newbobooks Chapter 111 Leave Yourself a Way Out
Chapter 111 Leave Yourself a Way Out
In the following days, Wen Wan no longer felt bored, as there were always things to do every day.
Xie Changlin bought various chemical reagents and spent a week finally figuring out the problem of softening the cotton yarn and dyeing it red. The next step was mass production.
There is still one problem to be solved before mass production, which is to discuss the supply issue with Zheng Da, the workshop director.
This thing is indeed only in the experimental stage, and no one knows whether it sells well or not. If it sells well and Zheng Da gets jealous and raises the price of cotton yarn, then they will be working for Zheng Da.
Even if Zheng Da was not jealous, he would still give them the original price. Others would become jealous when they saw them making money and would want to follow Zheng Da's path.
Not to mention other people, just Zheng Da’s relatives and friends also asked Zheng Da to sell them defective cotton yarn at a low price, and make hats and scarves according to their methods to compete with them, which would cause chaos in the market.
After all, Xie Changlin can handle the technology of processing cotton yarn and dyeing, so it would not be difficult for others to solve it.
Therefore, we had to sign a written agreement with Zhengda before doing anything. The first agreement was that the price of cotton yarn could not be raised within a year, and the second was that they were the only ones who could deal in the defective cotton yarn in the factory.
The agreement was written exactly as it was. Xie Changlin thought Zheng Da would not sign it, but he did not expect Zheng Da to sign it without saying a word.
After signing the agreement and taking out the first batch of cotton yarn, Xie Changlin was completely stunned.
Wen Wan knew what he was thinking as soon as she saw his expression, and explained jokingly: "Don't think he is stupid or that he values our friendship so much that he signed this unequal treaty without saying a word.
He may have remembered the favor we had done for his daughter, as evidenced by his willingness to give us the lowest price.
But it was far from going so far as to make him sign an unequal treaty.
In his eyes, this was not an unequal treaty at all.
The defective cotton yarn has been piled up in the warehouse for so long and needs to be dealt with urgently. The focus is on how to deal with it, not on who to give it to. No one wants it except us, and we are exclusive whether we sign or not.
It is easier to understand why the price cannot be raised. No one will want the product even if the price does not increase, let alone if the price is increased.
For him, whether he signs these two articles or not has no impact at all.”
Xie Changlin pondered for a moment and said, "That seems to be the case.
But why only one year? "
“If our method makes money this year, many people will imitate it next year.
The price is based on supply and demand. If supply exceeds demand, the price cannot be raised no matter what the cost is.
When demand exceeds supply, sellers will have no trouble selling their products and prices will naturally rise.
Next year, more people will need cotton yarn. Zheng Da is the workshop director, and the factory's profits are linked to his performance. Of course, he hopes to increase prices to increase profits.
Even if there is a contract, he can still breach the contract and raise the price. We don't need that because there are plenty of people who want the product. He just needs to find a lawyer to sue us for breach of contract because the money he earns is much more than the compensation he has to pay us.
Even if you sign for three to five years, it will be useless.”
Xie Changlin thought about it and thought of another question, "Why not just sign a three to five year contract, and then wait for him to breach the contract and sue us, and we will just sit back and wait to receive the compensation."
The young man has a very smart mind and can think of this.
Wen Wan glared at him in dismay, "You are quite smart, why do you like to think in evil ways?
It's true that you only become a human being once, but you have to live in this world for decades, and this is a way to kill yourself.
The circle is so small. If your bad behavior gets out, who would dare to do business with you?
Let’s not talk about the future, let’s just talk about the present. Zheng Da is a middle-aged workshop director. He has more experience and connections than you.
You may need his help with many things in the future. If you use tricks to offend him, the loss to you will be far greater than the temporary gain.
Take a long-term view and make more good friends.
It doesn’t mean you should be a good person, but it means you should look at things from a long-term perspective and leave yourself a way out.”
In fact, Wen Wan wanted to say that what is more important is that people like Zheng Da are definitely not of low level. When dealing with such a person who has seen all kinds of hypocrisy and flattery, your tricks are just childish playing house in his eyes.
What moved him most was sincerity.
It took Xie Changlin more than an hour to digest Wen Wan's words. After returning home, he moved the cotton yarn into the courtyard where Wen Wan lived, still thinking about the questions he had not figured out.
"Second sister-in-law, according to what you said, there will be many people competing with us next year, and Zhengda will raise the price. What should we do next year?"
Wen Wan didn't expect him to ask this question. She was surprised for a moment, and the compliment came out without thinking.
"I didn't expect you to be such a good business person. You haven't even started this year's business yet, but you've already planned for a year later. That's really great."
Xie Changlin's expression was paralyzed for a moment, "Second sister-in-law, can you please stop insulting me like this?"
After spending so much time together, Xie Changlin actually started to talk to her like this, which was another surprise.
Wen Wan silently reflected on herself and thought that there might be something wrong with the way she spoke to him.
"I'm serious," Wen Wan suppressed her smile, trying to make her expression look sincere. "Doing business is like playing chess. The current move is important, and after this move, the next three to five moves are also important.
Only by controlling the overall situation can you become a chess master. "
Xie Changlin nodded slightly, indicating that he accepted her statement.
Wen Wan continued, "Everyone has a dog's nose. This year we made a lot of money from selling hats and scarves, and they followed us because they smelled the scent.
It is too late this year. Next year they will definitely make preparations before the weather gets cold and follow the path we have taken this year.
It’s still the relationship between supply, demand and price that I just told you about.
When there are more people selling the same thing in the market, there are more choices for buyers, which will create competition for sellers. The most immediate way to win is to be cheaper than others.
Once a cheaper price is available, buyers will consciously go for the cheaper one.
Those with high prices see those with low prices making a fortune every day, so naturally they will be unable to sit still and follow suit to lower their prices. If you lower your prices, I lower my prices, and he also lowers his prices. What profit can you make? It’s a waste of time to do this business.
What’s more, hats and scarves are not consumables. If you buy them this year, you won’t buy them again next year.”
Xie Changlin quickly digested Wen Wan's words, but soon he was faced with a new problem.
“So what are we going to do next year?”
Wen Wan was speechless for a moment, "First, finish this year's work, and then think about next year's."
The two steps of softening and dyeing require several washes of water, rinsing and so on. The work is tedious and heavy. Wen Wan took some biscuits and candies bought in the town and went to the next yard.
Zhang Lan was still staying at her parents' home, and Xie Changshan was unwilling to pick her up, and no one could persuade him.
Feng Yuying had no choice but to swallow her pride as a mother-in-law and go to her daughter-in-law's parents' home to apologize. The main reason was that Zhang Lan was not at home, so all the cooking and laundry work fell on Feng Yuying, who was so tired that she had to bow her head.
Unexpectedly, her family not only did not give her, an old woman, any face, but also demanded that not only did Xie Changshan have to come to apologize, but Xie Changqing and Wen Wan and their spouses also had to accompany them.
Wen Wan knew what was going on as soon as she heard it.