Star Tycoon

Chapter 61 Low Cost

early morning
Sunlight streamed through the office window. Tian Ersan put down his coffee and looked at the remaining 430,000 orders.

Until the products were taken off the shelves yesterday, the number of canned goods to be shipped was still growing rapidly.

Fortunately, the price stopped rising after we stopped selling.

Jingle bell bell~
Tian Ersan picked up the phone; he had already blocked many people's numbers that night.

"Hello, Mr. Tao, what's up?"

Tao Chunyang said apologetically, "Mr. Tian, ​​I'm really sorry, we really don't have many canned yellow peaches left here. Many people say that the price of less than two yuan a bottle is too much of a loss. Now a bottle of canned yellow peaches in the supermarket can sell for at least fifteen yuan."

Tian Ersan drove up the price of canned yellow peaches, and now factories are urgently buying up yellow peaches to make canned fruit, while other canned fruits are being ignored.

Tian Ersan certainly deserves credit, but others also need to make money.

Why forgo making a few dollars in profit to earn a few cents from Tian Er?
Tian Ersan had thought about this kind of thing long ago.

"I was just about to say that; I've already taken the canned yellow peaches off the shelves."

Tao Chunyang quickly said, "Taken off the shelves? Why?"

There are many reasons why Tian Ersan doesn't sell canned goods. He casually mentioned one: "After I sell them all, there won't be many canned goods left in the market. You guys can sell them."

Tao Chunyang paused for a moment, then cautiously asked, "If Mr. Tian isn't selling canned goods anymore, what will he sell in the future?"

Tao Chunyang's factory has sold out of canned yellow peaches, but it is still the season for yellow peaches to be on the market. Many canneries are buying yellow peaches at high prices and urgently producing canned yellow peaches.

There are still two or three months to make money, from July to October.

But if Tian Ersan stops selling canned yellow peaches... will canned yellow peaches still sell so well?
Tian Ersan smiled and said, "Selling melon seeds or clothes are all things that can be found in various places, so I don't have to worry about being pressured to lower the price."

Tao Chunyang was drenched in sweat. Because he had received a lot of money for goods, and knowing that Tian Ersan could sell canned yellow peaches, the company took out a loan of ten million to purchase yellow peaches.

Because they were several days ahead of others, the factory was able to produce 200 tons of canned yellow peaches every day these days.

If all efforts are made to supply, the city’s hundreds of canneries can actually meet the demand for Ueda Nizo’s products.

But seeing how much money Tian Ersan was making, and with merchants from all over the country demanding high prices for canned yellow peaches, everyone naturally wanted to raise prices.

Which canned food vendor wouldn't be envious of Tian Ersan's business?
Tao Chunyang was also envious, but he had already received a thousand-ton canned food order from Tian Ersan, and now he wanted to increase his profits by competing with his peers.

"But didn't we agree that I would help Mr. Tian sell canned goods? How can we just break off the cooperation after agreeing to this?"

Tao Chunyang looked as aggrieved as a young wife.

Tian Ersan smiled and said, "President Tao only makes a few cents off me for each can of food, but if I were to sell it myself, a can of food would cost ten yuan online now. I'm afraid President Tao would lose out. It doesn't matter whose canned food I buy now, and it doesn't matter who makes the money. It doesn't have to be me."

"Mr. Tao can also sell canned yellow peaches himself. This stuff doesn't require any technical skill, and there's not much difference between them. I've been selling canned yellow peaches from different companies for the past twenty days. It doesn't matter who makes money, just don't use my name."

"We kept our promise about the 100 tons of canned goods, so isn't the 1,000 tons of canned goods enough?"

Tian Ersan generously relinquished the market, but Tao Chunyang knew very well that many people bought the canned goods because of Tian Ersan's influence.

Nobody cared what brand the canned food was; they just wanted Tian Ersan to make money.

Other canneries may not care about these things; they just want to make a profit, since many people buy canned yellow peaches from supermarkets anyway, so they might as well scam as many people as they can.

Tao Chunyang knew better than to say that if Tian Ersan stopped selling canned goods or canceled the cooperation, the canned goods would definitely not sell as well in the future.

Especially now that their canned goods are associated with Tian Er San, every additional bottle of canned goods sold by Tian Er San means one more person will remember their canned goods brand.

But seeing others earn four or five yuan per can of food, while I don't even earn forty or fifty cents per can, it's hard not to feel a little sad.

Tian Ersan could sense that Tao Chunyang was hesitating at this moment.

"How about this? The online price for four cans of yellow peaches is still 15 yuan, but I can raise the purchase price to 1.5 yuan per can, so four cans would be 6 yuan. At the same time, I will guarantee that as long as there are no problems with the goods on Mr. Tao's side, we will not change manufacturers. I don't have time to produce canned goods myself."

"What I hope for is to stabilize things as soon as possible, ship out the goods, and resume business in a couple of days, but business will definitely not be as good as it was a few days ago."

The price of 1.5 yuan per bottle is already a discount. The previous price was 1.43 yuan. Now, each bottle has an additional 7 cents of profit. Even a small amount adds up, and once the quantity increases, it will be quite substantial.

Most importantly, Tian Ersan will not change its partners, which means that it will provide its own cannery with a long-term and stable business, and will not delay payment.

Now they could do business here while also retailing canned goods at higher prices. After considering the benefits, Tao Chunyang breathed a sigh of relief and quickly said, "No problem! Our company is willing to fully cooperate with General Manager Tian, ​​and I will also speak to the canned food enterprise council. For the long-term development of the canned food market, we should prohibit some companies from taking the opportunity to raise prices, damaging consumer trust and hindering the rise of the canned food market!"

Canned Food Industry Association!

If we want all canned yellow peach manufacturers and suppliers across the country to follow the rules, we need to launch this association.

"Okay, thank you for your help, Mr. Tao."

"It's alright, I also want to thank Mr. Tian. Our factory can now produce 100 tons of canned food a day. I will allocate 80 tons to supply Mr. Tian every day. Will sending 500 tons to Mr. Tian in seven days be enough?"

Tian Ersan smiled and said, "That's definitely enough. I still need to rent a warehouse, otherwise I can't store so many cans."

Orders have long exceeded one thousand tons, but because most customers do not require delivery, the delivery work is not so stressful.

Tao Chunyang smiled and said, "Why don't you just keep it here? Mr. Tian can pay a deposit and take it whenever he needs it. Or I can just send it out directly. Mr. Tian can just pay for the packing. This way, our factory workers can still get a salary during the off-season."

Fruit canning is only done when the fruit is in season. Although other fruits are available in winter, they are not cheap.

Summer is the peak season for canned goods because fruit prices are low, especially those from the production areas.

During the off-season, canneries have to find their own way to survive.

Tian Ersan lacks workers and also lacks the time to manage them.

"Okay, you can leave the shipping to Mr. Tao. You can negotiate the shipping and packaging fees yourself. For each order, including the cost of the canned goods, packaging, and shipping, I will take eight yuan from each order of fifteen yuan worth of canned goods, and the remaining seven yuan will go to Mr. Tao. You just need to ensure that the goods are shipped out smoothly. Is that alright with you?"

Seven pieces...

Tao Chunyang's face contorted as he held his phone.

Actually, it's better than before. Before, Tian Ersan wanted to take nine yuan, but Tao Chunyang didn't agree.

Now Tian Ersan has conceded, agreeing to take only eight yuan as commission, with the remaining seven yuan covering the cost price, packaging price, express delivery fee, and the profit for General Tao and his employees.

One can of food costs 1.5 yuan, so four cans in one order would cost 6 yuan!

Does that one dollar cover the delivery fee, packaging fee, and the wages and profits of all the cannery's employees?
"Okay! Let's sign the contract!!"

I don't know how Tao Chunyang calculated the profit, but anyway, he gritted his teeth and agreed.

Tian Ersan frowned, feeling that the cost price of the canned goods was lower than he had expected, and the lower limit was even lower.

How low can he actually reduce costs?

The canned goods contain yellow peaches, and there are glass jars, metal lids, and labels. It's impossible for all of these to be in one container.

Assuming a can of food costs one yuan, then four cans, plus shipping and packaging fees, couldn't possibly cost less than six yuan, right?

Tian Ersan couldn't figure out how Boss Tao made money, just as Boss Tao couldn't figure out how Tian Ersan sold millions of canned goods a day recently.

You can't imagine things you've never seen before.

Just like how people in the United States buy ordinary shoes for $60, they would never imagine that the cost price is less than $3.

It's rare to find canned yellow peaches for ten yuan a can on the market; most are seven or eight yuan. Tian Ersan thought that the ex-factory price of one yuan and fifty cents was already very low, but a large group of canneries kept reminding Tian Ersan that the price of this canned fruit could be reduced further.

Is it really possible for the price to drop below one dollar?

Tian Ersan couldn't figure it out, so he directly asked Tao Chunyang.

"The price of 1.5 yuan is fixed. I only require good quality canned food. I don't want anything else, like entertainment. But I want to know if the cost price of this canned food is really less than 1 yuan?"

Tao Chunyang knew very well that some things could be found out with a little investigation, so he answered honestly: "It definitely needs to be more than one yuan to make a profit, but for a big customer like Boss Tian with orders in the tens of millions, one yuan is enough to make a profit."

Tian Ersan readily agreed, "Okay, I'm relieved to hear Boss Tao say that. Let's continue our cooperation as we agreed. If you can make money, I can make money too, and that's how this business can last."

Tao Chunyang said happily, "Thank you, General Manager Tian, ​​for the meal!"

For a single order of four bottles of canned goods costing fifteen yuan each, Tian Ersan earned eight yuan with tears in his eyes, only responsible for collecting the money, while Tao Chunyang earned seven yuan with a big laugh, responsible for production, quality inspection, packaging, shipping, and transportation.

(End of this chapter)