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

Chapter 603 WPGs know each other very well! Redistribution and repricing!

Why are basic investments unpopular?
Taking bitter orange orchards as an example, even if you don't need to build a super-giant glass greenhouse like Wugengtian, just investing in an ordinary bitter orange orchard will still face two major problems.

The first problem is that the initial investment is too large!

Whether it's land rent, infrastructure construction, or the purchase of seedlings, all of these require a large amount of capital.

The second problem is that the payback period is too long!

Even with grafted seedlings, it takes three to four years for bitter oranges to flower, and they don't reach their peak bloom until the fifth year.

To truly recoup your investment, it will take at least fifteen years.

More importantly, not only is the investment payback period long, but it also depends on the weather. If extreme weather occurs, the situation will be even worse.

Secondly, there are issues such as fluctuations in raw material market prices and difficulties encountered by downstream buyers.
In short, if there are funds to invest in building a bitter orange orchard, why not do something else instead?
Why would anyone want to fall into this cesspool of basic investments?
In fact, if it weren't for Wugengtian suddenly entering the bitter orange market and driving up the price of bitter orange essential oil with its Snow White series of essence creams, no one would have invested in bitter orange orchards.

“Our latest batch of bitter orange scented candles should be released at the end of this month, and we will hold a meeting with distributors before then,” An Wuyang explained.

Chen Hongzhi asked knowingly, "Which distributors are participating this time?"

An Wuyang knew that Chen Hongzhi was asking a question he already knew the answer to, but he didn't point it out.

“This includes five major distributors, Hermès, and seven overseas distributors,” An Wuyang explained.

"Are the seven major overseas distributors also eligible?" Chen Hongzhi hesitated.

“We were forced to pass the full-category certification by the European Medicines Agency (EMA) before dawn, and it is likely that other countries’ drug administrations will follow suit,” An Wuyang explained.

“Under these circumstances, we first had overseas distributors test the corresponding tariffs, consumption taxes, and profits in various countries using bitter orange scented candles, which will help us adjust our sales strategy at dawn,” An Wuyang added.

If the tariffs and consumption taxes add up to an excessive amount, then Wugengtian and its seven overseas distributors will change their sales strategies.

Chen Hongzhi followed up with another question: "How exactly will the quotas be allocated?"

"Brother Wuyang, please, please take good care of us." Chen Hongzhi shamelessly asked for special treatment again.

Are things like face and pride important?

In fact, in most cases, it is people with poorer economic conditions who care more about face and reputation.
Faced with Chen Hongzhi's shameless statement, An Wuyang replied with a smile, "We at Wugengtian take great care of our five major domestic distributors."

This answer directly defused Chen Hongzhi's shamelessness and shifted the blame elsewhere.

Chen Hongzhi wants more bitter orange scented candles?

No problem!

He could directly ask the five major distributors for it, instead of going to Wugengtian to disrupt the distribution balance.

In addition, the five major distributors, acting as a protective barrier for the company, must also fulfill their role as a protective barrier.

Chen Hongzhi naturally understood An Wuyang's subtext as well. The two had clashed many times before. An Wuyang understood Chen Hongzhi, and Chen Hongzhi understood An Wuyang.

"How do you plan to allocate the quotas to the corresponding distributors before dawn?" Chen Hongzhi wanted to get more information.

More information means they can make more precise plans in the capital city, thus determining how much quota to take from the five major distributors.

An Wuyang secretly considered how to adjust the quota to ensure Wugengtian's interests.

Besides adjusting the quota, An Wuyang was wondering whether he should adjust the ex-factory price.
The ex-factory price of bitter orange scented candles is actually quite cheap, but their retail price is not.

Taking the ex-factory price of 9999 yuan from the five major distributors as an example, the price of a scented candle that can only burn for twelve hours is indeed too expensive.

However, Hermès' custom-made bitter orange scented candle is priced as high as 168,888 Chinese Yuan in China!
As for overseas?

That's even more expensive!
When Hermès sold its bitter orange scented candle in overseas markets, the corresponding price reached $38888.

In addition, Hermès' factory price is also in a class of its own!
Previously, the ex-factory price of the bitter orange scented candle set by Wugentian for its overseas distributors was $3500. Although this price far exceeded the ex-factory price of the five major distributors, it was still far behind Hermès.

Hermès' deep customization service at Wugengtian is priced at $9999, and comes with a 20% anonymous Hermès voucher.

These vouchers can be used as cash at Hermès stores and to purchase any product.

Of course, when using the voucher to purchase products, you must also abide by Hermès' rules.

For example, if it's necessary to allocate goods, then it's necessary to allocate goods; if it's necessary to boost sales and cultivate membership levels, then it's necessary to cultivate membership levels.

As for the conditions for Hermès' deep customization, they are actually quite simple.
There are only two customization conditions.

One is to blend in Hermès' unique fragrance scent, and provide it only to Hermès, while also making a distinctive candlestick for Hermès' tripod-shaped bronze lamp.

An Wuyang is now pondering, since Hermès' procurement price is so high, while the procurement price of overseas distributors is 'so cheap,' should we adjust the prices for overseas distributors?
“Previously, each of the five major distributors had a quota of 2000 bitter orange scented candles,” An Wuyang explained regarding the previous quotas.

“We will increase it as appropriate this time,” An Wuyang added.

"But our total monthly production is only 2.2 units, so we can't increase it much," An Wuyang said, offering a heads-up.

With a total quota of only 22,000 units, it's not reasonable for the five major distributors to each take 4,000 units, leaving the five major distributors, overseas distributors, and Hermès to allocate the remaining 2,000 units.
"If possible, Brother Wuyang, I would like to get a specific allocation plan." Chen Hongzhi wanted more specific figures.

“Then I need to hold a meeting with the dealers first,” An Wuyang replied.

"I'll hold the meeting online now, and I'll send you the answer later," An Wuyang added.

Chen Hongzhi didn't push his luck by saying he would just observe the dealer discussion. He responded affirmatively, "Okay, I'll wait for Brother Wuyang's news."

An Wuyang first sent a message to Sun Yue, the sales director of Hermès in Xia Guo.

'Safe and sound: [Little White Dove app invitation key]'

'An Wuyang: Mr. Sun, please download our internal communication software that we use in the early morning. We'll be holding an online meeting later to discuss the allocation of bitter orange scented candles.'

Sun Yue: Okay, Ms. An, I'll download it right away.

Sun Yue: Mr. An, has there been any change in the allocation of bitter orange scented candles this time?

Sun Yue: Could it be that your production capacity has increased in the early morning?

An Wuyang: Of course there was no promotion!

'An Wuyang: Expanding the planting of bitter orange trees isn't that simple. We're not gods; how could we possibly complete the expansion and production increase so quickly?'

'All is well: Due to certain unforeseen circumstances, production quotas need to be redistributed.'

Sun Yue: Could it be the situation encountered with the nitroglycerin pills?

Previously, the five major distributors obtained the heart-saving pills at dawn, but did not sell them on the market. This situation had already spread, and those in the know were well aware of the inside story.

After all, many people were waiting for nitroglycerin pills, only to find they didn't get them in the end?
It's absolutely frustrating!
'An Wuyang: Guess?'

Although An Wuyang left Sun Yue to guess, how could Sun Yue not know that this was the reason?

'An Wuyang: After you've registered with Xiaobaige, send me a message and I'll add you to the group.'

Sun Yue: Okay, thank you, Mr. An. An Wuyang re-established the [Bitter Orange Scented Candle Group] in Little White Dove, thus achieving dedicated use of the group.

After the group was established, An Wuyang brought in representatives from the five major distributors and representatives from the seven overseas distributors in Xia Country.

Tianyin-Cai Yanpeng: President An, what's going on?

'Zhu Ning'an - Du Xueying: Is a new quota being allocated for bitter orange scented candles?'

'Nine Bends - Han Kun: Waiting for the new quota!'

Nova Melissa: Hi everyone!

Nova Melissa: It's great to see you all again.

Johnson-Tom: @Nova-Melissa: I heard your Nova's nitroglycerin pills got stolen?

Tianyin-Cai Yanpeng: ???

'Tianyin-Cai Yanpeng: Someone's robbing nitroglycerin pills? How exciting!'

Nova Melissa: @TheDwayneJohnsonTom: Could it be that TheDwayne Johnson did this behind the scenes?

'The Rock Tom: We, The Rock, don't do that kind of thing!'

In terms of annual sales, Johnson & Johnson is currently the largest pharmaceutical giant in the United States, and among several pharmaceutical companies, Johnson & Johnson is barely considered to have any bottom line.

Johnson-Tom: I suggest you question Glorious Pharma!

Johnson-Tom: To borrow a phrase from Xia Guo: Glorious Pharmaceuticals, they've done all sorts of bad things!

'East Mercer-Kevin: Glorious Pharmaceuticals, they've done all sorts of bad things!'

Byr-Linden: I agree!

'Sefir Galvin: Couldn't agree more!'

Clearly, both the pharmaceutical giants of the United States and Europe, through their representatives in China, believe that Glorious Pharmaceuticals has done a lot of bad things!
While the domestic and international distributors were chatting, An Wuyang pulled Sun Yue into the conversation.

After joining the group, Sun Yue changed her group nickname to 'Hermes-Sun Yue'.

Hermès - Sun Yue: Hello everyone, I'm Sun Yue, Sales Director of Hermès China. It's a pleasure to meet you all. Please contact me if you'd like to purchase a Hermès item in the future!

'Tianyin-Cai Yanpeng: @Hermes-Sun Yue: Hello Ms. Sun, I'm Cai Yanpeng from Tianyin.'

Hermès - Sun Yue: Hello, Mr. Cai! I've heard so much about you! Your name is legendary!

'An Wuyang: @Everyone: Let's stop chatting and discuss the quota issue for bitter orange scented candles.'

The so-called discussion was actually a one-sided notification from An Wuyang!

'An Wuyang: I believe some people have already heard rumors, right?'

'Ping An - Yang Yuxin: Mr. An, can we have a little more?'

'Rongcheng Life Insurance - Tian Shiwen: We'll stop struggling. Whatever they give us, that's what we'll accept. Sigh!'

Rongcheng Life and Health Group had not received a single nitroglycerin pill from its previous allocation. Even the senior executives of Rongcheng Life and Health Group did not receive a single pill. They only received a promise that they could keep a little bit next time they received nitroglycerin pills.

They didn't even specify how much "a little bit" meant!

Now, when it comes to distributing bitter orange scented candles at dawn, Rongcheng Life and Health Group really doesn't care how many to distribute.

What if they were given a share of bitter orange scented candles at dawn?
Their Rongcheng Life and Health Group has a government background!
They received the bitter orange scented candles before dawn, and then they were immediately put into bulk purchases at a low price.

For example, if the factory price at Wugengtian is 9999 Xia Guoyuan, the selling price they take back is also 9999 Xia Guoyuan, and they still lose money on transportation costs.

Therefore, the senior executives of Rongcheng Life and Health Group, as well as representatives like Tian Shiwen, have all already given up.

Hermès - Sun Yue: Does Hermès still have its quota?

'Safe and sound: Allocate to the five major distributors first.'

'An Wuyang: The quotas for the five major distributors have been increased. Previously, each distributor had a quota of 2000 units, but now it has been increased to 3000 units, and the ex-factory price remains unchanged at 9999 Xia Guoyuan.'

Ping An - Yang Yuxin: Thank you, General Manager An.

Tianyin-Cai Yanpeng: Thank you, General Manager An!

Other representatives from the five major distributors also expressed their gratitude to An Wuyang.

The quotas for the five major distributors have been increased by 50%, which is a very good increase.

'All is well: Hermès' quota is set at 3000 pieces.'

Hermès' quota was reduced, while the quotas of the five major distributors were increased. How could the quotas of other brands not be reduced?

After all, production capacity hasn't increased!
Hermès - Sun Yue: Thank you, Mr. An!

When Sun Yue saw the quota of 3000 bitter orange scented candles, she breathed a slight sigh of relief. Although the quota had been drastically reduced, at least a considerable amount was still left.

Based on a total production of 2.2 pieces, the five major distributors and their Hermès collections together have reached a quota of 1.8 pieces.

Now, at dawn, I, along with seven overseas distributors, are distributing the remaining 4000 allocation. How much will I get?

Does this mean an average of 500 units per household?
Isn't it enough to have a little more food at home in the early morning?

However, An Wuyang was indeed distributing them according to the plan of 500 units per household.

'An Wuyang: Currently, there are 4000 remaining allocations. Whether it's our Wugengtian, CLC Group, or Nova Pharmaceuticals, each will receive 500 allocations.'

'All is well: However, overseas distributors have adjusted their prices.'

'Safe and sound: The ex-factory price has been increased from $3500 to $7000.'

The ex-factory price has increased by 100%?
Such a surge is quite astonishing!
However, before the representatives of the seven overseas distributors could respond, Hermès' Sun Yue gave a preemptive response.

Hermès - Sun Yue: We at Hermès are purchasing quotas at $9,000 per bitter orange scented candle. If anyone wants to sell, we at Hermès can pick them up directly before dawn, saving you even on shipping costs.

Nova Melissa: Mr. Sun, please stop joking. There's no fool in this group, and we have no choice in the matter.

Nova Melissa: For example, @Glen Newman: their products should have been contracted out to the British Royal Family a long time ago, right?

Glenn Newman: Yes, but the price offered by the royal family was also good, and we were happy to accept it.

Glenn Newman: @AnWuYang: Mr. An, how are you planning to sell your quota for the early morning hours?

They've got their eyes on the quota held by Wugengtian!

After all, under normal circumstances, Wujingtian doesn't even use up his own quota, and most likely he sells it to the local people of Xia Kingdom at welfare prices.

(End of this chapter)