Speaking of labor-intensive products, people can think of clothing, shoes and hats, televisions, recorders, etc., but in fact, many mechanical products also have some characteristics of labor-intensive products.Like the concrete pump trucks and excavators produced by Chenyu Company, it has three factors: technology, capital and labor at the same time.The need for technology and capital, needless to say in detail, means that there is a large number of manual operations required in the production process, which cannot be completely replaced by machines for the time being.

The high price of construction machinery in Europe is a large part of the reason for the high wages of workers, which is very impressive on every piece of equipment.For example, the concrete pump truck produced by Pumami has more than 30,000 US dollars in labor cost sharing per car, plus materials, processing machine time, management costs, etc., it is impossible to sell 58,000 US dollars.

Heinzl is very clear about the cost composition of construction machinery, Yang Haifan said that China's labor costs are low, he can not refute this point, just nodded slightly.When Capella saw that Heinzl had no objection, she nodded and said, “Is this just one aspect, and is there any other reason?”

Yang Haifan seemed to casually glance at Heinzl, then smiled and said, "For another reason, it is not easy to say."

“Why?”Capella didn’t quite understand.

Yang Haifan said: "We and Europe's construction machinery enterprises are peers, in the back of the evaluation of peers, is immoral behavior."

“You mean there’s a problem with the European companies?”After all, Capella is also a businessman, can not understand Yang Haifan's hint.

Yang Haifan nodded his head, not saying a word.

Capella turned to Heinzl and said, “Mr. Heinzl, do you understand what Mr. Yang means?”

"I don't understand."Heinzl shrugged and said incredulously.

Capella turned back to Yang Haifan and said, “Mr. Yang, I ask you to be more clear.”I know you Orientals are very subtle, but this is Europe, and I hope you can speak your mind frankly with the Europeans.”

Yang Haifan smiled and said, “Mr. Capella, we Chinese companies are very honest.If the cost of one of our equipment is $50,000, then we will add a reasonable profit to the sales price of 58,000.We don't put 50,000-cost equipment at a high price of $250,000, as some companies do."

Nima!

Well, in fact, Heinzl said "Fak" in his heart, after all, he does not understand Chinese.Yang Haifan's words can't be understood again, it is simply a matter of heart.He means that Pu Mai and other European companies reported an unreasonable high price to customers, obviously only 50,000 costs, but according to the price of 250,000.But the conscience of heaven and earth, the cost of a pump truck is far more than 50,000 good!

According to pure manufacturing costs, a pump truck of $50,000 is indeed enough.But how can companies selling products only be purely manufacturing costs?

For example, Pumian has a very large research and development department, specializing in the development of new products, this department is simply a sucking beast, the annual cost of hundreds of millions of dollars, these money are to be distributed to the equipment.The competition in the European market is so cruel that any company that falls in the research and development will be ruthlessly eliminated by the market.Seriously, a lot of technological innovation for improving the performance of the equipment is not much help, but other people do it, if you do not engage, customers will feel that your product is not good, so Pu Mai has to invest a lot of profits into research and development every year, so it has to greatly increase the price of the product.

For example, construction machinery products are very easy to fail, a equipment failure, it will affect a series of construction processes, so customers always require manufacturers to provide technical services at the fastest speed, to help queuing difficult.To this end, the company needs to set up service centers in various countries and deploy maintenance engineers all year round.A one-year salary, allowance, and travel expenses of an out-of-send maintenance engineer is just a million dollars, does this money need not be spread out in the equipment quotation?

Also, if you do business in the international market, can you not advertise?Don't think that you are a world-renowned brand can not advertise, the world does not know how many people can have Coca-Cola?But Coca-Cola’s advertising is the best in the world.Users are a bunch of people who are too lazy to move their minds, and they always choose only the clearest products in memory.Why a health care product is selling well in the future is because it has taken a brainy advertising bombardment against consumers.Pu Mai's annual advertising spending in the world is also hundreds of millions of dollars, this money does not also have to wool out of the sheep?

In this way, the East expenditure a little, the West expenditure a little, the profit of the Pumay company in a year is really not much left.A concrete pump truck sold for 250,000, which only allowed Pumay company to have a slight surplus at the end of the year.If you sell at a manufacturing cost, Pumay will have to close tomorrow.

“Mr. Yang, do you calculate the cost of $50,000, which includes the amortization of the cost of technology research and development?”Heinzl had to speak, and let Yang Haifan speak, and he had nothing to say before Capella.

Heinzl, who pretended to be a Terry engineer, was also forced by Capella.Capella had previously inquired in Yang Haifan's bid and turned around to the booth of Pumai.He bluntly accused the price of Pumay's products of being too high and the profits unreasonable, and asked Pumay to reduce the price by more than half, otherwise he would go to buy Chinese equipment.The sales staff of the company explained to him for half a day, and failed to convince him, and finally, the company could only send Heinzl to accompany him to the Chinese booth to see, according to the company's statement, the Chinese reported such a low price, either in the low price, or cut corners, for the latter, you have to have professionals to identify.

Heinzl did not expect that he had not yet had time to face the Chinese, but the Chinese had fired on Pu Mei first.The Chinese do not admit that the price of their products is too low, but pointed out that Pumei is trying to make excess profits, Heinzl if it does not refute this accusation?

“Of course we include amortization of research and development costs.”Yang Haifan answered solemnly.

“How much do you spend on research and development in a year?”Heinzl asked again.

Yang Haifan smiled, “Mr. Heinzl, the question you asked does not seem appropriate, does it?”I can't divulge our R&D costs, but I can tell you that our company's chief engineer graduated from Imperial University of Technology in his early years, and the company's annual salary is $6,000, and I don't know what your company's chief engineer is.

“You’re talking about monthly salary, aren’t you?”Capella kindly reminded me.The two sides communicate in English, which is not a mother tongue for either of them, and the possibility of being wrong or hearing wrong is very high.Yang Haifan said that the company's total annual salary of only $6,000, which makes Capella feel very incredible, in Europe, the skilled chief engineer weekly salary of $6,000 is not uncommon, how can it be an annual salary?

"I am the chief engineer of China's Luoqiu metallurgical engineering machinery company, and my annual salary is less than $6,000."Chen Bangpeng next to him smiled and said a word.Grandpa is about to retire, a month's salary is more than 3000, the whole year 40,000 nods, according to the exchange rate is indeed less than $6,000, but this salary level, in China is already a high-paying class.

"I understand."Capella nodded her head.Just now, Yang Haifan has talked about the problem of low labor costs, and Chen Bangpeng's words have confirmed Yang Haifan's assertion.R&D costs are also part of the cost of equipment, and if the salary of engineers in China is only a few tenths of that of Europe, then the low cost of equipment makes sense.

“That’s not right!”Heinzl said, “I suspect that there is a serious lack of performance between your equipment and similar products in Europe, otherwise there would not be such a big gap in price.”

Yang Haifan glanced at Heinzl and said, “Mr. Heinzl thinks that our pump truck is not like our European counterparts in any other way?”

“How much pressure do you have?”Heinzl asked.

“80 megapas.”Yang Haifan Road.

"Haha, we... ah no, I mean, the latest type of 62-meter pump truck from the company, the pumping pressure has reached 285 MPa."Heinzl said with great promise, and it almost said it was leaking.

“So what?”Yang Haifan shrugged his shoulders, "You are just talking about the most high-end pump truck of the company, and their ordinary type of 32 meters pump truck, the pumping pressure is only 110 MPa, which is not much different from our products."

"Well, then, I'll say a 32-meter pump truck..." Heinzl also knew that he was stealing the concept, taking the most high-end products to compare with the ordinary models of others, it is not appropriate, he pointed to the Chenyu company's product description and said: "Your 32 meters pump truck, the displacement is 80 cubic meters per hour, and the same pump truck of the company can reach 120 cubic meters per hour."

Yang Haifan said, “Don’t forget that the price of pump trucks in Pumay is four times that of us.The same cost of 250,000 dollars, buy a pump truck of Pumay company, can pump 120 cubic meters of concrete in an hour, and buy 4 of our pump trucks, can pump 320 cubic meters, who do you think is more cost-effective? 」

“This...” Heinzl choking at once, too, was too general, without counting the accounts.The products of the company are indeed advanced, but the price is also higher, and in terms of cost performance, Pumayi is definitely at a loss.

“Yes, according to the cost-effective calculation, the purchase of Chinese companies' pump trucks is indeed more cost-effective."Capella spoke next to him, and he was simply watching the hilarity.Yang Haifan was able to beat Heinzl's momentum, and Capella had room to bargain with Heinzl.If Pu Mei insists on biting the price of $250,000 and not letting go, Capella really wants to buy Chinese products.