Chapter 356 Order Signing

Although the Russian diplomatic team had already made plans to purchase trucks, the Russian military was also very satisfied with the production speed of trucks.

But for a big business, the negotiation would naturally not be so fast.

Under the leadership of Benz, the Russian diplomatic delegation visited the tire production workshop, body assembly workshop, vehicle assembly workshop, etc., and even visited the Diesel Engine Factory next to the Benz Automobile Factory.

The Diesel Engine Factory is the designated engine provider for Benz Automobile and is the largest and most advanced engine manufacturer in Australasia.

It is no exaggeration to say that the various types of engines produced by the Diesel Engine Factory are provided to various large heavy industrial factories such as shipyards, automobile factories, military factories, machinery factories, airship companies, etc., and are the most indispensable enterprises in the power field of Australasia.

The Russian representatives believed that Russia's industry was second only to Britain, France, Germany and the United States, but when they saw the advanced industrial system in Australasia, they realized Russia's current backward situation.

It is no exaggeration to say that compared with Australasia, Russia's leading industry is only the total scale.

When the Russian representatives saw the factories in Australasia that made full use of assembly line production, it was impossible not to envy them.

Although it has been a long time since the birth of the assembly line, assembly line production is not unfamiliar to major European countries.

But in fact, there are not many factories that truly popularize assembly line production, and most of them are concentrated in emerging industrial powers such as the United States and Germany.

Old powers like Russia do not have many factories that use assembly line production. Even many factories are still using relatively old technology, which is decades behind assembly line production.

But it is not easy to change. After all, there are too many old factories like this in Russia, and many capitalists are not willing to use new technology.

After all, new technology requires the purchase of new equipment, and new equipment is a huge amount of money, which is an unnecessary expense for those capitalists.

Amid the surprise and admiration of the Russian representatives, Benz took them to visit the entire car factory, and then led them back to the conference room.

All the inspections have been completed, and the next step is to discuss the specific details of the car order.

After waiting for everyone to take their seats, Benz smiled and said, "Ladies and gentlemen, we are very optimistic about the cooperation with your country. Can you tell us about your specific requirements?"

"Mr. Benz, your factory's production technology and production speed satisfy us. To be honest, we are certainly willing to reach a cooperation with your factory and quickly sign the purchase order of the car. But you also know that the financial situation of our government is not very good. Can your factory make greater concessions in terms of the price of the truck?" The Russian military spoke first, affirming the advanced production technology of the Benz Automobile Factory, but also did not forget to fulfill its responsibilities and try to lower the price of the truck as much as possible.

The words of the Russian representative made Benz relieved. According to the attitude of the Russian representative, this truck purchase order has basically been reached halfway.

Arthur and Benz had long expected that the Russians wanted to lower the price. After all, people usually need to bargain when buying vegetables and meat, not to mention this kind of large-scale trade between countries.

A slight reduction in the price may reduce the total price by tens of thousands.

This is definitely an opportunity to save money that the Russian government, which is currently in a precarious financial situation, cannot afford to miss.

"Of course, General. We attach great importance to cooperation with your country. According to your majesty's order, we will offer you the lowest price of Benz trucks, 520 Australian dollars for B1 trucks and 710 Australian dollars for B2 trucks. Compared with the prices provided by European factories to Britain, France and Germany, this price has been reduced a lot." Benz's assistant directly stated the price of the car that Arthur had decided in advance.

This price did not cheat the Russians. Compared with the prices provided by European factories to Britain, France and Germany, it was generally reduced by tens of Australian dollars.

Of course, it is not ruled out that the reason for this phenomenon is the per capita income gap between Europe and Australasia.

European factories have to pay workers more wages, which also means that the cost price of cars and trucks produced by European factories is higher than that of Australasia factories.

The German factory quoted the German government 7,500 marks (375 pounds, 750 Australian dollars) per B2 car, which was about 40 Australian dollars more expensive than the price Australasia quoted to Russia.

The British factory quoted the UK and France 380 pounds, 760 Australian dollars per B2 car.

The reason for this gap is that the per capita income in the UK is higher than that in Germany, and the cost of workers is also higher than that in Germany.

In this comparison, Australasia's offer to Russia is already very low, which seems to be a very cost-effective deal.

You know, the official external price of the B2 truck is as high as 800 Australian dollars, and the price of the European powers is already much cheaper.

After all, the major powers are the largest customers of the car factory, and Britain, France and Germany are the most powerful countries in the world, so they should give them face.

Although the price offered by Benz Automobile Factory is very conscientious, the Russian delegation is obviously not satisfied and wants to lower the price.

"Mr. Benz, this price is still too high for our finances. We need a large number of trucks. I hope your company can lower the price a little bit in view of the friendly relations between the two countries." The representative of the Russian military said: "If the price is fair, I promise to your company that I will strive for at least 10,000 truck orders from China. And these 10,000 trucks are not all. If the effect of equipping the troops with trucks is really good, we will also purchase trucks from your company."

"What price do you think is appropriate?" Benz thought for a while and asked with a smile.

"In my opinion, the price of 450 Australian dollars for B1 trucks and 650 Australian dollars for B2 trucks is very appropriate. If your company agrees, we can sign the order immediately." The Russian military representative said without hesitation.

This bargaining is not ruthless. On the basis of the lowest price, both types of trucks were cut by 60 or 70 Australian dollars.

The cut price is even close to one-tenth of the selling price of the two trucks, which is almost reaching the cost price of the two trucks.

"General, we cannot accept such a price. We are willing to continue to lower the price based on the low selling price, but you should know that it is not easy to build a truck. The materials and time spent are definitely not comparable to ordinary cars. The price we offer has actually given up most of the benefits, and we do this considering the good diplomatic relations between Russia and Australasia." Benz hurriedly spoke up and interrupted the Russian officer's proposal on the price.

"As for lowering the price again, I will tell you the truth, General. On the basis of ensuring that we do not lose much, the minimum selling price of the B1 truck is 500 Australian dollars, and the minimum selling price of the B2 truck is 690 Australian dollars."

"This price is the lowest price we can offer based on the current situation of our automobile factory. We really can't offer a lower price, which is close to the cost price of the truck." Benz added, as if he was afraid that the Russian officer would continue to bargain.

The Russian officer was already very happy about the price, but he pretended to be calm on the surface and said with a painful face: "This is indeed not our ideal price. Considering the good relationship between us, we can accept this price."

"Mr. Benz, when can the order for the car be officially signed? When can it be delivered to us?" The Russian officer continued to ask.

"It depends on the number of trucks your country wants to buy, General. But I promise you that even if your country buys 10,000 trucks, we will deliver them to your country within half a year." Seeing that the price of the truck was finally finalized, Benz and his subordinates finally breathed a sigh of relief and said hurriedly.

With overtime production, it is not difficult to complete the order of 10,000 trucks in half a year.

Even if the transportation time is added, half a year is completely enough.

"That's good, Mr. Benz. To be honest, before we came to Australasia, we agreed to buy 5,000 trucks. But I think 5,000 trucks are not enough to completely change Russia's transportation situation. I will try my best to change the order quantity of trucks to 10,000." The Russian officer nodded with satisfaction and said with a smile.

It is good news that the trucks can be delivered within half a year. Because the truck orders of Britain, France and Germany are basically delivered in half a year, Russia cannot fall behind in time.

After negotiating for a while, the truck purchase order between Russia and Australasia was officially signed.

According to the agreement between Benz and the Russian officer, the order for buying trucks is temporarily set at 5,000. After Russia agrees to increase the number of trucks to be purchased, the order quantity will be changed to 10,000.

Among these 5,000 trucks, Russia will purchase 1,000 B1 trucks and 4,000 B2 trucks.

If the order quantity is 10,000, the quantity of the two types of trucks will double.

When the order was signed, both the Russian officer and Benz smiled, thinking they had gotten a great bargain.

Although the Russian officer was indeed very aggressive in bargaining, Benz was able to agree to such a price for the truck, which meant that the car factory would not lose money by selling the truck at such a price.

In fact, this is indeed the case. Thanks to the relatively low labor costs in Australasia, the production costs of the two types of trucks are 450 Australian dollars and 580 Australian dollars respectively.

Even for the ridiculously low Russian orders, the car factory can make a profit of 50 Australian dollars and 110 Australian dollars per vehicle respectively.

Not to mention the orders from Britain, France and Germany, which are more expensive, the profit of any order is as high as hundreds of thousands of Australian dollars.

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