It doesn’t have to be expensive, at least according to Del Winn. I recently spoke with Dell, a global expansion coach, business leader, complex problem solver, and international deal-making attorney, who really can solve complex manufacturing and sales expansion problems.
Del was asked to accompany InterDigital Communications Corporation’s salesman to Nanjing, China to negotiate a distributorship agreement and joint venture equipment manufacturing agreement. The future relationship was contingent upon the Chinese client purchasing a demonstration unit of the wireless digital communication system they would then manufacture and distribute.
However, the system price became a major stumbling block, because the Chinese had heard of the same system selling (in large quantities) for $100,000 less than they had committed to pay. IF you were faced with this gap, what would you do? This challenge was daunting, and it couldn’t get worse, right? Hang on to your hat. The Chinese manufacturer had no concept of quantity discounts.
This led to days of fruitless negotiations. Then, Del proposed a compromise where the Chinese partner would pay the lower price in cash and agree to pay the additional amount out of a portion of their joint venture profits; until the full purchase price was recovered, they would receive 55 percent of revenues with the percentage increasing to the agreed 60 percent equity ownership after recoupment by InterDigital of the total sales price.
This was a brand-new concept for the Chinese partner, but they agreed to it, thanks to Del Winn. He was able to get the full amount of the sales price ($300,000) upon signing the joint venture agreement, because the un-paid portion of the price was deferred, not contingent.
Now that’s creative! Del has so many stories of creative solutions to complex problems from slumping company sales, skyrocketing manufacturing costs, and managing embargo impact, then I’d suggest you contact Del Winn directly. Del loves to help companies, so I know if you have questions, he’s happy to share his creative thinking and innovative deal solutions.
Contact Dell on LinkedIn or via his Career Webfolio.
Listen to the full Podcast discussion below!
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