Here, Xia Mian and Mao Huimei left Charles' booth, along with Fang Yongpeng. The three of them looked thoughtful.
Originally, I was forced by He Min to go in and find out the situation. I thought it wouldn't be illegal to find out more, but as we were chatting, I suddenly had an idea.
"Compensation trade," Mao Huimei said. "This is the first time I know there is such a way of doing business."
To put it simply, compensation trade is similar to installment repayment. Chinese people purchase foreign machinery and technology, and then sell a certain number of products back to the other party every year or repay the loan in installments over five or ten years.
"I just heard him ask a question to someone in front of him." Xia Mian lowered his head and studied the data in his hand carefully. "I didn't expect there is such a detailed policy."
Fang Yongpeng said, "This means that you can use their machines and technology for free at the beginning, and then use the products produced to pay off the debt?"
"Then we can sell the extra produce ourselves, and the income will belong to us, right?"
Xia Mian nodded.
Fang Yongpeng was puzzled, "What do they want?"
"For the interest."
It's no wonder Fang Yongpeng didn't understand. In the early years, Chinese people had little concept of advance consumption, and home loans did not become popular until a few years later.
Xia Mian showed him the data she had just calculated. "For example, if the machine costs 500,000 yuan, if it is repaid in five years, the total repayment will be about 700,000 yuan; if it is repaid in ten years, it will be about 1.2 million yuan."
Fang Yongpeng was shocked. These were astronomical figures for him.
Mao Huimei thought it was feasible.
When the Xinsheng Food Factory opened, Mao Zhishan was away filming all year round, so the only person who could help Xia Wenyue at home was Mao Huimei. It can be said that she was the one who helped Xia Wenyue build Xinsheng from scratch, and she also studied accounting in college, so she quickly calculated the cost and rate of return in her mind.
"For compensation trade, the longer the time, the better."
"Whether a juice factory can make money depends on several things: the supply of fruit, the quality of the juice, the factory's production capacity and sales volume."
"As for the supply of fruit, Jingyishan should have enough. As for the quality of the juice, Charles just tasted your apples, and he believes in your own machines, so he directly said that he can place an order, which means that the quality of the juice can be guaranteed. As for sales, the number of resales set by Charles should be enough to support the factory."
Xia Mian added, "More than that."
"First, eating habits abroad are different from those in China. Juice is a daily consumption for them, and they drink it almost every day. The amount sold back to Charles Company should be no less than that."
"Secondly, once it is sold abroad, our juice will be exported. At that time, it can be exported and then sold domestically. With a little publicity, the domestic market will open up. Do you think it will be easy to sell?"
The two nodded without hesitation, absolutely certain that it would sell very well.
Throughout the 1990s, Chinese people had a blind admiration and liking for foreign products. After all, as long as it was imported and used by foreigners, it must be good. So once the fruit juice was exported abroad and then sold domestically, there was almost no doubt about the market.
"So, using the method of compensatory trade, as long as there is a factory, we can start production directly, right?" Fang Yongpeng murmured, "Why does it sound so simple?"
"It's not that easy to open a factory, right? Otherwise, why did so many factories close down?"
"Of course it's not that simple," Mao Huimei glanced at him and said, "Opening a factory is just the first step. The most difficult part is management, process discipline, and workers. There's a big difference between skilled workers and novices. State-owned enterprises go bankrupt because there are too many employees who don't work. There are also many extra benefits and expenses. Alas, there are many reasons anyway."
“But it’s different when we run our own factory.”
Seeing that she had thought about it in such detail, Fang Yongpeng asked tentatively, "Are you planning to open this juice factory?"
Mao Huimei said, "I have to go back and calculate it carefully, and discuss it with my family."
"If you really want to open a factory, I can buy your apples, but the payment for the first batch may take a few months."
"Go back and discuss it with your fellow villagers."
Fang Yongpeng nodded and said, "We can't let ourselves be controlled by those black-hearted profiteers."
"It's already difficult for rural children to go to school. If we sign the contract as they said, our village will only be able to make ends meet for five to ten years, and the children will be even less able to afford to go to school."
Seeing Mao Huimei looking at him, Fang Yongpeng touched his head and asked, "What's wrong?"
"I heard you're a teacher," Mao Huimei said, "so you're in charge of this because the children can't study?"
Fang Yongpeng scratched his forehead. "Not entirely. My sister-in-law's daughter Hu Niu is going to high school, and my uncle's illness can't be delayed any longer... They all need money."
Mao Huimei couldn't help but burst out laughing, and Fang Yongpeng felt even more embarrassed.
Mao Huimei smiled and said, "How did you come up with the idea of selling fruit here?"
Fang Yongpeng calmed down and felt that his action was a bit absurd. "Isn't this because they forced me to do nothing?"
"They have united all the buyers to lower the price. Since we can't sell them locally, I thought they wouldn't be able to do anything about it if I sold them to foreigners, right?"
"It's just a last-ditch effort," he said, suddenly grinning at Mao Huimei, showing her a row of white teeth, "but it's not that I met you guys, I'm still very lucky."
Mao Huimei couldn't help but laugh, "You are indeed lucky. Fortunately, we have a grudge against He Wei."
The three of them laughed.
After exchanging contact information with Fang Yongpeng and parting ways, Mao Huimei couldn't help but ask Xia Mian for her opinion, "Do you think this is feasible?"
"Am I too impulsive?"
"I really think it's feasible." Xia Mian said, "Besides, there are so many factories that have stopped production and closed down now. It's much easier to buy a factory than when Second Aunt was there."
In her previous life, Xia Mian heard from her father that those who took advantage of the layoffs to buy factories would basically become wealthy in a few years as long as they did not commit suicide or act rashly. She smiled and said, "Sister, if you don't have enough money, come to me and I will invest in you!"
Mao Huimei felt more at ease after hearing her say this, "Okay, I will definitely find you."
"So, now all we need is a factory, right?"
They didn't expect that the factory would be delivered to them shortly after Mao Huimei said this.
The author has something to say: Next chapter is coming soon
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