Chapter 137 Lianzhong
Yu Lin has been working as an electronic game wholesaler for so many years, and the thing he has the most is good eyesight. He knows exactly what products sell well and what products don't.

Seeing Zhang Yunqi bring up this topic, he took out the Subor learning machine and started to analyze it: "In fact, I have been in the game console business for so many years. I often encounter a situation where a game console is very well made and very attractive to children, but the price is not cheap and parents have to pay for it. As you know, Chinese parents have always believed that playing games is a waste of time, so it is common for them not to buy it. Later, they will scold their children, and this will result in the loss of a large number of customers."

Yu Lin poked the Subor learning machine in his hand and said, "The biggest highlight of this Subor learning machine is that it is obviously designed to address this problem. Like other game consoles, it targets the children's game market, but the three words "learning machine" and some built-in learning functions distinguish it from other game consoles. It can perfectly combine the two points that children love to play and parents are willing to pay for it. The market prospect is not small."

Seeing that Yu Lin's analysis was very well-organized, Zhang Yun was very optimistic about the market for Subor learning machines. This saved him a lot of effort as he did not have to describe how popular Subor learning machines would be in the country in the future.

Zhang Yunqi took out the distribution contract he had signed with Rihua Electronics Factory and handed it to Yu Lin: "Since you said so, take a look at this first."

Yu Lin glanced at the words on the contract, was stunned for a moment, and then subconsciously asked: "Have you obtained the distribution rights for this product?"

Zhang Yunqi nodded.

Yu Lin took the contract and read it carefully.

There are a lot of contents in the contract, but Yu Lin only focuses on three points. The first point is the regional general distribution rights, the second point is the distribution area covering the entire Xiangdong, and the third point is profit distribution.

After reading it, he roughly understood it.

Why did Zhang Yunqi not agree to his cooperation proposal twice? Because Zhang Yunqi had not yet obtained the distribution contract at that time. With or without the distribution contract, the cooperation between the two was completely different. However, this did not mean that there was anything wrong with Zhang Yunqi's behavior. On the contrary, he admired Zhang Yunqi's unique vision and keen sense of smell in the field of game consoles. Doing business with such a person would make money.

Yu Lin put down the distribution contract, lit a cigarette, smoked half of it, and then looked at Zhang Yunqi and asked, "I have a question I'd like to ask you. How did you get the sole distribution rights for the entire Xiangdong region of Xiaobawang?"

Yu Lin really couldn't understand this.

He was already very familiar with Zhang Yunqi. There was no doubt that he was smart and capable, but when it came to distribution channels, he was completely alone. He had no distribution channels, no financial strength, and not even a single salesperson. Distributors were an important link in the long sales channel chain from manufacturing companies to terminal retail, especially general distributors in large regions. Common sense would indicate that any company with strength and prospects would be extremely cautious and investigate the other party's strength and background. It was obviously very rash to allow a person with nothing to directly obtain the general distribution rights in such a large region.

Of course, having said that, dealers do need a certain amount of financial strength to distribute products, and they also need certain distribution channels to control the terminal market, but the most important quality of dealers is marketing ability.

Zhang Yunqi had no funds and no distribution channels, but what Yu Lin didn't know was that the marketing plan Zhang Yunqi gave to Duan Yongping and the advertising plan that would soon be broadcast during prime time on CCTV were enough to make Duan Yongping trust that his marketing skills would not be too bad.

This is the biggest reason why Duan Yongping gave the general distribution rights of Subor learning machines in Xiangdong area to Zhang Yunqi without hesitation.

Zhang Yunqi put out his cigarette butt in the ashtray and said, "The process of obtaining the distribution rights is a bit tortuous, but it is not important. What is important is that we now have this distribution contract and a huge market waiting for us to develop."

Zhang Yunqi deliberately said "we" to send a message of cooperation to Yu Lin. Now both sides recognize that the market prospect of Subor learning machine is very large, and they have the most critical regional distribution rights. The next thing to discuss is how to cooperate to build this market. Yu Lin was very interested in cooperating with Zhang Yunqi, otherwise he would not have repeatedly asked Zhang Yunqi to discuss this matter.

Now that they have obtained the general distribution rights for such a large market, it is necessary to set up a company. This will be more convenient for building distribution channels, connecting with customers, and making corporate payments to Rihua Electronics Factory. However, setting up a company involves details from all aspects, and Zhang Yunqi and Yu Lin discussed it for three days.

During this period, he also called his elder sister Zhang Qiulan and Wang Guibing to discuss the matter. Although these two people currently lack some abilities, they have been following him in doing business and are good at using him. Zhang Yunqi plans to let them join him and continue to work with him, so that they can also get a share of the pie.

On April 4th, the company's framework came out.

Zhang Yunqi provided 60 yuan of funds to participate in the establishment of the new company, accounting for 35% of the shares; Yu Lin injected channel resources from Jiangchuan City and Hengnan City and 5 yuan of funds into the new company, accounting for % of the shares; Zhang Qiulan and Wang Guibing invested yuan, accounting for % of the shares.

In fact, in the distribution trade system, the role of capital is relatively secondary, and market capability and capacity are the key factors to consider. The fact that Zhang Yunqi obtained the general distribution rights in Xiangdong District from Rihua Electronics Factory without spending a penny was a recognition of his market capability.

In fact, as long as he obtained the distribution rights of the Subor learning machine, it would not be an exaggeration to say that he could make money without doing anything, as the Subor learning machine had been selling well for several years once it was on the market. Any terminal seller of the Subor learning machine in Xiangdong area who wanted to be a terminal seller could get a toll from Zhang Yunqi.

There are two reasons why he asked Yu Lin to cooperate.

The first is that Yu Lin has distribution channels and can quickly realize cash.

The second reason was that he was impressed by Yu Lin's ability in business. Zhang Yunqi didn't want to get bogged down in the daily affairs of the company. Making money was important, but after all, it was not something that was meant to be used to enjoy life.

At present, his trusted elder sisters Zhang Qiulan and Wang Guibing are not capable enough to manage a company in an all-round way, but Yu Lin has this level, and they have been cooperating for so long that both parties are very happy. Why not let him manage the company's affairs and free himself up to let others make money for him?

The name of the new company was finalized by Zhang Yunqi, called Lianzhong Trading Co., Ltd., with Yu Lin as the general manager, and Zhang Qiulan and Wang Guibing responsible for some specific matters.

In the early 1990s, the procedures for company registration were extremely cumbersome. The entire process included pre-registration of the company name, capital injection from a designated bank, capital verification by an accounting firm, company registration, seal making, application for an organization code certificate, statistical registration, tax registration which was divided into national and local taxes, opening a bank account, transferring funds, etc. There was also professional pre-approval, but without a professional agency, the entire process would take more than half a month to complete.

At that time, there was no age limit for company promoters, and company shareholders could even be newborn babies. However, in practice, the regulatory authorities required that the legal representative must be a person with full civil capacity, that is, he must be at least 18 years old. Zhang Yunqi was still a few months away from turning 17, so he naturally could not be the legal representative, so he let his eldest sister Zhang Qiulan take over.

It would take a while to register a company, but time waits for no one. The advertisement of Subor learning machine should be broadcasted in the prime time of CCTV soon, but where is the distribution channel? Where is the money for distribution?

Zhang Yunqi wanted to resolve these two issues as soon as possible.

(End of this chapter)