sbdcsierra Chapter 631 is roughly this idea.
Chapter 631 is roughly this idea.
At 7 p.m., Wang Ergou finally called.
“Xiangyang, I’ve heard some things,” Wang Ergou’s voice sounded heavy. “Tianrun Trading is indeed a legitimate company, but they’ve recently run into big trouble.”
"What trouble?" Li Xiangyang sat up straight.
“Several of their main suppliers have run into trouble one after another,” Wang Ergou said in a low voice. “Some were complained about for quality issues, some went bankrupt due to broken cash flow, and one was shut down for producing counterfeit and substandard goods.”
Li Xiangyang's heart skipped a beat: "So they urgently need to find new partners?"
"Yes, and I've also heard that several of their major clients in South China have started urging them to deliver goods. If they can't find a stable supplier soon, they may face huge breach of contract penalties."
Now Li Xiangyang understood. No wonder Tian Guoqiang had come to him at this time; he had encountered difficulties.
"Ergou, do you think this is an opportunity or a trap?"
Wang Ergou pondered for a moment: "I think it's an opportunity, but there are also risks. Tian Guoqiang genuinely wants to cooperate, but their current situation is very passive. If we agree to cooperate, the initiative will be in our hands."
"you mean?"
“We can offer more favorable terms,” Wang Ergou said. “For example, we could ask them to pay in advance before taking delivery, or we could demand a higher price.”
Li Xiangyang nodded; this was a good idea. Since the other party needed his help, there was no need to comply with their conditions.
"Okay, you stay in the provincial capital for another day tomorrow to learn more about the situation. I'll also think about how to talk to Tian Guoqiang."
The next morning, Tian Guoqiang called again as expected.
"Mr. Li, what's your decision?" Tian Guoqiang's tone sounded somewhat anxious.
“Mr. Tian, to be honest, your proposal is very attractive.” Li Xiangyang paused deliberately, “but I have a few conditions.”
“You say.”
“First, if we want to become the exclusive distributor, I need to see your company's specific sales network and customer resources in the South China market,” Li Xiangyang said. “Second, we need to renegotiate the price and payment terms.”
Tian Guoqiang was silent for a few seconds: "Mr. Li, how about this, I'll bring our South China branch manager over tomorrow, and we can talk in person?"
"Sure, but I'd like to see some substantial supporting documentation."
"No problem, I'll be well-prepared."
After hanging up the phone, Li Xiangyang sent a text message to Wang Ergou, asking him to take a closer look at Tianrun Trading's business in South China.
In the afternoon, Li Xiangyang was checking the production situation in the workshop when he suddenly received an unexpected phone call.
"Excuse me, are you Mr. Li Xiangyang?" The voice on the other end was a woman's, and she spoke very politely.
"I am, and who are you?"
"My name is Lin Yajing, and I'm the purchasing manager at Guangzhou Hualian Supermarket." The other party stated their purpose directly, "We'd like to establish a direct supply relationship with your factory."
Li Xiangyang was taken aback. He had heard of Hualian Supermarket; it was a very influential chain supermarket in South China.
"Manager Lin, how did you find out about our company?"
"Well, we've been looking for a high-quality agricultural product processing plant recently, and Mr. Tian from Tianrun Trading recommended you to us," Lin Yajing said. "I've looked at your product information, and the quality is indeed excellent."
Li Xiangyang's heart skipped a beat. It seemed that Tian Guoqiang did indeed have customer resources in South China, and had even taken the initiative to recommend them.
"Manager Lin, how would you like to cooperate?"
“We hope to bypass the middlemen and work directly with you,” Lin Yajing said bluntly. “This would benefit both of us; you would get higher profits, and we would get better prices.”
This proposal surprised Li Xiangyang. If Hualian Supermarket was willing to cooperate directly, it would indeed be much better than going through Tianrun Trading as an agent.
"Manager Lin, this suggestion is very interesting. However, I need to know some specific details, such as your purchase volume and payment method."
“Our annual purchase volume is around 500,000 units, and we can pay quarterly,” Lin Yajing said. “If you are interested, I can fly over next week for an on-site inspection.”
"Of course, you're welcome." Li Xiangyang was secretly delighted. An order for 500,000 sets was much more substantial than what Tianrun Trading had promised.
After hanging up the phone, Li Xiangyang immediately told Wang Ergou the news.
"This is getting interesting," Wang Ergou chuckled on the phone. "Tian Guoqiang probably doesn't know that the client he recommended is going to work directly with us, does he?"
“They probably don’t know.” Li Xiangyang smiled as well. “Lin Yajing explicitly stated that she wanted to bypass the middleman.”
"So what are your plans? Will you cooperate directly with Hualian Supermarket, or go through Tianrun Trading?"
Li Xiangyang pondered for a moment: "I think we can discuss both and see which offer the best terms. We might even be able to learn more from them."
"You want them to compete?"
“It’s not competition, it’s comparison,” Li Xiangyang said. “Tianrun Trading has committed to the entire South China market, and Hualian Supermarket is just one of its clients. If Tianrun Trading’s other clients are as powerful as Hualian Supermarket, then becoming a general agent might really be worth considering.”
"You've thought this through very well," Wang Ergou agreed. "Then I'll continue to inquire about Tianrun Trading, and you'll handle Lin Yajing?"
"Yes, we need to understand the situation from multiple perspectives to make the most accurate judgment."
The next day, Wang Ergou brought back more news.
"Xiangyang, I talked with some of the old employees of Tianrun Trading yesterday and learned some inside information." Wang Ergou approached Li Xiangyang as soon as he returned.
"What inside story?"
“Tian Guoqiang is actually very capable. Tianrun Trading has grown to its current scale mainly because of him,” Wang Ergou said, sitting down. “But he has a fatal weakness: he trusts people too much.”
"How to say?"
“The problems with the previous suppliers were all because Tian Guoqiang gave them too much trust and support,” Wang Ergou explained. “For example, the factory that was complained about for quality issues—Tian Guoqiang even prepaid a large sum of money to help them through the crisis. In the end, the factory owner took the money and ran away.”
Li Xiangyang frowned: "So, is his current collaboration with us just an attempt to replicate this model?"
“Possibly,” Wang Ergou nodded. “So I think that if we’re going to cooperate with him, we must keep control in our own hands.”
“You’re right.” Li Xiangyang stood up and walked to the window. “However, from another perspective, Tian Guoqiang’s character is trustworthy.”
"How to say?"
“A person who is willing to prepay for goods to help their partners shows at least that they are a loyal and trustworthy person,” Li Xiangyang turned around. “Although such people may sometimes suffer losses in business, in the long run, they are more worthwhile to cooperate with.”
Wang Ergou thought for a moment: "You mean, Tian Guoqiang is a decent person, just lacks experience?"
"That's roughly the idea." Li Xiangyang sat down again. "And I think that precisely because he's learned his lesson, he should be even more cautious now."