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[The Girls' School Teacher] (Episode 17, Chapter 12) 

    page views:1  Publication date:2023-03-23  
Chapter Twelve: New Investment



The chairman of the Inagawa-kai was inwardly resentful. Was this Mr. Liu deliberately mocking him?



Knowing full well that the sales target was impossible, he still asked what Sony would reward him for good sales.



But Inagawa Masakiyo was not a shallow person; when it came to manners, he was more composed than anyone else.



"Selling 100,000 units is the agreed-upon target. For every additional 100,000 units sold, the reward is five million US dollars;

if we sell 500,000 units, it's thirty million US dollars; and if we sell one million units, the reward is one hundred million US dollars,"



Inagawa Masakiyo said, but in his heart, he had no such ambitions. Having suffered such a huge setback, unable to even sell 100,000 units

, why would he dare to hope for so much?



I nodded and asked, "And the price?"



"The factory price is 16,000 yen, which is 128 US dollars. With our shipping and costs,

it sells for 300 US dollars a unit in Sweden,"



Inagawa Masakiyo said, sounding quite uneasy. "That price is half the price of their domestically produced game consoles.

I've seen their game consoles before; not only is the quality mediocre, but they also have fewer games, yet they sell for 500 US dollars a

unit."



Iwashita Haruka, who was very concerned about money, looked up when she heard this, as if she wanted to say something but didn't dare to.



I smiled slightly and took her hand. "If you have any opinions, you can speak to Mr. Inagawa."



My encouragement emboldened Iwashita Haruka, and she smiled sweetly, "Mr. Inagawa, there's something

I don't understand. Since Sony sells each unit to you for $128, if you sell a

million units, they'll give you $100 million. They'll only receive $28 million, which

isn't even enough to cover the production cost of a million units, is it? Isn't this a case of harming themselves to benefit others?"



Inagawa Masakiyo's expertise in the underworld was unparalleled, but in business, he was a

complete . "Ms. Iwashita, in fact, as far as I know, if they sell 500,000 units, they'll already

be losing money; if they sell a million, they'll lose even more. They know perfectly well that we can't sell that many, which is why they deliberately

came up with this fancy but unattainable contract."



"Toshio, is that so?" Iwashita Haruka shook her head and looked at me. Clearly, the beautiful woman didn't have much trust



in Inagawa Masakiyo's business acumen either .   "What Mr. Inagawa sees isn't all of Sony's plans,"   I said, shaking my head in denial.   Inagawa Masakiyo perked up. "Please enlighten me, Mr. Yanagi."   "When we talk about a company's success, we usually mean it has made a lot of profit. And such profits can be divided into long-term and short-term, sustainable and unsustainable,"   I said confidently. "Sony's success in becoming Japan's largest electronics manufacturer wouldn't be about painting a big cake for its partners, leaving them only able to see it but not be able to eat it. Mr. Inagawa, this clause from Sony isn't just for you, is it?"   "No,"   Inagawa Masakiyo replied honestly. "The conditions are the same in the three Nordic countries, slightly less in Eastern, Central, and Southern Europe , and the least in Western Europe."   "Actually, this reward was carefully researched by Sony. Its purpose isn't just to put on a show; it's to encourage you to work harder, to ignite your desire to win, and to sell more PS1s,"   I stated my conclusion.   "Huh?"   Iwashita Haruka asked, puzzled. "I didn't miscalculate. Has Sony's production cost really dropped to that level? The production cost of one PS1 is less than twenty-eight US dollars?"   "Of course not,"   I said calmly. "Japan has the most expensive labor in the world, exceeding that of the United States and other developed countries in Western Europe. In the initial sales phase, to ensure quality and smooth promotion, Sony absolutely had to produce the PS1 in its domestic production base. Only in this way could they guarantee excellent quality. As for shifting production to factories in China, Russia, or Southeast Asia after the market stabilizes, that's possible, but definitely not now."   "Then isn't that losing money? The more Sony sells, the more they lose. What's the point of doing business like that?"   The question Iwashita Haruka asked was also the question Inagawa Masakiyo wanted to ask. Even Iwashita Junichi was interested and waited attentively for my answer.   "Sony's cost per PS1 is probably around eighty US dollars. If we calculate it your way , selling one million units would mean a loss of fifty-two million US dollars, which is an astonishing amount,"   I explained to them. "Sony will definitely lose that much on selling PS1s, but you need to consider two other things: First, Sony is currently expanding its market. If sales are good, this money can be considered their own expansion costs. Once they completely dominate the market, won't the profits flow in ?"   "Wait a minute,"   Iwashita Haruka interrupted me. "Toshio, according to this calculation, the more they sell, the more they lose, right?"   "No,"   I smiled. "Didn't Sony sign a contract with them for one year, or at most three years? After that, they can take back the sales rights themselves , or change the incentive measures. Plus, by producing in overseas factories, they can reduce costs while selling at a much higher price than they would to the trading company. Wouldn't that eliminate their losses?"   "Oh, right, that's how it is."   Iwashita Haruka smiled happily, extending her small hand for me to hold. "Continue, continue."   "Secondly, you haven't carefully studied Sony's products, especially the PS1, which is touted as the most powerful game console . Its machine is flexible and easy to use, the games are meticulously crafted, the graphics are breathtaking, and it's incredibly comfortable and fun to play. This shows that Sony's game programmers have put a lot of effort into it. Games made with such dedication naturally won't be cheap… but the price of Sony's game discs isn't just expensive compared to its consoles, it's extremely expensive!"   I said calmly. "For example, one Pro Evolution Soccer game disc costs 5,000 yen; an adventure game called Onimusha costs 3,800 yen. The price of just a few discs is…"



















































































































































"That's like buying another PS1. Do you think this is exorbitant?"



"Ah..."



The three of them exclaimed at the same time. They had only seen that the price of the PS1 wasn't expensive, but they didn't know that its

game consoles were so expensive.



"Mr. Inagawa, they outsourced the PS1 to you, but they didn't say that they would also give you the outsourcing rights for the game consoles

, right?"



I turned to ask Masakiyo Inagawa.



"Yes, the game discs are distributed uniformly by Sony's European headquarters. After ordering by phone, they are directly

delivered to the buyer's home by a courier company."



Inagawa Masakiyo said thoughtfully, "No wonder I was wondering why the PS1 wasn't selling well. So that's one of the reasons

. The game discs are so expensive, and they're not even included. The cost of playing the game increases immediately."



"It's just like the Japanese mobile phone operators. Whether it's Docomo, iPod, or

J-Phone, many of their phones are given away for free after a few months, right? What do they earn

? Isn't it your call charges?"



I said with a smile, "Sony's PS1 is the same. The device itself isn't expensive, but

after , you need game discs to play the games, right? Right now, it's just the first generation of games.

The upgraded versions of the games that are released later will also require money to buy, right? If you want to play, you have to keep buying game discs.

How much profit do you think they make?"



"It's equivalent to each family spending a hundred dollars a year to buy game discs!"



Iwashita Haruka said admiringly, "Sony really has a business mind!"



"Mr. Liu is indeed a genius from Harvard University! With such analysis, Sony's entire PSII

strategy becomes crystal clear,"



Inagawa Masakiyo exclaimed in admiration. The elites of Sony Company had spent countless hours and

effort to formulate this strategic plan, only to have it so easily unveiled by Mr. Liu alone

. No wonder such a genius is highly regarded by the tycoons of various wealthy and powerful families.



Inagawa Masakiyo's resolve was further strengthened to ensure his granddaughter received

instruction from Mr. Liu Junxiong when she reached high school.



"We've analyzed the problem, but breaking out of this predicament isn't so simple,"



I said calmly to Inagawa Masakiyo. "Sony wants you to make money and lighten his own

burden , and he hopes you can help him out. So if you can't come up with a good solution, you'll

lose tens of millions of dollars for nothing!"



"Yes, that's why I'm at a loss,"



Inagawa Masakiyo couldn't even eat his food anymore, downing the sake poured by the beautiful young chef in one gulp. "It's at least thirty million dollars, close to four hundred million yen. The trading company's foundation isn't very strong

to begin with . Losing

this much money, I don't know how to explain it to the people below."



Iwashita Haruka couldn't help but laugh. The Inagawa-kai is your Inagawa family's business. Whether you make a profit or a loss, you

bear it yourself. What's there to explain? You're just complaining and wanting Toshio's help!



"Mr. Inagawa , you're too kind,"



I said after a moment's thought. "You've certainly consulted more than just me. So many elites couldn't come up with a solution

, and I don't have a good one right now either."



"Ah, yes, it's indeed not easy for you to come up with a solution so quickly,"



Inagawa Masakiyo said. "Also, Mr. Liu, if you can help solve this big problem,

I, Inagawa, will definitely remember your help. A mere ten million US dollars will be our reward to you."



"Ten million US dollars?"



Iwashita Junichi was stunned and subconsciously said, "Won't you lose even more then?"



Iwashita Junichi was right. Based on the current sales rate of five hundred units per month, achieving

one hundred thousand would be a blessing. But if they give me ten million US dollars, wouldn't that be equivalent to

losing money to Sony for failing to meet the target? In that case, wouldn't it be a waste of effort?



"Junichi! Don't interrupt!"



the beautiful girl scolded her younger brother, then turned around with a smile. "Junxiong... I don't understand either.

What benefit does Mr. Inagawa gain from doing this?"



I looked at Inagawa Masakiyo. "Mr. Inagawa, are you willing to let them know?"



Inagawa Masakiyo smiled. "Why wouldn't I want people to know?"



Despite Inagawa's amiable appearance, he was actually complaining in his heart: "Hmph, what's the use of me stopping him now?

Not only will I offend Iwashita Haruka, but if I leave, Iwashita Haruka will act cute, and you'll have to say something too. It's

better for me to do him a favor now."



Besides, Inagawa Masakiyo was also curious to see if I could guess his intentions.



"It's actually quite simple,"



I said seriously. "Large corporations like Sony

face considerable pressure when they share some of their profits with small and medium-sized domestic trading companies. This pressure comes from within the company itself, as well as from external

trading companies that haven't secured outsourcing rights... If Inagawa Trading Company performs poorly this time, Sony will definitely not award

sales . Similarly,

within companies like Sharp, Hitachi, Panasonic, and Toshiba, Inagawa Trading Company will be labeled as 'unreliable,' and they naturally won't consider them for

any ."



"So, Mr. Inagawa knew this was bound to be a loss, but he didn't

dare He preferred to complete the task at a loss rather than lose money if he failed.

The difference in their business philosophies and levels of effort is enormous. In other words, Mr. Inagawa

didn't want to give up so cowardly, so that he could secure these sales rights in the future to make up for this loss. Otherwise, Inagawa Trading Company

would forever remain a nobody in the Japanese business world."



"Clap! Clap! Clap..." Masakiyo Inagawa clapped for the first time. This kind of heartfelt respect

couldn't be faked.



The two siblings nodded repeatedly, surprised that there was such a profound understanding behind losing money.



The beautiful woman's eyes shone brightly as she looked at me with adoration. Tonight's conversation made her

realize her man wasn't someone who relied on two friends to gain respect. He was already

an exceptionally outstanding person and didn't need to depend on the brilliance of others.



"Mr. Liu!"



Inagawa Masakiyo stood up and bowed respectfully. "It seems the revival of the Inagawa Trading Company

depends on you. Please!"



Compared to his earlier show of entering, Inagawa Masakiyo was now genuinely convinced and placed great hope

in me.



Seeing this, Iwashita Haruka quickly traced a line on my palm with her little finger, signaling me not to agree, not to take on

this hot potato.



This beauty is truly thinking of me!



If I agreed to Inagawa Masakiyo's offer, whether successful or not, he would remember the favor, which would

definitely be a great benefit to the Iwashita Group.



But Iwashita Haruka was clearly thinking of me, considering that if I tried my best and failed, and had already taken

money , wouldn't it be bad if Inagawa Masakiyo held a grudge?



A thought flashed through my mind, and I looked up. "Mr. Inagawa, have you calculated

how much money we'll lose if we keep pushing until the end?"



Inagawa Masakiyo replied without hesitation, "Including the ten million US dollars we have to pay to Sony, we'll

lose at least fifty million US dollars."



"Alright, you contribute fifty million US dollars."



I pointed to the beautiful woman beside me. "Haruka will also contribute fifty million US dollars. The two of you will pool together one hundred million,

and then I'll manage it. If there's a profit, we'll split it equally. If we still don't achieve our goal,

I'll explain it to Mr. Takagawa Kuraken and Mr. Morita Masashige myself."



Takagawa Kuraken and Morita Masashige are the two decision-makers at Sony, inherited from the families of Masaru Ibuka and

Akio Morita . They collectively own thirty-eight percent of Sony's shares, and their every move

can influence Sony. So, as long as they nod, the problems of the small Inagawa Trading Company can

be resolved .



Inagawa Masakiyo naturally believed I could persuade two bigwigs in the financial world. The reason was simple: Takagawa Kana and

Morita Yuko were my students, and two fathers would have to give their daughters' teacher some

face .



Relieved, Inagawa Masakiyo smiled and said, "Mr. Liu, you're too kind. You'll definitely succeed. The money will be transferred to the Iwashita Group's account

tomorrow . As for the profit sharing, it must be divided into three parts, and you must have one too,

otherwise, wouldn't you have worked for nothing?"



"Yes, you must accept it..."



Iwashita Haruka said seriously.



"Hehe, you're putting pressure on me,"



I said with a smile. "Let's talk about this after we succeed."



"Okay!"



Inagawa Masakiyo said with a beaming smile, "Come on, come on, let's continue eating... I have

n't eaten much since yesterday, and I'm enjoying this delicious food. I'm going to eat my fill. Here, give me another lobster!"



*** *** *** ***



By the time Inagawa Masakiyo left, it was already one o'clock in the morning.



Although he said he didn't want anyone to see him off, Junichi Iwashita, representing the Iwashita Group, still respectfully escorted him to

the hotel entrance. This was a necessary gesture and an

opportunity to show others that the Iwashita Group and the Inagawa-kai had a good relationship.



On the way back to the third floor, Junichi Iwashita was very excited. Earlier at the hotel entrance, Masakiyo Inagawa had patted

him on the shoulder, saying he would introduce him to his third, fourth, and fifth sons, encouraging them to get to know each other better…



Although Tsunenobu Inagawa currently looked down on Junichi Iwashita, with his father's instructions, their attitude would immediately change. This would greatly benefit

Junichi Iwashita's prestige and popularity among the younger generation of yakuza figures .   Just as he was about to report this good news to his sister, he heard a strange sound as he reached the door.   Peeking curiously through the slightly ajar door, he saw his sister sitting on his brother-in-law's lap, the two passionately kissing .   Junichi Iwashita chuckled and quickly closed the door. Just then, he saw the beautiful hot pot chef from before emerge from the other side, carrying a pre-packaged package.   "Ah, little sister, your things are too heavy, let me help you!"   A lustful thought crossed Junichi's mind, and he quickly went to greet her.   The beautiful chef glanced at him, but ignored him completely, walking past him in the blink of an eye .   Damn, this girl has a personality!   Junichi watched her disappearing figure, a broad smile on his face.   Tonight, he and his sister had received so many surprises that this small setback didn't bother Junichi at all.   Haha, our Iwashita group is going to be rich!   Junichi thought to himself.

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