Chapter 217 The Rong Family Continues to Buy



Shi Yue came back and saw Sun Yanan looking at the business contract between the Rong family and the Shi family.

Staring at the line that reads "The buyer must pay 30% of the purchase price in advance."

Seeing Shi Yue looking at him, Sun Yannan asked, "The Rong family has never actually paid an advance, right?"

Shi Yue said: "This is a general contract between the two parties, but in fact the specific transactions are all carried out by the small grain stores and rice stores scattered across the country and the village heads and land heads of various counties. There will be a small business contract between them.

Some of the rules in the general deed are not actually implemented.

For example, the general contract states that the Rong family needs to pay 30% of the purchase price in advance. They are worried that after the rice is grown, they will not be able to harvest it. Even if the quantity of a small contract is not small, the cost of manpower, storage and transportation will not be small.

However, due to the long-term cooperative relationship between the two companies, almost no grain farmers in our area would collect 30% of the payment from the rice shop first. All the transactions were done on the spot, with goods and money being paid at the same time, just like paying grain to the emperor.

The general contract is just a summary of the contract. Although it has the highest effectiveness, the actual operation still depends on the small contract. After all, the small contract is more in line with the actual situation of the order. "

Sun Yannan smiled and said, "My husband is quite aware of these things."

Shi Yue said: "When I was little, my grandmother often took me with her. I saw and heard these things many times, and then I understood them."

Sun Yanan told Shi Yue what happened at home today. Shi Yue first went to see his mother and sister, and then went to pay his respects to his father according to etiquette.

Sun Yannan went to the old lady and said bluntly, "My wife wants to do something big. I want to know how much cash we have available."

The old lady didn't ask her what she was going to do, but wrote a number on the table with her hand dipped in tea.

After thinking about it, he wrote down another number below.

Madam Shi said, "If the number above is not enough, add the number below."

Sun Yannan looked at these two astonishing numbers, which were more than she had expected. This was the old lady revealing the Shi family's wealth to her.

She bowed to the old lady and said, "Granddaughter-in-law understands. There is still one thing that needs to be confirmed. Once it is confirmed, I will report my thoughts to the old lady."

Seeing that Sun Yannan was calm and composed, and didn't care that the Rong family was coming to buy rice, Xiaotian couldn't help but ask, "Young Madam, is the Rong family's matter okay?"

Sun Yannan said, "I'm afraid that after a while, the Rong family may not have the money to buy our rice."

Xiaotian didn't understand what he meant, so Sun Yannan said, "Wait a few more days and see."

Logically, the tax rates for various grades of aged rice should have been promulgated by now.

But the taxation order was not issued for a long time. Sun Yanan thought: Maybe Lord Shang intended to pass the news of the taxation to King Guanghuai first, but the taxation has not been announced in Pingchang County yet.

In this way, the surplus grain in the fiefdom will flow out in large quantities and quickly.

When Prince Guanghuai heard that the imperial court was going to impose taxes on this batch of old rice, he didn't believe it at first, until later the spies obtained the detailed tax rate table.

If this batch of old rice cannot be sold, it will be completely wasted.

At this time, the new rice in King Guanghuai's fiefdom had also arrived. It was another bumper year, and there would be harvests every year. Even if it meant moving space in the warehouse, they had to vacate the rice.

King Guanghuai thought that since he had received the news first and the rice merchants in Pingchang County had not yet learned about it, he should take advantage of this period of time to sell all the rice.

Once the tax order is issued, these rice merchants will realize that the profits are far less than they originally estimated. It is also the season when new rice is on the market in large quantities. If the profit difference is not much, the competitiveness of their old rice will be weakened.

With this in mind, King Guanghuai decided to go all out and reduce the price of the old rice, which was already sold at a low price, by another 10%.

Once Prince Guanghuai lowered the price to sell the rice as aged rice, all the rice merchants, whether driven by profit or afraid of being the ones who failed to close their positions, quickly followed suit and bought another batch of cheaper aged rice.

More and more rice merchants are buying aged rice, so every rice merchant will consider the purchase cost of his own goods. Even if he buys it very cheaply, all rice merchants buy it cheaply. When he sells it in the future, if someone sells it off, can he bear the cost?

A rice merchant who buys old rice at a price of five sees that others buy it at a price of four. So when the price is high, it is still a question of how much profit he can make. Once there is any disturbance and someone sells off, the merchant can still break even by selling at a price of four. But those who bought at a price of five will lose 10%, and the more they buy at the beginning, the more they will lose.

Therefore, families like the Rong family had to spend a huge amount of money to buy rice, and only then could they reduce the cost of buying rice to 4.3.

But within two or three days, the price of rice in Prince Guanghuai's fiefdom dropped by another 10%, and more rice merchants entered the market. They now bought at three times the cost, but the Rong family had no choice but to bite the bullet and buy in large quantities again.

But within three days, the price of aged rice hit rock bottom again, dropping another 10%. Buyers flocked in, and even ordinary villagers in some villages pushed out clan leaders and the like, hoping to buy some at this price. They only wanted to eat it themselves and had no intention of trading it. This price was beyond their wildest dreams.

This was Shang Huaitang's intention to allow the grain in the fiefdom to flow out quickly and in large quantities.

In order to keep up with the trend, the Rong family has already dragged the in-laws of Rong Li into the water and borrowed a lot of money from them.

Continue read on readnovelmtl.com


Recommendation



Comments

Please login to comment

Support Us

Donate to disable ads.

Buy Me a Coffee at ko-fi.com
Chapter List