The Super Rich: Start from when the family business is about to go bankrupt!

Chapter 340 WPG0339: The pricing of scented candles, are you trying to poach our employees again?
"What new product?" An Wuyang asked knowingly.

Li Zhengkai responded, "A special aromatherapy based on bitter orange blossoms."

"After we extracted the essential oil from the bitter orange flowers we got from Tianjingyan to make the Ningzhi Ruoxue series of products, we have been researching what we can make with the remaining bitter orange flower residue," explained Li Zhengkai.

"We got inspiration from the soybean industry," added Li Zhengkai.

"After soybeans are used for oil extraction, the remaining residue is made into soybean meal, which is used as a high-quality feed in the livestock industry, thereby earning huge profits for the soybean planting industry," Li Zhengkai explained in detail.

"Inspired by the soybean industry, we conducted an in-depth analysis of the bitter orange flower residue. Combined with the fact that the bitter orange industry supply chain likes to use bitter orange leaf essential oil to impersonate bitter orange flower essential oil, we successfully developed a magical aromatherapy." Li Zhengkai explained.

"This magical aromatherapy can relax people's mental anxiety, calm their mood, relieve stress, and make it easier to enter deep sleep." Li Zhengkai introduced the role of aromatherapy.

These effects are known in advance.

"Once the human body enters deep sleep, it will be able to restore its energy better," Li Zhengkai added.

"What is the current price of bitter orange essential oil?" An Wuyang asked.

Currently, the bitter orange industry is in a state of chaos. Except for companies that have their own bitter orange flower plantations, it is almost impossible for other channels to obtain 100% bitter orange flower essential oil.

The 'bitter orange blossom essential oil' sold on the market is almost 100% petitgrain essential oil mixed with bitter orange blossom essential oil. After the two are mixed, they are collectively referred to as [bitter orange essential oil] in the industry, but are called [bitter orange blossom essential oil] to the outside world.

Wu Gengtian also suffered from this when he was purchasing!

However, even so, the price of bitter orange essential oil is outrageous.

In early August, the price of the lowest-end bitter orange essential oil, which contains only 1% bitter orange flower essential oil, had risen to 260 Xia Guoyuan per gram.

This price is a bit exaggerated!
"Currently, the price of one gram of bitter orange essential oil with a one percent content remains at around 300 yuan, and there has been no fluctuation for more than half a month," responded Li Zhengkai.

"As for bitter orange essential oil with higher content, it is impossible to buy it without the right means," Li Zhengkai added.

"What is the overall cost of aromatherapy?" An Wuyang asked.

"The cost is a bit high," Li Zhengkai said embarrassedly.

"We made the aromatherapy into the form of candles to make it more convenient to use," Li Zhengkai elaborated.

"Each scented candle contains 1 gram of the residue of Tianjing Rock bitter orange flower, 0.1 gram of Tianjing Rock bitter orange leaf essential oil, and 3 grams of bitter orange essential oil purchased from outside at a one percent level," Li Zhengkai explained the formula.

"The first two come from the Tianjingyan medicinal material planting base, and the cost can be ignored for the time being. The 3 grams of bitter orange essential oil purchased from outside is about 900 yuan according to the current market price." Li Zhengkai added.

"If we add in labor costs, soybean wax material costs, simple packaging costs, etc., the final cost may exceed 920 yuan," Li Zhengkai summarized the cost.

An Wuyang asked, "How long can each scented candle be used?"

"Theoretically, it can burn for about twelve hours, but due to different regions and different usage situations, there may be slight differences," Li Zhengkai explained.

"For example, in high-altitude, low-oxygen areas, the oxygen content is relatively low, which causes the burning time of scented candles to increase," Li Zhengkai added.

"For example, areas with high oxygen content, including but not limited to oxygenated hotels and oxygenated wards, or where pure oxygen is deliberately used to accelerate the combustion of scented candles, it is possible to reduce the burning time of scented candles." Li Zhengkai listed extreme examples.

"Under normal circumstances, taking our Shengqing as an example, the burning time of a scented candle is between 12 hours and 12.5 hours," Li Zhengkai concluded.

A scented candle can only last about twelve hours.
If we calculate based on six hours of sleep per session, can a scented candle be used twice?

But the cost of a scented candle is nearly a thousand yuan, so how much should it cost?
It looks like some people’s wallets are going to bleed again!
Some people have avoided the seventy-nine-dollar comfort pill, but can they be lucky enough to avoid the scented candle this time?
"Have you ever estimated the production capacity?" An Wuyang asked.

Li Zhengkai responded affirmatively, "We worked with Professor Gao Mingshuo of Northwest A&F University to conduct a survey and analysis of the bitter orange planting area in Tianjingyan, and finally determined that without affecting the growth of the bitter orange trees, the essential oil extracted from the bitter orange leaves collected each month is only about 2200 grams."

"Within this quantity range, it will not affect the flowering of the bitter orange tree next year, which is equivalent to proactively removing the aging leaves for the bitter orange tree." Li Zhengkai added.

"Based on the calculation that each scented candle contains a minimum of 0.1 gram of petitgrain essential oil, our monthly output is approximately 2.2 scented candles," Li Zhengkai added.

"Is there enough bitter orange blossom residue?" An Wuyang asked.

"Enough." Li Zhengkai responded affirmatively, "When we extracted the bitter orange flower essential oil to make the Ningzhi Ruoxue series of products, we stored and retained all the bitter orange flower residues."

"But." Li Zhengkai hesitated.

"But what?" An Wuyang asked.

“However, the inventory of the ultimate version of the essence cream has been depleted a bit recently,” Li Zhengkai said without further ado.

An Wuyang understood that Li Wenya was abusing the ultimate version of the essence cream again, right?
"Do you think this is something I can control?" An Wuyang complained.

"If I dare to say this, I'm afraid I'll be beaten. If I get beaten, you'll be the first one to be in trouble!" An Wuyang continued to complain.

Li Zhengkai shrank his head and dared not say anything more.

"Are our previous reserves of bitter orange essential oil insufficient? Do we need to purchase bitter orange essential oil from outside now?" An Wuyang asked.

"The bitter orange essential oils we had previously stockpiled were all high-quality bitter orange essential oils, with at least five percent of bitter orange blossom essential oil blended in. But now only bitter orange essential oils with one percent blending are being sold on the market," Li Zhengkai explained.

"Mr. Tang does not allow us to use the inventory for experiments." Li Zhengkai added that the 'Mr. Tang' he was referring to was of course Tang Wenshu.

An Wuyang cursed, "These bastards are so annoying! Aren't you going to lower the price?"

An Wuyang originally thought that other companies would soon give up research on neroli essential oil, thereby bringing down the price of neroli essential oil.

Who would have known that although these companies said they had given up, they were actually all silently persevering.

Previously, only companies in the cosmetics field participated in the research, but now even companies in the pharmaceutical field have rushed in, including but not limited to those world-class pharmaceutical giants.

Therefore, not only did the price of bitter orange blossom essential oil not drop as An Wuyang had expected, but it continued to increase a little compared to August and will not go down anymore!
Bitter orange cultivation is a very niche industry and was once grown only as a raw material for perfume.

Now that there is suddenly a huge demand and we cannot expand production quickly, prices will of course soar as supply exceeds demand.

"What is the price of bitter orange essential oil in the Kingdom of Gaul and India?" An Wuyang asked again.

The Kingdom of Gaul is the homeland of bitter orange, and there are relatively more planting areas there.

India also has many bitter orange plantations because of its cheap labor and cheap rent for its vast land.

"Imported bitter orange essential oil is more expensive." Li Zhengkai sighed.

good good!
Can we just say that it is in line with the market pricing tone?
Xiaguo's market pricing tone is very fond of imported goods. As long as the goods are imported, they seem to be of higher quality and thus have a higher price.

"The monthly production capacity is about 2.2 scented candles, and the cost is about 920 yuan." An Wuyang muttered to himself and calculated on his mobile phone.

The total cost is 2024 million. Whether it is the cost of a single unit or the total cost, it is quite high?

After all, LV's scented candle only costs 1400 yuan, while Zegna's scented candle only costs 2000 yuan.

(↑LV scented candle: 1400 Xia Guoyuan)
However, Wugengtian scented candles have their own special effects.

Whether it is LV or Zegna, their scented candles are more about brand premium and a slight scent. The effect they produce is just to create an atmosphere and give the room a light fragrance.

But the scented candles of Wugengtian can calm the mood, relieve stress, relieve anxiety and so on, and can even make people fall into deep sleep.

Are these the effects that luxury brand scented candles have?

Although Wugengtian’s brand value is not as good as high-end luxury brands, its effect is far better than the others.

As long as the effect is good enough, the brand value can be ignored.

Wugengtian has already proved this with its Ningzhi Ruoxue series of products.

Although Wugengtian is a pharmaceutical group, the facial cream it launched beats all cosmetic brands in terms of price and has now become the absolute king in the facial cream category.

Now in the niche category of scented candles, Wugengtian can still replicate the miracles of the Ningzhi Ruoxue series of products.

The only pity is that the production capacity is limited!

There are only about 2.2 of them.

An Wuyang was wondering how much the price of each scented candle should be?
After some thought, An Wuyang decided to follow the preferences of the Xia people and set the factory price at an auspicious number of 9999 yuan.

As for what price the dealers will sell at, it depends on their conscience.

Anyway, in the end, you can’t blame Wu Gengtian!

"How much can we make with the current raw material inventory?" An Wuyang asked.

Li Zhengkai responded, "The first batch can be 4, and we have stockpiled Tianjingyan petitgrain essential oil in advance."

"How long will it take to finish?" An Wuyang asked.

“If outsourced, it can be completed in one day,” Li Zhengkai responded.

Just 40,000 candles, how long can it last?

"You can contact Lao Bai Yao and ask them to design some nice containers for our scented candles. Try to make them as exquisite as possible. Even after the scented candles are used up, the containers can still be used as decorations." An Wuyang added.

After all, the factory price is set at 9999 yuan, and scented candles are positioned very high-end, so it’s impossible not to have even a candle container, right?
Look at those high-end brand scented candles, which one doesn’t have a corresponding candle container?
"Okay, I'll contact Lao Baiyao later." Li Zhengkai responded.

Lao Baiyao is the manufacturer that provides containers for the Ningzhi Ruoxue series of products. It is the supplier that An Wuyang was looking for in the short video.

The originally unknown Lao Baiyao is now thriving thanks to its status as a supplier of Wugengtian Pharmaceutical Group.

"Do you have any samples?" An Wuyang asked.

"Yes, there is, but the sample is placed in an ordinary glass cup and looks like an ordinary big white candle." Li Zhengkai was a little embarrassed.

An Wuyang joked, "I thought the sample was really like an ordinary candle without an outer cup!"

Li Zhengkai denied it, "That's impossible. Scented candles are very precious. If there is no outer container, a lot of wax will be wasted. It is also unsafe and accidents are likely to happen when they burn out."

"How many samples are there?" An Wuyang asked.

"We made fifty samples at a time. More than ten were used in previous tests, and we still have more than thirty samples left," responded Li Zhengkai.

"Then bring me twenty samples." An Wuyang ordered.

Li Zhengkai gestured to Zhu Yongheng to get the samples. After Zhu Yongheng left An Wuyang's office, Li Zhengkai continued, "Mr. An, do you still remember Jia Shiyu?"

"Who is it?" An Wuyang asked.

"A former member of our team worked in the Wugengtian R&D center for seven years and later jumped to SK2 company," Li Zhengkai explained.

"Then what?" An Wuyang wondered.

Previously, Wugengtian’s R&D center was used as an employee supermarket by major cosmetics companies, and almost everyone was poached. Jia Shiyu was just one of them.

In fact, An Wuyang doesn’t care at all about the employees at Wugengtian R&D Center jumping ship!

Do these people really think it's their own achievement?
Little did they know that An Wuyang, who didn’t understand technology, was the god behind the scenes!

"I remember now, he was a T8-level employee of our company, right?" An Wuyang added.

Li Zhengkai responded affirmatively, "Yes."

The monthly salary of T8-level employees at Wugengtian Pharmaceutical Group is only 2 yuan, but with various bonuses, the annual salary can reach about 30 yuan.

An Wuyang vaguely remembered that SK2 spent 400 million yuan in annual salary to recruit Jia Shiyu?

"SK2 spent 400 million to recruit him, right?" An Wuyang asked to verify.

Li Zhengkai answered affirmatively, "Yes, Jia Shiyu is the third or fourth in command of our Bitter Orange Blossom R&D team. Although his position is not high, SK2 believes that he can access the core technical information of our R&D team."

"It is for this reason that SK2 offered a salary premium of more than ten times the annual salary to poach him, but Jia Shiyu has also signed relevant gambling agreements in the past, such as helping SK2 make progress in the research of bitter orange flower essence," Li Zhengkai added.

An Wuyang was not surprised by the existence of such a bet agreement.

After all, the annual salary has increased more than ten times!

With an annual salary increase of more than ten times, doesn’t it mean that you don’t need to work hard?
SK2 is not a charity!
An Wuyang was more curious about another thing, "Why do you suddenly ask about this?"

"Are you still in contact with Jia Shiyu?" An Wuyang asked.

If Li Zhengkai had no contact with Jia Shiyu, how could he suddenly mention this person again?

The only possibility is that Li Zhengkai and Jia Shiyu still have private contact.

Li Zhengkai did not deny it, "Jia Shiyu has been contacting me again recently."

"Does SK2 want to poach you?" An Wuyang asked.

(End of this chapter)