"It's a pleasure doing business with you!"
"It's a pleasure doing business with you!"
Gu Pan decisively reached out and shook hands with Chen Dong.
He knew that if he didn't agree to Chen Dong's terms, he would be incredibly foolish.
Large supermarkets require a very large supply of goods.
Although it was his first time, that didn't stop him from calculating the cost.
One month's supply is equivalent to almost half of Shenzhen's supply, which is a hundred times better than those wholesalers.
It was undoubtedly like putting a pile of hard-earned money in front of him.
Would he be a fool not to seize such an opportunity?
Chen Dong's thinking was much simpler.
To put it bluntly, the root of all this lies in bank acceptance bills.
On the surface, Chen Dong suffered a huge loss by raising the price of goods by 10%, but that's not actually the case.
A bank acceptance bill is essentially a form of credit payment, payable in installments over 3 to 6 months.
It's somewhat similar to credit cards like Alipay in a few years.
By paying a small handling fee to the bank and utilizing the bank's credit line, one can make money without any investment.
Let's do a simple calculation.
Boss Gu provided Chen Dong with goods worth 900,000. After increasing the price by 10%, the value of this batch of goods became 990,000. Let's just treat it as 1 million.
In May 1990, the bank published a fixed annualized interest rate of 10.4%.
If you deposit 1 million yuan in a bank, the interest generated in just six months will be more than 50,000 yuan.
In other words, Chen Dong only needs to pay an annualized interest rate of about 6% to get a loan of 1 million yuan for six months.
It's even cheaper than commercial bank loans!
What is the current annualized interest rate for commercial bank loans? It's 10.08% for a one-year loan.
This only represents the benefits of having savings.
What if we used the secured payment to buy real estate and open a supermarket, creating a multiplier effect?
Besides the benefits from property appreciation, the more important factor is that supermarkets will achieve economies of scale.
At that point, Chen Dong would no longer be the one to raise prices; instead, he would be able to obtain the factory price directly from the factory. In addition, he would be able to sell product display space during the competitive process.
Rather than saying Chen Dong made concessions, it would be more accurate to say he looked down on such petty gains.
Soon, both parties began signing the contract documents.
The contract is quite long, mainly outlining the payment method and establishing legal effect.
After signing, the two parties shook hands again.
"It's a pleasure doing business with you!"
After everything was done, Chen Dong came out of the conference room.
With the supermarket opening soon, he needed to make thorough preparations just in case.
The goods provided by Mr. Gu are all produced by domestic manufacturers. In order to make the supermarket appear high-end, it is necessary to open up a section for goods from other countries.
Thinking about this...
Chen Dong immediately took out his mobile phone and began contacting Jiang Fei.
Making money from Russians can be easy or difficult, depending on your perspective; those who say it's hard simply haven't found the right approach.
Zhang San and Li Si are middlemen who transport the same quantity of goods to Russia for sale, but their profits differ by several times.
Simply put—
Goods worth 100 RMB can be sold to Chinese businesses in Moscow, earning about twice the profit. After deducting expenses, only a little over 1% is left.
If the resellers were to sell these goods themselves, a product worth 100 RMB could be sold for 100 rubles.
The exchange rate conversion is approximately 750 RMB. After deducting expenses, there is still 500 RMB left, which is equivalent to a 5-fold profit.
For the same 100 rubles, we can buy some binoculars, razors, and other goods from Russia and ship them back to China for sale.
Think about it, how much profit is there in this?
Chen Dong's barter system in Russia eliminated the sales process entirely.
After deducting necessary expenses (tariffs, bribes, travel costs, etc.), a round trip can generate dozens of times the profit.
The same principle applies to the goods that Chen Dong had Jiang Fei transport.
They earn even more than if they sold directly to wholesalers.
While I was thinking about all this, the call was already connected.
"Brother Dong!"
Jiang Fei's voice came through the microphone.
"Brother Fei!"
Chen Dong didn't waste any time and went straight to the point.
"We'll find a logistics company in the next few days to transport the Russian goods we intercepted to Shenzhen. The fees will be settled with Longteng Foreign Trade based on the prices given by the wholesalers."
"Brother Dong, there's no need for that. This is all your company."
Jiang Fei was taken aback.
In his mind, Longteng Foreign Trade was founded by Chen Dong, so why should he pay them the original price like a wholesaler?
Chen Dong had naturally taken this into account as well.
In business terms, a supermarket is a supermarket, and Longteng Foreign Trade is Longteng Foreign Trade.
He had considered the pros and cons of choosing the Russian market for his goods distribution beforehand.
Choose to sell Russian goods at wholesale prices.
Isn't it all for the purpose of quickly recovering funds?
If we really let them sell it themselves, how long will it take?
in addition.
Wholesalers come from all over the country, which means that Russian goods are actually consumed nationwide.
But now it's different. Chen Dong instructed Jiang Fei and others to reserve one-tenth of the goods in each batch.
Fundamentally, it harms the interests of other shareholders.
If the accounts are not clearly separated, then the shares held by Jiang Fei and others are merely for show.
The grand opening of this supermarket attracted considerable media attention.
Chen Dong's motivation for opening a supermarket was not simply to help his parents.
Rather, they wanted to use this method to establish the supermarket's brand.
This is to pave the way for opening a chain of supermarkets in the future.
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