Chapter 96: Procurement

No matter how bad things might become, that was a matter for later. For now, there was still a chance to put things right.

After Principal Batistuta had calmed himself and thought it through, he opened a drawer, took out a cigar, and held it between his lips. Just as he had asked on their first meeting yesterday whether Sumu had somehow known in advance that the school was going to buy computers, he asked again, “Have you read The Art of War?”

Sumu told him, “I have. I have read both the Chinese and English versions. After being translated into English, some of the meanings change, and I think the Chinese version is more classic. There is a great deal to learn from it.”

The old principal had worked in education since he was young. He had not never been threatened by students before, but never had any student pressured him this hard. Aside from helping Sumu solve the problem, he could think of no other way to handle it. If he expelled Sumu, that would only make matters worse. The boy might even sue the school as well, and the odds of the school losing were extremely high.

What was more, whether the school won or lost, Menlo Park Private High School’s reputation would take a tremendous blow. From the very beginning, Sumu had placed himself in the position of a disadvantaged party, and society always sympathized with the weak.

This was not the sort of strategy a student could casually invent. Principal Batistuta had seen many cases of bullying on campus.

Students who were bullied usually had no good solution beyond swallowing their anger, transferring schools, or complaining to their parents. Though he was the one being threatened by the little Chinese boy before him, he sincerely thought Sumu was impressive.

He picked up his lighter, lit the cigar, and exhaled a plume of smoke with a smile. “You don’t look like a transfer student at all. You’re much more like the politicians I deal with every day. You’d be suited to work in the White House someday.”

Half mockery, half praise.

When the principal pointed toward a chair, Sumu took the hint and sat down opposite his desk.

“Thank you for the compliment, sir.”

“Too bad I can’t read Chinese. Otherwise I would certainly read the original. I’ve heard the greedy fellows on Wall Street all keep a copy of The Art of War on their desks. Many university professors recommend it too, and West Point even includes it among the books its students must read. Our school ought to promote it as well.”

After saying that, Principal Batistuta pointed first at Sumu, then at the students on the field outside the window, and sighed with emotion. “Look at this. That is the difference between having read it and not having read it. Besides helping you, what other path do I have?”

That was already a very high evaluation of Sumu. After thinking about it seriously, he replied, “None. If the school does not resolve this, I really will sue them. The school cannot dodge responsibility, and it cannot turn around and use moral judgments or academic blemishes against me. Since you chose to admit me on a scholarship, that means I am one of the best students here. In the end, the jury and the judge will side with me.”

When it came to The Art of War, it was probably the most wildly successful Chinese work ever sold across the world. Countless famous people had praised it highly. Its theories were not only applicable to warfare, but to business as well. Flowers bloomed inside the wall, yet their fragrance drifted beyond it; ironically, in the land where the work was born, people treated it like an old relic.

The old principal had an open mind. Even after being “threatened” by Sumu, he did not grow angry or resentful. Instead, he felt pleased that a formidable student had come to the school. He asked, “What about those computers? This is the check from Daniel’s father. Take it downstairs to Hoover in accounting. Procurement can coordinate with him. The rest of the money will be used for the school celebration. And tell me the names of those girls who made up the rumor. I know for certain you’re straight. I can tell at a glance. I know Daniel’s temperament too. He must be furious this time, isn’t he?”

“I’m not sure. He seems to have already refused to have anything to do with me. I couldn’t find him yesterday, and he did not answer my calls. I have already contacted a supplier for the computers. They have stock whenever we need it, and they can be delivered to the school tomorrow at the latest. The price is definitely the lowest available.”

Sumu’s answer surprised him. Principal Batistuta nodded without saying more, only adding, “Go to class first. Write their names on this sheet of paper and give it to me. I’ll take care of it. Daniel’s father should be calling me soon. He spoils his child too much.”

The check was marked with the figure 200000, a full two hundred thousand dollars. When Sumu saw that number, he felt that Daniel’s family might be even richer than he had imagined.

He had already once held a check for one hundred seventy thousand dollars, so he had seen some of the world. Even now, though he was excited, he was not overly thrilled at the thought of turning around and spending it in the near future.

The joy brought by that first deal had faded with Daniel’s recent distance and the rumors on campus gradually dying down. The hard-earned fee still had to be earned. It was money he deserved, though he did not plan to take too much. Daniel’s share would also go to him.

He went downstairs to find Hoover in accounting. The check bore the name of the high school, so the money would first be transferred into the school account.

The money for the computers would also be paid out of the school account after Sumu contacted the supplier. After deducting the purchase cost, whatever remained would be profit.

Silicon Valley was never short of people selling computers, but these days it was very short of buyers. After classes ended that evening, he rode his bicycle there with Li Pingan, carrying the receipt from the previous computer purchase, and went to that tiny shop.

The three IBM computers they had ordered were already in the store. The owner’s name was Charlie. When he saw Sumu, he said happily, “This is wonderful. I even called you this morning, but I couldn’t get through. Do you want me to deliver them to your door? I mean after I close in a little while. Business is usually better in the evening, so someone might come by to buy something. We should wait a bit.”

James and the others monopolized the phone line all day long. It would have been strange if anyone could get through. Li Pingan looked at Sumu with puzzled eyes, not understanding what these three computers were about.

“Very good, sir. I am not in a hurry for the moment. Would you be willing to take on a big order?”

“What kind of big order?”

“Seventy IBM computers, not the cheapest kind that cost more than a thousand dollars each. They’re for a school.”

Sumu had already asked several places the day before, but had not discussed a specific price. He was still comparing offers, trying to find the lowest one.

At once, Charlie’s eyes lit up. “Seventy? I’ve got them!”

Sumu said, “Everybody has them. I want to know the price. For an IBM 5160 PC/XT with 518K of memory, a 10M solid-state drive, a color monitor, and Microsoft’s operating system, what is the lowest price you can give me?”

“Mr. Charlie, you made more than four hundred dollars from these three computers of mine. You can’t quote me such a high price now. Everyone else is practically begging for my order.”

When the IBM 5150 was released in 1981, the lowest price was 1,565 dollars. If you wanted full memory, a color monitor, and so on, the price climbed to more than 6,000 dollars.

To formally challenge IBM, Apple had even bought the headline of The Wall Street Journal, with nothing printed there except, “Welcome IBM, Seriously.”

But the price was simply too high, and the market response was poor. In the year it was launched, only a little more than 13,000 units were sold, giving it a market share of just 1.9 percent, while Apple held roughly 17 percent.

Recently, however, things had been favorable to IBM. As the IBM 5160 PC/XT entered the market at a low price, its market share kept rising. The entry-level model cost only 669 dollars, though many features were missing. Some time ago, Sumu had configured computers costing 2,500 dollars each, and their performance was already excellent.

Hearing this, Charlie immediately knew he understood the trade. He gritted his teeth and said quietly, “I make fifty per machine. The rest of the profit is yours...”