Journey 1995:Non-Stop

Chapter 124 Heading to the Processing Plant (Bonus Chapter for "My Lord is Awesome!")
"I was wondering why you've been so secretive lately. Are you planning something big?" That evening, his cousin, hearing Yan Hui's questions, was puzzled. "You know Chen Yong, he's Chen Dong's father. And the rest of these people are all influential figures. What are you up to?"

"I want to go to the Northeast and then ship timber to Jianye. In short, I want to know the prices these people pay for their goods. Do you know, brother?" Yan Hui didn't say much to his cousin.

Yan Hui has only just reconnected with President Teng, so it's not appropriate to discuss it with his cousin yet; there are too many unknowns. They'll talk about it later when things are more settled.

"Hmm," the cousin thought Yan Hui was being a bit unrealistic.

For the past three weeks, Yan Hui has been traveling and playing everywhere, but he always comes back promptly whenever his cousin calls him. Seeing Yan Hui like this, his cousin is actually very happy.

The most important thing for my cousin was to make sure Yan Hui was comfortable and at least gained some weight, so he could save face when he went home. As for how much money Yan Hui could earn, that was Yan Hui's own business.

Therefore, Yan Hui has been running around a lot these past few days and has even gained weight, which makes his cousin quite happy. However, Yan Hui's unrealistic ambitions are a bit of a headache.

“I do know quite a bit, you’ve come to the right person, but you should know that these are all their secrets, you can’t tell anyone.” My cousin was a little worried.

“Brother, this is very important to me. How about this, I’m willing to pay 500 yuan to buy this information,” Yan Hui said earnestly.

"We're brothers, why would I charge you for something that costs nothing?" My cousin's eyes widened. "What kind of person do you take me for?!"

"Brother, it's not like that. I just wanted to tell you that I'm not being unreasonable, I'm serious." Yan Hui felt that this was the simplest and most direct way.

"Okay, the information I have isn't the most recent, but it can give you a general idea. These people do get their goods at a slightly lower price than others in the market. Their supplier in Northeast China has connections at the train station. While others can fit 80 cubic meters of timber in a railcar, they can fit 85, or even 87 or 88 cubic meters, which is equivalent to saving 5% on freight costs. In addition, they get their timber from Kuancheng, where the supplier is also from their own area. The standard planks from the Greater Khingan Mountains are currently priced at around 865 yuan per cubic meter, which is 15 yuan cheaper per cubic meter than others in the market. In terms of freight and timber costs, that's a difference of about 1200-1500 yuan per railcar."

My cousin explained things in detail, and Yan Hui listened attentively the whole time. Much of the information my cousin provided was from last year or even the year before, but that wasn't important; it was enough to know the differences in the channels these people used.

"Is this enough?" my cousin asked, somewhat exasperated. "I see you opened a store, but you never stay there. If you ask me, given your current skill level, you could easily have secured quite a few customers."

"You mean, go back to your old ways, soliciting customers at the door as a middleman?" Yan Hui shook his head. "Brother, it's not that I'm unwilling, but everyone here does this, and my strengths don't lie here."

"You always say you have some resources in Northeast China, but most of the timber here also comes from Northeast China. What's the difference between yours and others'?" My cousin asked the question he had been wanting to ask.

"Brother, the Northeast is huge, incredibly huge. Prices vary from city to city, and shipping costs are different too. Not only that, but the forest farms in the Northeast don't use large scales to sell timber; they estimate the volume, which leaves a considerable profit margin. The cost of transporting the timber from the forest farm is also variable, and how the timber is processed after it leaves the forest is a complex matter. Then there's the entire process of rail transport after processing. Let me put it this way, brother, the timber we get here is already at least 40% more expensive than what the forest farms charge." Yan Hui told his cousin the truth.

We live in the information age; big bosses all have mobile phones, so a significant information gap no longer exists.

Mining, logging, train transportation, processing, rail transport, wholesale, and distribution—all these steps require costs, but each also generates profit. If Yan Hui can manage each step well, the profits will become quite substantial. We won't discuss retail here; the profit margin at retail is likely higher than all the previous steps combined, but the retail cycle is too long, and Yan Hui has no interest in it.

"I can understand if you know everything, but do you have the energy to do everything?" The cousin was a little puzzled. Yan Hui's statement did not quite conform to conventional business logic.

“My time isn’t as valuable as the bosses’, but I can give it a try. I’m not afraid of hardship,” Yan Hui said firmly.

Hearing Yan Hui say this, his cousin naturally had nothing to say: "I can't help you with these things."

"I'm already very grateful, brother." Yan Hui's recent expenses have mostly come from his cousin's earnings.

This money was rightfully Yan Hui's; after all, he was quite professional and always helped his cousin with business deals. But regardless, his cousin had helped him a lot; the vast amount of free information alone was something money couldn't buy.

Yan Hui wrote down everything his cousin said and kept reviewing it every night.

If Mr. Teng mentions these people again tomorrow, or mentions timber costs, Yan Hui will definitely be able to talk about it with ease, giving people the feeling that he is deeply rooted in Jianye.

There wasn't much preparation work to be done. The next morning, after breakfast, Yan Hui arrived at General Manager Teng's processing plant at 9:10.

This place is different from Uncle Si's place. The surrounding area is relatively open, with only this one timber processing plant. Yan Hui walked around the area twice.

At Jianye, apart from large clients like Mr. Teng, most people buy finished products like boards and timber directly, which can be resold immediately. Before coming here, Yan Hui didn't really understand why Mr. Teng wanted to set up his own processing plant.

Building a processing plant in Jianye doesn't necessarily save money. On one hand, the scale of the plant is insufficient, and the cost of equipment and technical personnel will only be higher. The level of expertise is also lacking, resulting in lower unit output. On the other hand, the temperature and humidity in Jianye are not very suitable for wood processing, making it more difficult to control the moisture content of the wood and prevent it from getting moldy.

But after looking around and seeing a lot of logs and some oddly shaped processed products, Yan Hui roughly understood.

Mr. Teng himself is a user; he supplies timber to construction sites, and some dimensions must be custom-made. For example, if it's for supporting a floor, the height is fixed, and even a 1-centimeter difference won't do. Moreover, construction sites sometimes have urgent needs, and it's impossible to order from Northeast China. Rail transport would often take ten days to half a month.

Therefore, Yan Hui judged that what General Manager Teng needed were mainly logs and standard boards.

Around 10 o'clock, President Teng drove over with two people. He greeted Yan Hui and said, "I have something to do in a bit. This is Haotian, the person in charge here. I've explained things to him. You can talk to him. I'll be back around 11:30. We can have dinner together then."

(End of this chapter)