Journey 1995:Non-Stop

Chapter 157 New Business (Bonus Chapter 710 for the Silver Alliance's Talking Elbow)

Yan Hui could tell who had the need and the ability.

In just a few words, Yan Hui started chatting with the boss surnamed Zheng.

“I know Mr. Teng. Are you Mr. Teng’s supplier?” Mr. Zheng took a puff of his cigarette. “I’ve heard that Mr. Teng has been doing well at the construction site recently. I specialize in wardrobes, and I mainly need red pine boards.”

"Red pine lumber?" Yan Hui laughed immediately upon hearing this. "President Zheng is making high-end furniture."

"Oh? How do you know?" Mr. Zheng asked, somewhat curious.

"Most of the furniture factories I've seen use plinths and planks to assemble the pieces," Yan Hui described an industry phenomenon.

In common tree species such as larch and red pine, a very important factor in measuring unit price is the diameter of the timber, also known as diameter grade.

Timber with a diameter exceeding 30 centimeters is considered high-quality wood, as it is very easy to process. When making furniture such as tabletops and cabinets, it may only require one or two splicing operations. (Generally speaking, timber with a diameter exceeding 18 centimeters is called log.)

Thinner pieces of wood are generally called stake timber, with a diameter of at most a dozen centimeters. They are either too old or too small in diameter and are generally used for piling.

The logs are definitely cheaper than the logs Yan Hui bought. Many processing plants buy logs for gluing.

"Haha, Mr. Yan, you seem to know what you're talking about. What? Do you also supply red pine trees?" Mr. Zheng asked curiously.

"It's my fault, I forgot to introduce myself. My supply location in Northeast China is Yichun in Heilongjiang Province. The city tree of Yichun is the red pine."

The word "Yichun" was somewhat unfamiliar to General Manager Zheng. "Our goods are usually transported from Fengtian."

“That’s right. My friend is in charge of delivering red pine trees from Yichun to Fengtian,” Yan Hui said with a smile. “Fengtian is a big city, and it doesn’t produce red pine trees itself.”

"So the goods are from Yichun! Yichun is in Heilongjiang Province, which means it's almost at the border? Does that mean there are also goods from Russia?" Upon hearing this, General Manager Zheng understood some things.

Business people all want to find the original manufacturers.

“You clearly know your stuff. Actually, the largest producer of Korean pine is Eastern Europe, and their processing is mainly done in Germany. Eastern European Korean pine is indeed of good quality, but imported Korean pine is relatively expensive and takes a long time to arrive. If cost is a consideration, I would still recommend that Mr. Zheng choose Korean pine from Yichun,” Yan Hui explained.

"Mr. Yan also understands the international market?" Mr. Zheng was somewhat surprised.

Not only was General Manager Zheng surprised, but Brother Lü, who was with him, was also somewhat taken aback. These days, it's rare to find someone who casually mentions Eastern Europe or Germany!
“In Northeast China, we mainly deal in bulk trade, and we also import resources from Russia. If Mr. Zheng has such needs, we can certainly cooperate. Moreover, we must admit that German equipment is indeed advanced; the precision they use to process 60mm thick plates is excellent.” Yan Hui wasn’t exaggerating. Tangwanghe is near the port, so finding such resources wouldn’t be a problem for Yan Hui; it’s just a matter of price.

"No, no, no, that's not necessary. The red pine we're using is already quite expensive. To be honest, I'm even considering using larch or white pine instead," Mr. Zheng quickly waved his hand. He didn't want such high-end materials. "Larch? Changbai larch is quite suitable for furniture making, and I have access to those channels. However, it depends on your preference. Larch is quite oily and tends to ooze oil. If your existing customers are relatively stable, I wouldn't recommend switching to larch," Yan Hui's suggestion was sincere.

“I visited Fengtian once this year, and I found that furniture factories in Northeast China use larch to process windows. They say that larch is resistant to temperature changes, and I was thinking that I could use it too.” General Manager Zheng’s tone was somewhat uncertain, clearly wanting to hear what Yan Hui had to say.

Yan Hui didn't mince words: "Mr. Zheng, you may not know this, but larch has many advantages. One of them is its exceptional nail-holding power, among the best of all woods. Windows are exposed to strong winds, constantly being pulled back and forth by the wind, so the nail-holding power of the wood is crucial. Even the wooden bases we use for transportation, such as pallets, are mostly larch. Besides the wood's hardness, nail-holding power is also an important factor. In addition, there's something few people know: generally speaking, the lower the air-dry density of the wood, the better its thermal insulation. That's why windows in Northeast China are mostly made of larch. However, since you're making furniture, you probably don't need to consider thermal insulation, right? Of course, if you need some wood with strong load-bearing capacity, larch is still highly recommended."

"Wow, so much knowledge!" After hearing what Yan Hui said, General Manager Zheng immediately understood that this young man doing business with General Manager Teng was indeed extraordinary!
"Don't let my youth fool you. I've been working in forest farms, processing plants, and markets in Northeast China for several years now. Although I haven't been in Jianye for long, I managed to secure an order from General Manager Teng in just one month. Hey, General Manager Zheng, I'm being a bit immodest," Yan Hui said somewhat shyly.

He's definitely confident, there's nothing I can do about it.

"Mr. Yan, you're too kind. In all my years in the furniture business, I only dare say I'm quite knowledgeable about red pine. When my senior colleague first brought me into the business, he told me I should use red pine, so I've always used it. Later, I investigated other wood species and heard a few things from others, but none of it felt quite professional. After hearing what you said today, it all makes perfect sense!" Mr. Zheng chatted happily. "I wonder what your prices are, Mr. Yan?"

"Let's talk over here." Yan Hui stepped aside, led General Manager Zheng a few steps to the side, and quietly quoted a price.

Yan Hui's quote to General Manager Zheng for larch lumber was only 10 yuan more expensive than the quote he gave to General Manager Teng, which is still a very dominant price in this market. As for red pine, Yan Hui's quote wasn't cheap, only slightly lower than the market price, but Yan Hui's guarantee of quality was very high, which General Manager Zheng trusted.

In Jianye, there aren't many people who can get more than two train cars a month at this stage, so what Yan Hui said can't be faked.

Soon, Yan Hui explained the ordering process to General Manager Zheng.

The first step is to collect a deposit. This deposit should be at least 5000 yuan, and if it's for boards, the deposit should be at least 10000 yuan.

Next comes arranging shipment. Once the goods are loaded onto the truck and the invoice is sent out, most of the payment needs to be made, at least 80% of the total cost. The remaining 20% ​​balance will be paid after acceptance.

Given Yan Hui's behavior and his reputation for collaborating with President Teng, President Zheng was naturally confident enough to pay the deposit.

Once the goods were loaded onto the truck, Mr. Zheng could actually track it down. Anyone who does this kind of business always has their own channels. Once Mr. Zheng knew the wagon number, he could find out whether the goods had been loaded onto the truck.

Yan Hui wasn't worried about the other party not paying after the goods were shipped. Because of the slow transportation, if 80% of the payment hadn't arrived within two days of shipment, Yan Hui could immediately fly to Jianye and wait for the goods at the railway line. Although the other party could get a large invoice, it was unrealistic to expect them to take the goods without paying.

This trading model still has significant flaws even today. However, it was very common at the time.

Yan Hui explained the model clearly, and General Manager Zheng expressed his approval: "Give me your contact information, and I'll go back and do some calculations to see if I can gather enough for a freight car. If I can't do it myself, I'll ask my friends and try to get one."

"Mr. Zheng, please feel free to contact me anytime if you need anything. This is my phone number and pager. I left my phone number in Yichun for the people there to keep. I have a pager here in Jianye, so please call me anytime if you need anything." Yan Hui said, handing over his business card as well.

(End of this chapter)