Here, Xia Mian and Mao Huimei left Charles' booth, along with Fang Yongpeng, and all three of them looked thoughtful.
Originally, I was forced by He Min to go in and find out about the situation. I thought it wouldn't be illegal to find out a little bit, but as we were chatting, I suddenly had an idea.
"Compensation trade," Mao Huimei said. "This is the first time I've heard of this way of doing business."
To put it simply, compensation trade is similar to installment repayment. Chinese people purchase foreign machinery and technology, and then sell back a certain number of products each year or repay the other party in installments over five or ten years.
"I just heard him ask a few more questions at this time." Xia Mian lowered his head and carefully studied the data in his hand. "I didn't expect there was such a detailed policy."
Fang Yongpeng said, "So, it's like I can use their machines and technology for free initially, and then use the products I produce to pay off my debt?"
"Then we can sell the extra produce ourselves, and the income will belong to us, right?"
Xia Mian nodded.
Fang Yongpeng was puzzled, "Then what are they trying to do?"
"For the interest."
It's no wonder Fang Yongpeng didn't understand. In the early years, Chinese people had little concept of advance consumption, and mortgage loans did not become popular until a few years later.
Xia Mian showed him the data she had just calculated. "For example, if the machine costs 500,000 yuan, if you repay it over five years, the total repayment will be around 700,000 yuan. If you repay it over ten years, the total repayment will be around 1.2 million yuan."
Fang Yongpeng was shocked. These were astronomical figures for him.
Mao Huimei thought it was feasible.
When the Xinsheng Food Factory opened, Mao Zhishan was away filming all year round, so the only person in the family who could help Xia Wenyue was Mao Huimei. It can be said that she was the one who helped Xia Wenyue build Xinsheng from scratch. She also studied accounting in college, and she had already quickly calculated the cost and return rate in her mind.
"As for compensation trade, the longer the period, the better."
"Whether a juice factory can make money depends mainly on several factors: the supply of fruit, the quality of the juice, the factory's production capacity, and sales volume."
"As for the fruit supply, Jingyishan should have more than enough. As for the quality of the juice, Charles just tasted your apples, and he trusts your machines, so he directly agreed to place an order, which means the quality of the juice can be guaranteed. As for sales, the resale volume Charles ordered should be enough to support the factory."
Xia Mian added, "More than that."
"First, eating habits abroad are different from those in China. Juice is a daily necessity for them, and they drink it almost every day. The amount sold back to Charles Company should be no less than that."
"Secondly, once it's sold abroad, our juice will be exported. Then we can sell it domestically. With a little publicity, the domestic market will open up. Do you think it will sell well?"
The two nodded without hesitation, absolutely certain that it would sell very well.
Throughout the 1990s, Chinese people had a blind admiration and liking for foreign products. After all, as long as it was imported and used by foreigners, it must be good. So once the fruit juice was exported abroad and then sold domestically, there was almost no doubt about the market.
"So, using the method of compensation trade, as long as there's a factory, we can start production right away, right?" Fang Yongpeng murmured. "Why does it sound so simple?"
"Opening a factory can't be that easy, right? Otherwise, why have so many factories closed down?"
"Of course it's not that simple," Mao Huimei glanced at him and said, "Opening the factory is just the first step. The hardest part is management, process discipline, and the workers. There's a huge difference between skilled workers and novices. State-owned enterprises often go bankrupt because they have too many employees who don't work, and there are a lot of extra benefits and expenses. Well, there are many reasons anyway."
“But it’s different when we run our own factory.”
Seeing that she had thought about it so thoroughly, Fang Yongpeng asked tentatively, "Are you planning to open this juice factory?"
Mao Huimei said, "I have to go back and calculate it carefully, and discuss it with my family."
"If you really want to open a factory, I can buy your apples, but the payment for the first batch may take a few months."
"Go back and discuss it with the villagers."
Fang Yongpeng nodded and said, "We can't let ourselves be controlled by those black-hearted profiteers."
"It's already difficult for rural children to go to school. If we sign the contract as they say, our village will only be able to make ends meet for the next five to ten years, and our children will be even less able to afford education."
Seeing Mao Huimei looking at him, Fang Yongpeng touched his head and asked, "What's wrong?"
"I heard you're a teacher," Mao Huimei asked. "So you're taking care of this because the children can't study?"
Fang Yongpeng scratched his forehead. "Not entirely. My sister-in-law's daughter Hu Niu is about to start high school, and my uncle's illness can't be delayed any longer... They all need money."
Mao Huimei couldn't help but burst out laughing, and Fang Yongpeng felt even more embarrassed.
Mao Huimei smiled and said, "How did you come up with the idea of selling fruit here?"
Fang Yongpeng calmed down and felt that his actions were a bit ridiculous. "Isn't this because they forced me into a corner?"
"They've teamed up with all the buyers to lower the price. Since I can't sell locally, I'm thinking, 'I can sell it to foreigners, so they can't do anything about it, right?'"
"It's just a last-ditch effort," he said, suddenly grinning at Mao Huimei, revealing a row of snow-white teeth. "But it's not because I met you that I'm lucky."
Mao Huimei couldn't help but laugh, "You are indeed lucky. Fortunately, we have a grudge against He Wei."
The three of them laughed.
After exchanging contact information with Fang Yongpeng and parting ways, Mao Huimei couldn't help but ask Xia Mian for her opinion, "Do you think this is feasible?"
"Am I too impulsive?"
"I really think it's feasible." Xia Mian said, "Besides, there are so many factories that have stopped production and closed down now. It's much easier to buy a factory than it was when Second Aunt was there."
In her previous life, Xia Mian had heard from her father that those who took advantage of the wave of layoffs to buy factories would become wealthy in a few years as long as they didn't act recklessly or act recklessly. She chuckled and said, "Sister, if you don't have enough money, come to me and I'll buy in!"
Mao Huimei felt more at ease after hearing her say that. "Okay, I'll definitely find you."
"So, all we need now is a factory, right?"
They didn't expect that the factory would be delivered to their door shortly after Mao Huimei said this.
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