After touring the factory, He Wenlin took them to the canteen, where cigarettes, water, and drinks were provided, and He's mother immediately served tea.
He Wenlin let them sample her company's products.
Then, He Wenlin took out photos of the event and told them about the sales performance of Chengdong Wankelai during the four-day New Year's Day holiday, as well as their usual sales performance.
For products like peach shortbread and egg rolls, selling 10,000 yuan in four days is already quite good, because its average order value is low and its turnover cannot be compared with dairy products, grains, oils, rice, noodles, paper products, and household cleaning products.
While Mei Jie, Huang, and Zhou San went to the restroom, and the other two went out for a smoke with Li Shulin, Xing Feng directly said to He Wenlin, "I've looked at your quote, no problem."
He Wenlin didn't rush to speak; she knew Xing Feng would definitely have a "but" to say next.
Sure enough, Xing Feng said, "But I want six points."
He Wenlin laughed and said, "President Xing, the food industry has always been about three points, but you've doubled that for me all at once."
"You should know that the supply and marketing supermarket has several branches, right? I won't lie to you, our company will open at least three more stores next year."
"Mr. Xing, no matter how many stores you open, I have to make a profit. I have to manage all the staff and spend money everywhere. I have to get a little something out of it."
Although every supermarket has repeatedly issued orders not to accept money from suppliers, the shady dealings between store management and suppliers are actually known to everyone, and are tacitly accepted.
He Wenlin felt that Xing Feng was asking for such an outrageous price because of her young age.
Of course, six points are not impossible, but there must be additional conditions, such as no returns or exchanges, putting pressure on the stores, such as low-margin sales, etc.
Alternatively, increase the purchase price.
"The entire purchasing department isn't run by me alone. Little sister, three points is too few. Do you know how many people outside want to cooperate with us?"
Seeing Xing Feng call her "sister," He Wenlin seized the opportunity: "Brother Feng, you've been in this business for so many years and have a lot of experience. You should know better than me that our profit margin is already low, and we still have to bribe people up and down the chain of command. We really don't make any money. How about this, we raise the price by 30 cents per kilogram, and each time we deliver to a store, we can deduct 2% for tasting losses. What do you think?"
He Wenlin paid Wan Ke Lai 6.3 yuan per kilogram for peach shortbread and fried dough twists, and 6.5 yuan per box for egg rolls. Since Wan Ke Lai is a family business, there was no profit-making by purchasing from them. For He Wenlin, the price was the same as that for other small business owners.
However, the supply and marketing supermarket is different. You have to bribe people at all levels. So He Wenlin quoted a price that was 30 cents per kilogram higher, which means that the money went to the purchasing department.
"Mr. Xing, what price are you planning to sell it for?" He Wenlin asked.
"It will definitely be priced the same as Wan Ke Lai."
The price of Wankelai also fluctuates. At the beginning, it was 5.5 yuan per catty, and during holidays, it was 5.28 yuan.
He Wenlin: "There's still profit to be made. Take egg rolls for example. They cost seven yuan a box, and the store sells them for nine yuan and eighty cents a box. There's still a profit margin of two yuan and eighty cents per box. Peach shortbread costs six yuan and ninety cents a kilogram. Even if the store promotes it and sells it for five yuan and twenty-eight cents a kilogram, there's still a gross profit of three yuan and sixty-six cents per kilogram. You can make these two products the star products of the supply and marketing supermarket."
Many items in supermarkets actually have low profit margins; they rely on just a few eye-catching products to give customers the impression that things here are cheap and attract customers.
Xing Feng mentally estimated the gross profit margin and shook his head, saying, "Your price is too high. Peach shortbread and egg rolls are fragile items. With such a low gross profit, you basically won't make any money at the store."
“Brother Feng can’t make every product high-profit. Low profit margins attract customers. Once customers enter the store, they will eventually buy something else, and the money will be made back on other products.”
The supply and marketing supermarket is not large, so it does not have its own production capacity. Therefore, products such as egg rolls, peach crisps, cookies, and sesame crisps can only be imported from outside.
If you source from outside and sell at the same price as other supermarkets, your profit margin will be low. But if you don't sell at the same price, customers will feel that the supermarket's products are expensive!
He Wenlin said, "How about I rent a counter in the supermarket and sell only my products? I'll give the supermarket a share of the profits, what do you think?"
This method is still relatively rare now, but in ten years, many supermarkets will adopt it. Many large supermarkets will use this method to cooperate with vendors selling fried noodles, roast duck, and other similar items.
“That won’t do either, there’s no precedent for this,” Xing said. “How about this, you give me five percent, and the price will be based on the quote you sent. It’s almost Chinese New Year, let’s get this done quickly so you can make a profit before the New Year.”
He Wenlin frowned, hesitated for a moment, and said, "Okay, then it's settled. I'll have to ask Brother Feng for your help in the future."
Five percent is He Wenlin's bottom line. No matter how high the commission is, she will not agree to the same price.
Once the purchasing department activates the order number, allowing Xiangzhiyuan to deliver goods to the stores, the specifics of how to cooperate with the stores and at what price to deliver are another matter.
Supermarkets today are unlike those decades from now, when everything is electronic, paperless, and even has its own logistics centers, central kitchens, and unified distribution. In this era, store managers have a lot of power and the middleman has a lot of room for maneuver!
He Wenlin checked the time; it was already eleven o'clock.
"I've booked a private room at Kaiyuan, shall we go get some food first?"
“Okay.” Xing Feng also stood up, took He Wenlin’s price list, and also took the photos that He Wenlin had prepared beforehand.
Xing Feng also needed to show these photos to his boss so that the boss would think the products would sell well and that the boss would know that competitors were also selling them, so that these products could successfully enter the supply and marketing supermarket.
It was difficult to get a taxi in this area, and He Wenlin couldn't possibly let these "bread and butter" people ride in a truck, so the taxi that brought them here didn't let them leave and kept waiting with the meter running.
He Wenlin went to the Kaiyuan Hotel with them, had a meal, and then warmly saw the group of "ancestors" off.
The meal was enjoyed by both the host and guests.
The cooperation is basically settled.
Xing Feng and his group definitely want to make a quick buck before the new year, so they'll definitely get this done before then.
Now He Wenlin just needs to wait for news.
Xing Feng was indeed very fast; he got the matter done in three days, and the next step was to visit the stores.
Because He Wenlin's cooperation with the supply and marketing supermarket stipulates that the merchant is responsible for any expired goods, she also needs to win over the department head in the store.
Doing business is not as simple as you might imagine. Even if you manage to secure the purchasing department, if you don't manage to secure the stores, and the stores don't order the goods or don't display them, it's all for nothing.
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