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

Chapter 67 WPG0067: Low profit problem? Best of both worlds?
After An Wuyang announced the distribution shares of the first batch of Ningzhi Ruoxue Awakening Essence Repair Cream in the Wugengtian Pharmaceutical Distributors Group, he stopped sending messages and the following work could be handed over to the sales department of Wugengtian Group.

He was quickly calculating the profit of this transaction on his mobile phone.

A total of 8 products were released in this transaction.

Among them, 3.5 sets contain 20 sets of [Esomeprazole Sodium for Injection]. The corresponding total sales price of [Esomeprazole Sodium for Injection] is 4186 million Xia Guoyuan, and the corresponding Ningzhi Ruoxue Awakening Essence Repair Cream is 4158 million Xia Guoyuan.

This distribution ratio is almost 1:1.

Although on the surface, the bundled product [Esomeprazole Sodium for Injection] sold 4186 million yuan, which should be considered a good result.

However, in reality this result is not good!

This is because the cost of producing [Esomeprazole Sodium for Injection] by Wugengtian Pharmaceutical Group is very high. Even at the quoted price of 59.8 yuan, the gross profit is only 2%, which is equivalent to a profit of only 837 yuan.

A transaction worth more than 40 million yuan, with a gross profit of less than one million yuan, how can this be considered a good result?

Fortunately, the profit of Ningzhi Ruoxue Awakening Essence Repair Cream is very high. Its cost is 167.25 yuan, and the selling price is 1188 yuan. The final gross profit is 35 yuan, and the gross profit margin exceeds 726%, which can be said to be a huge profit!

However, the Ningzhi Ruoxue series of products are exclusive specialty products that only Wugengtian Pharmaceutical Group owns, and its effects are indeed very good, so aren’t high premiums and high profits reasonable?

An Wuyang also calculated the situation based on the [Methylprednisolone Sodium Succinate for Injection] set. This set has 4.5 sets, each of which contains 30 portions of [Methylprednisolone Sodium Succinate for Injection], and the corresponding selling price of each portion is 45 yuan.

In summary, the distribution amount for the set of [Methylprednisolone Sodium Succinate for Injection] reached 60 Xia Guoyuan.

The profit margin of [Methylprednisolone Sodium Succinate for Injection] is higher than that of [Esomeprazole Sodium for Injection], reaching 12%, and the gross profit is 7 yuan.

Although this profit far exceeds the profit of [Esomeprazole Sodium for Injection], it is actually still a waste of money.

At least in the field of pharmaceutical industry, it is considered a scumbag!

In fact, it is because the overall cost of Wugengtian Pharmaceutical Group is too high, whether it is human resource cost, production management cost, or raw material cost, all are very high.

Fortunately, the matching Ningzhi Ruoxue Awakening Essence Repair Cream brought back a gross profit of 45 yuan. Together with the previous gross profit, the final total profit was 933 yuan.

Looking at the final gross profit margin of about 45.43%, An Wuyang felt somewhat helpless.

We can only say that we are thankful that Ningzhi Ruoxue Awakening Essence Repair Cream has a high profit margin, otherwise, for this transaction worth nearly 200 million Xia Guoyuan, we don’t know how miserable the profit would be.

An Wuyang recorded all the calculation results on his mobile phone and then forwarded them to An Huchun.

'An Wuyang: Dad, the first batch of 100 million stocks has been sold out.'

'An Wuyang: I found a problem.'

'An Huchun: What's the problem?'

'An Wuyang: Our profit margin is too low! '

'An Huchun: What do you want to do?'

'An Huchun: Let me make one thing clear, if you want to cut human resource costs, I definitely don't agree.'

'An Huchun: I would rather the group go bankrupt than do that kind of thing. 'Before, An Huchun had made up his mind to cut off the arm of Wugengtian Pharmaceutical Group, and had never thought about reducing human resource costs.

After all, reducing human resource costs is not decent!

If Wugengtian Pharmaceutical Group wants to reduce its human resource costs, it means exploiting its employees.

For example, cancel overtime pay, let employees voluntarily extend their working hours, eliminate old employees with high salaries, reduce some of their salaries, cancel five social insurances and two housing funds, etc.

These practices can indeed reduce human resource costs, but the good reputation that Wugengtian Pharmaceutical Group has accumulated over decades will probably be taken away in one wave!
An Huchun would rather Wugengtian Pharmaceutical Group live in people’s memories than let Wugengtian’s reputation collapse.

'An Huchun: Also, reducing the cost of raw materials is not an option. Although the price of our Wu Geng Tian medicine is a bit more expensive, our raw materials are well used, and this cannot be changed.'

When human resource costs and raw material costs cannot be changed, how can costs be reduced?

'An Huchun: Our group also has drugs with high profit margins. Why don't you bundle such drugs with your products next time?'

Wugengtian Pharmaceutical Group naturally also has high-profit-margin drugs, such as [Alanyl-Glutamine for Injection], which is an acid-base balance nutritional drug that claims to have multiple effects.

For example: supplementing protein, promoting wound healing, improving liver function, regulating immune function, and maintaining the body's electrolyte balance.

Of course, the above functions are only for psychological comfort.

As for the real effect
Wugengtian Pharmaceutical Group can neither prove that it is useful nor prove that it is useless. Anyway, its main effect is psychological comfort.

However, even so, its price is quite expensive, reaching 120 yuan per bottle, with a gross profit margin of 200%.

However, there is a problem with this kind of drug, that is, the demand is too small!
In addition, Wugengtian Pharmaceutical Group also has an anti-tumor drug [Nano-carbon Suspension Injection], which can be used for tracing the drainage lymph nodes in the gastric cancer area. The product price of 0.5mL/25mg is as high as 1700 yuan, and the gross profit margin has reached 35%.

However, [Nano-carbon Suspension Injection] also has the problem of too little demand.

If [Alanyl-Glutamine for Injection] and [Nano Carbon Suspension Injection] are to be sold together, due to the low demand, those drugs will definitely be unsalable, thus affecting the reputation of Wugengtian Pharmaceutical Group.

An Wuyang certainly doesn't want this to happen, and An Huchun probably can't accept it either.

'An Wuyang: Dad, those high-profit drugs have very little demand! '

'An Wuyang: I have a new idea that can solve both the problem of high costs and the problem of low profits.'

'An Huchun: Send it to me so I can take a look.'

An Huchun was secretly curious about this best of both worlds solution.

Is there really a solution that will not let down Tathagata and you?
Or is it some kind of scam?

An Huchun does not want An Wuyang to grow into a qualified capitalist. Although a qualified capitalist can certainly lead Wugengtian Pharmaceutical Group to obtain more profits, it will also make Wugengtian Pharmaceutical Group gain more infamy.

An Huchun prefers An Wuyang to be an entrepreneur with conscience, bottom line, sense of responsibility and gratitude.

This is also what An Huchun has always taught An Wuyang.

(End of this chapter)