Journey 1995:Non-Stop

Chapter 197 Business Tactics (Part 2)

"There are pros and cons to this. The advantage is that your supply chain here is very stable, and as long as things don't go wrong in the Northeast, your supply line is secure. The disadvantage is that you have a major client who is at the mercy of the supplier, and your ability to withstand risks is very weak. If he has a problem, you will have a problem too." My cousin saw through the trick.

"Brother, do you mean this is a setup for me?" Yan Hui asked rhetorically.

"It's just normal business tactic. Do you think gift-giving in business is always done directly? This is a form of gift-giving, but a more sophisticated one—building his image and morally blackmailing you. He's gone this far; you can't just switch suppliers, can you? For him, securing you as a major client is paramount. You could say this person is very clever, or that he has someone clever behind him, which is a good thing. The worst thing in business is cooperating with a fool," my cousin remarked.

"Now that you say that, I feel relieved." Yan Hui breathed a sigh of relief.

“It’s good that you think that way. For you, with an insufficient foundation, having such a supplier is the best option. Right now, your key is to keep an eye on Jianye.”

"I understand, thank you! See you when I come home for Chinese New Year this year!"

"Well, see you then."

Wang Hongjun's move was a completely open conspiracy; Yan Hui hadn't anticipated it.

In Yan Hui's eyes, Wang Hongjun had always been a straightforward person who didn't mince words. Now he realized that he had underestimated him.

It's currently peak logging season, and with Wang Hongjun's size, he could easily get his hands on some of this inferior timber for very little cost.

This timber is hard to sell, and it's not appropriate to give it away, but this operation is interesting. Yan Hui has to accept the favor, after all, these inferior boards can be sold for more than 20,000 yuan at Jianye.

Yan Hui's trip to Northeast China was actually motivated by a desire to explore new sourcing channels. He had read in a book that this was part of risk management.

Given his size, it's impossible for him to source all his supplies from just one forest farm. If something goes wrong with that farm, the process of finding another place to source from would take at least half a month just for the initial investigation.

He is no longer a casual customer who only needs a few dozen cubic meters of logs at a time.

With a monthly demand for thousands of cubic meters of logs, any logging farm needs to source them on an ad-hoc basis. This is manageable during the current logging season, but during the off-season, such demand is even more difficult to change.

Generally speaking, Yan Hui's correct approach would be to source his goods from at least five forest farms to ensure the safety of the supply. However, Wang Hongjun clearly did not want to do this and resorted to a combination of carrot and stick tactics.

After hanging up his cousin's call, Yan Hui took out paper and pen and did some calculations. Wang Hongjun's price was acceptable, and the profit could be guaranteed.

He didn't want to take advantage of Wang Hongjun for no reason, but he couldn't just return the favor without a reason either.

He considered many options and finally came up with an idea.

The next day, Yan Hui went to Harbin and spent more than 10,000 yuan to buy Liu Zi a mobile phone and get a number for him.

This incident clearly shows that Liu Zi is definitely Wang Hongjun's confidant, and has long been bound to Wang Hongjun in Northeast China. However, Liu Zi nominally receives wages from Yan Hui, yet he also works for Yan Hui.

It's perfectly reasonable for Yan Hui to give Liu Zi a cell phone.

That way, the dates are returned. We can continue our cooperation as usual; don't raise prices arbitrarily!
Yan Hui didn't mind this deep partnership with Wang Hongjun, but he did mind the price increase! You have to understand that in bulk timber transactions, a price increase of 10 yuan per cubic meter of logs is no small matter.

After spending two or three days sightseeing in Harbin, Yan Hui returned to Tangwanghe and gave his phone to Liu Zi, who refused to accept it.

“You work for me, I’ll contact you. How can you work without a cell phone? Phone calls are inconvenient. Here you go!” Yan Hui also became firm.

Liu Zi had no choice but to accept the phone call.

Seeing Liu Zi's reluctance to accept the phone, Yan Hui became even more certain of the relationship between Liu Zi and Wang Hongjun. The more this was the case, the more he needed to give Liu Zi the phone. The whole thing—giving Liu Zi the phone—was treated like a minor incident; it seemed like nothing had happened, and Wang Hongjun didn't say anything.

Log transportation, board breaking, polishing, and warehousing—all the work is carried out in an orderly manner.

Apart from the larch board breaking process, the white pine board breaking, drying, and pressing processes are proceeding smoothly.

With Wang Hongjun here, few local processing plants dare to bully people; Liu Zi can easily keep an eye on these matters by himself.

Everything is going smooth.

The only problem during this period was the inconvenience of traveling.

A few years ago, Yan Hui would have found a motorcycle very convenient, but now he feels he needs a car, especially in the cold environment of Northeast China, where riding a motorcycle is truly painful. Even leather knee pads can't guarantee complete protection from the wind.

After discussing it with Lao Guo, he immediately objected: "I know you have the money to buy a car now, and cars are cheaper than before, but if you buy a car here, is it for yourself or for someone else?"

"That's true." Yan Hui sighed. If he bought a car, he probably wouldn't drive it for more than a few days, not to mention he didn't have a driver's license.

"But cars are indeed cheaper now." Old Guo was also a little envious.

By 1998, the Jetta had been domestically produced and was more than one-third cheaper than it had been four years earlier; you could buy one for 1 to 3 yuan.

This is equivalent to Yan Hui's company profit for two months.

"The problem is it's too cold, and it's really inconvenient to go out without a car. Sigh." Yan Hui sighed.

"You should be content! You only need to stay here for a few days. Since you're relying entirely on Wang Hongjun, you could have gone back to Jianye a long time ago! You could have bought a car in Jianye." Old Guo was genuinely envious of Yan Hui, though he knew Yan Hui could afford a car.

"The climate in Jianye doesn't really require a car, and I don't have a driver's license. I dare to drive secretly here, but I wouldn't dare in Jianye."

"Then why don't you hurry up and get a driver's license?" Old Guo complained.

"That's true. I'll go learn to drive when I get back." Yan Hui nodded.

Northeasterners are used to hibernating indoors during the winter, playing cards, chatting, eating, and watching TV. This lifestyle is largely forced upon them; even though Yan Hui is wealthy, he still lives this way here, the only difference being that he can occasionally go out for a bath.

Yan Hui would visit each processing plant every few days.

In mid-December, the third brother called to say that the company's money was almost gone.

A large portion was used for circulation, and more than 30 was used for stockpiling inventory.

"Spread the word that our company is going to start selling the best larch lumber," Yan Hui said. "Here's 1000 yuan to spread this news, by any means necessary."

"No problem! I've been waiting for this day for a long time!" The third brother rubbed his hands together eagerly.

"Okay, I'll go back next week." Yan Hui had finally made it through. "The Northeast is really cold. You should come and experience it in a while."

"I'm not going. I've just settled into Jianye."

(End of this chapter)