The two rarely disagreed, so Yu Jiu and Xu Zijiang quickly reached an agreement. They split up, with Xu Zijiang in charge of finding a location. The garment factory didn't need to be in a busy area, so the suburbs would be fine—it would be cheaper and reduce costs considerably.
Yu Jiu, on the other hand, went to find workers, as they planned to buy land and build their own factory. Finding a suitable factory to buy from someone else was quite a matter of luck, so it was better to buy land themselves and build the factory much faster.
First, they needed to find a group of workers to build the factory, then they needed to negotiate cooperation with fabric factories. Next, they needed to buy machines and hire workers; everything required time and money. However, they had already accumulated considerable wealth, so opening a factory was not a problem for them.
Although it was rather complicated, Yu Jiu and Xu Zijiang managed to divide the work without much difficulty. Xu Zijiang quickly selected a piece of land in the suburbs, bought it at a reasonable price, and immediately started construction on the factory.
Because we hired a lot of people, the factory was built in just over a month. The ordered machines also arrived, and we could move them there as soon as the factory was completed. The tailors and female workers we hired were also put in place immediately.
The first batch of goods will be ready in just over two months, not even three. Because it is mass production, they will produce one batch of the same goods first, and then another batch. Based on market research and the clothes that sell best in their store, they chose to make dresses. The second batch will be denim skirts, and the third batch will be ruffled shirts.
These are all new styles, with some unique touches added to the basic designs. The illustrations were drawn by Yu Jiu herself. She has a great eye for fashion and has a good eye for choosing clothes when she's sourcing them. Every time she brings in clothes, they sell very well. So when it came time to produce clothes, she also produced a batch according to her own ideas.
The average cost of the first batch of dresses was only 7 yuan each, but she resold them for 40 yuan each, making a net profit of more than 30 yuan. By eliminating a middleman who would take a cut, it was an extremely lucrative business.
Of course, the wholesale price can't be that high. The wholesale price is 25 yuan per piece for 100 pieces, 23 yuan per piece for 500 pieces, and 20 yuan per piece for 1000 pieces. This is the lowest price.
Yu Jiu and Xu Zi will first take these clothes to their own shops to sell. Five of the eight shops are clothing stores, and three are tobacco, alcohol and snack shops. They are currently preparing to open another tobacco, alcohol and snack shop.
They opened so many stores, and none of them lost money; they all made a profit. The reason they planned to open the clothing factory first and then the winery was because there would be more clothing stores, making it easier to sell their goods.
Yu Jiu took the dresses to sell, and they sold very well. Business was already booming, but after adding new dresses that were styles that no one else had, business became even more lively. Some business people even came to ask her where she got her stock.
"Let's all make money together! These dresses are selling so well. Where did you get your stock? Tell me your channels, it'll be like helping my sister out. Don't worry, we won't touch the places where you sell them. We're going to sell them in places where there are no clothing stores like yours."
"Yeah, let us know, and I'll give you a red envelope."
Those who ran small businesses couldn't resist crowding around to give Yu Jiu red envelopes, hoping to find out her supply channels. Yu Jiu generously accepted them and pointed them in the right direction.
“There’s a new garment factory called Xingsheng Garment Factory that’s just outside Pingjia Village. You can go there to buy goods.”
"Oh, thank you so much, girl! We're coming right now, let's all get rich together!"
“This Xingsheng Garment Factory is run by my family. If you know anyone there, you can introduce them to us so we can buy clothes wholesale together. The wholesale price will be cheaper, and it will also bring more business to our family. If you mention my name, you will get a discount.”
Yu Jiu smiled and said that everyone then realized the clothing store was owned by her family. That was impressive! But when they heard that mentioning her name would get them a discount, they got excited again and, without thinking about anything else, decided to go check it out first.
When we got there, the price was actually acceptable, considering it was a new style. So, a few of us got together and bought 500 pieces wholesale to test the waters.
After discovering how well the skirts sold, everyone came back to buy more. Just then, a new batch of goods arrived – denim skirts. Everyone took a look and thought, "These skirts are great too; they make you look taller and slimmer, and they're trendy." Suddenly, denim skirts became all the rage in the area – long denim skirts, short denim skirts, even denim shorts! More and more business people knew about Xinsheng Garment Factory and rushed over to buy their stock.
Yu Jiu and Xu Zi have successfully run the garment factory and made a name for themselves. Now, every time they ship out, everyone is scrambling to buy, and the supply can't keep up with demand. Everyone is working overtime to catch up on the orders, so there's no such thing as inventory buildup. Yu Jiu has no choice but to hire more people to produce the goods.
They were busy for more than three months. Orders gradually stabilized, and they no longer needed to work overtime or add more staff. Yu Jiu calculated the profits of Xingsheng Garment Factory over the past three months. They not only made back the money for buying the land, building the factory, hiring workers, and buying fabric, but also had a surplus.
"Guess how much we made?"
Yu Jiu's eyes lit up as she did the accounting; earning money gave her a sense of accomplishment and security. That's why she always enjoyed doing the accounts; it made her genuinely happy. Xu Zijiang could tell at a glance that Yu Jiu was satisfied; he tried to guess.
"Eight thousand?"
He also roughly knew how many pieces of clothing the factory had sold, but he hadn't calculated it in detail. As for the factory's costs, from the time he bought the land until now, he had invested about 20,000 to 30,000 yuan. If he made a profit of 8,000 yuan, then he would have earned a total of about 40,000 yuan, which was a rather frightening number, considering that it had only been three months. However, Yu Jiu shook his head, indicating that he should guess again.
"more than."
"Not just that? How much is it then?"
Xu Zijiang was somewhat surprised. He did a quick calculation and thought that 8,000 yuan was already quite good, but he didn't expect there to be more.
"22,000. The total turnover is 65,000. After deducting the cost, there is still 22,000 left. We'll just round down the odd amounts."
After all, their garment factory has now made a name for itself, and many people come specifically to buy clothes from them. Some buy as few as 100 or 500 pieces, while others buy several thousand. As a result, their turnover has reached an astonishing amount.
If you calculate it that way, earning over 100,000 yuan a year is not a problem.
Adding in the profits from those eight stores, they can earn hundreds of thousands a year, making them truly wealthy.
Previously, because they hadn't found a suitable house and wanted to use the money to invest in opening a shop, they had been living in the rented house and hadn't bought a house yet. Now, Yu Jiu thinks they can buy a house first.
The amount of money spent on buying a house will not affect their investment in opening a shop or doing business at all.
"It seems that the decision to open a factory was the right one. Let's go look at houses in the next couple of days and buy a car while we're at it."
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