Chapter 209 High Rebates
After having dinner at Liu Biao's house, Xu Qiang had many dinner parties for several nights in a row.
First, Wang Yongsheng and others held a "graduation banquet" for Xu Qiang. During the banquet, everyone praised him constantly, and Xu Qiang seemed to have become the core of this group.
You know, although Wang Yongsheng and his people have never been fond of the leaders in the factory, deep down, they are more or less in awe of these factory cadres. Now that Xu Qiang has been admitted to university, he will be a leading cadre in the factory in the future. What's more, Wang Yongsheng and his people have to rely on the supply of goods provided by Xu Qiang to make money. It is natural for him to be praised by them so much.
Nowadays, Wang Yongsheng and his gang's business is getting bigger and bigger. Ever since Xu Qiang bought two trucks and lent them, Wang Yongsheng's range of activities has greatly increased. He even became a sick patient during this period, and has been outside contacting businesses and delivering goods for more than a week.
Sometimes, because the delivery volume was large, Xu Qiang lent both trucks to Wang Yongsheng. He and Lei Zi and others often split up into two groups to deliver goods to various places.
As a result, Wang Yongsheng has now become a first-level agent of Xu Qiang's daily chemical products. He can make a net profit of several hundred yuan just by delivering goods every day!
Correspondingly, Wang Yongsheng's orders to Xu Qiang are getting bigger and bigger. Compared with a month ago, the shipment volume is more than three times higher!
During this meal, Wang Yongsheng ordered 8000 yuan worth of goods from Xu Qiang, which made Xu Qiang's working capital exceed yuan! In addition, Xu Qiang also bought a lot of equipment and raw materials during this period. In total, Xu Qiang's total personal assets have reached more than yuan!
Correspondingly, the more orders he receives, the more raw materials Xu Qiang will have. But under the current circumstances, it is difficult for Xu Qiang to get more raw materials from Wang Zhong, the director of the town supply and marketing cooperative.
Originally, Xu Qiang and Wang Zhong used each other, but now, Wang Zhong already has more channels to purchase humic acid fertilizers, and Xu Qiang's importance to him has decreased. Therefore, he is becoming less and less concerned about Xu Qiang's entrustment of him to buy raw materials. Sometimes he even has to delay for several days before buying the raw materials, which obviously holds Xu Qiang back.
So now that Wang Yongsheng keeps placing orders, Xu Qiang’s top priority is to expand the channels for purchasing raw materials.
It was precisely because of this that Xu Qiang thought of cooperating with He Yong, the head of the factory's supply and marketing department.
"Hahaha, I really didn't expect that you actually got into university." As soon as the two met in the restaurant, He Yong immediately smiled and extended his hand to him.
"Actually, I didn't expect this. Maybe it's because I'm lucky and God blesses me and makes my life come true." Xu Qiang also said with a smile.
"You are too modest! You are really a capable person." He Yong looked at Xu Qiang approvingly and then said, "My son will learn a lot from a capable person like you."
Now, He Yong's son He Wei is in the same project team as Xu Qiang, but Xu Qiang did not assign him any technical tasks. He just asked him to help run errands every day.
In fact, if it weren't for his father He Yong's face, Xu Qiang would have kicked him out of the project team long ago and would not have let him work under him.
"He Wei is actually quite smart, but he just doesn't focus on studying."
"What kind of person is that kid? As his father, don't I know?" He Yong shook his head and continued, "He has been uneducated since he was young, and he has high expectations but poor skills. He has no skills at all, and sometimes he has a bad temper... As his father, I travel abroad all year round, and his mother just spoiled him too much..."
It is obvious that He Yong knows his son very well, but he also has his helplessness. As a salesman, he is often away from home for ten days or half a month, and when he returns home, he is naturally very affectionate to his wife and children. So even though his son He Wei often got into trouble during his school days, he could not bring himself to educate his son.
"...If that kid could be half as capable as you, I would be very lucky." He Yong said with emotion.
"In one's lifetime, there is actually very little that one can learn from school and parents. Only when one hits a wall and suffers losses can one learn a lesson. You don't have to worry, Lao He. After a few years, he will naturally change." Xu Qiang said.
"I hope so..." He Yong sighed, then sat down and said, "Let's eat and talk at the same time."
"Yes, yes! Let's eat and talk at the same time." Xu Qiang said, waving to the waiters outside, signaling them to serve the dishes quickly.
After the food and wine were served, the two quickly got down to business.
"...In the future, if the factory asks us to purchase things for your laboratory, we will definitely buy them back on time and in the right quantity. However, the chemical laboratory here does not usually purchase large quantities. They are all for experiments. I think a few dozen kilograms is enough. It is impossible to buy tons by tons, right?" He Yong said. "That's right. We usually don't use much raw materials for experiments. I told you last time. The key is that I have my own small factory outside, and the materials used there are much larger." Xu Qiang paused, and then said: "Maybe the purchase volume of raw materials every month is several tons or even more than ten tons, and I don't trust the things of small factories. It's best to buy from large state-owned enterprises..."
"This is a bit difficult..." He Yong frowned and continued, "The factory spends so much money on purchasing raw materials, so it must be reviewed. You know, our factory director is the reincarnation of Huang Shiren, and every penny will be deducted. You might make a mistake by then..."
"I don't use the factory's money. I buy it with my own money. I just want to contact the manufacturers in the name of our factory and buy some relatively scarce chemical raw materials." Xu Qiang said.
"If you spend the money yourself, then it's easy. I can contact the manufacturer..." He Yong pondered for a moment, then continued, "But you also know that if you want to buy some scarce materials now, you can't just have money. Even if you are a big factory, they may not sell to you. So in the end, you still have to find someone to use your connections. Who will do things for you without some benefits..."
"Haha, Chief He, there's no need to beat around the bush. I understand what you're talking about." Xu Qiang smiled and continued, "How about this. From now on, when you or someone from your department goes out to help me negotiate business, I'll cover all the travel expenses, accommodation expenses, and food expenses. In addition, every time you help me purchase raw materials, I'll give you a 5% kickback. What do you think?"
Nowadays, many people who are doing business outside take kickbacks privately.
Some manufacturers will even send contact letters to these salesmen, and will give a certain amount of kickbacks to any salesmen who help them sell or purchase products. The kickback ratio is generally around 8% to 10%. In order to open up the market, some companies even offer a 20% kickback!
To put it bluntly, the reason why Xu Qiang asked He Yong to purchase products from large state-owned enterprises was to prevent his salesmen from purchasing inferior products produced by small factories or even workshops for him in exchange for high kickbacks. The quality and pricing of products from large factories are open and transparent, and there is no shortage of sales channels. Therefore, it is difficult for salesmen to get kickbacks from manufacturers, and they may even have to give kickbacks to manufacturers.
So Xu Qiang proposed to give them a 5% kickback in addition to reimbursing the train tickets, accommodation and food expenses. In fact, train accommodation doesn't cost much money, and a hundred or eighty yuan is enough for a trip. The key is the % kickback, which is still a very tempting ratio.
Although small factories outside have higher kickback rates, their products are difficult to sell, while Xu Qiang purchases directly. They only need to contact the manufacturer to place an order, which is just a running errand job. It is Xu Qiang's money that is spent, and just by using the name of Victory Machinery Factory, they can easily earn such high kickbacks. This is indeed a very tempting proposal.
"Well..." He Yong was obviously tempted at this time. After thinking for a moment, he said, "But if the amount you purchase is too small..."
"Every time I purchase raw materials, it will not be less than 10,000 yuan!" Xu Qiang saw his thoughts and continued, "Now my factory's business is expanding rapidly, and the amount of some raw materials used is also increasing. If the purchase quantity of raw materials is small, there is no need to contact you at all."
"That's fine!" Hearing Xu Qiang say this, He Yong's eyes suddenly lit up.
For a one-time purchase of raw materials worth 10,000 yuan, the kickback is 500 yuan, which is almost equivalent to He Yong’s income for nearly a year!
Although his position as the head of the supply and marketing department was a "fat job", and he could earn some extra money every time he went on a business trip to help the factory negotiate business or bring some things for other leaders, overall he could only earn an extra hundred or eighty yuan a month, and if he was lucky, one or two hundred yuan, but he couldn't make a fortune at all.
But Xu Qiang gave He Yong a kickback of at least 500 yuan, or even more, which was far beyond He Yong's imagination. What's more, it was not illegal to do so. The purchasing money was all paid by Xu Qiang himself, and the kickback was also given by him. He Yong did not take a penny from the factory, so there was naturally no question of embezzlement or bribery. It was safe and profitable. There was no reason not to do such a deal!
As for Xu Qiang, he simply took advantage of the connections in the Supply and Marketing Department and purchased some relatively scarce raw materials under the name of the factory. However, as long as the payment was in place, the manufacturer would not investigate such matters at all.
"Then let's make it settled. I'll make a shopping list in the next two days. The delivery address is the fertilizer factory in Xiazhuang Village. It's separate from the things I purchase for the laboratory in the factory. You have to remember this!" Xu Qiang reminded.
"Don't worry, I've been doing business for more than ten years and nothing has gone wrong."
"That's good." Xu Qiang nodded, then raised his glass and said to He Yong: "To celebrate our happy cooperation, cheers!"
"cheers!"
The next moment, their glasses clinked together...
(End of this chapter)