The quotation of AAK Hydraulic Valve is based on 3 DO Principles and 3 DO NOT Pr

A hydraulic valve giant came to talk business with you. Have you started to panic? If the other party places a large order of 1 million US dollars, which is a big business and also a big customer, what should be done to him, such as credit and price reduction? It seems to be not calm. From the perspective of quotation, I listed 3 DO principles and 3 DO NOT principles for myself and our sales department:

1. We do not pursue windfall profits, but take reasonable profits.
2. We do not do market common goods, but only benchmark SUN, HydraForce, HAWE, Honeywell and other first-line hydraulic valve brands.
3. We do not give rebates, but only provide hydraulic cartridge valves with the best cost performance

In fact, many people don't understand the concept of cost performance. They think that cost performance means cheap. To understand it simply, we can use a formula: product unit price/product life=cost performance. For example, for a certain hydraulic valve, the price of Factory A is 100, and the service life of the hydraulic valve is 12 months; The price of AAK is 120, and the service life of the hydraulic valve is 24 months. The cost performance ratio of Factory A is 8.3; Similarly, the cost performance ratio of AAK is 5. This is the root cause of AAK hydraulic valve's insistence that "although the price is 20% higher, the service life is twice that of its peers". Of course, price negotiation is not only a mathematical calculation, but also requires pattern and thinking.

Let me start with myself. 13 years ago, I produced hydraulic cartridge valves for trade and earned 100,000 US dollars. Of course I was happy. Later, after several years of accumulation, I made a total of 1 million US dollars, which is even more pleasant. If, after a few years or over 10 years of hard work, I have earned 10 million or 100 million yuan. Although I can't earn this money at present, think about it. As Jack Ma of Alibaba said, "Dreams must exist in case they come true". Let me take this order of magnitude as an example to analyze. When you make 100,000 yuan, what is the scope of your thinking if you buy something? What is the scope of your thinking after earning 1 million yuan? By analogy, with 100,000 yuan, the way of thinking must be different from that with 100 million yuan. When you have 100,000 yuan. would you like to buy a yacht? No. When it is 10 million or 100 million, the idea will be different. A basic truth is that when we talk about business and price, it is actually related to the cognitive pattern and is determined by the money we earn.