Chapter 108: Bluffing

The purchase prices had been stated.

Everyone looked at Wang Qiang, waiting to see how he would respond—whether he could offer Cheng Weihong prices ten percent lower than the actual wholesale rates.

Wang Qiang did not answer at once.

The price of portable cassette players was easy enough to discuss, but what about the other goods?

He was not sure about the prices of CD players, digital watches, and the like in Shenzhen and Guangzhou. He knew they ought to be cheaper than in the interior, but he could not quote recklessly. What if he ended up losing money?

So Wang Qiang put on a smile and said, “Oh dear, my nicotine craving’s acting up. Brother Zhu, give me a cigarette. I’ll smoke first, then we can talk it over slowly.” He needed time to consider his strategy.

“Have one of mine.” Cheng Weihong took out a pack of 555 cigarettes and offered him one.

A young businessman sitting nearby lit it for him.

Wang Qiang cupped the flame in both hands to show his respect and drew in a breath. Perhaps because he had never smoked before, he was seized by a fit of coughing, provoking laughter from everyone around him. He paid it no mind. Squinting slightly through the smoke, he focused on how to answer Cheng Weihong’s question.

Should he simply make a bold declaration and settle on a price?

No. He could not afford to do business at a loss.

Still, he had thought of a way around it.

The two sides had only just met to discuss business. From Cheng Weihong’s tone, Wang Qiang could tell that the other man was suspicious of him. In other words, even if he quoted a price, Cheng Weihong would certainly remain skeptical. The only price Wang Qiang knew for certain was that of the portable cassette players. He could bring those up first and use them to test the waters, then wait until he returned from Shenzhen before beginning any real cooperation.

As for whether Cheng Weihong and the others would agree, Wang Qiang believed it would depend on whether his speaking skills could persuade them.

One thing was certain.

His tone had to be grand—grand enough to intimidate them first.

Once they were intimidated, negotiating the terms would become much easier. In truth, Wang Qiang would have preferred to finalize the entire deal in one stroke, but since he did not know the prices of the other goods, this was the only choice available to him for now. He believed electronic products in Shenzhen should indeed be cheaper than those here. Exactly how much cheaper, however, he would have to find out for himself.

For the moment, he would just boast a little.

Wang Qiang smiled, amused by his own thoughts.

He had always been a practical man. He had never intended to deceive anyone—and in fact, he still had no intention of deceiving them this time. He would simply set the other products aside for now.

“Can you tell us the prices yet?” a woman urged.

“If you can’t beat our purchase prices, perhaps we can cooperate on something else next time there’s an opportunity,” a young man said, though he did not mean it.

Now even Old Zhu was filled with uncertainty. Earlier, when Wang Qiang had claimed he could obtain electronic products very cheaply, Old Zhu had believed him without question. But now, at the crucial moment, Wang Qiang was saying nothing. How could Old Zhu not be puzzled?

Cheng Weihong’s quoted prices really were extremely low. If Wang Qiang could not offer something lower, this deal would probably fall through. Yet Old Zhu did not want to leave Old Xiao owing him a favor with nothing to show for it, so he did everything he could to smooth things over for Wang Qiang.

“Brother Cheng, the prices you quoted are definitely higher than what we can get. It’s just that Little Wang and I still need to discuss exactly what price we can offer you. How about we get back in touch later?”

“That makes sense,” the woman from earlier said. “This involves a business deal worth tens of thousands. You should go back and discuss it carefully before making a decision.”

Cheng Weihong smiled faintly. “Brother Zhu, whether or not we manage to make this deal, today we’ve at least gotten acquainted. We should keep in touch in the future. Even if it’s only to share a drink or visit one another, having one more friend means one more path forward. As for the business itself, I’m afraid there’s nothing I can do if you can’t offer a lower price. We’re opening our doors to do business, after all—to make money.”

“Good,” Old Zhu said. “Then I’ll gladly call you a friend, Brother Cheng.”

Cheng Weihong nodded cheerfully and turned to Wang Qiang. “It’s all right, Little Wang. The fact that you can’t offer a lower price doesn’t mean we can’t be friends. Ha-ha. At your age, being able to obtain goods on your own is already quite impressive.”

Wang Qiang suddenly asked, “What did you say your purchase prices were just now?”

Everyone looked at him in confusion, unable to understand what he meant.

Cheng Weihong was especially perplexed. Although there were two layers between him and the manufacturers, his prices were genuinely quite low. Unless Wang Qiang could obtain the goods directly from the factories, there was no way his prices could be lower than what Cheng Weihong paid his suppliers.

Suppose a product sold for one hundred yuan on the market.

Its factory price might be only thirty yuan. But how could it end up selling for one hundred? First, after leaving the factory, it had to pass through a distributor. The distributor needed to make money, so he would raise the price before selling to a second-level distributor. The second-level distributor would then take his cut and sell in batches to third-level distributors or retailers. Thus, the market price and the factory price would naturally end up worlds apart.

Cheng Weihong obtained his goods from a second-level distributor. They had already passed through two layers of middlemen, so his prices were naturally rather high by comparison.

The other businessmen understood this perfectly. But being able to purchase goods from a second-level distributor was already the limit of their abilities, mainly for two reasons. First—and most importantly—there was an information gap. Second, although they purchased in considerable quantities, their product lines were quite miscellaneous. Apart from a mere two or three items obtained through first-level distributors, their limited purchasing power meant they could only buy everything else through second-level distributors.

And Wang Qiang?

They were not inclined to believe that a young man could obtain goods directly from a first-level distributor.

People often judged another person’s capabilities by his age. This was common enough in China.

When Cheng Weihong had first arrived in Shanghai, he had dealt in secondhand electronic products. Reaching the point where he could even make contact with second-level distributors had taken extraordinary effort. Everyone knew perfectly well why Cheng Weihong wanted to bring them into the venture despite having his own connections. It was because his own purchasing power was insufficient. If he had not brought them along to buy in bulk, he might not even have qualified to deal with a second-level distributor.

Later on, such a situation would have been unthinkable.

But this was an era ruled by sellers—an age when anyone who possessed goods held the upper hand. That was simply the reality.

“I’ll tell him,” the young businessman said to Wang Qiang.

Wang Qiang smiled and nodded.

The young businessman was beginning to lose patience. If Wang Qiang had no ability to supply the goods, why did he keep asking questions? Still, Old Xiao had a good relationship with them, and Wang Qiang and Old Zhu had been introduced by him. He could not openly embarrass them.

Keeping his annoyance hidden, the young man cleared his throat and said, “Our purchase price for portable cassette players is forty-five yuan.”

Wang Qiang sighed and shook his head.

Cheng Weihong saw the slight shake of his head and frowned.

The other businessmen noticed it as well, but none of them understood what Wang Qiang meant.

The young man continued, “Digital watches are fifteen—”

But no one could have expected what happened next. Wang Qiang finally spoke, interrupting him without the slightest courtesy. With an imposing air, he waved his right index finger.

“Far too expensive. Every one of the products you’re buying is far too expensive. When I heard Brother Cheng quote the prices earlier, I even wondered whether I had misheard him. But now that I’ve heard them again, I realize your purchase prices are outrageously high!”

Old Zhu gave a startled grunt, thinking, What on earth are you saying, Little Wang?

Cheng Weihong and the other businessmen were equally stunned.

Wang Qiang looked at Cheng Weihong, then at the others, emphasizing every word. “Take your portable cassette players, for example. Your purchase price is actually as high as forty-five yuan per unit?”

He deliberately cast them a contemptuous, questioning look.

“The people supplying you aren’t several levels removed from the factory, are they?”

The challenge in his voice was painfully sharp.

Combined with his heavy emphasis, it was deeply irritating.

Cheng Weihong’s face flushed slightly at once. He knew his own circumstances, and he knew Wang Qiang was right, so he said nothing.

Old Zhu might not have known the prices of the other products, but he knew the price of portable cassette players. Hearing the slightly arrogant confidence in Wang Qiang’s voice, he finally relaxed. Wang Qiang evidently had a way to counter Cheng Weihong’s offer. Old Zhu’s spirits lifted. If they really managed to close the deal, it would surely be worth a considerable sum.

Wang Qiang’s gaze swept across everyone present. He paused deliberately, then announced the price of the portable cassette players. He had thought this through carefully. The doubt and disdain on his face had given way to a smile—a smile carrying the unmistakable air of a shrewd merchant.

“I know the price I’m about to quote may be difficult for you to believe. But I really can offer it.”

“Take the portable cassette players. Your purchase price is forty-five yuan, correct?” He sounded as though he were asking and answering his own question, yet his tone was firm and decisive. “I can offer them at thirty-eight yuan apiece!”

That final quote was one Wang Qiang had given Cheng Weihong and the others only after confirming it again and again.

They paid forty-five yuan. If he quoted only a little less, they would probably agree. But then they would ask about the prices of the other products. How could he answer? He could not. So he had chosen instead to offer an extraordinarily low price—low enough to astonish them, yet unbelievable enough to invite suspicion. Once they began questioning him, Wang Qiang could “prove” that he had not deceived them. Then, after returning from Shenzhen, he could tell them the prices of the other goods.

To be honest, Wang Qiang knew that Cheng Weihong and the others’ price for portable cassette players was not particularly high—or at least, not particularly high by Shanghai standards. The first time he had gone to Huaqiangbei in Shenzhen to purchase them, he had paid thirty-one yuan per unit because that shopkeeper obtained his stock directly from the manufacturer.

The second time Wang Qiang went to Shenzhen to buy portable cassette players, the shopkeeper he had dealt with earlier tried to raise the price. Wang Qiang visited other stores and discovered that the lowest price in Huaqiangbei was thirty-five yuan per unit, while most shops charged nearly forty.

Even though Qiujiang Road was Shanghai’s largest electronics market, prices there were bound to be somewhat higher than in Shenzhen. After all, Shenzhen and Guangzhou were among the first places in China to come into contact with goods from developed foreign countries.

Cheng Weihong’s offer had just confirmed Wang Qiang’s assumption. The information gap on Qiujiang Road had narrowed considerably compared with other parts of Shanghai, but it still could not compare with the supply channels Wang Qiang possessed.

Wang Qiang could obtain goods more cheaply.

The other products could be set aside for the moment. As far as portable cassette players were concerned, he bought them directly from manufacturers in Shenzhen. How could his price not be lower than the price Cheng Weihong paid through a second-level distributor?

The exceptionally low price had been placed on the table.

Now all that remained was to see how Cheng Weihong and the others would respond.

Wang Qiang had every reason to believe they would be intensely tempted—and equally suspicious of the low price. That was precisely why he had chosen this approach.

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