Chapter 103 Buying a Production Line Xu Heye, wake up!
As the aunt and nephew began to eat, Dong Xinghua asked again, "Since we've decided to find a production line, do we need to hire more people?"
"Add." Xu Heye nodded. "Renting a production line takes time, but given the current production volume, we won't even be able to supply these existing retailers soon."
"Okay, I understand."
The next day, Xu Heye went to school; she still had a week before winter break. Meanwhile, Dong Xinghua went to the old church. After telling everyone about the fake collar workshop's hiring, she waited there.
She was waiting, waiting for someone to come and talk to her about intermediate wholesale.
As the sun set, Dong Xinghua finished making the fake collar, stood up, and looked at the ground outside the old church, which was once overgrown with weeds but now trampled by people coming and going. She let out a long sigh, not knowing whether she felt relief or regret in her heart.
Seeing that no one had come yet, they suspected that no one would come to discuss the middleman issue today. Without anyone coming, there was no need to expand their business and rent a production line. They could just make and sell the goods they had and make a profit.
But - this also means that they can only earn a small amount of money, and the bulk of the money still belongs to the factories with production lines.
On the one hand, she was conservative, thinking that as long as she could keep the money she had on hand, it would be fine; on the other hand, she felt regretful. As Xu Heye said, they were the ones who discovered this business, they were the ones who started it, and they were the ones who built it up.
Dong Xinghua was restless and unwilling in her heart. She couldn't help but think of what He Ye said before going to bed last night.
Production line, rented!
Why can't they be the ones making big money?
Without taking risks, no one knows how far they can go!
The more Dong Xinghua thought about it, the funnier it became. She suddenly realized that not only her niece, but she herself was also an adventurer.
Just when she made up her mind to rent a production line regardless of whether there were middlemen or not, her elder sister, who had bought a silk fake collar and small hair accessories yesterday, rushed over breathlessly.
"It's good, it's good that you haven't left yet." The elder sister didn't even have time to catch her breath and said hurriedly, "Young boss, I'm here to buy the goods."
Dong Xinghua came out to greet her: "Sister, the young boss is not here right now. If you need wholesale goods, you can come to me."
"Oh." The elder sister nodded. "Then can you contact the young boss? I have something to discuss with her."
She came here twice and realized that everyone here was an employee, and the real boss was the young boss who didn't look like a boss at all.
Although this young business owner may look young, she is not at all vague in her conduct. Yesterday, a retailer, seeing her youth, tried to trick her into giving him a lower price, but the retailer just kept beating around the bush and refused to budge.
The eldest sister knew that this girl was not an ordinary person.
That's right, how could an ordinary child gather a group of elders to help her work? So she felt that she should talk to the real boss about this agency matter.
The eldest sister is a very smart person. Yesterday, when she was doing retail business and a few people came to her to test her source of goods, she had the idea of becoming a middleman.
She would not tell them where she got the goods, which was her secret to making money, but she could purchase more and let them buy the goods from her.
She should have come to pick up the goods early in the morning, but the reason she came so late was because she gathered all the people who wanted to get the goods together and counted the quantity to be purchased. Only when the quantity was large could she negotiate the price with the boss.
Dong Xinghua realized something when she saw her elder sister hesitate to speak.
She said, "Sister, my niece is very busy, so she has entrusted the wholesale matters to me. I usually handle these matters. If you have any questions, just tell me. I can usually confirm them. If I really can't confirm them, I will talk to her later and ask her to get back to you."
The eldest sister nodded: "Okay. Let's talk first."
"Big sister, I came here today just to ask, if I buy a large quantity, can the wholesale price be lowered further?"
"The quantity is large? How large is it?" Dong Xinghua keenly realized that the middleman Xu Heye mentioned had appeared.
The eldest sister smiled and said, "I can get at least a thousand yuan worth of goods every day."
Dong Xinghua shook her head. "A thousand yuan worth of goods is too little. Big sister, you came here twice yesterday, you know how popular our goods are. A thousand yuan worth of goods isn't worth a price cut."
"What about two thousand? Two thousand a day."
Dong Xinghua continued to shake her head: "Not enough."
"Two thousand. If they buy a lot, two retailers can get enough for two thousand in a day. If you want to lower the price, you have to show sincerity."
"How are they the same?" the older sister said. "After all, only a few retailers can handle a thousand yuan worth of goods in a day. Most people can only handle four or five hundred yuan worth. To get two thousand yuan, you'd have to deal with at least four or five retailers. If you give me a little profit and let me handle it alone, how much trouble can you save?"
Dong Xinghua shook her head again. "We're not afraid of trouble. For the sake of making money, no matter how much trouble there is, it's not a problem. And another thing—" She pointed to the sign posted by the old church door. "Look, our goods are in such short supply that we can't even make enough. We have no worries about selling them."
"So if you can't come up with a number that both of us are happy with, I can't lower the price for you."
This is the confidence of the seller's market.
The eldest sister sighed: "So, big sister, what is your bottom line?"
Dong Xinghua held up three fingers: "Three thousand, three thousand every day. If you take three thousand worth of goods every day, I can promise to give you a rebate of five yuan for every two hundred yuan worth of goods."
The elder sister waved her hands repeatedly: "No, no, five yuan is too little. For every two hundred yuan, the rebate is five yuan, and for three thousand yuan, the rebate is only seventy-five yuan. I can earn more than this by selling goods worth three or four hundred yuan myself."
"To run a wholesale business, I have to find people, negotiate with other retailers, and count the pieces. I only make 75 yuan with such a large stall. It's not worth it."
Actually, it's not calculated that way, because when she sells it wholesale to others, she definitely doesn't give them the price of ten yuan for six pieces. She makes a profit in the middle, and a profit from the rebate from the factory, which is really not a small amount when added together.
In addition, she can keep some goods and sell them in retail, which can also make a lot of money.
However, this is when negotiating prices with the manufacturer, so naturally we have to think of various ways to lower the price.
"Big sister, I accept the 3,000 yuan per day purchase, but you have to increase the rebate a little bit. At least 20 yuan, so that I can make a living."
"Twenty is not enough." Dong Xinghua refused outright, then added, "But if you can get 5,000 worth of goods a day, I can give you a rebate of 20."
"Why did you increase the dosage?" The elder sister widened her eyes.
Dong Xinghua: "This is the bottom line. 5,000 yuan for goods, 20 yuan for rebate. If you only take 3,000 yuan worth of goods every day, you will never get this standard."
"But five thousand a day is too much." If she wants to reach this volume, she needs to find at least ten subordinates.
Seeing that Dong Xinghua was not giving in at all, the eldest sister thought for a moment and then came back: "How about we keep it at 3,000, but give us a little more rebate? Ten yuan, maybe? I'm not asking for much, but 10 yuan rebate on 200 yuan isn't too much."
"That's fine." Dong Xinghua pondered for a long time before agreeing to this standard.
The two sides discussed and signed a contract, agreeing on the purchase volume and rebate standards. However, the contract only stipulated rebate standards for the 3,000 and 5,000 price ranges; neither party had considered the 10,000 price range.
At present, neither of them feels that they (the other) can handle 10,000 units of goods a day.
After seeing off her elder sister, Xu Heye came out and gave Dong Xinghua a thumbs-up: "Aunt, you're amazing. The way you argued with that aunt just now was so cool."
Dong Xinghua smiled so brightly that her teeth were exposed. But soon, a look of worry appeared on her face. 1,700 pieces of goods (1,200 solid colors and 500 color-blocked ones) were sold out immediately, and the stock was completely exhausted.
"All the goods have been taken away by this lady. What should we do tomorrow?" They don't have any finished products in their hands now.
"Aunt, you see, this is why I'm eager to rent a production line as soon as possible."
Dong Xinghua checked her watch. It was half past five. She lifted her foot and hurried to the grocery store. "He Ye, let's go call Old Wu and the others before they get off work."
That day, when she went to the factory to pick up some fabric, she was cautious and asked for the factory office's landline number. The factory closed at six, so she could still make it in time.
"Hello, I'm looking for the warehouse manager Wu Hong. Thank you."
"Hello, I'm looking for Chen Hou."
"Hello, Mr. He, please answer the phone."
"Hello, I'm looking for Qi Bin...Okay, thank you Brother Qi, thank you for your help."
Dong Xinghua hung up the phone and shook her head at Xu Heye.
"The garment factories where Wu Hong, Chen Hou, and He Sheng work currently have no idle production lines. Qi Bin's factory does have one line that has stopped operating, but they don't plan to do any processing for private individuals."
"You don't want to do the processing for me? Did your aunt ask why?"
"Qi Bin said that their factory wants to sell that production line."
"Sold the production line?"
"right."
“What about the workers on the production line?”
"Workers were laid off." Dong Xinghua looked lonely and her voice was gloomy.
When Qi Bin talked about this incident, even a grown man couldn't help choking up.
Dong Xinghua could understand his feelings. Just like last year, no, the year before last, when the textile factory decided to cut down the entire garment workshop, she felt the same sad mood.
There is no time like now when people can feel the impermanence of life more clearly. The once glorious garment factory, a state-owned enterprise that employed thousands of workers, has now reached the point where it has to sell its assets.
The garment factory is really heading towards decline. Now that one production line has stopped, who knows when the entire factory will be gone.
Although Xu Heye also felt regretful, she did not have the same feelings towards the factory as her aunt's generation. When she learned the news, she was able to think calmly.
"Aunt, has this production line in Uncle Qi's factory been sold?"
Dong Xinghua shook her head: "Not yet." But the time to sell it should be soon.
Xu Heye looked at Dong Xinghua: "Aunt, can we go and take a look?"
"What are you looking at?" Dong Xinghua suddenly realized, "To see the production line?"
"right."
"Are you thinking of buying a production line?"
Dong Xinghua looked at Xu Heye, and kept shouting in her heart, deny it quickly, deny it quickly.
But after Xu Heye slowly nodded, Dong Xinghua finally gave up.
She looked at her niece, unable to control her hands. She wanted to grab her shoulders and shake her hard, just like in a Qiong Yao TV drama, to get the water out of her head, and then shout, "Xu Heye, wake up!"
However, Dong Xinghua could see Xu Heye's seriousness from her eyes.
Dong Xinghua calmed down and said seriously, "He Ye, do you know how much it costs to buy a mature production line?"
Xu Heye shook her head: "I don't know exactly how much it will cost, but I know it will definitely not be cheap."
"Now that you know, why do you still want to buy it?" Dong Xinghua frowned. "A production line like this, even the most basic one, has thirty sewing machines, four overlock machines, four hemming machines, five button-stitching machines, and four ironing machines. Do you know how much all these machines cost?"
"Sewing machines are the cheapest, and a new one costs eight hundred yuan. Old ones are half that, so four hundred yuan each. Just buying these thirty sewing machines will cost twelve thousand yuan.
Other equipment such as overlock machines, edge-lock machines, button-stitching machines, and ironing machines used in factories are definitely professional. They are extremely expensive. Second-hand ones are priced at 600 yuan each. Buying so many of them will cost 10,200 yuan.
There are also some other miscellaneous things. If I want to buy such a production line, I can’t open the door without 25,000 yuan.”
"Another thing is, I don't know yet whether Lao Qi's garment factory has automatic cutting machines. Automatic cutting machines are new equipment that have only been available in recent years and can greatly improve cutting efficiency.
Good stuff, but not cheap. Do you know how much an automatic cutting machine costs? A large machine like this could buy you more than a dozen new sewing machines.
Xu Heye nodded. "Aunt, I understand, but I still think it's worth it. Buying a production line like this will only make money and not lose money. I believe that with the passage of time, when we look back, we will definitely be grateful for making this decision now."
"The worst that can happen is we can just use all the money we make from fake collars to invest in the production line."
Dong Xinghua sighed: "Since you have decided, I will go and call Lao Qi."
"Okay, ask Uncle Qi to help us make an appointment, and we'll go over to see the machine."
That night, Xu Heye took out all her passbooks and began to count the funds she had on hand.
On New Year's Day, around 2:00 PM, she deposited 1,500 yuan at the Postal Savings Bank. By evening, she had brought home 2,134 yuan, and then gave her aunt 1,500 yuan to pay everyone.
The next day, Uncle Lu and her younger uncle came to see her and gave her a passbook respectively. One of them had 2,964 yuan in it, and the other had 4,300 yuan in it.
On the third day, retail revenue was 3,400 yuan, and the cost of buying fabrics was 7,200 yuan.
On the fourth day, two thousand two hundred and eighty yuan was deposited into the account.
On the fifth day, I earned three thousand.
On the sixth day, two thousand eight hundred and sixty-eight yuan was deposited into the account.
On the seventh day, we started wholesale, and with a good volume of sales, we earned 6,650 yuan. From retail, my uncle earned 480 yuan in the morning and 620 yuan in the afternoon. Uncle Liu and Uncle Cheng earned 960 yuan.
On the eighth day, which was today, seven retailers came and took away a total of 2,000 yuan in wholesale. The older woman who negotiated the deal took 3,000 yuan in commission, with a rebate of 150 yuan, for a total of 2,850 yuan in actual revenue.
By this calculation, Xu Heye had a total of 27,306 yuan.
But out of this huge amount of money, she had to set aside at least 10,000 yuan, which included the wages that had not yet been paid to the workers, as well as the dividends and bonuses for her aunt, uncle, and several uncles.
Purchasing the production line was her decision. Although she was confident that she could earn back the money she spent on the production line and have this golden goose lay golden eggs for them continuously, doing business still involves risks after all.
She can't guarantee to make money 100%.
All I can say is that if she makes money, that's better, but if she doesn't, she can't let everyone work for her in vain.
Xu Heye had never been a boss in her previous life, but she had been an employee and understood the psychology of employees well.
She could have made a fortune simply by following the rules, but if her decision cost everyone their wages and bonuses, people would lose faith in her. No matter what she wanted to do in the future, no one would trust her or follow her.
So the wages and bonuses must stay.
But in this case, with only 17,000 yuan of disposable income, it is almost impossible to buy a production line.
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