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

Chapter 68 WPG0068: Kill three birds with one stone: If it can, so can we!
An Huchun believes in the older generation's business model of "honesty first".

For An Huchun, he firmly believes that if money is lost, it can be earned back later; but if conscience is lost, it can never be found again!

However, the times are changing rapidly today, and young people's ideas have long changed.

An Huchun also knows what young people think.

For example, young people believe that if they lose money, they can earn it back later, but if they lose their conscience, they can earn more!

Such thinking is in line with the current era.

Merchants without conscience do make more money!
In fact, Wugengtian Pharmaceutical Group was on the verge of bankruptcy and almost had to make drastic measures to survive. This was because too many of its peers had no conscience.

For example, Caimei Pharmaceutical, the main competitor of Wugengtian Pharmaceutical Group, does not have any five social insurances and two housing funds for its employees. Even if they pay five social insurances and one housing fund, they only pay the minimum amount.

The second issue is overtime pay. Caimei Pharmaceutical has always provided free overtime!
Don’t accept unpaid overtime?
Then the next one!
There is always someone who can accept it.

The current employment environment is not good, the problem of surplus labor has become increasingly prominent, and there is no unity among workers. Therefore, when faced with corporate exploitation, there are always people who choose to endure it silently, which leads to an increasingly worse working environment.

Companies like Wugengtian Pharmaceutical Group that comply with regulations are extremely rare.

In addition, Caimei Pharmaceutical also has some minor problems with pharmaceutical raw materials. The quality of the raw materials they choose does not meet the standards of Wugengtian Pharmaceutical Group.

However, it is precisely because of Caimei Pharmaceutical's unscrupulous practices that have reduced overall costs, making Caimei Pharmaceutical's drug prices lower and more competitive, that the Wugengtian Pharmaceutical Group has been hit so hard that it is struggling.

For example, in the fifth centralized medical procurement, the drug [Esomeprazole Sodium for Injection] was also included.

When Wugengtian Pharmaceutical Group quoted a price of 59.8 yuan, its gross profit margin was only about 2%, but it still lost to the price of 44.3 yuan quoted by Caimei Pharmaceutical.

Wugengtian Pharmaceutical Group simply cannot afford a price war!
After all, An Huchun, the current helmsman of Wugengtian Pharmaceutical Group, is an entrepreneur with conscience, bottom line, sense of responsibility, and gratitude. It is impossible for An Huchun to exploit human resources or reduce the quality of pharmaceutical raw materials.

So bad money drives out good money!
Wugengtian Pharmaceutical Group was almost eliminated.

In fact, similar situations to the Wugengtian Pharmaceutical Group occur in all walks of life. This is the case in every industry. Any company with a conscience is facing the dilemma of bad money driving out good money.

It can be said that the entire environment is ruined!
However, An Huchun insisted on his own ideas. He did not want his son to become a cold-blooded and ruthless capitalist who only cared about pursuing profits.

For An Huchun, having enough money is enough, why does he have to make a lot of money?

It is precisely because of this philosophy that An Huchun becomes a conscientious entrepreneur rather than a cold-blooded capitalist.

An Wuyang was influenced by An Huchun since he was a child, so at least his moral level is relatively high.

Although An Wuyang cannot achieve the same level as An Huchun, he will not exploit the labor force.

'An Wuyang: Dad, have you heard of Amway?'

'An Huchun:? '

'An Huchun: Your account was stolen?'

The main thing is that An Wuyang’s problem is really too troublesome!

That's why An Huchun jokingly asked if An Wuyang's account had been stolen?

'An Wuyang: I just used the Amway brand as an example.'

'An Wuyang: The price of vitamin C tablets in Amway's basic nutrition series is 347 yuan per bottle, each bottle contains 200 tablets, and the monthly sales are at the level of 10+.'

'An Wuyang: Dad, you should know the price of ordinary vitamin C tablets, right?'

'An Huchun: If it is the cost price, even if good raw materials are used, the price of 100 tablets is less than 0.5 yuan. 'This is true!

Just open the shopping app of Mr. Ma, the richest man in China, and search for "vitamin C," and you can find vitamin C tablets at 2 yuan per 100 tablets.

The cost price at the upstream production end will only be cheaper!
'An Wuyang: So why is Amway's vitamin C so expensive? '

'An Wuyang: More importantly, why is it selling so well when it is so expensive? '

'An Wuyang: It's just vitamin C. No matter how it's packaged or how it's played up, it's just vitamin C, not some other panacea.'

An Huchun looked at the message sent by An Wuyang and fell silent.

'An Hu Chun: Maybe it's because of Amway's brand and their usual pricing.'

The Amway brand entered the Chinese market as early as 1995. After more than years of development, "Amway" is no longer just a brand name, it has even become a new word to replace "recommendation".

If young people want to recommend something to others, they usually don’t say “recommend”, but will most likely say “Amway”.

This shows how deeply Amway has worked in Xiaguo!

'An Wuyang: Is there any difference between Amway's vitamin C and the pharmaceutical-grade vitamin C or health-care-grade vitamin C you buy casually?'

'An Hu Chun: There is absolutely no difference.'

They are all just vitamin C!

What difference could there be?
Brand name and packaging?

There is indeed a difference.

'An Wuyang: If Amway can do it, why can't we do it?'

'An Huchun: But we don't have a vitamin C production line.'

'Are you safe? ? ? '

'An Wuyang: Why should we produce it ourselves?'

'An Wuyang: Our Wugengtian human resources are too expensive! '

'An Wuyang: We will directly find a foundry! '

'An Wuyang: This solves the problem of high human resource costs.'

'An Wuyang: We let the OEM factory produce vitamin C for us, and then we sell it together with other products to achieve high profit margins.'

This is the best of both worlds.

It not only reduces various comprehensive costs, but also ensures high profits. More importantly, production capacity is no longer restricted.

Previously, in the first transaction between An Wuyang and the five major distributors of Wugengtian Group, only 8 cans of Ningzhi Ruoxue Awakening Essence Repair Cream were released. It was not that An Wuyang was deliberately creating scarcity, nor was it that An Wuyang wanted to engage in hunger marketing.

It’s simply because the drug inventory of Wugengtian Pharmaceutical Group is only a little over 100 million.

Wugengtian Pharmaceutical Group has limited production capacity. Even if it wants to produce more supplies, it will take time to produce them slowly.

After all, there are only a little over a hundred people working in the new factory of Wugengtian Pharmaceutical Group. So what if they work overtime until smoke comes out?

Now An Wuyang has proposed a OEM solution, which directly relieves the production capacity constraints and adds the benefits of low cost and high profit. It is really a good thing that kills three birds with one stone!
(End of this chapter)