Chapter 84: A Major Deal Arrives!

Once the idea of starting a business took root, it grew rapidly, unstoppable. Now was the perfect time to act; as more people focused on this industry, opportunities would inevitably dwindle. Without realizing it himself, Sumu’s unplanned visit to check out computers today meant he had already made a decision in his heart. After settling the specifications with Charlie, the store owner, he began to discuss prices.

“I want to buy three of these high-performance computers. Can you give me a discount?” Sumu asked.

Bargaining was routine among the vendors in Chinatown, and even Americans were accustomed to negotiating. Charlie hesitated for a moment before decisively replying, “Alright, the upgrades are expensive, but I’ll knock off thirty dollars per unit. That makes it two thousand six hundred dollars apiece... so, seven thousand eight hundred dollars in total, right?”

He had expected Sumu to buy only one, so the prospect of three made him very happy. Such a “big transaction” was rare; besides companies, no one ever bought several computers at once. As he pronounced the total, even Charlie doubted himself. Anyone could handle basic arithmetic, but higher numbers tended to stump many white folks, who seemed naturally insensitive to calculations; black folks were even worse, their math skills notoriously poor.

“That’s correct—seven thousand eight hundred dollars. But I believe the shop next door sells the same setup for seven thousand five hundred. Your price is a bit too high, sir,” Sumu replied, shaking his head. He hadn’t actually checked the prices next door; it was simply a bargaining trick well known among the Chinatown locals.

Charlie took his words seriously. After a brief consideration, he lowered the price: “Alright, seven thousand six hundred dollars. The shop next door sells more, so their prices are lower, but they don’t include computer desks. Three desks alone cost more than a hundred dollars.”

Sumu felt the price could drop further, but since the computers were newly launched, the price wouldn’t be much below the official rate. Plus, he’d save on desks and installation costs. It was reasonable.

Lingering indecision wouldn’t help; Sumu believed buying the computers would force himself to commit to his entrepreneurial path. He gritted his teeth and said to Charlie, “Alright, I’ll pay a deposit for now. Can I pick up the computers next Monday?”

“Probably, but definitely by Wednesday. Modifying them isn’t complicated. How would you like to pay?” Charlie continued, “You’re Stanford students, right? If anyone wants to buy a computer, send them my way. I guarantee the best prices around.”

Sumu raised his brows, struck by a thought. He asked, “If I help you sell computers, how much commission can you offer per unit?”

Though Charlie claimed his price was low, factoring in rent and his profit, Sumu wasn’t sure about the cost of acquiring stock directly from the manufacturer. There was definitely money to be made.

Lately, Sumu had become obsessed with money; everything he saw made him wonder if it could turn a profit. He’d never considered selling computers before, but suddenly recalled that Menlo Park High School lacked computers and that the teachers planned to introduce new courses, so they were looking to buy. He asked the question almost offhandedly.

Charlie instinctively assumed Sumu could bring in customers and whispered in his ear, “One hundred dollars per unit.”

Sumu’s eyes lit up. The figure far exceeded his expectations—one hundred dollars per unit, one hundred units meant ten thousand dollars. If he could secure orders from two or three schools, he’d easily sell a hundred computers.

But then it struck him: with so many potential orders, why help this stranger sell? He could approach the manufacturers himself!

With that realization, Sumu’s spirits soared. After more than a month in Silicon Valley, he finally stumbled upon a business with almost no costs and tremendous prospects.

For now, retailers were naive, mostly waiting for customers to walk in, never considering outreach. Since Stanford and many other universities offered computer engineering programs, some schools would surely be interested. This was aligning with the times.

Sumu wasn’t sure if ordinary customers would buy, but private high schools were likely to purchase in bulk—a promising opportunity.

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After paying, Sumu collected his receipt and arranged to pick up the computers the following Monday.

He continued strolling down Sand Hill Road with Daniel, briefly sharing his idea to sell computers. Daniel praised him, “That’s a great idea! My father knows our school principal. They sometimes play golf together on weekends. Want me to help?”

“Thank you, I...” Sumu started to decline, but then realized that approaching the principal himself would probably fail; even if the school did buy computers, they’d unlikely buy from him.

He looked at Daniel and said frankly, “I have no reason to ask your father for help, but we could be partners. That way, you’d own part of the company. I think your father would support you doing business.”

There was a hint of exploitation, but since Sumu planned to share the profits, he didn’t feel guilty.

In fact, if he simply asked Daniel for help, given their relationship, Daniel would surely have his father mention it to the principal, and the deal might be done. But Sumu didn’t want that. Daniel was always naive, not very socially adept, bullied since childhood, timid and friendless.

Daniel couldn’t see Sumu’s intentions, but his father would, and Sumu didn’t want pure friendship tainted by business.

“Hmm? I don’t have much pocket money. My trust fund has three hundred thousand dollars, but I can’t access it until I get married,” Daniel said, pulling out his wallet. He found only a few bills and coins, totaling a little over forty dollars. “If I invest this much, how much equity do I get?”

It was just a fledgling idea; Sumu hadn’t planned to formally establish a company yet. But since he might need to contact IBM or Apple for direct supply, it would be best to set up a business.

Taking Daniel’s forty dollars, Sumu smiled, “I’ll probably need about a thousand dollars to register a company and cover daily expenses. So, I’ll give you two percent. But if your father helps us secure the school deal, I’ll give you five percent equity. How does that sound?”

“Very fair! I agree. I’ll talk to my father when I get home. Not sure if he’s around today—maybe he’s in New York for a meeting.”

Daniel pocketed his coins. To him, the business felt more like a game. Growing up wealthy, he’d never worried about money, unlike Sumu who was always thinking about profit.

Sumu felt that selling computers was more urgent than developing software; once other entrepreneurs caught on, the opportunity would vanish.

He now had another business to attend to. With a wave of his hand, he declared energetically, “Let’s go! We’ll check the factory prices, and next week start promoting...”