There was one thing Duan Kunze didn't mention: the agreement with the authorities wasn't a simple 50-50 split; there were dozens of obligations and rights between the two sides. Duan Kunze simply compared his own investment to a profit share.
If we use a 50-50 split as an example, the maximum repayment period would be three years. If the turnover is high, it could be paid off in one year. It wouldn't be advantageous for Jiang Shiyue to ask for a share of the profits at this stage.
Jiang Shiyue continued, "Okay, let's say, as you said, your monthly profit is one million, and you give me one hundred thousand. What if, because of me and my plan, Dongsheng's monthly profit goes from one million to two million? If you give me two hundred thousand a month, Dongsheng will have one million and eight hundred thousand left. Isn't that eight hundred thousand more than the original one million? You won't lose out!"
Who are you trying to scare?
Who can't paint a big picture?!
Duan Kunze: “…”
He had personally experienced what it meant to give someone a taste of their own medicine.
"Okay, I admit that Dongsheng's monthly sales don't reach a million. But how can you be sure that your planning contributed to our sales? Dongsheng Department Store is opening a store in Flower City for the first time, and it hasn't even started operating yet, so there's no previous data to compare it to."
Jiang Shiyue simply replied, "Mr. Duan, you're kidding me again. How can there be no comparative data?! If you say that, the people at Yong'an will be unhappy."
Duan Kunze: “…”
Yes, Yong'an and Dongsheng have always been on par with each other. If you want to know whether Jiang Shiyue's plan is effective or not, just refer to Yong'an's turnover.
For him, getting Wing On’s sales revenue is easier than eating.
As Jiang Shiyue said, if she can increase Dongsheng's turnover, Dongsheng will make money. If she can't do it, Dongsheng will not lose money either.
The money earned from the gifts and prizes is not as much as the loss fee from the expiration of similar products.
Finally, he nodded, picked up the tea bowl and raised it to Jiang Shiyue, "Deal!"
Jiang Shiyue picked up the teacup and clinked it with his.
"Now that we've reached an agreement, let's go to the company and sign the contract?" Duan Kunze said as he was about to stand up.
Jiang Shiyue stopped him, "Wait, Mr. Duan, I have another question."
"you say."
"It's okay for me to do things, I just want to know how much authority I can have."
"What authority do you want?" Duan Kunze asked instead of answering.
"Similar authority to yours. For example, product pricing, staffing arrangements, event planning, etc."
Duan Kunze narrowed his eyes, "Mr. Jiang, you really know how to tell a joke."
Jiang Shiyue knew that her request was a bit excessive, but without authority, she would be bound by her limitations. After a moment's thought, she added, "I mean I want control over marketing, but I will definitely not get involved in or touch other aspects of the company."
For example, let's talk about staffing arrangements. If I say I need three people, you hire three people. If I say I want to transfer one person from counter A to counter B, you transfer one person.
The original price of the product is two yuan. If I say change it to one yuan and eighty cents, you have to change it to one yuan and eighty cents, as long as you don't lose money.
If an employee performs exceptionally well and I want to give him a little more money as a bonus, you have to approve it as long as it's not excessive."
"That's fine." Duan Kunze nodded in agreement.
He still understands that the greater the task, the greater the power required.
"besides……"
Duan Kunze had just stood up when he heard Jiang Shiyue's "there's more" and sat back down. "What else do you have? Let's talk about it all at once."
"I just want to know how much power you have."
"What's the meaning?"
"For example, after a department store opens, how long can you accept not making a profit or even losing money?"
Duan Kunze laughed in anger, "You haven't even made a cent yet, and you're already thinking about how much I have to lose?"
"That's not true. Department stores operate in fixed locations, which means their customers are also fixed. Generally speaking, only people from the Flower City come here to shop."
In our area, there were originally only state-owned department stores. They didn’t care whether you were a regular customer or not. It didn’t matter whether you bought something or not.
However, as a new private department store, it must have stable old customers to ensure stable profits.
Old customers are so-called repeat customers. Those who come once or twice are definitely not considered repeat customers, so it takes some time to cultivate consumer stickiness.
Dongsheng and Yong'an department stores opened at the same time, and people will definitely compare between the two department stores.
Today you are cheaper, I will go to your house. Tomorrow he is cheaper, I will go to his house.
If yours is cheaper, I will buy it from you. If his is cheaper, I will buy it from him.
This is one of the reasons why you two families have never been able to determine the winner."
Duan Kunze smiled bitterly, "We all know this. The Dongsheng and Yong'an families have been fighting for over twenty years, since before we were even born. We've tried every possible means to finally achieve this relatively stable and peaceful state."
"Just a side question." Jiang Shiyue was curious, "Why are your two families fighting to the death?"
Duan Kunze shook his head. "I don't know. Anyway, the two families have been fighting for several years since I can remember."
It is said that only the fittest survive in the natural selection.
The same is true in the business world.
In order to eliminate the other department store's dominance, Dongsheng and Yong'an tried every possible means.
The most ruthless and tragic one was trying to start a price war and drag the other party down.
If you sell it for one yuan, I will sell it for eighty cents. If you sell it for eighty cents, I will sell it for fifty cents. If you sell it for fifty cents, I will sell it for twenty cents.
I'm willing to lose money.
However, the two department stores are similar in strength in all aspects, so it depends on who is luckier and can last until the end.
This is a typical case of hurting the enemy by a thousand and losing eight hundred of your own.
Of course, the harder they fight, the happier the people living nearby are, because they can buy products with extremely high cost-effectiveness, some of which are basically free.
At this time, the two families discovered that someone was taking advantage of the conflict between Dongsheng Snipe and Yongan Clam to take advantage of the situation.
No one was willing to be a pawn in someone else's lap, so the two families joined forces to kill the fisherman.
This time, both companies were severely damaged and on the verge of bankruptcy. They had no choice but to shake hands and reach a fair competition agreement.
The two companies agreed that they could use any means to compete, but they could not do business that would lose money.
The two department stores of the same size and strength even have similar supply channels, and their costs and profits are almost transparent to each other.
In this way, the two families maintained this situation for more than 20 years.
In the past few years, Duan Kunze and He Tianning have grown into independent people, and the struggle has continued from the previous generation to theirs.
However, Hong Kong is a small place, and the entire retail market is almost divided 40% by the two department stores, Dongsheng and Yongan, with the remaining 20% being small retailers with no scale.
So, Duan Kunze's father set his sights on the inland.
But there were really no secrets between the two department stores. Duan Kunze had just arrived in Huacheng when Yong'an followed him after receiving the news.
Jiang Shiyue burst out laughing when he heard this.
(Off-topic: The business war part is set in a fantasy world, please do not apply it to reality.)
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