After some calculation, these Shanxi merchants in Beijing discovered that they had earned more than in the previous year...their resentment towards Master Zhao immediately turned into admiration.
Besides, if we can’t win in Beijing, we can always go back to our hometown to develop.
After all, when it comes to coal production, it is not us in Shanxi who are boasting, but everyone here is our younger brother. The amount of coal produced by Xishan Coal Mine is just a drop in the bucket for us in Shanxi.
Moreover, they are the local bosses in their hometown in Shanxi, so even if Young Master Zhao goes there to play, it won’t work!
As long as we copy back to Shanxi everything that Mr. Zhao did in Beijing, we can also make a fortune and just sit at home and count money from now on, right?
The old guys imagined happily while munching on noodles.
~~
Of course, Yang Sihe would not tell Zhao Hao these words.
After all, it's quite embarrassing to chase after someone for a long time but not even alarm your opponent.
"It would be a lie to say that I am not jealous of Mr. Zhao's flourishing business. However, we know our own limitations and dare not compete with him for food in the capital, so we decided to return to our hometown and open a Shanxi Coal Industry to learn from him and build a business." He smiled bitterly and said to Zhao Hao:
"But after a few days of excited discussion, we found that things were not that simple. Because Mr. Zhao's success was due to several unique geographical advantages."
"What do you mean?" Zhao Hao picked up the teacup, looked at the red and black liquid inside, and thought, could it be old vinegar?
He tasted it out of curiosity, and it turned out to be Pu'er tea.
"First, the Xishan Coal Mine is located in the area where underground water gathers in Beijing, which is why so many coal mines are leaking water. That's why the 'Drainage King' shines so brightly." Yang Sihe sighed.
"But we are short of water in Shanxi. Even if we dig a coal mine a hundred feet deep, no water will seep in. So the Drain King is of no use in our area."
"It's a good thing that you don't need it. It means that your coal mines in Shanxi are easy to mine." Zhao Hao said with a smile to comfort him.
"Haha, that's true..." Yang Sihe forced a laugh, thinking that we wouldn't be able to make a profit that way.
"What else?"
"Secondly, the Xishan Coal Mine is not only close to the capital city with a population of one million, but also has convenient water transportation. We can break the rule of 'no woodcutters within a hundred miles' and sell coal to seven or eight million people." Yang Sihe added:
"And our province of Shanxi has a total population of only over 8 million, and coal is produced everywhere. Not to mention that firewood cannot be sold within a hundred miles, even within dozens of miles, it cannot be sold... So our coal is too cheap, only 40 to 50 coins per 100 kilograms, and it is not profitable."
"Third, refugees from all over the country fled to the capital, including the common people in Shanxi, which gave Xishan Coal Industry countless cheap workers. This is something we in Shanxi cannot compare with... In our place, mining coal is almost the same as farming, and the common people don't want to do it because it's too dirty and hard."
"Yeah." Zhao Hao didn't object. When he was doing research, he had already determined that Beijing was the most suitable city for the industrial revolution in Ming Dynasty, without a doubt.
Shanxi’s current conditions are indeed far from comparable to those of Beijing.
Therefore, it was destined that the Shanxi merchants could not replicate Zhao Hao's success through simple imitation.
After saying this, Yang Sihe stood up and bowed deeply to Zhao Hao, saying:
"Throughout history, there has never been anyone better at doing business than you. May I ask why you are teaching us?"
"Well..." Zhao Hao said with a thoughtful look, "Every place is different. I haven't been to Shanxi, so how can I describe it?"
Yang Sihe looked at Yang Bo, and when he saw his uncle nodded, he gritted his teeth and said, "We at Shanxi Coal Industry are willing to pay half of our shares and hire you as our senior advisor!"
"Wow." Zhao Hao couldn't help but look at them with admiration. He gave them 5% of the shares just for giving them an idea. He didn't expect that these old guys were willing to invest. No wonder they would become the dominant force in the future.
"We have already raised a capital of one million taels of silver..." Yang Sihe told Zhao Hao again. "In the future, even if we don't compare it to Xishan Company, it won't be a problem for it to be worth tens of thousands of taels."
"Mr. Yang, you are being too polite." Zhao Hao then laughed and said, "Then I will just say it casually, and you just listen to it. If it's not appropriate, just treat it as a joke."
"Chengcheng, please speak." Yang Sihe hurried to the table to get paper and pen, and listened attentively.
"It is worthwhile to open a coal company in Shanxi. Although Shanxi has six major coal-producing areas and tens of thousands of small coal mines, transportation is inconvenient, technology is backward, and coal bosses are generally weak and have many superiors, which will inevitably lead to high production costs. In addition, coal is cheap, so naturally there is not much profit."
"Mr. Zhao is an expert!" Yang Sihe slapped his thigh. His uncle asked him to use his shares to ask Zhao Hao to help him find a solution, but he was a little reluctant. "It is because the profit is too thin that we Shanxi merchants would rather go to the west and go to Beijing than touch the coal mine at home."
Uncle is indeed wise. Mr. Zhao actually knows so much about the situation in Shanxi...
"In business, we take what others discard, and discard what others take." Zhao Hao smiled and said, "I believe that if Shanxi Coal can use its advantages in capital, management and other aspects to reduce the selling price by 10% to 20%, it can quickly form an industry monopoly... Since we don't have such a big appetite at the moment, we can start by monopolizing the coal mines in Taiyuan."
"Yes. Taiyuan also has Xishan, and the coal in our Xishan is of much better quality than the coal in Beijing's Xishan." Yang Sihe nodded heavily.
“But I don’t recommend promoting coal lotus root in Taiyuan.”
"Why?" Yang Sihe and Yang Bo asked in unison.
"Because the people in Shanxi already burn coal." Zhao Hao smiled and said, "Why should we teach them how to save coal?"
"Oh, hahaha..." Yang Bo laughed out loud when he heard that: "My dear nephew is really cunning, but I like it."
"Yes, coal lotus root saves much more than loose coal. We are already worried about sales, so how can we promote this thing?" Yang Sihe also laughed, and then worriedly said: "But Taiyuan alone has hundreds of thousands of people, and the market is limited after all."
"Taking over Taiyuan is only the first step. It will help the Shanxi company gain a firm foundation." Zhao Hao added, "Then you have two choices. Either go east or go south."
"What about advancing eastward?" When it comes to the strategic level, old Yang Bo is no longer sleepy.
"Going east means opening up transportation from Yangquan to Zhengding Prefecture and transporting coal from the west to the east." Zhao Hao said in a deep voice.
"Yangquan to Zhengding Prefecture? You know the route." Yang Bo gave a thumbs up and said, "Among the eight passes in Taihang, only this Jingxing Road can accommodate large vehicles!"
The entire Shanxi Province is rich in resources. In addition to endless coal, there are also extremely rich iron ore. Shanxi's iron smelting industry is also very developed... The reason why it is in such a difficult situation is that it is separated from the Central Plains by the continuous Taihang Mountains from north to south. There are only eight small paths dug in ancient times, and transportation is very inconvenient.
"Yangquan coal merchants have been using camels and mules to transport coal to Zhengding for sale since the Song and Yuan dynasties." Yang Sihe said with a wry smile, "But the Jingxing Road 'cars cannot fit on square tracks, and riders cannot form a line', so the transport capacity is very limited. I'm afraid it's just a drop in the bucket."
"So I said, we need to open up traffic between the two places!" Zhao Hao punched the table and said firmly: "Why do you want to start a company? Why do you want to issue stocks? Is it to make money?"
Yes, that's it.
"It is to concentrate our efforts on major projects!" Zhao Hao said in a deep voice: "Just like Xishan Company wants to overhaul the Jingxi Mountain Road, Shanxi Company must also show the courage to overhaul the Jingxing Road!"
"Good!" Yang Bo clapped excitedly and said, "The Ming Dynasty needs courage like my nephew!"
"But the Taihang Mountains are so steep and rugged. How can they be compared to the small valley in Mentougou?" Yang Sihe said with a bitter smile, "There are no conditions to build a highway, otherwise the court would have built it at great expense long ago..."
"There is no need to widen it. We just need to renovate the existing Jingxing Road and convert the original car tracks into iron tracks!" Zhao Hao said in shock.
ps. Fourth update, please give me monthly tickets and recommendation tickets~~~