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

Chapter 604 WPG: Don't be envious! Such a reasonable price? How to choose the sales area?

When questioned by Newman Miller, the representative of Grand Pharmaceuticals in Xia Country, An Wuyang gave a matter-of-fact response.

'An Wuyang: Most of our rations for the early morning hours will be reserved for my mother.'

An Wuyang: She uses so many vials a day.

'An Wuyang: Hermès knows this best.'

Hermès - Sun Yue: I estimate that Ms. Li consumes at least eight Hermès bottles a day.

Li Wenya uses bitter orange scented candles at home and in the office, so her daily consumption is quite high.

'Glenn Newman:.'

Faced with the testimony of Sun Yue, the sales director of Hermès in China, Newman Miller was completely stunned!

Is the proprietress living such a luxurious life at dawn?

However, this also proves the excellence of the bitter orange scented candle; otherwise, the proprietress wouldn't use it herself in the early hours of the morning, would she?

For products from small workshops, do you even know if the owner would use them?
Nova Melissa: No wonder she's the boss at dawn, so extravagant!

'An Wuyang: The way you say that makes it sound like you don't know my mom drinks two or three bottles of Liang Huanxi every day!'

The fact that Li Wenya consumes two or three bottles of Liang Huanxi a day has long been circulating on the internet, and there have even been instances of moral blackmail.

Some netizens on the internet are indeed very outrageous. They say that Li Wenya has "wasted" too many "two joys" (a type of gift), and that if she had donated these "two joys," wouldn't that have saved more people?

Unfortunately, Wu Gengtian doesn't accept moral blackmail, nor do An Wuyang and Li Wenya.

When faced with moral blackmail, the simplest way to deal with it is not to discuss it with the other party; ignoring it is the best approach.

As for increasing the intensity on the other party
That's not the case!

Ping An - Yang Yuxin: Mr. An, when will this batch of bitter orange scented candles be shipped?

'Safe and sound: At least after the 28th.'

'All is well: but definitely before New Year's Day.'

'An Liangyang: @Nova-Melissa: I remember that bitter orange scented candles have a 25% tariff when they enter Europe, right?'

Nova Melissa: According to the latest rules, that is indeed the case.

Nova Melissa: This time, we're prepared to enter Europe through the proper channels.

'Byle-Linden: Us too!'

'Sefie-Galvin: We at Sefie will also follow the proper channels, since these tariffs will ultimately be passed on to the end consumer anyway.'

That's absolutely right!
On the surface, tariffs seem to be borne by import and export businesses, but they are not philanthropists; they need to make money. So, ultimately, the cost is passed on to consumers.

Glenn Newman: @Sefil Calvin: We're so envious of you guys!

Sefie Pharmaceuticals is from France, and there is no royal family in France like the British Empire, so Sefie Pharmaceuticals' bitter orange scented candles are not directly purchased by the royal family like those of Grand Pharmaceuticals.

Even if the French Grand Court wanted to make purchases, it wouldn't buy them all at once.

Therefore, according to Newman Miller, a representative of Grand Pharmaceuticals, Sefco has more autonomy and can make more money.

'Sefir Galvin: Don't envy us!'

'Sefil Calvin: The share we can retain is extremely limited.'

An Wuyang watched the conversation, but he didn't participate at all.

He already had a clear understanding of what everyone was talking about.

After all, isn't the law of the jungle the underlying principle everywhere in the world?

An Wuyang was silently calculating his earnings from this early morning on his phone.

The combined quota for the five major distributors is 1.5 units. Based on the ex-factory price of 9999 Xia Guoyuan, this translates to approximately 1.5 million yuan in revenue for Xia Guoyuan.

Hermès' allocation is 3000 pieces, with a corresponding price of $9999. Today's exchange rate is 6.3651, which corresponds to a revenue of approximately 1.9 million yuan.

Compared to Hermès, the five major distributors have a five-fold difference in quotas, yet Hermès generates 40 million more in revenue.

If all the quotas from the five major distributors were given to Hermès.
never mind!

It's best to just think about it!
Because if Anwuyang really did that, would the five major distributors agree?

Will the interest groups represented by the five major distributors agree to this?
If Wu Gengtian wants to monopolize the profits, he will have to bear the backlash from the five major distributors, a pressure that Wu Gengtian cannot withstand.

In fact, Hermès wouldn't accept it either, because it's also afraid!
In addition, the quota for the seven overseas distributors is 3500 units, which corresponds to a 100% increase in the ex-factory price to $7000. The calculated operating revenue is approximately 1.56 million, once again exceeding that of the five major distributors.

This shows that most of the profits were distributed at dawn to ensure that the profits earned at dawn were earned.

After all, a mere 2.15 bitter orange scented candles brought Wu Gengtian 4.96 million yuan in revenue. Wu Gengtian has already made a fortune, hasn't it?

After all, these bitter orange scented candles are essentially...
The most important ingredients in bitter orange scented candles are three: bitter orange blossom residue and bitter orange leaf essential oil from the Tianjing Rock base, and bitter orange essential oil sourced from external suppliers.

So, in essence, bitter orange scented candles are a waste recycling project.

With such a project generating nearly 500 million yuan in revenue in a single month, what more could An Wuyang possibly want?
More importantly, this income can be received steadily and reliably, without any other problems.

After An Wuyang finished calculating the revenue data for the fifth watch of the night, he contacted Chen Hongzhi again and then informed him of the relevant quota data.

"Brother Hongzhi, how much are you planning to take?" An Wuyang asked curiously.

Faced with An Wuyang's frank account, Chen Hongzhi naturally did not hide anything. He explained, "I can't say for sure what the specifics are; I can only speculate on what will happen next."

“For example, the quota for Ping An Xingtian Group must be entirely kept in the Beijing area,” Chen Hongzhi explained.

Ping An Xing Tian Group is headquartered in the capital and has a government background, so it's certain that it will receive a quota for bitter orange scented candles.

"Secondly, Tianyin Pharmaceutical and Zhuningan Pharmaceutical will have to hand over at least one-third of their shares," Chen Hongzhi added.

"As for Jiuqu Pharmaceuticals and Rongcheng Life and Health Group, both of them will hand over at least half," Chen Hongzhi continued.

An Wuyang raised an eyebrow. This answer was counterintuitive!
Zhu Ning'an Pharmaceuticals has overseas capital, so it only needs to pay one-third of the 'protection fee,' which An Wuyang thinks is not a problem.

But Tianyin Pharmaceuticals is a private company, so how come it only needs to pay one-third?
Is it because Tianyin Pharmaceuticals is based in Shanghai and radiates throughout South China, so it needs to retain a larger share to take care of the entire region? As for Jiuqu Pharmaceuticals and Rongcheng Life and Health Group having to pay half of the protection fee, that was entirely within An Wuyang's expectations.

After An Wuyang voiced her doubts, Chen Hongzhi's answer was exactly as An Wuyang had guessed: the interest group behind Tianyin Pharmaceuticals was also very large, so the capital circle only took one-third of it.

After this round of acquisitions, the Beijing circle can get at least 8000 bitter orange scented candles. It just goes to show how worthy the Beijing circle is.

An Wuyang asked a deeper question, "At what price did you acquire their bitter orange scented candles?"

“1.2 Xia Guoyuan per branch,” Chen Hongzhi responded.

An Wuyang was surprised!
This price seems very low, doesn't it?

But the actual gross profit margin is as high as 20%.

An Wuyang originally thought that the guys in the capital circle would pay the price of 10,000 Xia Guoyuan!

The five major distributors get their goods from Wugengtian at 9999 Xia Guoyuan, so it's understandable that they only add one yuan.

The actual price turned out to be quite good.

Of course, this price will be very different from the actual market price.

After all, look at Hermès. Their factory price is $9999, and the price in China is as high as 168,888 Chinese Yuan. Only Hermès' top VIPs are qualified to buy it.

While An Wuyang and Chen Hongzhi were talking, at the Hermès headquarters in Xiamen, Shanghai's Henglong Plaza, a discussion was taking place about bitter orange scented candles.

Sales Director Sun Yue put down her phone and looked at Robert Louis, the CEO of the Xia Guo region, who was at the top of the list, to report.

“Mr. Robert, Hermès has secured an allocation of 3000 bitter orange scented candles,” Sun Yue reported in French.

Robert frowned. "The quota is a bit small. Is there any way to get more quotas from Wugengtian?"

Sun Yue responded negatively, "It's probably impossible."

Sun Yue explained in detail the circumstances surrounding this re-evaluation of quotas, including the special circumstances encountered by the five major distributors and the problems faced by overseas distributors.

Robert, being an expert on China, immediately understood Sun Yue's meaning and couldn't help but smile, "So Hermès probably controls the largest quota on the open market?"

"Yes," Sun Yue replied affirmatively.

Charlie Haberon, Brand Operations Director for Hermès in Europe, chimed in, "Given this situation, I think we should raise the bar."

The so-called raising of the threshold naturally means raising prices or raising prices in disguise.

Hermès is all too familiar with this tactic!

Sharonna Herlian, Vice President of the Xia Kingdom Region, seconded, "I also think prices should be raised."

“The products from Wugengtian are truly amazing; they can actually relieve stress, calm the mind, and regulate anxiety,” exclaimed Sharonna Herlian.

These mysterious and absurd claims are usually just ways to fool people!
But who knows if a product made at dawn can actually achieve that?
"Let's put the price increase aside for now. What we need to discuss now is where to sell these products?" Robert raised a new question.

When Robert asked her question, Sun Yue didn't speak first because she wasn't sure what Robert meant.

Brand Operations Director Charlie Haberon added, "I think this batch will primarily be sold in Europe, thereby expanding the influence of Hermès."

“After all, there are no bitter orange scented candles sold in China or Europe. If Hermès were to openly sell them, it would certainly enhance our brand image,” Charlie Haberon added.

Charlie further explained, "The EMA has certified all of Five Watches' products, so we can enter the Europa market through legitimate channels, thus avoiding any risks."

Hermès is not like those pharmaceutical giants!
Hermès is just a luxury goods company, and they prefer to abide by the law.

Sun Yue chimed in, "So how many quotas are left for the Xia Kingdom region?"

Charlie responded, "Given the higher profit margins in Europa, I suggest sending more bitter orange scented candles to Europa for sale, with a 10% quota reserved for the Xia Kingdom region being sufficient."

Sun Yue frowned immediately. The original quota was only 3000 bitter orange scented candles, and now they were only given 10%. Wasn't that discrimination against the Xia Kingdom region?

As the sales director for the Xia Kingdom region, Sun Yue naturally disagreed!

Because of the decline in sales in Xia Guo District, Sun Yue's interests will be harmed.

“I suggest that the Xia Kingdom region and the Europa region each allocate 50% of the quota,” Sun Yue proposed.

Charlie looked at CEO Robert, while Sun Yue looked at Vice President Sharonna; both of them had powerful backers.

Foreign companies are also rife with factions!
Serena also looked at Robert and took the initiative to ask, "Robert, what do you think is a suitable way to divide them?"

Robert also looked at Sharonna, "Ten percent is a bit too much. At least twenty percent should be left in Xia Country."

“China is one of the most important markets for Hermès. We must respect the Chinese market. I suggest reserving 50%,” Sharonna echoed Sun Yue’s suggestion.

"Too much!" Robert also expressed his refusal.

Serena scoffed, "Robert, you are the CEO of the Xia Kingdom region, and you have been transferred from headquarters to the Xia Kingdom region!"

Robert was parachuted in from Hermès headquarters to serve as CEO of Xia Guo on January 1st of this year, and has not yet served a full year.

Serena's reminder startled Robert, who suddenly realized that he was now the CEO of the Xia Kingdom region, and his future was closely related to the Xia Kingdom region.

Last year, Hermès' total sales in the Europa region were only 124 billion euros, but its sales in the UK region were 137 billion euros.

If sales in the Xia Guo region decline this year, Robert should be the first to be held accountable, right?

Faced with Sharonna's reminder, Robert fell silent.

Serena looked at Robert in silence, a victorious smile spreading across her face. She knew exactly what Robert would choose, after all, Robert was now the CEO of the Xia Kingdom region.

Is Robert going to abandon the interests of the Xia Kingdom region to benefit Europe?

altruism?

impossible!

Even though they are all under the Hermès company, there is no competition between different branches within the company.

Robert took out his phone to check Hermès' total sales figures for the UK region this year.

爱马仕的财年与自然年重迭，财年统计的范围是1月 1日至 12月 31日，今天已经是12月23日，这就意味着2021年已经接近尾声。

When Robert saw the marketing budget for the Xia Kingdom region this year, he looked thoughtful!
(End of this chapter)