"Products like canned fruit and canned meat don't have very high profit margins to begin with; they rely on high volume and low margin sales."
"If we start raising prices just because business has suddenly improved these past few days, then what difference do you think there is between us and a money-grubbing scoundrel like Chen Yaofu?"
Upon hearing Jiang Sheng's words, Zhao Defu instantly understood, and his face flushed slightly.
“Brother Sheng, you’re right. We can’t become like Chen Yaofu, a money-grubbing bastard.”
“When we suddenly raise prices, those wholesalers know what’s going on. They’re not stupid. Even if they’re unhappy, they won’t say it out loud. But if this goes on for a long time, they’ll definitely stop coming back because we’ve ripped them off, and their business will definitely shrink.”
Zhao Defu's rare display of such clear and logical reasoning impressed Jiang Sheng.
"You've got a good business sense, kid. I didn't expect you to think of this!"
Jiang Sheng glanced at Zhao Defu with appreciation, and Zhao Defu couldn't help but chuckle, looking embarrassed.
"I've been spending a lot of time with Brother Sheng, so even if I'm not very smart, I can still see things in business. You just gave me a hint, and that's how I came up with this idea."
The two looked at each other and smiled.
"Since we can't raise prices, what should we do next?"
Zhao Defu is unaware that Jiang Sheng has already met with Liu Shan and discussed the details with Liu Gaoshan.
He was very worried about the cannery at the moment. Even though business was improving, he was still somewhat uneasy.
"Although business is better now, I always feel that the factory's sales will decline again in a few days."
Zhao Defu said with great concern, "I don't know either. I just feel like something's off."
"Your concerns are perfectly normal."
Jiang Sheng patted him on the shoulder and then told him about his dinner with Liu Gaoshan the day before to discuss cooperation.
It wasn't until Jiang Sheng said that Liu Gaoshan had agreed to buy up all the inventory that Zhao Defu finally understood and nodded in realization.
"No wonder someone suddenly bought all the canned goods in our inventory today, so that's why!"
Zhao Defu's face was full of excitement, but after the joy, there was still some worry on his face.
"But then again, even though he bought up all our inventory, if we keep working day and night as we are now, there will still be some inventory left over."
What Zhao Defu said is exactly what Jiang Sheng is worried about now.
Although the factory has now reached an agreement with Liu Gaoshan.
But as Zhao Defu just said, the factory is working day and night to meet the demand, and there is an overproduction. Even if Liu Gaoshan really has the ability, it will still be difficult to buy them all in the long run.
Let's ignore everything else for now.
After a moment of contemplation, Jiang Sheng spoke frankly: "As long as we control the quality well, the output is not a big problem."
Hearing Jiang Sheng say this, Zhao Defu knew that Jiang Sheng must have a solution.
"Brother Sheng, so you mean you've already come up with a good solution?"
"Pretty much," Jiang Sheng nodded. "What you're talking about is indeed a problem we need to solve as soon as possible. Our factory currently operates on a day shift and a night shift, which is why we have overcapacity."
At this point, even if Zhao Defu was slow to react, he understood what Jiang Sheng meant.
"So, Brother Sheng, you mean we should fire the night shift workers first?"
Zhao Defu couldn't think of any better way besides this.
If we fire the night shift workers, production capacity will definitely decrease further.
At that time, they will not only be able to reduce production capacity, but also reduce labor costs.
While this cannot alleviate their current pressure to the greatest extent possible, at least they can retain some funds to prepare for unforeseen circumstances.
You're only half right.
Upon hearing this, Jiang Sheng simply shook his head slightly at Zhao Defu, calmly explaining under the other's questioning gaze.
“We do need to abolish the night shift system, but we can’t fire the workers who work the night shift.”
Zhao Defu listened, seemingly understanding but not quite, and asked with a puzzled look, "Brother Sheng, if you cancel the night shift system, wouldn't you have to fire all these night shift workers? Wouldn't that mean you still have to pay them their wages as usual? There's no need for that, is there?"
"Of course it's necessary."
Jiang Sheng shook his head. Seeing that Zhao Defu still looked puzzled, he pointed out, "Think about it. If we fire all these workers, they will go directly to our competitor's company to find work. Wouldn't we be giving them a lot of labor for nothing?"
"That's right!"
Zhao Defu slapped his thigh and quickly realized what was happening.
“We night shift workers have been working for us for several months now. They are very familiar with the processes on the production line, so there’s no need for us to teach them from start to finish!”
"If we really go to Chen Yaofu's factory, the situation will be very bad!"
What Zhao Defu said is exactly what Jiang Sheng is thinking right now.
He nodded: "That's right, so we can't fire them now. Let's treat it as a paid leave for them. In addition to their daily wages, we'll give each of them an extra 10 cents a day as a subsidy so they don't have to look for work. This way, we can not only keep them, but they also won't go to work at Chen Yaofu's factory. Isn't that killing two birds with one stone?"
A subsidy of ten cents a day may seem like a small amount, but in those days, ten cents was considered an unexpected windfall.
People in this era like to receive small favors, especially in an era when the average wage is only a few dollars. If they can get an extra cent a day for no reason, of course they would be willing to stay at home obediently, rest, and get money at the same time. Who wouldn't want that?
“That’s a good idea,” Zhao Defu nodded, but he was still a little annoyed: “But as good as it is, if we just give people paid leave like this, the factory’s situation is not optimistic right now, and this will be a considerable expense in the long run!”
Unlike Zhao Defu, Jiang Sheng was not worried about this at all; instead, he smiled confidently.
“De Fu, you can see that we have indeed spent the money, but we need to look at this issue from a long-term perspective.”
Continue read on readnovelmtl.com
