Chapter 26 Machinery Leasing
"By the way, I want to know how many tons of fertilizer your peat field can produce in a day." After two glasses of wine, Wang Zhong finally began to talk about the issue that concerned him most.

"To be honest, we can only produce less than 500 kilograms of fertilizer a day, which is already the limit." Xu Qiang looked helpless and continued, "As I said just now, my stall has no electricity and no equipment. It has been less than two weeks since the preparation, so the production process is all done manually..."

"Five hundred kilograms...it's indeed too little..." When Wang Zhong heard Xu Qiang say this, a hint of disappointment flashed across his face.

Five hundred kilograms a day, which is less than fifteen tons a month. It sounds good, but in fact, the town supply and marketing cooperative can sell hundreds of tons a day when the demand for fertilizers is at its peak. Compared with the demand of the supply and marketing cooperative, Xu Qiang's output is simply a drop in the bucket.

"But if we have the equipment, the output can be greatly increased." Seeing Wang Zhong's disappointment, Xu Qiang said quickly: "Our place is really a Feng Shui treasure land. The humic acid content in peat is very high. With the same equipment, we can definitely produce humic acid with lower cost and better quality than other places. If Director Wang is willing to help me get the equipment..."

"I can't help you with this." Wang Zhong shook his head like a rattle and said, "Our supply and marketing cooperative mainly sells daily necessities and agricultural products. For equipment like the fertilizer plant, you can only buy it from the manufacturer. I don't know much about it..."

"In fact, your supply and marketing cooperative already has the equipment I need." Xu Qiang suddenly said.

"What device?"

"It's the 195 model Yongkang diesel engine. Together with its supporting equipment, it can be used to pump water and generate electricity. It's exactly the equipment I need most!" Xu Qiang said, looking directly at Wang Zhong.

The last time Xu Qiang came to the town supply and marketing cooperative, he had already set his eyes on that diesel engine. He really had no money at that time, otherwise he would have bought it.

If we have that diesel engine, we can solve many problems at the peat field. At least we don't have to go up and down the mountain to fetch water every day. The most important thing is that we can greatly improve production efficiency. In addition, diesel engine power generation can also solve the current power problem of the peat field. It is of great use whether it is for night lighting or to provide power for other equipment in the future.

"It seems that you have been thinking about that diesel engine all the time." Hearing this, Wang Zhong couldn't help laughing. After a moment, he said, "Let me tell you this. That diesel engine has been in the warehouse for almost two years. But I can't sell it to you cheaply. We are a collective enterprise. Everything has a strict price and must be paid through accounts. If someone comes to me to buy something, I can at most not ask for his ticket or approval slip, but the price is the price, and I can't violate the rules."

"You don't have to sell it to us first, you can rent it to us first." Xu Qiang paused, then said: "Like you said, it's just sitting there in the warehouse, why not rent it to us? The rent can be higher..."

"That won't work, Xiao Xu. Our supply and marketing cooperative can indeed provide some farm machinery for rent, but that requires the production team to guarantee it. Individuals are not eligible to rent farm machinery." Wang Zhong frowned slightly and continued, "A diesel engine is worth more than a thousand yuan. This amount is too large. I can't bear such a big responsibility."

"Director Wang, you once told me that if you want to make money, you must be bold. The bolder you are, the more productive your land will be!" Xu Qiang obviously didn't want to give up. He continued, "By the way, there is one more thing I want to ask you. How much is our humic acid priced at per bag?"

"Currently, a bag of humic acid fertilizer on the market weighs 50 kilograms, and the ex-factory price is about 12 yuan." Wang Zhong said after a moment of hesitation.

"We can now produce 500 kilograms of finished products a day, which is 120 yuan. Ten days is enough to buy a machine."

"Then you don't have to rent this machine. It only takes ten days, you can definitely buy it."

"It's not that easy. There are costs for us to produce humic acid. Caustic soda and hydrochloric acid are all consumables and the usage is very large. There are also staff salaries and other miscellaneous expenses. All in all, we can only make a profit of 30% at most. So if we really want to buy this machine, it will take at least more than a month." In fact, Xu Qiang had already calculated the cost of the product. The current daily output of the peat field is more than 400 kilograms, and after the transformation is completed, the daily output can reach about 500 kilograms.

Assuming the price of 50 yuan per kilograms of finished product, the gross profit per day is yuan, which is yuan per month.

It sounds like a lot, but the extraction of humic acid requires caustic soda and hydrochloric acid, which is not a small amount either. Add to that the salaries and bonuses of several people, and the fact that Xu Qiang provides food, and all the other expenses, the profit is only about 40%.

Fortunately, there are currently no water, electricity or site fees, otherwise the profit would be even less.

In fact, a 40% profit is already very lucrative. In the future, it would be enough to drive most companies crazy. However, due to the current pitifully small output of finished products at the peat field, it is really difficult for Xu Qiang to make much money.

"But……"

"If Director Wang is willing to rent this diesel engine to me, I can give you a 20% kickback every month as rent!" Xu Qiang said, holding up a finger.

"A 10% kickback!?"

Wang Zhong did not expect that the rent offered by Xu Qiang would be so high. You know, this machine is only more than 1000 yuan. With Xu Qiang's current income from the peat factory, if he gets a % kickback every month, the cost can be recovered quickly.

"Not only do I want to rent this machine, but I will continue to rent it." Xu Qiang smiled and continued, "Not for anything else, just for our friendship."

"Hahaha! You are still very smart..." Wang Zhong was stunned for a moment, then said with a smile.

It is obvious that Xu Qiang actually wanted to use the name of diesel engine leasing to give long-term kickbacks to the supply and marketing cooperative.

Because Wang Zhong is a very important person to Xu Qiang at present. As long as he helps, the peat factory will not have to worry about sales of its products. At the same time, it can also purchase some chemical raw materials that are not publicly sold on the market. This is crucial.

Moreover, nowadays, if private enterprises want to sell their products in shopping malls and supply and marketing cooperatives, giving kickbacks has actually become semi-public. It’s just that Xu Qiang gave a slightly higher amount in order to be able to tie his own business together with the long-term interests of the supply and marketing cooperatives.

Moreover, for Xu Qiang, as long as he had the diesel engine, the production efficiency of the peat field would be significantly improved, and he would definitely make more money. So no matter from which aspect, Xu Qiang would only make money and not lose money...

(End of this chapter)