1987: Sleepless Tonight

"We very much agree with the specific cooperation details you wrote, Mr. Lu, and have reached a consensus. However, there are some areas where we have some disputes, such as advertising fees. One partner only bears 3%. , this ratio is too low and needs to be raised to 8%. In addition, the management fee is also too low, and similarly, it needs to be raised to 8%." Kevin put forward his opinions after discussion.

Where direct benefits and costs are involved, there are related expenses.

In these details, it is reflected in the fees.

"The advertising fee is still 3%, and the management fee is also 2.5%." Lu Hao said.

constant!

Foreigners are really unkind. When faced with 3% advertising fee and 2.5% management fee, they applauded, but after going out for half an hour to work, when they came back, they opened their mouths and wanted to increase the advertising fee. To 8%, the management fee should also be increased to 8%.

Lu Hao would definitely not agree to this.

And he could also tell from Kevin's words that the other party actually wanted to bargain again, otherwise it would be impossible to say that they would increase advertising fees and management fees at the same time, and the increase ratio would still be so high, but they would talk about it separately.

At the same time, saying that the loopholes are relatively large can easily arouse objections. Kevin is a smart man and it is impossible not to know this, but still saying so is deliberately letting the other party bargain.

If he himself is very determined, he will definitely attack the difficulties one by one. First, let's talk about the increase ratio of advertising expenses. The two parties have reached a consensus. After the negotiation is successful, we will talk about the management expenses.

By attacking difficulties one by one like this, the probability of success will definitely be higher, but Kevin did not do this. Instead, he chose to talk about both at the same time. This was obviously to let Lu Hao bargain.

Regarding the specific ratio of advertising fees and management fees, Kevin and others actually had no idea what the ratio was, so they first shouted at the higher price and waited for a bargain.

But Lu Hao didn't give any face, the advertising fee was fixed at 3%, and the management fee was also fixed at 2.5%.

Not to mention the 1% ratio, even the 0.01% ratio will not be compromised.

The bait has been put out and the opponent has taken the bait. Lu Hao is not afraid of Kevin and KFC not taking the bait.

How can there be any reason to continue to sprinkle materials into the water after catching fish?

Save a little if you can.

Everything before Caesar has been sown.

"Mr. Lu, this ratio is the result of our careful consideration and discussion. If it is lower than this ratio, we will bear a lot of risks and our intention to cooperate will be greatly reduced. Although I personally prefer to cooperate with you. Cooperation, but such a big matter must be reported to the headquarters. If the ratio is too low and the headquarters thinks it is not feasible after calculation, our cooperation may fail," Kevin said.

He still insisted on the cost ratio just mentioned and refused to give in. He also cited the obstacles from KFC headquarters as an excuse.

After Fang Bilong translated Kevin's words to Lu Hao, he said in Chinese, "Boss Lu, this ratio is not very high. KFC's business is very good. If we can reach a cooperation with KFC, even this ratio of advertising fees And management fees can also make money.”

"And you have spent a lot of effort on this aspect. It would be a pity if the cooperation failed due to the issue of cost ratio."

What he said was sincere and he was trying to persuade Lu Hao.

Moreover, he also believes that the ratio of 8% is not high, and a lot of money can be made from cooperation at this ratio.

If he didn't have so much money, he actually wanted to cooperate with KFC alone and open a branch. He witnessed the grand opening of KFC's first branch in China with his own eyes.

It was truly an unprecedented event!

"The proportion of advertising expenses and management expenses is what I wrote and cannot be changed." Lu Hao still had the same answer as before, "If KFC is unwilling to cooperate with me, I will indeed feel very sorry, but There’s no KFC, there’s Pizza Hut, there’s McDonald’s.”

"As far as I know, these two companies also have the idea of ​​​​distributing to the Chinese market, and they will move into the Chinese region in the next year or two and open branches here. If I take the initiative to contact them, we will propose a cooperation plan. Slightly change the name, change the three words KFC to McDonald's, to Pizza Hut, Mr. Kevin, and everyone, what do you think they will be towards the details of my cooperation? Will they agree to cooperate with me? Do I cooperate?"

He worked hard to negotiate with KFC, Kevin and others in order to take the initiative and take advantage of many things. It was definitely impossible to be manipulated by the other party.

After entering Qingchuan Hotel, I had been in control of the previous negotiations. It was impossible to leave for half an hour and then give up the initiative when I came back.

Once this breath is released, it will be difficult to bring it up again later.

But in fact, although Lu Hao said this with great confidence, it is basically impossible to actually implement it. Pizza Hut and McDonald's have indeed planned to expand into the Chinese market in the past year or two, but these two are The marketing strategy implemented in China is different from KFC.

In order to control the quality of their products, Pizza Hut and McDonald's have not engaged in franchising cooperation for a long time. They are all direct sales. Not only that, they are also very confident in their products, or very stubborn. , is very pedantic and is not willing to make changes for the market, or in other words, for customers. Instead, it believes that its products can be loved by people of all ethnic groups and countries.

Of course, there may be other considerations, but the general fact is that it is too conservative in terms of cooperation, taste, and product processing procedures, which makes it completely incomparable with KFC in China.

However, Kevin and KFC are not clear about this situation. In fact, even Pizza Hut and McDonald's themselves are not clear about it. When deciding on expansion-related matters in the future, they will be so stubborn that they would have been able to occupy A relatively large market share, but it slipped away from our hands in vain.

If we open up franchises earlier, simplify the product processing procedures, and make changes in taste to suit the market, we may not necessarily be able to beat KFC in China, but we can at least compete with them.

Lu Hao is currently the only one who knows about this matter.

The advantage of poor information is that you can make any decision without hesitation!

Kevin and KFC did not expect that their competitors would be so stubborn, but this just gave Lu Hao the confidence to intimidate KFC and Kevin.