Star Tycoon
Chapter 41 New Cooperation
Chapter 41 New Cooperation
After finding this leading enterprise with high output, Tian Ersan quickly made a phone call to communicate with it.
"Hello, I would like to order one million cans of canned yellow peaches. Could you please speak with your manager or chairman?"
If Tian Ersan said 100,000 cans, it would definitely be better to say 1 million cans.
Yellow peaches only ripen in the summer, and canned yellow peaches can only be produced during these few months. If you want to sell them long-term, you need to stock up for a year.
If funds are tight, you can order once a month. Tian Ersan has relatively ample funds, so he'll start with a big order.
The operator on the other end paused for a moment, "Sir, what is your surname?"
"My surname is Tian," Tian Ersan replied. "I'm from Taoxian County in Zhongzhou, which is less than 500 kilometers away from your factory. It's about a six or seven-hour truck ride. I left a message on the Guantou Town forum today and saw your company's reply. I plan to cooperate with you."
Tian Ersan continued, "The base price for canned goods here is one yuan and fifty cents. I'd like to know what the price is over there. If we can reach an agreement, we can cooperate."
The operator was unaware of this, but knew it was a big deal.
"Okay, I'll contact our general manager."
Tian Ersan politely replied, "Okay, please contact me as soon as possible. I am currently looking for other canneries to cooperate with. I will contact whichever one is suitable."
"Please don't hang up yet, it will be done in two minutes." The operator quickly called the general manager.
June is the peak season for purchasing yellow peaches, and businesses need a lot of cash to operate.
It's not just for fruit farmers, but also for glass factories, metal printing factories that make metal caps, label and packaging suppliers, and other partners. They all need money to start their businesses.
People at Sweetheart Foods Company already knew about this beforehand, and everyone in the group chat is talking about this person from Zhongzhou Province who is seeking cooperation.
Tao Chunyang, the company's founder and manager, had been in contact with that person. When he heard that the other party was looking for him, he quickly answered the phone.
Tao Chunyang quickly said, "Hello, Mr. Tian, I am Tao Chunyang, the general manager of Shandong Fruit Canning Factory. I heard that you want to buy one million cans of yellow peaches?"
"Hello, Manager Tao," Tian Ersan said with a smile. "I have many orders on hand and would like to discuss cooperation with your company."
Tao Chunyang quickly replied, "Of course! I'm very happy to cooperate with General Manager Tian! We are absolutely capable of providing one million cans of high-quality canned yellow peaches!"
Tian Ersan values practicality, so he asked, "What about the price?"
Tao Chunyang hesitated for two seconds before slowly asking, "I wonder what prices Mr. Tian negotiated with the other merchants?"
Guantou Town is full of canneries because it is a fruit-producing area, which is why the canneries are so concentrated.
With canneries clustered together, the entire industry revolves around canning, including companies producing various bottles, cans, tin lids, labels, syrups, and other supplies, leading to significant price wars.
No one can survive without business.
Tian Ersan said, "You're the first one to come to us. Our price is one yuan and fifty cents for a 510-gram glass can of yellow peaches."
Tao Chunyang felt it was a bit difficult. "President Tian, this price is already very low. Our company can only offer a maximum of 1.43 yuan."
Tian Ersan was actually quite satisfied with the price; seven cents was still money.
Moreover, it wasn't bought for 1.5 yuan; the actual price was a bit higher.
"So what is the cost of shipping one package from your company? I mean, how much can you keep the shipping cost when shipping four cans of food to all parts of the country?"
Tao Chunyang replied, "Our company's canned goods are transported by truck and train to city-level supermarkets all over the country, and are also sold to more than 43 countries. As for individual cases... I don't know."
Tian Ersan said directly, "Then you can ask around for me. I can give you the orders from Shandong Province and areas north of Shandong Province. Your company can ship the canned goods directly. My cost price for one express delivery order is 3 yuan. I can make about 8 or 9 yuan per order of canned goods on the 15th of the month."
"It's like I've brought in the business, and you sell your goods without having to deliver them to me, which saves you a lot of transportation costs."
"I'm still working on it here. It's cheaper for me to send packages to places south of Shandong Province, so I'll split the work up for now. If the cooperation goes well, we'll continue to work together."
Tao Chunyang frowned. "Fifteen yuan per order, and you make nine yuan? And then we handle the production, shipping, and after-sales service? Is that right?"
Tian Ersan could tell from the other party's anger.
Anyone would be angry to hear that the other party does nothing and takes away most of the profits for nothing.
"President Tao, don't be angry. Don't worry about how much money I make. Think about whether you can make money yourself. I can get you to sell 100,000 cans of food every month, and we'll settle accounts within ten days! No outstanding fees." Tao Chunyang was thinking about this cooperation.
A bottle costs 1.43 yuan. You can make a profit on each bottle. If you sell 150,000 bottles a month, you can make tens of thousands of yuan in profit.
A profit of tens of thousands is already quite substantial, and the express delivery and packaging costs can be reduced. There are professional supporting manufacturers within a few hundred meters, all located in an industrial park.
The cannery needs working capital to pay wages, purchase last season's fruit, and repay loans.
Tian Ersan needs goods, a constant stream of goods.
For canneries, having a major customer who proactively seeks cooperation is a good thing.
"Can we talk in person?"
Tao Chunyang decided to go out or invite the other party over to discuss the business in person and find out why the other party was able to sell so many canned goods.
Tian Ersan said, "I don't have a car, so it's inconvenient for me to go out. Mr. Tao, could you come over? You could also bring two truckloads of canned goods. I can pay a third of the deposit first, and the rest in person."
Tao Chunyang wanted to go there and investigate in person.
“Okay! No problem. How many cans of food does Mr. Tian need? I have cars of various sizes, so I’m not sure how many Mr. Tian needs.”
Tian Ersan said directly, "Let's start with fifteen tons, which is about thirty thousand bottles."
One million cans is too much; it's just a rough estimate given verbally, not an actual demand for one million cans.
Each can of food weighs 510 grams. If we calculate it as one jin (500 grams), then 30,000 cans would weigh more than 30,000 jin (15,000 kilograms). It would take three six-ton trucks to fill the can.
Thirty thousand bottles is already quite a lot. Tao Chunyang was overjoyed that the other party wanted so much stock, saying, "President Tian is too generous! I'll have someone prepare the goods right away!"
Tian Ersan showed his sincerity, "Then I'll pay one-third of the deposit first, and we can forget about the contract. I'll pay the rest in person. When can you deliver the goods, Mr. Tao?"
"Tomorrow!" Tao Chunyang said, "We'll load the goods this afternoon, and they'll arrive tomorrow morning!"
Tian Ersan: "Okay, calculate how much it costs and send me the card number. I'll transfer the money."
The two sides quickly reached an agreement on cooperation and exchanged contact information.
After hanging up the phone, Tao Chunyang quickly called several department heads and factory directors.
Soon the factory manager and accountant arrived.
The accountant is a female relative in the family, and the factory manager is a veteran who has worked at the factory for many years.
The accountant came in and said, "The money has arrived, but we haven't done any small-scale business before. Is there a risk of losing money?"
The factory manager pondered the matter, then looked up and said, "I don't think it's reliable. I haven't heard of any large enterprises in Zhongzhou Province. People there don't make much canned food except for banquets in the countryside."
Tao Chunyang took out his phone to show them.
“The orders in his store are real, and he’s already leading the canned food sales charts. In fact, he sells more canned food than large supermarkets.”
“We sell a truckload of canned goods with low profit margins and high volume, and we also sell hundreds of tons individually with low profit margins and high volume. It’s just that packaging and shipping are a bit troublesome. The courier company said they can take on this job. As long as other companies can do it, they can do it too.”
"So if other canneries can make money from this, we have to too, otherwise we'll fall behind and we'll have to go to other companies for this business."
The female accountant said, "Anyway, as long as he's willing to pay, it doesn't matter how he sells them. We don't need to invest anything, so we'll just keep selling canned goods."
The factory manager found that this was indeed the case, so he no longer objected.
Tao Chunyang stood up and said, "I'll go and check it out first. If it works, great. If not, I've already paid the deposit, so it's not a loss to make the trip for nothing."
“Zhongzhou isn’t far, and it’s still within the country. Our company has lost money on several overseas business trips, so Zhongzhou’s business is nothing. I’ll go there myself!”
Tian Ersan only paid a deposit of 10,000 yuan, and the business would be worth 40,000 to 50,000 yuan after the deal was completed.
But what Tao Chunyang saw was a million cans of food, an order worth one or two million!
(End of this chapter)
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