Daming Town Haiwang

Chapter 368, continue to cut prices

"It's a loss and the price has to be lowered. Now is the time to compete with them on the price. We will fight the Changlu Salt Farm to death. When we raise the price again, we can earn back."

Cheng Boan said with a smile.

The wool comes from the sheep. If you lose money now, you can earn it back later. The key is to keep your own market and kill the Changlu Salt Farm.

"The Changlu Salt Farm has to pay two million taels of silver a year. Even if their output is very high, one Changlu Salt Farm can reach ten ordinary salt farms. Calculated from their salt, the cost of a catty of salt is impossible. If it’s less than [-] Wen, if shipping costs are included, they’re already making a profit by selling it for around [-] Wen per catty.”

Cheng Boan said confidently.

He has already calculated the amount of salt produced by the Changlu Salt Field, and he has clearly calculated the cost of the salt in the Changlu Salt Field. It will definitely not be less than [-] cents a catty, and it will be even more expensive if the freight is included.

As long as the price falls below this price, the salt in Changlu Salt Field will lose money, and the premise is that the salt in Changlu Salt Field must have a certain sales scale and must reach a certain amount of sales.

If the sales volume is not enough, the Changlu Salt Farm will suffer even worse. The tax of two million taels of silver a year is definitely a heavy mountain, which can crush the Changlu Salt Farm to death.

This is why he is confident that he can defeat the Changlu Salt Farm in a price war. According to his calculations, the cost difference between the two parties is too great.

"However, this is far from enough. What we have to do is to make Changlu Salt Farm's salt unsalable for a catty, so we have to lower the price and continue to drop. If our salt only sells for a few cents per catty, I think Changlu How can you sell the salt from the saltworks?"

Then Cheng Boan smiled and said again.

If you want to kill the Changlu Salt Farm, you have to make it impossible to sell a catty of salt in the Changlu Salt Farm. Naturally, the annual tax of two million taels of silver can kill the Changlu Salt Farm.

"How many pennies per catty?"

"Then don't we want to give the salt to the middlemen below?"

When Cheng Xuan heard this, he thought for a while and said that he wanted the salt sold in the market to only sell for a few pennies a catty, which meant that the salt from his Cheng Boan side would be given to the middlemen below for nothing, and the middlemen would earn a few pennies. Then transfer to the final terminal business.

If Cheng Boan sells a few cents a catty to middlemen, the sales price of this terminal will definitely exceed ten cents a catty, and there is no way to lower it.

"Yes, for nothing~"

Cheng Boan nodded, then thought for a while and said: "Send invitation letters to middlemen from all over the country for me, let them come to Nanjing to have a talk, now is a special period, everyone earns a little less, a catty of salt symbolizes It’s enough to earn a few pennies, and when the Changlu Salt Farm is brought down, then everyone will raise the price together to make back the lost money.”

"Hmm~"

Cheng Xuan nodded and started to work.

Cheng Xuan left, while Cheng Boan calmed down and thought about it carefully. If the salt is given to the middleman for nothing, he will definitely lose money.

His Cheng family manages at least hundreds of thousands of taels of silver every year. The people in the court must manage it well before they can help them explain, give them information, and provide them with protection.

The officials in the lower places, the officials in the salt field, etc. also need to be fed. Only when they are fed, will they do things for you, so that you can get the salt smoothly, and the salt can be transported to various places smoothly. .

But it doesn't matter, Cheng's family has a big business, and this little money can still be lost, and as long as the market is still there, he can easily earn millions of taels a year.

At this time, it was far from reaching his bottom line, because he had already raised one million taels of silver from other salt merchants. Once the Changlu Salt Farm continued to lower the price, he would also follow suit.

At that time, he is going to provide sales subsidies to middlemen and end-users. Of course, he does not plan to do so now, because those middlemen and end-users have made a lot of money with him in the past.

This time the war with the Changlu Salt Field, he naturally wanted to pull them along and let them contribute together, not just Cheng Bo'an alone.

He will pull big salt merchants like Zhu Benduan and Feng Xiang to act together, and naturally he will not forget to pull middlemen and terminal merchants to act together so that they will also bear the loss this time.

……

Yanshi, the capital city, Li's Huiyan.

Li Cai, the owner of Li's Huiyan, came to his shop very angrily, his whole face was ashen, and his face was very ugly.

Because he had just returned from a party, the middleman who supplied him asked Li Cai to reduce the selling price to nine cents a catty.

Salt worth nine cents a catty has never been seen before. He has never encountered such cheap salt in his whole life in the salt business, let alone heard of it.

Of course, this is not the reason for his anger. The reason he is really angry is because the middleman above only allows him to sell nine cents a catty, while he needs five cents a catty to get the goods, and he has to pick up the goods himself. He can only earn four Wen for a catty of salt.

A catty of salt only earns four Wen, and he is going to drink the northwest wind.

We must know that salt is not like grain. The consumption of grain is large. The grain sold by any grain store in a year is also a very large number. His salt store is different.

Although salt is also essential, an adult cannot eat a few catties of salt in a year, so the sales volume is actually not large, far from being comparable to grain.

Now the superiors require him to sell nine cents a catty of salt, and it takes five cents a catty to get the goods, and he has to pick up the goods by himself. After calculation, the profit is not even four cents a catty, even if there is a shortage of catty and less than two , Infiltration of sediment and the like, the profit margin is also pitifully small.

You must know that in the past, a catty of salt would earn more than ten yuan a catty casually through his hands, but now a catty of salt can not even earn four pennies, you say he is not angry.

Shop rent, hired staff, and the cost of transporting salt all require money. Now a catty of salt can't even earn four cents. If the sales volume is not enough, the loss will be even greater.

"Hmph~ What about sharing weal and woe, life and death, and cold lips and teeth? No matter how low the price is, I can't make a penny. Isn't this just following you for nothing, and doing some kind of price war?"

Li Cai was outraged. Although he had a small fortune, he was far from being able to compare with those big salt merchants. They could not make a penny for a year or so, but he couldn't.

"Shopkeeper, the Zhang's Snow Salt Store across the street has lowered the price again, should we continue to lower the price?"

When Li Cai was furious, the clerk in the store hurried over and said.

"Price cut again?"

"Are they crazy?"

"How much has it dropped?"

When Li Cai heard this, he couldn't sit still and asked quickly.

"Fifteen Wen a catty~ Their salt only sells for fifteen Wen a catty."

The guy quickly replied.

Upon hearing this, Li Cai hurried to the door of the store, only to see the price of [-] cents per catty on the Zhang's Snow Salt Store across the street, and on it was written the words "never short of catty or tael, never seep in mud and sand" .

"This is not giving us a way to survive, but forcing us to die!"

"Salt that good is sold for fifteen cents a catty."

Li Cai couldn't help but let out a long sigh. He knew the salt from the Changlu Salt Field and had seen it. It was definitely high-quality salt. It sells for fifteen Wen a catty.

"Down~ down to nine cents a catty~"

Without hesitation, Li Cai also told his buddy again, as said above, only by defeating the Changlu Salt Field can everyone live a good life before, otherwise, with the Changlu Salt Field in one day, everyone Don't even think about making money from salt.

So even though the price was lowered again, he didn't have much profit at all, but he had to continue to lower the price, and they also recognized what Cheng Boan said.

After defeating the Changlu Salt Farm, they can still increase the price. At that time, a catty of salt will sell for [-] yuan, and they will soon be able to make up for their losses.

"Adjust that scale again and change it to seven taels."

"There is more sand to seep in~"

After thinking about it, Li Cai gave instructions to his buddy again.

There is no way to continue to reduce the price, but I have to make money, and I still have to make a little bit. Naturally, I have to continue to do it.

"There is no other way. I can only learn from Sun's Salt Shop regardless of face."

Li Cai sighed, that's how the Sun's Salt Shop works, the price is low, but there is a lot of shortage, and there is a lot of sand and soil seeping. Now that the price has dropped, he has to be more black-hearted.

(End of this chapter)