquidated damages would not be very high.

If Naravani breached the contract, Li Weidong would be picking up the liquidated damages for nothing, so the liquidated damages of 10 can be regarded as a relatively reasonable number.

Mentioning the liquidated damages of 7 million US dollars, Naravani curled his lips and said, Liquidated damages? Hehehe, what is that! The word liquidated damages is not in my dictionary.

Mr. Li, you don't naively think that if I violate the contract, I can get the liquidated damages, right? I know, you might say, we have signed a contract, we can take the legal route.

So the question is, which country's law is it? Is it our Indian law? Or your Chinese law? Or is it UAE law?

The latter two are like waste paper to me. I am an Indian, and the laws of China and the United Arab Emirates cannot control me! Even if your Chinese court pronounces a sentence,

Let me repay the liquidated damages, what ability do you have to implement it?

As for the laws of India, hehe, you don’t think you can win me in a lawsuit in India, do you? So don't mention any contracts to me, and don't tell me any liquidated damages! Even if I break the contract, you won't get any money!

Naravani made it clear that he wanted to renege on his debt, but Li Weidong really had nothing to do with this trick he resorted to.

As Naravani said, even if he breaches the contract, there is no way to sanction him. In international trade, this kind of recklessness is inherently difficult to deal with, and basically only civil litigation can be relied on.

However, litigation may not necessarily solve the problem. If the contract is signed in the host country, the situation is better.

For example, if you sell goods to a Japanese businessman and then sign a contract in Japan, the place where the transaction takes place is in Japan. Once the Japanese businessman breaches the contract, then Japanese law should protect the legitimate rights and interests of both parties to the transaction. At this time, it is necessary to initiate a civil lawsuit in Japan. It can have an enforcement effect on Japanese businessmen who have breached the contract.

But if it is a deal concluded in a third country, it will be more difficult to go through legal channels.

For example, in the matter of Naravani's reneging on debts, if a lawsuit is filed in India, it will definitely not win. How can the Indian court make Naravani lose money? Maybe in the end, he would have to pay Naravani a sum of money.

Initiate a lawsuit in the United Arab Emirates, where the exchange is located, and even if it wins, the United Arab Emirates has no enforcement power. This is not a criminal case, and the suspect can be extradited for trial.

Initiating a lawsuit in China can win, but it also faces the problem of being unable to enforce it. At best, Chinese courts freeze Naravani’s assets to pay off debts, but Naravani has no assets in China, so it is meaningless to file a lawsuit in China.

In this kind of international trade, it is impossible to hold the country responsible, because whether it is purchasing or selling, the country does not directly come forward, but through an intermediary agent.

For example, the procurement case of 120 million US dollars, although it is the budget approved by the Indian Congress, is also paid by the Indian state, but the real manipulator is Naravani, and if there is a dispute in the transaction, it can only be traced to Naravani At this level, it is impossible to find trouble with the Indian Congress.

So as Naravani said, even if he really defaulted, Li Weidong would not get a penny of liquidated damages.

In international trade, Indians are probably the only rascals like Naravani.

Looking around the world, businessmen in Germany and the United Kingdom are relatively creditworthy. People in these two countries are relatively rigid, but they are indeed very rigorous in doing things. People with a rigorous personality are often more trustworthy.

Although the Americans are domineering, their reputation in business is still trustworthy. Buyers in the United States are very generous and punctual. The only requirement is a discount.

Although Japan's reflections on World War II were not sincere, its business reputation was quite good. At least in Asia, it was regarded as the country with the most business reputation, and it basically would not renege on its debts.

Nordic and Western European countries have a long-standing business tradition. They are characterized by a strong sense of law. Although they pay attention to details when signing contracts, they will strictly abide by their commercial commitments.

Although the local tyrants in the Middle East are rich, they are also very shrewd. Businessmen in these countries like to ask for prices everywhere, and second, they like to lower prices. Fortunately, they are never vague when giving money.

Businessmen in Russia and Eastern Europe are relatively easy to deal with. After a few bottles of vodka, they all hala whistle. The downside is that they are more calculating.

The situation in Africa is quite special. Some businessmen are just like Indians, cheating on samples and often reneging on accounts, but some African businessmen are just as trustworthy as Western Europeans.

This is mainly due to the perennial wars in Africa and the relatively large uncertainty, so this relatively large difference has also occurred. So Chinese businessmen went to Africa, some made a lot of money in Africa, and some lost everything in Africa.

In Asia, Southeast Asian businessmen are slightly better than Indian businessmen, but not much better. Debt, default, fraud and other things often happen. If you do business with them, you should be more careful.

Of course, Indian businessmen are the worst. They are cheated even when doing business, and they will pay honestly if they can't be cheated.

It's just that this kind of business method is a one-shot deal, and if you are cheated once, you will not join the party. So at the beginning when we didn't know each other well, Indians could still deceive customers. Later, when everyone knew about it and started to take precautions, it was very difficult to deceive people.

For example, in the past few years, many businessmen in Yiwu did not understand the routines of the Indians, and many were deceived. If they are deceived by the Indians now, they can only be stupid.

It is worth mentioning that Korean businessmen are definitely the most difficult customers in the world.

Korean businessmen are stingy, fickle, mercenary, and they don’t pay much attention to reputation, at least for China.

Anyone who does business with Koreans must have the experience of being cheated. Moreover, the methods used by South Koreans to deceive people are different from those of Indians. Indian businessmen cheat openly, while Korean businessmen cheat secretly. When doing business with Koreans, it is easy to fall into the trap if one is not careful.

As the saying goes, it is easy to hide a hidden arrow but hard to defend against it. To deal with Indians, an anti-fraud guide is enough. To deal with Koreans, you have to be more careful even after downloading an anti-fraud app.

Naravani put on this confident posture, which made Li Weidong doubtful, and he immediately fell into thinking.

It's not right. I understand that Indian businessmen don't pay attention to credibility, but Ravani probably doesn't want this business to go bad, right? After all, this deal involves 50 million US dollars in benefits!

If we don't accept this order, if he goes to Europeans, Americans or Japanese, the consulting fee will be at most 10 million US dollars, 10 million and 50 million, so Lavani should know how to choose?

Unless there are other companies that can give him the same benefits, or give him more benefits, that's why he dares to ask me to lower the price so confidently! It seems that we have to test him again.

Thinking of this, Li Weidong pretended to give in, and said, Mr. Lavani, since you think 70 million US dollars is too much, how much do you think is appropriate?

I think 55 million US dollars is a relatively good price. Naravani said with a smile.

Mr. Ravani, don't waste our time. It doesn't make much sense to bargain now. You should give a sincere figure! Li Weidong spread his hands.

Well then, 58 million US dollars, if you are willing to accept the order, then this order is yours. Naravani put on a calm expression.

Li Weidong replied immediately without thinking: I can't accept this price, not only I can't accept it, no company in the world can accept it, I believe no one will do business at a loss.

The reason why Li Weidong refused so simply was that he wanted to improve the pace of the negotiation, so that it would be easier to force Naravani's hole card.

Sure enough, Naravani immediately said: Mr. Li, don't be so absolute. Some companies have already offered quotations of less than 60 million US dollars. If you want to get this order, you have to compare it with them. Cheaper! Otherwise, why should I choose you?

Li Weidong knew that Naravani's words were half-truth and half-false. It should be impossible to quote less than 60,000 to 70,000 U.S. dollars, but it may be true that other companies snatched orders at low prices.

In an instant, Li Weidong felt that his thinking was much clearer, and he had already made a judgment.

So Li Weidong said, Mr. Rawanni, the price of 58 million is too low. I need to go back and discuss it before I can give you an answer.

No problem, I'm waiting for your good news! Naravani smiled triumphantly.

After sending Li Weidong to the elevator again, and waiting for the elevator door to close, Naravani finally couldn't hide his joy, and couldn't help but start dancing.

I've known for a long time that this trick will work! When Fukang Engineering agreed to the price of 58 million, I immediately went to Nanzhou Heavy Industry to lower the price to 57 million, or even 56 million! Unknowingly, I made more money. $4 million, how smart of me!

Before getting out of the elevator, Ding Youliang couldn't help but said: This Naravani is too much, 58 million US dollars, he really dares to say, why doesn't he grab it!

This is much easier than grabbing. It was 70 million US dollars before, but now it has dropped to 58 million. This is a difference of 12 million. I can guarantee that you may not be able to carry 12 million US dollars in front of you. Li Weidong said.

Ding Youliang went on to say: I think this Naravani is simply bluffing, and he is probably trying to bluff us. I don't believe there will be a bid lower than 60 million US dollars, which is not enough cost at all!

According to my previous calculations, for the products on the list, the quotations of foreign companies must exceed 100 million US dollars. If it is lower, there will be no profit. 60 million US dollars, not even half of the products on the list can be bought!

Li Weidong nodded: At the price of 60 million US dollars, it is indeed impossible for those well-known leading companies to accept orders, but it does not mean that others will not accept orders.

It's impossible. Even the second-tier construction machinery companies in Europe and Japan cannot accept this price. No one in the world can do such a low price except us Chinese companies! Ding Youliang said firmly.

Li Weidong smiled slightly, did not speak, but gave Ding Youliang a meaningful look.

Ding Youliang realized something in an instant, and he immediately asked: You mean, our Chinese company is taking the order?

Finally guessed it? Li Weidong continued: When I heard other companies' quotations, I guessed that our own people grabbed the order in all likelihood!

If that's the case, then it's too unkind! Isn't it clear that it's a bid to grab an order! The price of 60 million US dollars has no profit. At most, it's a loss of production, but we lost a whole lot of money. Tens of millions of dollars! Which grandson did it! Ding Youliang cursed angrily.

Li Weidong said: It's meaningless to pursue who did it now. If someone dares to grab the order, it means that they don't care about us at all! Besides, in business matters, interests come first, so there's nothing wrong with it. Honest.

But this is our order! They are all Chinese companies. They can't get the order by themselves. Instead, they came to grab ours, and even lowered the price to grab the order. How is this different from traitors and traitors! Ding Youliang said. Said angrily.

They just sold us, not to the point of betraying the country. Li Weidong continued; Old Ding, don't be angry. You didn't do international trade before. You don't see many such things. I have a lot of experience. this kind of thing.

I made my fortune by selling goods at the Canton Fair, you should have heard of this, right? The first product I got at the Canton Fair that year was a car seat cushion, and this product was successfully sold to the United States.

As a result, in the second year, dozens of sellers of car seat cushions popped up all of a sudden, not only some from other provinces, but also our own enterprises in the province, and the prices were severely lowered among each other. In the end, in order to make a deal, they even sold the goods at a loss, which made those foreigners cheaper for nothing.

So when you encounter this kind of thing, don't feel wronged. Blame us for not being good enough and not being able to produce unique products. Since the product can be replaced, it gives other companies the opportunity to grab orders.

Ding Youliang pondered for a moment, and said, Chairman, let's go to Director Zhou for help! If you lose a thousand dollars in foreign exchange at once, the Foreign Trade and Economic Cooperation side will definitely not be indifferent. Let Zhou Gan stand out, and it should be able to prevent others from grabbing orders. .”

However, Li Weidong shook his head: Let's not say that we don't know who is grabbing the order. Just talking about this matter, people use a commercial method of reducing prices. Since it is a commercial method, it should be resolved by commercial means.

If we use administrative means, then we will not talk about martial ethics, and if we win, we will win without martial arts. If it is spread, we will become the destroyer of order and the party that loses morality.

Didn't you say before that there is nothing kind or unkind in business! Ding Youliang asked back.

Li Weidong opened his mouth and replied: Business behavior is based on profit. It is true that companies do not need to be moral, but entrepreneurs must be moral. As an entrepreneur, I can formulate systems, but I must not break the order!

We can establish a system, but we can't break the order? Ding Youliang repeated this sentence, and then heaved a long sigh: When I was in the heavy machinery factory, I lost to you every time, and now it seems that I am not wronged!

Okay, don't put a high hat on me. Now our first task is to get back the order of 70 million US dollars without any loss. Li Weidong said.

So you've already figured out a solution? Ding Youliang continued; I don't think you're angry at all, so I guess you must have an idea to deal with the one who lowered the price and snapped up the order!

Li Weidong chuckled, and said, There is a saying that when there are many people, there is great strength, even hooligans are afraid!

Ding Youliang blinked his eyes inexplicably: The next sentence is the strength of the number of people, isn't it that the fire is high when there are more people? I shouted this slogan every day when I was young.

Li Weidong responded: What we have to deal with now is a rogue company.

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