Return to Singapore 1995

"Mr. Shah Rukh, the sunglasses you are holding are imitated from the famous movie star Arnold Schwarzenegger's sunglasses in "Terminator 2". This kind of sun visor has a transmittance of 18% and is suitable for outdoor activities such as the beach and mountain climbing. …”

Speaking of these parameters of sunglasses, Li Xiaofan was catchy. Not only was he good in English, but he also used a lot of professional terms, which made him sound very professional. These are all information from the introduction materials I got from the glasses factories in Wenzhou and the notes I took after I returned to China last time. I memorized them by rote in the past few days.

This was the first time that Tang Jiaming heard Li Xiaofan communicate in professional working English. Before, they were having a romantic time drinking wine in a nightclub. He couldn't help but secretly gave Li Xiaofan a thumbs up, meaning: Brother, you are great!

"That's great. If these glasses have passed CE and FDA certification, then we will have no problem selling them in Singapore and surrounding areas!" Shah Rukh said happily.

Shah Rukh said to Li Xiaofan: "Mr. Li, can you quote me the price of these sunglasses now?"

"Mr. Shah Rukh, how much is your order quantity?"

"Can I reserve a thousand pairs first?"

Li Xiaofan smiled and said: "Mr. Shah Rukh, if the quantity is so small, the price may not be cheap. You may need six yuan in new coins..."

"What? So expensive! It's more expensive than the purchase price of the old sunglasses from my current company! Mr. Li, wasn't the price you gave Singh SGD 3? Why did you double the price when I ordered more quantity? Has the price increased?" Shah Rukh jumped up.

"Mr. Shah Rukh, please listen to me and explain to you slowly. The sample in your hand was brought over by me when I flew directly from China to Singapore. The quantity is very limited. The price of 3 Singapore dollars does not include freight and import duties. The cost of insurance, etc. is the factory price! Of course, if you can accept delivery from mainland China, I can give you a quotation of 3 yuan now!”

Shah Rukh shook his head and said: "Mr. Li, it is impossible for me to go to mainland China to get goods. I am not familiar with mainland China and have never been to it!"

"Mr. Shah Rukh, if you want a lower quotation, you have to increase the order quantity! If I ship it by sea in a twenty-inch container, at least 20,000 pairs of glasses must be packed in it to balance the expensive freight. You can If I want a thousand pairs, who can I sell the rest of my goods to?”

"Mr. Li, if I buy too much goods, if I can't sell them, there will be a risk of being overstocked in the warehouse, so I can't place a big order for you!"

"Well, Mr. Shah Rukh, considering that this is our first time doing business, if you give me an order for 10,000 pairs of sunglasses, how about I quote you five Singapore dollars?"

"Five yuan is too expensive, unacceptable!" Shah Rukh shook his head.

Li Xiaofan smiled and said: "Then just quote a price. If I can afford it, we will do the business. If everyone can't accept it, forget it, just treat us as friends!"

Shah Rukh thought for a moment and said, "If there are 10,000 pairs, it can't exceed four Singapore dollars at most!"

"Can it be any higher?"

"I'm afraid not. If it goes higher, I won't make any profit..."

"If I quote NT$4 for 10,000 pairs of sunglasses, Mr. Shah Rukh, I have a condition. After signing the contract, you must immediately pay me 30% to 50% of the purchase price in advance!"

Shah Rukh took out the calculator from his bag and did some calculations. The total payment was 40,000 Singapore dollars. If he paid 30% in advance, it would be 12,000 Singapore dollars. Considering that this new type of sunglasses can retail for 12 to 12,000 Singapore dollars on the market. S$15, Singapore has millions of foreign tourists every year The market for this kind of ordinary sunglasses is huge. At the same time, he can also expand the markets in surrounding Malaysia, Brunei, Indonesia, the Philippines and other places. He should be able to wholesale them for about 6 to 8 Singapore dollars, and there is still 50% left. 100% profit margin is still acceptable.

"Mr. Li, I can only give you a 30% advance payment at most, and I have to sign a trade contract with your company, Singapore Ming Hua Holdings Pte. Ltd. And your price quote of four Singapore dollars must include 7% GST consumption tax!" Shah Rukh has no doubt about the strength of Tang Jiaming's Minghua Holdings.

Li Xiaofan glanced at Tang Jiaming beside him.

Tang Jiaming smiled and said: "Okay! It's only 40,000 Singapore dollars. For such a small business, there is no problem signing a contract with our company! As for the 7% GST consumption tax, you can negotiate with Mr. Li!"

When exporting goods to Singapore, you need to pay consumption tax: Singapore consumption tax (GST) is a tax generated by the supply of goods and services to Singapore and the import of goods into Singapore.

Consumption tax is administered by the Inland Revenue Authority of Singapore (IRAS) and collected by Singapore Customs. Consumption tax on all taxable and non-taxable goods is calculated at an ad valorem rate, which is 7% of the value of the goods. The amount of excise tax payable is calculated as the CIF (Cost, Insurance and Freight) value plus all duties and other charges payable.

Li Xiaofan made an estimate in his mind. Basically, the ex-factory price of this kind of sunglasses in Wenzhou is only about one Singapore dollar. Including shipping and miscellaneous fees and Singapore's 7% GST consumption tax, if 10,000 pairs are consolidated, it may be shipped to Singapore. The cost of each pair is about 2 Singapore dollars, so this business should be feasible.

"Okay, Mr. Shah Rukh, that's fine. As for other specific delivery time and other terms, I will communicate with the manufacturer and confirm them with you. Please also design the sticker pattern and text content on the sunglasses for me as soon as possible. In this way, we will communicate again in two days. After the terms are confirmed, we will sign a specific formal contract. How about we sign an MOU first?"

"Okay, very good!"

After Shah Rukh and Li Xiaofan signed the MOU, they happily left with Uncle Singh. The two felt that the trip was worthwhile.

After they left, Li Xiaofan said to Tang Jiaming: "Brother Ming, my real idea is that after our new company is registered, I will sign a contract with Shah Rukh in the name of the new company, and then I will ask your Minghua Holdings to endorse the guarantee. Is this okay?"

"Yes, as long as Shah Rukh can accept it!"

"If your company endorses and guarantees it, I think Shah Rukh should be able to do it. We will discuss the details later. Also, Brother Ming, if we really sign the contract at that time, I am a layman in import and export trade, and there may be many intermediate links that I will have to trouble the people under your company to help me take care of. I can pay your company according to the market price in the future!"

"Hey, Afan, you are too polite! It's just a small amount of goods, it won't take much effort, I will ask the trade department to send a capable person to help you!"

"Okay, thank you very much!"

"By the way, Afan, I just saw that you have another sunglasses sample box, can you show it to me?"

"Sure, Brother Ming, if you like it, I'll give it to you!"

Li Xiaofan opened the sample box, which contained more than 20 various sunglasses samples, all of which were taken for free or bought from several factories in Wenzhou.

"Afan, I suddenly have a good idea!" Tang Jiaming took a puff of cigar and said.