Chapter 430: You can also make a lot of money by closing stores.
Zhang Duocai didn’t know that the biggest reason Chen Huan helped them wasn’t because Shui Qianyu asked him.
It was the mission given by the Good Lord.
In Chen Huan’s opinion, getting the rewards from Good Lord’s mission was more valuable than the 2% shares.
After all, Good Lord said that the reward he would receive was something better than ‘Hitting A Bull Across The Mountain’.
But now that he listened to Zhang Duocai, he would feel like a hypocrite.
At this moment, the nearby Zhang Yaya spoke up, “Chen Huan, this is what you deserve! And didn’t my dad make it clear? Only when the business is good will you receive that 2%, you won’t receive a penny if it doesn’t work.”
Zhang Duocai glared at his daughter.
Are there people talking like you?
If it wasn’t for the fact that she was his only darling girl, he would have smacked her head.
Zhang Yaya also said what was on his mind.
The plan looked good but it couldn’t be unconditionally believed in.
Any plans that easily deviated from reality tests, wasn’t a good plan.
No matter how well it was written or how easily understood it was, if it didn’t go well during the implementation and it gave no effect, what good was it?
Something like that wasn’t worth Zhang Duocai’s money.
Only when it worked and the company grew from it would they gladly give the 2%.
Chen Huan also understood this.
But the thing was he knew that the success was much higher than failure for this plan so it was like a guarantee that the 2% would fall into his pocket if he agreed.
At any rate, they were descendants of Confucius and heard the story of Zigong and Zilu.
“Then I’ll thank Mr. Zhang.” Chen Huan accepted after reflection.
Zhang Duocai laughed when he heard it, “Come on, We still have many things to learn from Teacher Chen in the future!”
Before Chen Huan could answer, Zhang Yaya preemptively said, “Chen Huan, we are expecting to close the 32 stores outside of the city this month. On the side of Lin’an, we can start operations before February, just in time for the Spring Festival shopping, what do you think about it? How about we close after the Spring Festival? The turnover during the Spring Festival is high!”
Zhang family’s four stores in Lin’an have already closed down for renovation.
According to the plan given by Chen Huan, they needed to carry out large scale renovation to the supermarkets such as furniture among other stuff.
This project couldn’t be done unless one or two months were spent on it.
Fortunately, those buildings were owned by the Zhang family, otherwise the two months’ rent would be painful.
The other 32 stores outside of Lin’an were in the process of terminating the lease but they were waiting for the final decision, whether to close before or after the Spring Festival.
Chen Huan pondered for a bit before he said, “There’s no problem on the side of Lin’an…can we maybe take advantage of those stores in other cities? It would be such a waste to sell those accumulated goods at a broken price and they are big stores too.”
“How can we use them?” Zhang Duocai got spirited.
“The Spring Festival is on February 8th and it’s the custom for the Chinese that the Spring Festival starts after the twelfth of the lunar month.” Chen Huan said as he thought slowly cleared up, “We’ll start on January 8th and hold the special offer of ‘Thanks all customers for the patronage, Farewell after Spring Festival’ in the 32 supermarkets that would last for 4 weeks.”
“Special offer? Or a big discount?” Zhang Yaya asked.
“The customers will only take into account that you guys are about to close out and that you want to destock with discounts so they definitely would want to come get things at a bargain. After all, who slowly compares prices at different supermarkets? If they don’t buy it, it will be gone!” Chen Huan said, “So I think you can sell 50 cents a bottle of water, 50 cents for a bag of salts, a yuan for half a kilo of vegetables, ten yuan for a bottle of white liquor….”
“It looks very cheap but if the 32 stores stock up together, the price wouldn’t be too pricey. There should also be no loss if we limit the amount per person.”
“The cheapest and most discounted goods also shouldn’t be seen as soon as they enter. They should be scattered into various places so the customers can browse around and shop more in the stores.”
“Next to those super cheap products, you can put products that look cheap but are actually very profitable and products that are cheaper when buying in bulk.”
“So the customers that are buying the super cheap products would also consider those other products and are more likely to buy them. even if it wasn’t everyone, wouldn’t you make a profit even if a few of them did?”
“And there’s also the impulsive customers that don’t care if they buy too much and only realize what they are going to do when they get home!”
Zhang Duocai and Zhang Yaya were dumbfounded.
Zhang Yaya obviously wasn’t that knowledgable but she saw her father look at Chen Huan with worshipping eyes that lit up like bright stars, she knew that what Chen Huan said was very legit and quite manipulative.”
Zhang Duocai also thought so.
What Chen Huan said about doing a big promotion gimmick of closing stores to sell a variety of inexpensive and profitable products, was very interesting.
To put it bluntly, it was like those shops on the street with big posters such as ‘The boss is dead’, ‘Tearful sales’, ‘Everything at 1 Yuan’, ‘The stores are closing down tomorrow’…
That model of sales may look like trash but it was very profitable.
Otherwise streets and alleys wouldn’t be filled with those shops.
Zhang Duocai was from the supermarket industry and was more knowledgeable than Chen Huan.
He thought he could now sell out of season products.
For example, summer and autumn had passed but there were still a lot of those season’s clothes, products etc.. piling up in the manufacturing warehouse.
They were products that were about to be recycled anyways so he thought that he could buy it for very low prices and sold it to the customers for a margin. Wouldn’t the customers be tempted when they saw it was half the price than normally?
In that kind of environment filled with temptation, they wouldn’t think that deep.
The 32 stores were in the Zhejiang province and Zhejiang was wealthy with a large population.
If they did this for 4 weeks, even though they would lose a bit of reputation, the profit would be huge!
It was originally destock the merchandise to close the store but it became making a fortune instead, if the person were switched out, would any other people do it?
Thinking of that, Zhang Duocai grasped Chen Huan’s hand and said with sincerity, “Teacher Chen, you’re a genius among genius! If our Zhang family was able to have a good year, is all thanks to you!”
“You’re welcome but I also invested in the company so I obviously hope the supermarkets will do better and better.” Chen Huan said with a smile.
Zhang Yaya was full of admiration at Chen Huan.
To say that at the beginning, Zhang Yaya was mocking Chen Huan and didn’t want to make it easy for him and Shui Qianyu but the little Miss Zhang’s mind changed now.
A genius like that who descended to earth like a god would, saved her family, how could she not like the more she looked.
Wouldn’t it be a waste to give such a wonderful man to Shui Qianyu?
Well, even though Shui Qianyu was her sworn rival, she did her family get out of this situation so she would spare her this time.
Later when she got Chen Huan, she would the main girl while Shui Qianyu would be the side girl~~~
Ambition appeared in the fiery eyes of the little Miss Zhang.
Chapter 430: You can also make a lot of money by closing stores.
Zhang Duocai didn’t know that the biggest reason Chen Huan helped them wasn’t because Shui Qianyu asked him.
It was the mission given by the Good Lord.
In Chen Huan’s opinion, getting the rewards from Good Lord’s mission was more valuable than the 2% shares.
After all, Good Lord said that the reward he would receive was something better than ‘Hitting A Bull Across The Mountain’.
But now that he listened to Zhang Duocai, he would feel like a hypocrite.
At this moment, the nearby Zhang Yaya spoke up, “Chen Huan, this is what you deserve! And didn’t my dad make it clear? Only when the business is good will you receive that 2%, you won’t receive a penny if it doesn’t work.”
Zhang Duocai glared at his daughter.
Are there people talking like you?
If it wasn’t for the fact that she was his only darling girl, he would have smacked her head.
Zhang Yaya also said what was on his mind.
The plan looked good but it couldn’t be unconditionally believed in.
Any plans that easily deviated from reality tests, wasn’t a good plan.
No matter how well it was written or how easily understood it was, if it didn’t go well during the implementation and it gave no effect, what good was it?
Something like that wasn’t worth Zhang Duocai’s money.
Only when it worked and the company grew from it would they gladly give the 2%.
Chen Huan also understood this.
But the thing was he knew that the success was much higher than failure for this plan so it was like a guarantee that the 2% would fall into his pocket if he agreed.
At any rate, they were descendants of Confucius and heard the story of Zigong and Zilu.
“Then I’ll thank Mr. Zhang.” Chen Huan accepted after reflection.
Zhang Duocai laughed when he heard it, “Come on, We still have many things to learn from Teacher Chen in the future!”
Before Chen Huan could answer, Zhang Yaya preemptively said, “Chen Huan, we are expecting to close the 32 stores outside of the city this month. On the side of Lin’an, we can start operations before February, just in time for the Spring Festival shopping, what do you think about it? How about we close after the Spring Festival? The turnover during the Spring Festival is high!”
Zhang family’s four stores in Lin’an have already closed down for renovation.
According to the plan given by Chen Huan, they needed to carry out large scale renovation to the supermarkets such as furniture among other stuff.
This project couldn’t be done unless one or two months were spent on it.
Fortunately, those buildings were owned by the Zhang family, otherwise the two months’ rent would be painful.
The other 32 stores outside of Lin’an were in the process of terminating the lease but they were waiting for the final decision, whether to close before or after the Spring Festival.
Chen Huan pondered for a bit before he said, “There’s no problem on the side of Lin’an…can we maybe take advantage of those stores in other cities? It would be such a waste to sell those accumulated goods at a broken price and they are big stores too.”
“How can we use them?” Zhang Duocai got spirited.
“The Spring Festival is on February 8th and it’s the custom for the Chinese that the Spring Festival starts after the twelfth of the lunar month.” Chen Huan said as he thought slowly cleared up, “We’ll start on January 8th and hold the special offer of ‘Thanks all customers for the patronage, Farewell after Spring Festival’ in the 32 supermarkets that would last for 4 weeks.”
“Special offer? Or a big discount?” Zhang Yaya asked.
“The customers will only take into account that you guys are about to close out and that you want to destock with discounts so they definitely would want to come get things at a bargain. After all, who slowly compares prices at different supermarkets? If they don’t buy it, it will be gone!” Chen Huan said, “So I think you can sell 50 cents a bottle of water, 50 cents for a bag of salts, a yuan for half a kilo of vegetables, ten yuan for a bottle of white liquor….”
“It looks very cheap but if the 32 stores stock up together, the price wouldn’t be too pricey. There should also be no loss if we limit the amount per person.”
“The cheapest and most discounted goods also shouldn’t be seen as soon as they enter. They should be scattered into various places so the customers can browse around and shop more in the stores.”
“Next to those super cheap products, you can put products that look cheap but are actually very profitable and products that are cheaper when buying in bulk.”
“So the customers that are buying the super cheap products would also consider those other products and are more likely to buy them. even if it wasn’t everyone, wouldn’t you make a profit even if a few of them did?”
“And there’s also the impulsive customers that don’t care if they buy too much and only realize what they are going to do when they get home!”
Zhang Duocai and Zhang Yaya were dumbfounded.
Zhang Yaya obviously wasn’t that knowledgable but she saw her father look at Chen Huan with worshipping eyes that lit up like bright stars, she knew that what Chen Huan said was very legit and quite manipulative.”
Zhang Duocai also thought so.
What Chen Huan said about doing a big promotion gimmick of closing stores to sell a variety of inexpensive and profitable products, was very interesting.
To put it bluntly, it was like those shops on the street with big posters such as ‘The boss is dead’, ‘Tearful sales’, ‘Everything at 1 Yuan’, ‘The stores are closing down tomorrow’…
That model of sales may look like trash but it was very profitable.
Otherwise streets and alleys wouldn’t be filled with those shops.
Zhang Duocai was from the supermarket industry and was more knowledgeable than Chen Huan.
He thought he could now sell out of season products.
For example, summer and autumn had passed but there were still a lot of those season’s clothes, products etc.. piling up in the manufacturing warehouse.
They were products that were about to be recycled anyways so he thought that he could buy it for very low prices and sold it to the customers for a margin. Wouldn’t the customers be tempted when they saw it was half the price than normally?
In that kind of environment filled with temptation, they wouldn’t think that deep.
The 32 stores were in the Zhejiang province and Zhejiang was wealthy with a large population.
If they did this for 4 weeks, even though they would lose a bit of reputation, the profit would be huge!
It was originally destock the merchandise to close the store but it became making a fortune instead, if the person were switched out, would any other people do it?
Thinking of that, Zhang Duocai grasped Chen Huan’s hand and said with sincerity, “Teacher Chen, you’re a genius among genius! If our Zhang family was able to have a good year, is all thanks to you!”
“You’re welcome but I also invested in the company so I obviously hope the supermarkets will do better and better.” Chen Huan said with a smile.
Zhang Yaya was full of admiration at Chen Huan.
To say that at the beginning, Zhang Yaya was mocking Chen Huan and didn’t want to make it easy for him and Shui Qianyu but the little Miss Zhang’s mind changed now.
A genius like that who descended to earth like a god would, saved her family, how could she not like the more she looked.
Wouldn’t it be a waste to give such a wonderful man to Shui Qianyu?
Well, even though Shui Qianyu was her sworn rival, she did her family get out of this situation so she would spare her this time.
Later when she got Chen Huan, she would the main girl while Shui Qianyu would be the side girl~~~
Ambition appeared in the fiery eyes of the little Miss Zhang.
