Chapter 461
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Protagonist:
Chen Yi
While finalizing the purchase orders, Chen Yi hired independent accountants to conduct accounting, calculating the cost prices and ex-factory prices of various products.
With the West River Association as the priority consideration, he did not intend to press prices down to the bottom line; for him, any enterprise willing to settle with gold bonds, a reasonable profit of 10% to 20% was acceptable, and even a quoted 30% profit was a normal transaction that need not be interfered with. However, Chen Yi had truly underestimated the scale and integration of China's manufacturing industry.
When the moment arrived for 21 enterprises to compete on the same stage, even the previously invited bidding enterprises dared not bid according to past standards. A purchase order calculated in the millions — one knows with one's chin that this is at least a year's future procurement volume, even if the tender documents required a delivery date within 40 days.
Xiao Lu accompanied throughout and was responsible for entering the bid data.
After she split the tender documents on the 20-meter-long conference table, she asked: "Start entering from the shirts?"
"Mm."
Chen Yi stood behind Xiao Lu watching.
The latter recited the bids in a light, fleeting voice: "Tianrong Group, workwear long-sleeve shirts, 14.2 yuan, 1 million pieces. LT Company, workwear long-sleeve shirts, 14.5 yuan, 800,000 pieces. Hongxin Company, workwear long-sleeve shirts, 13.9 yuan, 2 million pieces……"
Gao Qiu glanced at the accounting table Chen Yi left behind and said in surprise: "Cost 13.1 yuan, and the blind bid is only 14.5 yuan?"
"The one bidding 14.5 yuan isn't necessarily producing it themselves." Chen Yi stood on the other side of the conference table, also shaking his head in confusion: "This Hongxin Company bidding 13.9 yuan, I know them; although they're in clothing, their production capacity is average, they mostly find contract manufacturers when producing, and to deliver 2 million pieces on schedule, at least half would have to be subcontracted out, and that still depends on whether they won other bids."
"6% profit, and still have to subcontract? No wonder I've heard coastal factories don't make money without sweatshops." Gao Qiu, long in the upper class, could no longer imagine an enterprise that made less profit than a bank loan.
"Li De Group, workwear long-sleeve shirts, 13.5 yuan, 600,000 pieces." Xiao Lu's bid recitation immediately interrupted the discussion.
Li Lao couldn't help but shake his head: "13.5 yuan, that equals not making money."
"Earning even less than the subcontractors." Gao Qiu said, laughing helplessly: "Didn't expect China's capitalists to have it this hard."
"Toil with heart and labor, most of the money earned goes to paying taxes; accumulated profits aren't even enough to withstand risks." Li Lao quickly elevated the issue to the perspective of the national economy.
Xu Chengchu waited until everyone finished speaking before asking: "Execute at this price?"
The Xu Family participated in bidding for several construction materials; compared to clothing manufacturing, the profits were relatively higher. But after seeing the first price list, his confidence had long since vanished like smoke and scattered clouds.
Chen Yi circled the table once, then said: "Execute. They dare to bid, what are we afraid of."
30 minutes later.
Representatives of the 21 enterprises were led into the conference room.
After they sat down, Chen Yi said: "Welcome everyone, let's open the bids directly."
The guys who wanted to whisper a few words immediately stiffened their bodies.
As long as they won the bid, 40 days of full-capacity operation would be enough for them to live comfortably for half a year. Even looking at the whole year, the previous less-than-half capacity utilization could immediately rise to 70%; factories achieving this standard nowadays were not many.
The ice-cold mineral water Mao Li held in his arms had long since warmed up, yet he was completely unaware.
This order might not determine life and death, but if they could secure it, next year they wouldn't have to just wait for death.
"The winning bidders for workwear long-sleeve shirts are Li De Group for 600,000 pieces, Hongxin Company for 1.4 million pieces."
Mao Li went "hua" and slumped into his chair.
Doing real industry is truly the most difficult thing in the world.
The Hongxin Company boss leaned over, smiling: "Mao Li, you really hid your depths. How much did you bid to win?"
"You bid 2 million pieces?" Mao Li caught the implication first, saying disdainfully: "Can you even finish 200,000 pieces?"
"No need for your concern, we can squeeze out profit." The other party gave a hehe smile and hurried away.
Actually, when coastal small factories are in difficulty, they don't even calculate equipment depreciation into costs, only seeking to cover raw material costs and worker wages; the remaining utility bills and high taxes are delayed whenever possible.
Hongxin Company wanted to snatch several deals in one go, then send them to small factories for processing; as long as their volume was large enough, they could press prices lower than self-production. So-called small boats turn easily; coastal small factories' sweatshop violations bit by bit, the authorities above also find hard to notice.
Chen Yi could hear their conversation, but his face revealed not a shred, and he continued: "Next is linen short-sleeve shirts, extra-wide width; the winning bidder is Nanfang Clothing Group, 1 million pieces. Congratulations, Boss Tai."
"Mutual congratulations." Nanfang Clothing is the largest clothing producer and contract manufacturer in the Southeast; many domestic and foreign famous brands design specifications and have them contract manufacture, so their connections are very good. Moreover, although linen shirts have ordinary craftsmanship, many companies lack familiar channels.
In this kind of bidding where every penny is pinched, without low-price channels you can't win the bid.
The bidding took only 10 minutes, but bid verification and opening took over an hour.
"Alright, all 18 procurement items have contractors. If everyone has no objections, we'll sign contracts and pay the advance payment now."
"Pay the advance payment now?" Someone immediately exclaimed. They often did work for government agencies, but settlement was the most troublesome thing.
"Of course, all in gold bonds." Behind Chen Yi's smile stood a row of 18 boxes.
Xiong Lu and Gin Mori each took one, flipping open all the silver-white money boxes.
"It's all cash!" The enterprise owners exclaimed quietly.
"Not all cash. Here is 20% of the advance payment in gold bonds; the other 10% is settled at the bank. If you need to use the advance payment to pay worker wages, if I were you, I'd use RMB." Chen Yi's words were a requirement, not weak phrasing like "suggestion," and no one present objected.
Actually, Chen Yi wanted each factory to pay wages in gold bonds; if workers could buy things with gold vouchers, that would equal fully rolling out the bonds.
But the realistic problem lay before them: workers' wages were generally low, with heavy living pressure; if companies issued gold bonds as wages, workers would also rush to exchange them for cash to continue living. In this situation, forcibly distributing bonds would not only fail to achieve the goal of circulating gold currency, but would lose precious metals.
Haste makes waste; Chen Yi had this understanding, and worried about triggering mass incidents, so he emphasized again: "10% advance payment is enough for over two months of labor wages, right? Everyone please don't distribute bonds, at least not in the short term, directly to workers as wages; once such a thing happens, I will definitely intervene."
"Of course not." Mao Li stared at Box No. 1, drooling; if there were no more orders, he really wouldn't be able to pay wages.
Others also expressed their positions one after another.
"You decide," "Definitely do as you say" and similar expressions were endless.
The one paying the most is the biggest; this rule is the same anywhere.
"Xiong Lu." Chen Yi called Xiong Lu's full name.
The latter picked up the money boxes and distributed them according to the winning bidders' numbers; the businessmen didn't particularly like gold bonds, but didn't show particular resentment either.
When everyone had their own one or several boxes, Chen Yi stood up to speak: "Everyone continue counting money, I'll say two more sentences."
Amid a burst of laughter, sure enough quite a few people continued counting money.
Heaven is big, earth is big, money is the biggest brand.
If they didn't count the banknotes carefully, they truly wouldn't sleep soundly.
"The final winning bidders total sixteen enterprises. That is the sixteen of you present here. From today on, you are all affiliated enterprises of my Jiangning Bond Committee." Chen Yi spoke with great momentum, cooperating with the Divine Art "Pressure Strike," saying: "Today's meeting is the first expanded meeting of our Bond Committee. I have given it a new name: the West River Association."
The "clap clap" applause was not very intense, and many people did not understand the situation.
Chen Yi smiled and continued: "The West River Association will be held every odd week thereafter. The specific time and location will be sent to you before each meeting. I do not force any enterprise to attend the West River Association, but I hope you will come. Moreover, just as required by the contracts we signed, all affiliated enterprises of the West River Association must promise to recognize gold bonds within their enterprises internally, and starting from next odd week, I will prioritize issuing purchase orders at the West River Association."
As he spoke the last sentence, thunderous applause began.
Priority in issuing purchase orders meant the enterprises present could eat first. In this era of overcapacity in manufacturing, having work to do was such a luxury that more than half of them hesitated for three to five seconds—they could not believe it.
Everyone counting money stopped.
Naturally, only more money could make them stop.
Amidst everyone's anticipation, Chen Yi gathered his momentum and said: "The West River Association is an exclusive organization, without a doubt, welcome all of you to join."
The bosses of the sixteen enterprises applauded desperately. To them, any organizational charter was not as real as banknotes.
Only after the last enterprise left did Li Lao ask worriedly: "Today's purchase orders exceeded 1 billion. Can we persist?"
"Of course we can." Chen Yi looked confused, unable to understand what Li Lao was worried about. He took out his notebook, tore out a few pages and handed them to Xiao Lu, then handed her a USB drive, saying: "Go make a few copies of it, and print out the tables in the USB drive."
"Bind them in ABC order?" Xiao Lu flipped through the requirements list and asked.
"That's right."
Xiao Lu immediately ran out to print them. Chen Yi explained to the other curious ones: "They are purchase orders for daily necessities. The quantity is not large, but the types are quite complicated. I didn't manage them much before, but now looking at it... we might as well purchase from the supermarket."
"You want to control the supermarket and make them recognize gold bonds?" Li Lao seemed to have grasped some of Chen Yi's train of thought, thinking: "Actually, controlling the supermarket is simple. Either control its upstream suppliers, or simply use administrative orders."
He obviously regretted the money spent on those orders.
... (Unfinished. If you like this work, welcome to come to Qidian (qidian. com) to cast recommendation votes and monthly votes. Your support is my greatest motivation.)
End of Chapter
