mtl008 Chapter 527: Be Busy
Chapter 527: Be Busy
Knowing that continuing wouldn't secure an exclusive distributorship, General Manager Chen placed his hands on the table: "I can accept the price, but I need your guarantee that there won't be a second distributor in South China for at least a year."
The private room was quiet for a moment.
Li Xiangyang quickly weighed the pros and cons of the suggestion in his mind.
“Mr. Chen, your suggestion is very sincere,” Li Xiangyang said slowly, “but the sales target needs to be set reasonably.”
"Annual sales will not be less than 500,000," General Manager Chen stated directly.
Ma Laosan's eyes lit up; the number was higher than he had expected.
Wang Ergou gently nudged Li Xiangyang's leg under the table, indicating that the price was good.
“Five hundred thousand is indeed a lot,” Li Xiangyang nodded. “But we need a guarantee. If unforeseen circumstances arise on your end, such as policy changes or a deteriorating market environment that leads to a decline in sales, the responsibility cannot be entirely placed on us.”
General Manager Chen smiled: "Brother Xiangyang, you've considered everything very thoroughly. How about this: if the sales shortfall is due to force majeure, we can renegotiate based on the actual situation."
“The contract terms need to be clearly stated,” Li Xiangyang said.
“Of course. If there are no objections, we will now draft the contract.” Mr. Chen said, and then drafted the contract according to the agreement before handing it over.
Li Xiangyang took the contract and read it carefully, while Ma Laosan and the others also came over to take a look.
The contract terms were quite detailed, but there were a few points that made Li Xiangyang frown.
"Mr. Chen, isn't this penalty clause too harsh?" Li Xiangyang pointed to a line in the contract, "If we're out of stock for more than ten days, we have to pay 20% of our monthly sales revenue?"
"This is to protect the interests of my customers," Mr. Chen explained. "If we're frequently out of stock, my sales channels will be ruined."
“I understand your concerns,” Li Xiangyang said, putting down the contract. “However, our raw material collection is greatly affected by the seasons. For example, forest frogs can only be caught in large quantities in the autumn. If there is extreme weather, the yield may be affected.”
Fatty Ma nodded in agreement: "Yes, last autumn's heavy rains reduced the frog population by 30% compared to previous years."
Mr. Chen thought for a moment and said, "In that case, stockouts caused by normal seasonal factors will not be considered a breach of contract. However, if the stockout is caused by problems with your production management, the penalty for breach of contract will still apply."
“This is acceptable,” Li Xiangyang nodded.
Over the next hour, the group discussed the various terms of the contract in detail.
From product quality standards to shipping methods, from payment terms to after-sales service, every detail was carefully finalized.
Ultimately, both parties reached an agreement: Mr. Chen obtained a one-year agency right for the South China region, with an initial order of 3,000 gift boxes and a 30% prepayment.
"It's a pleasure to cooperate with you!" Mr. Chen stood up and extended his hand.
"It's a pleasure to work with you!" Li Xiangyang shook his hand, but in his mind he was thinking about the next step of the plan.
After seeing Mr. Chen off, the partners returned to the factory.
Ma Laosan seemed very excited: "If we close this deal, we can earn at least fifty thousand."
"The money is substantial, but the pressure is immense," Li Xiangyang said, looking at the production workshop. "At the current production capacity, it will take at least a month to complete three thousand gift sets."
Wang Ergou calculated, "We really don't have enough manpower right now. Should we hire a few more workers?"
“We can consider it,” Fatty Ma said, “but the workers’ technical training must keep up, and the quality cannot be compromised.”
Li Xiangyang walked into the workshop and looked at the equipment that had just been debugged.
In his previous life, he had seen too many companies collapse due to blind expansion. Now, although he has orders, he needs to be more steady and pragmatic.
"Let's first train our existing staff to ensure consistent quality," Li Xiangyang said. "At the same time, we can recruit one or two experienced workers."
Ma Laosan nodded: "I'll make some contacts and see if I can poach a few skilled workers from other factories."
“There’s another problem,” Li Xiangyang turned to the group, “The supply of raw materials needs to keep up. We have inventory now, but if orders increase later, we need to prepare in advance.”
Wang Ergou patted his chest and said, "Leave this to me. I'll contact a few more villages and expand the purchasing area."
"It's not just about quantity, quality is also very important," Li Xiangyang emphasized. "It's better to buy less than to accept inferior raw materials."
Just as the group was discussing their plan, the sound of a car engine came from outside the factory.
A black Santana pulled up in front of the car, and two middle-aged men in Zhongshan suits got out.
"Excuse me, is this Sanheshan Treasure Agricultural Products Company?" one of the men wearing glasses asked.
"Yes, who are you?" Old Ma stepped forward to greet them.
"We're from the county's Administration for Industry and Commerce. We'd like to inquire about your company's operations." The man with glasses showed his identification.
Li Xiangyang felt a pang of anxiety, but quickly calmed down.
The company has handled all the procedures in a proper manner, so there shouldn't be any problems.
"Please come in, leaders," Li Xiangyang invited, "We can take this opportunity to report on the company's operations."
For the next half hour, the two officials from the Industry and Commerce Bureau learned in detail about the company's registration, production process, sales channels, and other aspects.
"Very good." The bespectacled man closed his notebook. "Your project aligns with the county's direction for developing agricultural and sideline product processing. However, you must pay close attention to product quality and food safety during the operation."
“We will definitely keep a strict eye on this,” Li Xiangyang assured.
“There’s one more thing,” another comrade added, “If you need to expand, the county will provide policy support, such as land for factory buildings and tax incentives.”
Li Xiangyang's eyes lit up: "Thank you for your concern, leader. We will definitely consider it."
After seeing the officials from the Industry and Commerce Bureau off, Ma Laosan was a little nervous: "Won't they cause any trouble?"
“It should be a routine inspection,” Li Xiangyang analyzed. “And judging from their attitude, the county still supports our project.”
"That's good." Wang Ergou breathed a sigh of relief. "With this support, our development will be much smoother."
Li Xiangyang nodded, but his mind was already on a longer-term plan. This was just the first step; the real challenges lay ahead.
In the evening, Li Xiangyang drove back to Xiaoliang Village.
Li Xiaoyun was hanging clothes to dry in the yard when she saw her husband return, and a smile appeared on her face.
"How did it go? Did the business deal go smoothly?" Li Xiaoyun wiped her hands and stepped forward to greet him.
"Not bad, we signed a pretty big order." Li Xiangyang held his wife's hand. "But we'll be quite busy from now on."
"Being busy is good; it means business is booming," Li Xiaoyun said with a smile. "Just remember to take care of your health."