20 years of restarting life

Chapter 3712 Liu Mingjie's Surprise
"Here are a dozen or so water cups, all for drinking water. Shall I wash one for you?"

Wherever Zhao Chang'an went, he always carried a small thermos and a small packet of tea in his bag, so that he could drink tea anytime without having to drink water handed to him by others.

"it is good."

Liu Mingjie was quite easygoing and didn't care that someone else had used the cup: "Put in more tea leaves. I didn't sleep well last night, so I'm a little out of focus now."

After boiling water, Zhao Chang'an washed a thermos cup for Liu Mingjie, filled it with a third of the height of strong tea, and went to the yacht to watch Liu Mingjie fish.

Zhao Chang'an handed Liu Mingjie a cigarette, then leaned over the gunwale to watch the fishing float.

Then I saw the float suddenly sink, and another fish took the bait.

"I just chatted with Uncle Wen and the others for a while. We've bought all the Lianxin Que She tea and the one-bud-two-leaf staple tea from Wenjia Village this year, at a 15% premium over last year's price."

Zhao Chang'an and Liu Mingjie discussed that although the cultural tourism group only used 600 jin of green tea, the rest of the group would also purchase some white tea, black tea, Pu'er tea, and Longjing tea for its subordinate hotels.

After all, it's a service industry, and we need to meet the needs of our customers.

However, this year they didn't even purchase 600 jin of green tea from Wenjia Village. As a cooperative scenic spot of the scenic area, Liu Mingjie must have felt a little embarrassed. After all, he is a cultured person, and he is quite sensitive and cares about his reputation.

I told him this, and he felt a little better knowing that the tea from Wenjia Village had found a market. This would make him feel less embarrassed to visit later.

"So much, can you all eat it all?"

Liu Mingjie was a little surprised: "The tea production in Wenjia Village this year is not low, estimated to be around 18,000 jin. They keep three or four thousand jin for themselves and sell it to acquaintances and relatives in the city. You need to buy 14,000 jin, which is quite a lot."

Wenjia Village is a large village with a population of over 800 and 600 mu of tea gardens. This year, with ample rainfall and stable warm weather, the village is expected to produce about 18,000 jin of pre-Qingming tea. Every year during the tea-picking season, many women from surrounding areas come to pick tea. For a time, the village is filled with young women and wives from other places, as well as older women who come every year.

Many of the women in the village were tea pickers from other places. Seeing how prosperous this place was, they stayed and became wives of the locals.

In addition to the 400 mu of tea gardens on Jiti Mountain, this year one nanometer will need to consume 26,000 jin of tea leaves, which is no small number.

Last year, Wenjia Village produced about 15,000 jin of tea. Qiangwei Group purchased 1,000 jin, of which Wenlv Group was allocated 600 jin, Luyuan Group purchased 1,000 jin, Shancheng City purchased 1,800 jin, Xiqu, Tiedong, Beihu New District, and Laocheng District each purchased 600 jin, and Yinan purchased 6,000 jin. The remaining less than 4,000 jin were kept by themselves and sold to relatives, friends, acquaintances and old customers.

In the past, apart from these three or four thousand catties, the spring tea from Wenjia Village was mostly bought by tea merchants, sold at the town market, or sold as seedlings to tea companies.

Last year, due to pesticide residues, tea vendors, tea companies, and tea buyers at the market all desperately drove down prices. Before the spring tea even hit the market, prices had already been drastically reduced to half of what they were the year before, causing great anxiety among tea farmers.

Seeing the situation was dire, the village committee of Wenjia Village called Wen Ye for help, which led to the involvement of suppliers from Yi Nanmi, Luyuan, Qiangwei Group, and the city. Meanwhile, Duan Fengqing urgently convened a meeting with the tea companies, explicitly demanding that they not undercut the price of young tea seedlings, thus harming the interests of tea farmers. Although the final price was still considerably lower, it was at least acceptable. Although Duan Fengqing hasn't yet held this tea merchants' meeting this year, it's scheduled to take place before the spring tea harvest. However, the reality is that the reputation of Shancheng Maojian tea is currently poor, and the overall price won't be high.

"It's not a big problem; consider it a benefit for the employees."

"Your company, OneNanometer, already has so many employees. Even if each person weighs two kilograms, that's over ten thousand people?"

Liu Mingjie was shocked. In his opinion, a nanometer would only have five or six thousand employees at most.

"How could it be two jin per person? One jin per person is enough."

Zhao Chang'an smiled and corrected him.

OneNano has more than 8,000 employees in China, and Zhao Chang'an was willing to let them share some of their hometown specialties. Each person received one jin (500 grams), totaling more than 8,000 jin (4,000 kilograms).

In addition, the company itself uses two to three thousand kilograms of tea, especially since the programmers are all tea connoisseurs, and drinking tea is always better than drinking coffee.

Then, we'll give a spring tea gift to our partners and customers at OneNanometer, which will weigh about a thousand kilograms.

There are still 14,000 to 15,000 jin left. Chang'an is waiting for the negotiations between Yinano Zhengzhou and Luanchuan Molybdenum. If the negotiations go smoothly and the acquisition is completed, Yinano Group will add more than 3,000 people, which is a good way for the parent company to show its care for its employees.

Zhao Chang'an planned to have Liu Yihui set up a shop on Taobao's e-commerce platform to sell the remaining 11,000 to 12,000 jin at half the purchase price. The purpose was not to make money, but to promote the development of Taobao's e-commerce model.

Zhao Chang'an didn't need to share these thoughts with Liu Mingjie; he simply nodded and said, "There's no pressure."

Since Zhao Chang'an said so, Liu Mingjie didn't dwell on the issue and said with a smile, "This year's tea price is estimated to be even lower than last year's, because this year's tea production is 10% to 20% higher than last year's. This is the principle behind 'low grain prices hurting farmers.' The city has set the price for Fanpin's staple tea at the same level as Wenjia Village last year. This price is 30% higher than last year's market price. Chen Fanping takes a cut, plus he buys the seedlings and processes them himself. After deducting all kinds of expenses, his profit is about 15%. Although it's centralized procurement, he definitely won't be satisfied with this profit. I estimate he'll still try to find the difference by improving the quality of the tea and lowering the purchase price of the seedlings."

Zhao Chang'an understood what Liu Mingjie meant. Taking the high-end tea, Peach Blossom Lake Pre-Qingming Lotus Heart Tea from Fanpin Tea House, as an example, the price of the green seedlings last year was around 26 yuan. The raw material cost of one jin of dried tea was about 130 yuan (it is necessary to pick out some large tea leaves and impurities mixed in, as well as losses during the tea-making process). Labor, packaging, taxes, etc., need to be allocated 50 yuan. The labor, rent, taxes, commissions, etc. of each tea shop are about 200 to 250 yuan, with a median of 230 yuan.

The total cost is 410 yuan, with a selling price of 600 yuan, resulting in a 30% profit margin.

Contrary to popular belief, the profit margin that Fanpin Tea House ultimately achieves for Sparrow Tongue Tea and everyday tea is actually higher than 30% for Sparrow Tongue Tea and everyday tea.

However, if you do business in a mountainous city, with such a large sales volume, you can only get a 15% profit in the end. Moreover, this profit is the obvious profit. There will definitely be other hidden expenses because of this business.

Therefore, the profit margin of Fanpin Tea Shop is likely to be less than 10%.

(End of this chapter)