sbdcsierra Chapter 218 Is saving face more important than the life and death of the trading company?
Chapter 218 Is saving face more important than the life and death of the trading company?
“Secretary Mei, it’s not that I’m not following Mayor Weng’s arrangements, but the trading company really doesn’t have any money right now.”
If the trading company had the funds, I would definitely hand them over immediately.
Huang Zaiming said helplessly.
"What's going on? Aren't trading companies supposed to be very profitable?"
"It's precisely because trade is so profitable that I insisted on having you take charge of the trading company, despite all opposition."
Mei Hongjie asked.
He needs to understand the situation clearly, figure out where the problem lies, and then find a way to solve it.
"Secretary Mei, here's the situation."
The trading company used to source its goods from Shenzhen and Guangzhou, mainly electronic products and trendy clothing.
At that time, these things were relatively rare in Handong, so they sold for high prices and attracted many buyers.
Two or three months ago, the products started to become difficult to sell.
On the one hand, many people who can afford it have already bought it;
On the other hand, more and more people are bringing goods from Shenzhen and Huacheng in Lingnan to Handong to sell, which has lowered prices and reduced profits.
In May and June, the trading company earned 30 million yuan, all of which went to Biyun Technology.
Later, they also took away ten million yuan of the company's reserve funds.
Since then, the trading company has run out of money.
Later, it was Biyun Technology that brought in a batch of goods from Hong Kong, and the trading company was able to scrape together ten million to hand over to the township.
Huang Zaiming briefly explained the situation, stating that it wasn't that he was deliberately not cooperating with Township Head Weng Suyi, but rather that the conditions didn't allow it.
"Hasn't the trading company always been operating healthily?"
I know about the township's previous arrangements. Every time the trading company was asked to hand over funds, enough operating funds were left behind, each time amounting to several million or even more than ten million.
How come we suddenly have no money?
Mei Hongjie was puzzled. According to the township's previous arrangements, the development of the trading company was very healthy.
Otherwise, Biyun Township would not have achieved its current success.
Biyun Township's current achievements are basically due to its trading companies.
The current Party and government leadership of Biyun Township is attracted not only by Biyun Township's impending transformation into a township with an annual output value of over 100 million yuan, but also by the strong financial support capabilities of the trading company.
Don't forget, Biyun Township also has a new town covering 6000 mu that hasn't even started construction yet.
This required a lot of funding. The reason why Biyun Township dared to carry out planning and design and start developing this new town was because the trading company kept providing financial support.
Only with continuous trade support can this new town be built quickly and become another great achievement.
Now, things have gotten worse; the trading company is in trouble and can't get any more funding.
How can the new town be built then?
If the new town cannot be built, wouldn't their current party and government leadership become a laughing stock?
The previous party and government leadership planned the project, acquired the land, and even leveled half of the land for you, yet you've left it empty.
People will think that their current party and government leadership is useless, and their careers will be greatly affected.
They all have connections behind them, so it's unlikely their careers will stop, but they won't have any good opportunities in the short term.
"Secretary Mei, the trading company has acquired several plots of land in Jingzhou and plans to build office buildings and warehouses."
The company's remaining funds were mostly used for this.
However, because most of the funds were handed over to the township government, only the foundations of the office building and warehouse were ever laid.
Huang Zaiming continued to explain.
"Then you should increase sales. Doesn't the trading company have a batch of goods?"
Once the goods are sold, the trading company will have money, right?
With money, you can buy more goods, sell more goods, and make even more money.
After several such cycles, wouldn't the funds be more readily available?
Mei Hongjie said, "The trading company still has a batch of goods on hand. We should hurry up and sell them, then hurry up and buy more goods, and then hurry up and sell them again."
After doing this three or four times, the trading company will have money.
"Secretary Mei, the problem lies in selling things. Our sales staff don't take selling seriously at all; they're just wasting their days."
This caused our batch of goods to remain unsold for a long time.
"And our goods aren't unique; there are over a dozen suppliers in Jingzhou. The longer we wait, the harder it is to sell them."
Huang Zaiming said that the key to the problem lies with the sales staff.
"Assign them tasks, supervise them, give them strict orders, and punish them if they fail to complete them!"
Mei Hongjie thought it was a big problem, but it turned out to be just a problem with the management method.
This problem is too simple. Just like cadres, assign them tasks, urge them on, and if they still can't do it, give them a firm order and impose severe punishment.
The sales staff will absolutely work incredibly hard.
"I don't have time. I've already tried the method you suggested, but it didn't work at all, and I can't fire them!"
Huang Zaiming said that the current trade sales staff are all formal employees, equivalent to state cadres, and he has no right to fire them.
Another point is that these salespeople all have connections with the leaders in the township.
If he fires them, the local leaders will definitely cause him trouble.
"Then what do you think we should do?"
Mei Hongjie said impatiently.
This Huang Zaiming is a complete idiot; I was blind to have put him in this position.
If he had known that Huang Zaiming was such an incompetent person, he would have replaced him with someone else.
"I suggest restoring the original salary system and turning these sales staff into collective managers!"
Huang Zaiming said.
As before, most of the employees of the trading company did not have cadre status.
The salary is a base salary plus commission, and the base salary is very low, barely enough to make ends meet.
If you want to eat well, dress well, and earn more money, then work hard to sell things.
The more you sell, the higher your salary will be.
Moreover, this method is very effective.
The reason why the trading company was doing so well before was because the sales staff worked very hard and tried their best to sell products.
Then, each of them earned over 100,000 yuan in less than a year.
The trading company also earned over 100 million.
Currently, other companies in Jingzhou use a base salary plus commission, which motivates their sales staff.
Unlike trading companies, the sales staff have virtually no motivation.
"That's impossible. If we give them official employee status, we can't give them high salaries."
You can only choose between your job status and your salary!
Mei Hongjie said seriously, "If we do as Huang Zaiming says, wouldn't that be changing orders every day?"
This would make them, as leaders, appear untrustworthy and lose face, which he would absolutely not allow.
"But, Secretary Mei, the current system doesn't give sales staff a sense of crisis!"
Without a sense of crisis, they lack motivation and won't work hard to sell their products.
If they don't work hard to sell the goods, the trading company won't have much income, and if this continues, it will become unprofitable!
The trading company will face bankruptcy and closure.
"I can't possibly go and sell the goods myself, can I? What's the point of having them if I do it myself!"
Huang Zaiming said that the problem is already very serious, and if things don't change, the trading company is doomed.
Is saving face more important or the survival of the trading company?