Journey 1995:Non-Stop

Chapter 210 The Current Situation of the Second Son

In November, Yan Hui returned to Northeast China for half a month before going to Beijing.

In June of this year, the incident involving the second son made Yan Hui somewhat worried, but he didn't have time to take care of him at the time. This time, he came to see how the second son was doing.

Before he came, he called his second brother and knew where he was. He didn't ask his second brother to pick him up, and went to a place called "Shilihe" by himself.

Yan Hui had been to timber markets in various places many times. Timber markets were generally very orderly, mainly because there were only so many types of timber. But hardware markets were different. Most of the markets here were open-air or had simple covered structures, with stalls packed tightly together.

Hardware tools, building materials, timber, electrical accessories, and mechanical parts. From small items like screws to large items like pipes and welding equipment, the only feeling one gets is: chaos.

The air was filled with the smells of rust and engine oil, and people were coming and going, making a lot of noise.

In recent years, Yan Hui has traveled all over the country and has come into contact with many businessmen. He can tell that most of the local merchants are from Shandong and Hebei provinces, and there are very few from Fujian province. He wonders how his second brother managed to get by here.

After asking around among more than a dozen people, Yan Hui finally found the second brother's shop.

The second brother's stall was a tin-roofed shack, its size and area somewhat resembling the one his fourth uncle had arranged for him when he was in Fengtian. Yan Hui looked at it with a sense of melancholy.

"Fifth Brother! You really came!" The second brother was overjoyed to see Yan Hui. "You're so busy, yet you still found time to come see me!"

"You've done a great job here, a dazzling array of goods. I bet these items are worth at least ten thousand yuan, right?" Yan Hui examined them carefully.

This small tin shack, only six or seven square meters in size, has no place to stay; it's filled with a dense array of metal parts, arranged very neatly.

"Don't underestimate this place. Ten thousand won't be enough. These hardware parts will probably cost twenty-three or twenty-four thousand." The second brother and Yan Hui didn't hide anything.

"That's impressive!" Yan Hui nodded. "You've saved up this much money over the past few months."

"Oh, don't even mention it, it's not like that at all."

The second brother explained to Yan Hui that he had these things before. When he first arrived, the second brother also did hardware business with relatives. Later, after he got married, he took some of his own money and started his own stall.

To save money, he has been living in this tin shack, without obtaining any permits or renting a house.

I don't know who reported me this year, but I was investigated and taken away without explanation. The goods here are worth 20,000 yuan, but I can't convert them into cash to tide me over.

“I was in a hurry to borrow money from you because I was afraid that my place here would be stolen or robbed, and I was anxious to come back. After I get back here, I will have to borrow money to rent a house, get a rental contract, and apply for a temporary residence permit. The rent here is expensive, and I haven’t recovered yet.” The second brother thought for a moment, “Fifth brother, I will definitely raise the money I borrow from you before I go home for the New Year.”

"Huh?" Yan Hui wasn't thinking about that. He carefully examined Lao Er's shop. "I see some of your stuff hasn't been touched in ages. Why don't you stock up on things that turn over faster?" "Well, I've basically sold all the fast-moving stuff. In June, I went back to Beijing, and another brother of mine had his shop robbed. He had too much debt, so I had to clear out some of my stock to help him. I also borrowed some money myself. Now... it's alright, Lao Wu. I'm much better off than I was in July and August. I should be able to pay off my debts this month." Lao Er had a good attitude.

“You’ve only been married a short time, how are you going to manage going home for the New Year like this? Is the money you borrowed outside high-interest loans? Here’s what I’ll do, I’ll give you some money, you can pay off all the interest-bearing loans first, and then hurry up and get some quick-turnover goods to sell, and build up your image and reputation in the neighborhood.” As Yan Hui spoke, he took out 20,000 yuan from his bag.

Seeing Yan Hui casually pull out 20,000 yuan, the second brother was stunned for a few seconds. He ground his teeth and clenched his lips, wanting to laugh and cry at the same time. He tilted his head slightly and looked at Yan Hui: "Fifth brother, you don't need to help me like this. I can handle everything on my own here."

"Go away, stop talking nonsense with me! It's not like I don't need you to pay me back! Hurry up, use the money, get the business running!" Yan Hui didn't even ask for an IOU, he just threw down 20,000 yuan. Among the brothers, the second brother was actually the most reliable. If the second brother followed him to Jianye, he would definitely do better than the third brother.

However, since the couple wanted to be their own bosses, no one could force them to.

"Fifth Brother, you're a true brother! I've always felt like I owe you something, all those things from before. I never expected that when I was going through such a tough time, you would..." The Second Brother unconsciously shed tears.

“We’ve all sworn brotherhood together, there’s no ‘yours’ or ‘mine’ involved. There are still more than two months until the New Year, so get back on track quickly. If you’re not coming home for the New Year this year, just let me know, and I’ll go and help take care of your parents.” Yan Hui patted the second brother on the shoulder.

The two went out for a meal together, and the second brother started talking to Yan Hui about hardware and construction.

Compared to the timber industry, which is purely a raw material industry, the hardware industry is incredibly diverse, and the most valuable word in the entire industry is "brand".

Yan Hui certainly understands the power of branding. In the Jianye timber market, he is a merchant with a strong brand reputation. New customers choose his timber even at the same price, or even at a slightly higher price.

However, his brand premium is only average. For the same piece of wood, he can only be 20 yuan more expensive than others, and any more than that would make him less competitive.

However, the hardware industry is different. Good brands can command a premium of more than double, and pipes that look exactly the same can cost two or three times more for brand-name products!
"Why is there such a large profit margin?" Yan Hui asked, puzzled. "Is it because buyers have difficulty judging the quality of these items?"

“Yes, brand-name products are reliable. Besides, there are many imported parts, which can cost dozens of times more! But think about it, for example, if the valves in a high-rise building's water supply system have quality problems, how much would the repair and replacement costs be? You definitely have to use good ones; you can't use counterfeit products to save money. Moreover, some large companies even provide quality inspection reports, which is obviously different!” The second brother gave a brief explanation.

"Hmm, that makes sense. Once I have a processing plant, I'd like to create a brand. Let's start with wood." The setback Yan Hui suffered with steel was still fresh in his mind, so he wasn't planning on switching industries for the time being.

"Yes, wood does have brands, but they're all finished products aimed at direct consumers. Look at those furniture pieces, aren't they all branded?"

"That makes some sense."

Yan Hui stayed in Beijing for one day and then left. His second son had money and was busy buying goods. After buying the goods, he had to organize the shelves. He seemed to have inexhaustible energy. Yan Hui did not disturb him and returned to Jianye from Beijing.

(End of this chapter)