Starting with vegetable greenhouses in 1988

Chapter 283 Good News

Li Zhe nodded. Su Mingyuan was also a bit unlucky. He had made some money by dealing in canned goods before, but when he heard that he was going to the Soviet Union, he didn't invest in the cannery.

As a result, he didn't make it to the Soviet Union, nor did he get any shares in the cannery; he ended up with nothing.

"Let's not talk about him anymore. You rest for a while. I'm going to get something." Shen Yanan got up and went into the office inside.

A moment later, she came out with a black cloth bag and placed it in front of Li Zhe: "This is 60,000 yuan. Count it."

"No need to count, I'll just go to the bank across the street and deposit it." Li Zhe took the cloth bag and weighed it in his hand.

During this period, Shen Yanan had exchanged foreign exchange certificates with him three times, each time for 50,000, at an exchange rate of 1:1.2, which made him have a lot more money in hand.

Shen Yanan was exchanging the money for a friend. She didn't make a single penny in the process, but she gained a lot of favors.

That's why she was especially grateful to Li Zhe, and quickly said, "Brother, don't leave at noon. I'll treat you to lunch and you can try the new dishes our restaurant has developed."

“Okay, I’ll go deposit the money across the street first, the bank will be closing soon.” Li Zhe said, picking up his canvas bag and getting up to go downstairs.

Across from the restaurant is an Agricultural Bank of China branch, its green sign standing out prominently in the sunlight, with two uniformed security guards standing at the entrance.

He went into the bank and completed the deposit transaction in just a few minutes. When he came out with his passbook, it was lunchtime at the restaurant, and several bicycles were already parked outside.

When they returned to the second floor of the restaurant, Shen Yanan had already had the dishes brought to the table. The table was full of dishes, neatly arranged: in the middle was a plate of pan-fried Russian borscht beef, with dark red beef chunks coated in a thick sauce, and a small dish of pickled cucumbers on the side.
Next to it was a Western-style cold platter, smoked salmon with sour cream; there was also a plate of golden fried pork chops, sprinkled with finely crushed black pepper, with lemon wedges on the side; and a plate of baked snails, steaming hot.

Shen Yanan said, "These are all new products that the kitchen has just developed. Try them and give me your feedback."

Li Zhe picked up his fork and first forked a piece of beef stew with red cabbage. The sauce was rich, the beef was stewed until tender, and it had a slightly sweet and sour taste.

He nodded and said, "This beef with red cabbage is good, the sweet and sour taste is just right, and it's acceptable to Chinese people."

Then I tried a bite of smoked salmon. The fish had a subtle smoky flavor and I ate it with sour cream.

Li Zhe had never eaten salmon before and didn't know how to comment on it, but he thought it tasted good.

He then tried the fried pork chop. The outer skin was crispy, while the meat inside was very tender. When you bite into it, you can taste a light juicy flavor. "The pork chop was fried well, crispy on the outside and tender on the inside. It's just that you could put in a little less black pepper, as some customers might not be able to handle the strong flavor."

He then tried the baked snails. The aroma of garlic and butter had completely permeated the snail meat, and it was chewy and delicious. "These snails are cleaned very well, with no fishy smell, and the seasoning is just right. Foreigners should like them."

This was the first time Li Zhe had ever eaten snails in his life, and to be honest, it felt a little strange.

Shen Yanan listened attentively, even taking notes in her notebook. She only put down her pen after Li Zhe finished speaking: "Brother, I have something to tell you. The second floor next to our restaurant is for rent. Do you think I should take it over?"

"How big is the next room?" Li Zhe put down his fork and picked up a tissue to wipe his mouth.

"It's not big, only about 120 square meters," Shen Yanan replied.

"Can it be integrated with our restaurant?" Li Zhe pressed.

“I asked around, and it’s not possible to completely connect them. However, we can open a door to my second-floor room.” Shen Yanan frowned. “I’m also struggling with this. If we can only open a door, it doesn’t feel spacious enough, and guests might not want to go in.”

Li Zhe thought for a moment and asked, "Do you think we can fill all the seats this year if we rent it?"

“If we could get through, I’m definitely confident!” Shen Yanan said, “but now that we can only open one door, I’m not so sure.”

“It’s not necessarily a bad thing.” Li Zhe took a sip of watermelon juice and continued, “Completely opening up the space has the advantage of being bright and airy, but just opening a door also has its advantages, such as good privacy!”
You can convert that area into private rooms. Some guests who are doing business or dining together prefer a more private place, as it's inconvenient to have a noisy atmosphere in the main hall.

For example, when we're discussing a canned food order, wouldn't we like to find a private place to talk in detail? Having a private room would make things much more convenient.

Shen Yanan's eyes lit up, and a look of agreement appeared on her face: "Now that you mention it, I think it's feasible! So how should the private room be designed?"

"Decorate it upscale, for example, with genuine leather sofas. If possible, include a private bathroom, and assign a dedicated waiter to each private room, available on call." Li Zhe considered for a moment before continuing:

"We can also set some thresholds for consumption, such as a minimum spending amount, or opening it only to members, requiring advance reservations, etc. In this way, we can ensure privacy, enhance the restaurant's class, and attract high-end customers."

"That's a good idea!" Shen Yanan thought it was feasible more and more, and immediately called out to the door, "Marty! Come here for a second."

Hearing the commotion, Marty quickly ran over. Shen Yanan explained Li Zhe's idea to her and then asked, "Do you think it's feasible to convert the room next door into a private room?"

Marty lowered his head and thought for a moment. "Boss, I think it's feasible. Some customers have asked us before if we have private rooms. If we have private rooms, we can meet the needs of some customers, such as friends gathering, birthday parties, or business meetings."

Shen Yanan stroked her chin and asked, "What are your ideas for the design of the private rooms? How much will it cost?"

Marty thought for a moment and replied, "I think we can design different sizes, such as six-person rooms, eight-person rooms, and ten-person rooms, to meet the different needs of our clients..."

Li Zhe added, "Different private rooms can also be designed with different themes and matched with corresponding decoration styles..."

The three of them chatted away, getting more and more specific, discussing everything from the layout of the private rooms to the training of the waiters and the benefits for members.

Shen Yanan finally made the decision: "It's settled then! I'll talk to the landlord about the lease tomorrow, and we'll start renovations once we've secured the space. We'll try to have the private rooms ready before National Day!"

……

Around 1 p.m., there were few customers in the 365 Vegetable Store, and the staff were all resting, making the store very quiet.

Sun Tao was leaning over the counter, with two notebooks spread out on it. He had half a pencil in his mouth and was repeatedly pointing at the price columns in the two notebooks, carefully comparing them.

He frowned from time to time, as if he was pondering some difficult problem.

With a creak, the shop door was pushed open, and a figure walked in, bringing with it the heat of the outside.

Sun Tao looked up and saw that it was Li Zhe. He immediately took the pencil out of his mouth and hurried to greet him: "Brother Li, you've arrived!"

"Hmm." Li Zhe nodded, glanced around the vegetable shop, and his gaze fell on the two notebooks on the counter. He smiled and asked, "What are you busy with with your head down? I can see you writing and drawing here through the glass."

Sun Tao quickly handed over the two notebooks and explained, "Brother Li, this one is the price list for the vegetables at that vegetable shop outside Chaowai. I specifically sent someone to investigate, and it has the prices for most of the items. The other one is the current prices in our shop, and the last column is the price list I'm thinking of adjusting. Please take a look."

Li Zhe took the notebook, and Sun Tao quickly moved a folding chair over from the side: "Please sit down and take your time reading."

The handwriting in the notebook was neat and tidy, and the name, current price, and adjusted price of each product were clearly listed. It even included the corresponding price from the Chaowai Vegetable Store.

Li Zhe turned the pages one by one, his brows gradually furrowing. After looking at it for a while, he finally put the notebook on the counter.

Sun Tao stared at his expression and asked cautiously, "Brother Li, is there a problem?"

"I find your price reduction strategy a bit confusing," Li Zhe said, tapping the price list with his finger. "Tell me, what's your thinking behind adjusting the prices?"

Sun Tao took the notebook and pointed to the items on it, saying, "Didn't you say last time that we shouldn't engage in a vicious price war with that company in Chaowai, but should win by providing service and quality?"

Take apples for example. We get premium grade apples, which are large and sweet. The other store sells first grade apples, which are of much lower quality. So I thought we could price our apples a little higher to highlight their quality.

The same applies to other fruits; if our quality is better than the other party's, the price will be slightly higher.

He turned to the page on vegetables and continued, "As for vegetables, I see that the two companies have similar sourcing channels and prices, and there is no difference in the varieties."

Our store mainly sells vegetables, and if we sell them at the same price as the other store, we won't have an advantage. So I'm thinking of lowering the prices of all the vegetables a bit to use as a way to attract customers.

"Wait, your idea is wrong, or rather, you haven't fully understood what I meant last time." Li Zhe waved his hand to interrupt him and walked to the vegetable section.
"If apples can be classified as grade 2, grade 1, and premium, why can't vegetables be classified as well?"
Look at these tomatoes. We'll pick out the ones that are too small, green, cracked, or crooked. We'll only keep the round tomatoes that are uniform in size, bright red, and have smooth skin.

"Aren't these tomatoes our 'premium vegetables'?"

Li Zhe then walked to the general merchandise section, picked up a tray of eggs, and pointed to the chicken feathers and dust on them, saying, "And these eggs, some have chicken feathers on them, some have dust on them, and some even have chicken droppings on them. Customers have to wash them before they eat them, which really affects their mood."

If we find two people beforehand to clean all the dirt with soft brushes and put them in clean cardboard boxes, wouldn't the eggs look much better?
Foreigners pay the most attention to these details; even if it's a bit more expensive, they're willing to buy clean products.

He put down the eggs and looked at Sun Tao earnestly: "Remember this: it's not important who produces them, it's important that they are responsible for quality control."

Eggs from the same chicken farm can be clean or dirty; we help our customers pick out the good ones and clean the dirty ones. That's service, that's our quality advantage.

Fruit from the same field can be good or bad. We help our customers pick out the good ones and perfect the details—that's true 'improvement in service and quality.'

Sun Tao held the notebook, pondered for a while, then his eyes lit up and he nodded seriously: "Brother Li, I understand! You mean, if we can improve the quality of products through selection and sorting, we can differentiate them and sell them at a higher price."

So, which product should have its price reduced?

"When customers buy things, they compare brand, quality, and price; only when the brand and quality are the same does price become the key factor," Li Zhe said, pointing to "Merlin Luncheon Meat" on his notebook.

"Look at this, our store has it, and the store in Chaowai also has it. The brand, specifications, model, and shelf life are all the same. At this point, it's all about comparing prices."

He sells it for three yuan, we sell it for two yuan and eighty cents. Customers can immediately tell that ours is cheaper, so naturally they'll be more willing to buy from us.

He flipped through a few more pages: "And then there are industrial products like cola and canned goods, which are all produced in a standardized way. It's impossible to tell the difference between 'good' and 'bad' products. Both companies sell the same ones, so we have to lower the price of these, and it has to be a little lower than the other company's, in order to show that we are offering good value for money."

"I get it!" Sun Tao suddenly understood. "For products where quality is a factor, we'll compete on quality and sell at a higher price; for products where quality is indistinguishable, we'll compete on price and sell at a lower price than our competitors."

This way, we won't get caught up in a vicious price war, and we can highlight our advantages!

“That’s right, that’s exactly the point.” Li Zhe nodded.

"Brother Li, could you give me another day? I'll prepare a new price adjustment list for you to review tomorrow," Sun Tao said immediately.

Li Zhe further instructed, "It's not just about adjusting prices; you also need to immediately ensure the quality of the vegetables. Only when the quality is truly improved will you have the confidence to set high prices, and only then will customers be willing to pay."

"Don't worry! I'll go to the Chongwenmen vegetable market this afternoon and talk to the supplier about our selection criteria." Sun Tao paused for a moment, then added, "But Brother Li, if we choose vegetables according to your criteria, the purchase price might be a bit higher."

“You get what you pay for, this money is worth it.” Li Zhe said without hesitation, “Good things are what keep guests, especially the foreigners in the diplomatic apartments. They don’t care about the money, they’re just afraid they won’t be able to buy good things.”

Sun Tao replied with a "okay," then suddenly remembered something, leaned closer, and whispered, "Brother Li, there's some good news for you. Director Han has been officially promoted from deputy director to director of the vegetable market management office!"

"Oh? When did this happen?" Li Zhe's eyes lit up; this was indeed good news.

The reason why 365 Vegetable Store can accept foreign exchange certificates is because it is affiliated with Chongwenmen Vegetable Market. Without this "backer", even if the vegetable store could open, it could only accept RMB.

"The appointment was made yesterday afternoon, and everyone at the market knows about it, so it can't be wrong." Sun Tao's tone was somewhat excited as he rubbed his hands together. "I was thinking, shouldn't we buy some gifts and go visit Director Han?"

“We should go, and we should go as soon as possible.” Li Zhe thought for a moment and said, “Here’s what we’ll do: I’ll go to the nearby shopping mall to buy some things later. When you go to the farmers’ market this afternoon, please make an appointment with Director Han so we can visit her together.”

He started to think things through. There were many foreigners in Beijing, not just in the Diplomatic Residences. The 365 Vegetable Store was doing so well that it should have opened a branch a long time ago.

He hadn't dared to make any moves before because, since the company was affiliated with the Chongwenmen vegetable market, Director Han was only the deputy director and couldn't make many decisions, which made him feel uneasy.

Now that Director Han has become the head of the management office, his words carry weight, and the matter of opening a branch can be put on the agenda.

However, this can't be rushed. First, he needs to build a good relationship with Director Han and find out the management office's attitude. If things go well, they can start opening a branch. If not, Li Zhe will have to start from scratch...

Sun Tao quickly nodded: "Okay! I'll go find Director Han as soon as I get to the market this afternoon and try to set a time."

"Mm," Li Zhe responded, then stood up.

He walked over to the shelves, checked the freshness of the vegetables, and browsed through the grocery section. After confirming that everything was in order, he said to Sun Tao, "I'll go buy some things first. You can sort out your pricing strategy again and give me a new plan tomorrow. Don't be careless about quality control."

"Don't worry, I guarantee there won't be any problems!" Sun Tao patted his chest to assure him. After watching Li Zhe walk out of the store, he went back to the counter to study the prices.

Unlike the previous tangled mess, with Li Zhe's guidance, he had a clearer and more systematic understanding of commodity price adjustments, and his admiration for Li Zhe grew even stronger.

Hey, you'll always learn something new if you work with Brother Li!
(End of this chapter)