The Birth of Shanghai's First Conglomerate

Chapter 87 The Planning of Rising Fruit

the next day.

Chen Pingsheng went to the headquarters of Tengsheng Fruit.

Everything is running smoothly here, and Zhang Tao is currently the person in charge.

He serves as the deputy general manager of Tengsheng, but he remains the general manager.

Since being forced to cancel its recharge promotion last October, Tengsheng has been operating in a steady and pragmatic manner.

Currently, there are two data points that are most noteworthy.

Firstly, the net profit margin of Tengsheng Fruit Supermarket stores has generally remained at 8% to 12%.

Don't be fooled by the seemingly low figures; the daily turnover of a fruit supermarket can easily reach over 30,000 yuan.

As for the smaller Tengsheng community stores, their net profit margin is generally around 10%.

From last year to this year, Tengsheng Fruit has opened a total of 68 stores.

The monthly turnover is around 50 million.

This is a pretty good number.

This year, the plan is still to open 60 to 120 stores.

This goal isn't too big; they are fully capable of achieving it.

Tengsheng Fruits operates on a shareholding system, with each store having at least three on-site shareholders.

This is sufficient to ensure the stability of the stores.

According to financial calculations, the investment in a fruit supermarket is generally between 1.2 million and 1.5 million yuan, depending on the transfer fee and rent of the storefront.

This is the largest expense.

The payback period for a single store is between eight and twelve months without prepaid cards.

In other words, breaking even within a year is already considered a very good investment.

Dividends will still be distributed on the 15th of each month, without fail.

Tengsheng Fruits has a lot of working capital; if he wanted to, he could easily withdraw tens of millions.

This is both an advantage and a temptation.

Countless companies that were doing quite well have ruined themselves by misappropriating funds in this way.

He was constantly reminded that he absolutely could not set such a precedent.

I'd rather earn less money than take a big risk.

By the end of this year, Tengsheng Fruits has a very good chance of becoming one of the top five fruit companies in Beijing.

Once he achieves his goal of opening stores this year, he will have more than 100 large fruit supermarkets in Beijing.

A monthly sales volume of over 100 million is undoubtedly very impressive.

Unfortunately, the fruit industry doesn't have high barriers to entry. Every region has its own strong fruit chains. If you want to expand from Beijing to other places, you immediately have to compete with these strong local brands.

Without its own core advantages, relying solely on price, Tengsheng Fruit will most likely never leave Beijing.

Controlling the fruit market in this one place is far better than leaving and not making any money.

Chen Pingsheng's goal for Tengsheng Fruit is this big: the biggest barrier to entry in the fruit industry is the lack of barriers to entry.

Anyone can open a fruit market, which means that fruit markets in various places are destined to be very full.

It's quite normal to have three or four fruit shops at the entrance of a residential area.

Rather than going out like this, it's better to stay in the capital and make money steadily.

Fruits are different from catering, which, especially chain restaurants, have very high barriers to entry.

For example, many franchised restaurants are like this: if a chef opens a franchise on his own, with the support of the headquarters, he is likely to be able to run a successful restaurant.

If it's an outsider, that is, a non-professional, who joins a restaurant franchise and doesn't have much money of their own.

At least nine and a half out of ten will lose money.

Unless you're joining a franchise like KFC or McDonald's where you don't have to worry about anything.

Chen Pingsheng also learned this through analysis of various financial data.

There really isn't any core selling point in the fruit industry.

To do a good job, it's simply a matter of focusing on a few key points.

Full selection, low prices, and fresh fruit.

These are the three key points. As long as you do these three things well and your location is decent, things won't go too badly. Fruit brands that can succeed locally undoubtedly excel in these three areas.

In this situation, if he goes to compete on someone else's turf, he is easily targeted.

The key reason why people don't leave Beijing is that the fruit market is too easily saturated.

To put it bluntly, the fruit store market is a red ocean market that is destined to be extremely saturated.

Once the market becomes saturated, price wars and all sorts of other wars will break out.

Honestly focusing on the local market in Beijing is undoubtedly the best choice for Tengsheng Fruit.

After this year's development, I can rely on it to earn a stable income of tens of millions every year.

He's not the only one making money; Zhang Tao and Liu Jing can also earn five or six million yuan a year from Tengsheng Fruit.

Some have more shares than others; we started this business together as brothers, and now we've made a fortune together.

Actually, it's not that brothers can't start a business together, but it's best if they're both over thirty.

Men typically reach maturity after the age of thirty and are able to handle situations rationally.

If someone is still immature at thirty, Chen Pingsheng would never choose them as a business partner, no matter how good their relationship is.

Chen Pingsheng has not yet revealed his own ideas; he wants to spread them throughout the capital first.

However, Zhang Tao suggested that Tengsheng rent a new headquarters, since it is a company with annual sales of nearly one billion yuan, which is much stronger than that of ordinary listed companies.

The key issue is that trucks can't be parked here. He wants to move Tengsheng Fruit's headquarters to the suburbs, where parking will be easier and the rent will be cheaper.

Building a house in the suburbs is much better than crammed into this office building.

Chen Pingsheng thought it was acceptable. The fruit business wasn't exactly a high-end industry, so there was no need to pretend it was like the real estate industry.

Convenience is the primary consideration in everything.

However, we already have so many employees here, so we have to consider them when renting a new headquarters.

Try not to move too far.

Chen Pingsheng felt that he absolutely had to build his own commercial building in Beijing this year, no matter what.

Otherwise, it would be troublesome for my companies to move around so often.

Which large company doesn't have its own headquarters building?

This is a symbol and a sign; he must build one this year.

He felt that his plans for this year were pretty good; Tengsheng Fruits was a stable source of income, and he would leave it to Chen An'an to inherit in the future.

Boiling Sheep is still pushing forward with his IPO plan. Once completed, he will definitely take this opportunity to fully enter the catering industry.

As for Shuiyunjian, that was the real treasure trove of his golden finger.

As long as he can run Shuiyunjian well, he can obtain a steady stream of funds by topping up his cards.

Tencent Entertainment is where he acquires traffic, and it's also the traffic output station he uses to support his various companies.

The goals are clear, and the plan is well-defined.

Buying a headquarters building with more than ten floors within the Second Ring Road this year shouldn't be too difficult, right?
Chen Pingsheng thought to himself.

After spending a day at Tengsheng Fruit, I spent a few more days at the Shuiyunjian headquarters for training.

They were all young women, and as the boss, he was naturally still popular.

At their strong recommendation, I had a kidney and neck treatment.

Verified by a professional health practitioner.

He's been experiencing some minor heatiness lately and needs to come in regularly for kidney maintenance.

Once a week.

Due to years of hard work, I have developed some minor neck and shoulder problems.

Sitting for long periods can easily cause lower back pain and mild dizziness.

These are all caused by blockages; regular treatments over a few months can help clear them up.

Regarding your own health, you must persevere.

He didn't want to have to put goji berries in his tea before he even turned forty.

He only went to his own Tengying Entertainment when the other stores of Boiling Sheep were about to open at the same time.

(End of this chapter)