Chapter 212: Driving Up the Price

Yuan Zhigang wanted to say something, but Zhou Ming raised his hand to stop him. Smiling, Zhou Ming said to Yan Fuping, "Boss Yan is absolutely right. As businessmen, we value efficiency because time is money. It seems I didn't manage the situation well, and I may have been a bit slow in my approach, causing you to have a laugh."

Zhou Ming's words immediately made Yan Fuping look at him with higher regard. Yan Fuping thought to himself: Zhou Ming seems quite capable; no wonder he's made so much money at such a young age. Not to mention, his skills in handling this situation are comparable to some seasoned officials.

However, Yan Fuping didn't know that Zhou Ming was reborn and had previously visited Zhongnanhai, conversing face-to-face with two top national leaders. With such experience, if Zhou Ming hadn't made some progress, it would indeed be surprising.

"Boss Zhou, you're too polite. So, can you now tell me what you need?" Yan Fuping asked.

"Of course," Zhou Ming replied. "Actually, Boss Yan knows that I bought Factory 760, and you must also know that Factory 760 has been struggling in recent years."

Yan Fuping nodded. "Yes, I heard that Factory 760 hasn't been able to pay wages properly for several years. Especially in the last few months, if you hadn't bought the factory, wages might have been delayed for another month or two."

"Perhaps," Zhou Ming shrugged. "But now that I've bought the factory, I'm determined to change this situation. So, I've introduced a canning factory from Yangbei County to produce a product called Eight Treasure Porridge. I want to sell it through your supply and marketing cooperative."

Yan Fuping smiled. Although he had heard about this before coming, hearing Zhou Ming say it directly still surprised him. "Boss Zhou, forgive my curiosity, but Factory 760 was originally a metalworking factory, right? Why are you shifting from mechanical processing to unrelated food production?"

"I'm still doing mechanical processing, but since Linyang is inland and doesn't have much advantage over other places, and with the city and county canceling our factory's designated production qualification, we need to find another way," Zhou Ming explained. "As for the canned food, it's not too outrageous. Our workshop can produce canned boxes."

"Is that so? Are you planning to sell canned boxes? But I think that would be hard to sell," Yan Fuping said.

"Boss Yan, you misunderstand. We are selling finished Eight Treasure Porridge cans, the kind that's ready to eat when opened, not just the cans themselves. I've even imported a complete set of canning production equipment from Yangbei County."

While Zhou Ming was explaining, he asked Su Han to bring out a can of Eight Treasure Porridge. "This is our factory's Eight Treasure Porridge. It's ready to eat as soon as you open it. Boss Yan can give it a try; it's very tasty."

"Linyang Eight Treasure Porridge? It seems Boss Zhou has a strong affection for this land!"

Yan Fuping said as he casually set the can of porridge aside. He continued, "Boss Zhou is determined to transform Factory 760 into a food production facility, but making food isn't so simple. Since you're also a businessman, you should understand that what a company produces isn't something decided on a whim. It requires a systematic plan."

"You can rest assured, Boss Yan. I've thought it through, and I'm determined!" Zhou Ming assured Yan Fuping.

"It's good to be confident, but confidence alone isn't enough. Just like today, if I'm not mistaken, besides me, you've invited several cooperative directors, right? But none of them have shown up. This indicates a lot of skepticism about the food from a metalworking factory," Yan Fuping said deliberately.

Zhou Ming shrugged. "At least you came, didn't you? It shows you have some interest in Linyang Eight Treasure Porridge, right?"

"That's not necessarily the case," Yan Fuping said. "Rather than being interested in your product, I'm more interested in you as a person. If it were just about Eight Treasure Porridge, I might not have come. After all, you know that I'm also running the Weihui Supply and Marketing Cooperative on a self-financed basis. You can't expect me to take a risk selling an unknown product like Eight Treasure Porridge, can you?"

"Don't worry about that, Boss Yan. I've contacted CCTV a few days ago and secured an exclusive sponsorship for this year's Spring Festival Gala. Even after the Spring Festival, CCTV will air ads during key times. Once the ads are out, people will soon know about our Linyang Eight Treasure Porridge," Zhou Ming said.

This surprised Yan Fuping. "I didn't expect you to have connections in Yanjing and be able to advertise on CCTV."

"It's just a friend's help," Zhou Ming said succinctly.

Zhou Ming intended to keep some mystery, but Yan Fuping shook his head. "I think you might not understand my point. Even if you advertise on CCTV, it doesn't guarantee that Eight Treasure Porridge will sell. If that were the case, why would only I come to your dinner today?"

Zhou Ming frowned, but seeing the smile on Yan Fuping's face, he suddenly understood. He quickly asked, "Boss Yan, we're both businessmen. Since you mentioned that efficiency is important, if you have any requirements, please feel free to state them, and we can discuss specifics!"

"Boss Zhou, you underestimate me. I'm not taking advantage of you. As a privately contracted supply and marketing cooperative, I need to be self-financed. I'm curious how you plan to address this issue?" Yan Fuping asked.

Zhou Ming immediately understood Yan Fuping's intention: to drive up his own price and maximize his profit by exploiting the situation.

"Businessmen are truly crafty!" Zhou Ming thought to himself, then said, "I understand Boss Yan's point. Since you are shouldering significant risk by contracting Weihui Supply and Marketing Cooperative, how about this: I will buy out all of your sales of Eight Treasure Porridge."

"Buy out the sales? Boss Zhou, I'm not quite sure I understand," Yan Fuping said.

"It's simple. No matter how much Eight Treasure Porridge you buy from me, I will give you the entire profit from the sales as a rebate. This way, regardless of how well our Eight Treasure Porridge sells, you won't have any losses," Zhou Ming explained. "What do you think of this arrangement?"

"That's a good idea!" Yan Fuping immediately agreed, but then he realized that such a clear display of eagerness might not be appropriate and added, "Boss Zhou, please don't think I'm being stingy. Some matters require caution."

Zhou Ming internally scoffed but maintained a friendly demeanor. "Of course, I understand your feelings. However, understanding is mutual. Since I'm offering you a rebate before any sales, I hope you can make a concession as well."

Yan Fuping extended his hand. "Please, tell me more."

"I hope the profit margin can be somewhat lower. I will slightly increase the factory price or set a specific rebate percentage. Also, since I'm giving you all the profit, the revenue from the sales should come to me. What do you think?" Zhou Ming asked.

Yan Fuping was initially taken aback by the question. His business instincts told him there might be a problem, but after thinking it over, he couldn't find anything wrong. Or rather, no matter how you looked at it, he was making a profit. Unless the Eight Treasure Porridge sold out completely, he might lose money, but how could a metalworking factory's porridge sell out entirely?

Confident in the deal, Yan Fuping waved his hand generously. "No problem. Boss Zhou's request is reasonable."

"Thank you for your understanding," Zhou Ming said, raising his glass. "Here's to a pleasant cooperation!"

Yan Fuping readily clinked glasses with Zhou Ming, saying, "To a successful cooperation!"

However, since Yan Fuping had real business to attend to in the afternoon, he didn't drink much and soon left the private room.

After Yan Fuping left, Zhou Ming and Su Han returned to their car. Su Han, visibly upset, said, "Yan Fuping is too much. Demanding a profit before any sales is despicable! I've never seen such shamelessness!"

Zhou Ming understood. "Actually, it's not that bad. Among all the supply and marketing cooperative heads, only he showed up. He knew we had no other option for sales, so he took advantage of the situation. If he didn't exploit the situation now, we'd be left with no alternatives."

"But by doing so, he's shifting all the risk onto us!" Su Han protested.

"On the surface, it seems so, but the outcome isn't determined yet. We'll see who benefits when the CCTV Spring Festival Gala and subsequent prime time ads air. Our advertising will be powerful!" Zhou Ming said.

This made Su Han's eyes light up. "So you think our Eight Treasure Porridge will sell well?"

"It has to sell well. If it doesn't sell out, all our efforts from north to south will have been in vain," Zhou Ming said

. "But to maximize our advertising benefits, we should focus more on economically developed areas like Yanjing and Nanjing. Today is just the first step; we have more busy times ahead!"

Su Han nodded vigorously. "Boss Zhou, the product you've proposed will definitely be the best!"