Yang Fan was not optimistic about these officials and businessmen, so he was unwilling to bring them into his own industry. They would follow the master's family and move around. Wherever the master's family became officials, they would follow him to make a fortune.
The money they earn is money they can earn through power.
What Yang Fan needs is a partner who is committed to being a business partner. Just turn them all into trading houses. Ningyuan himself transferred part of the profits to them.
"I'll design a plan. Take a look and see if you're interested." Yang Fan said.
"Each ton of open-hearth steel is a delivery document. You can pick up no less than 1,000 tons at a time, and the number of pick-ups is not limited. The signed contract is valid for one year."
Yang Fan's idea is simple, just turn them all into traders. Give them a wholesale price, they have strong capital and the ability to purchase in bulk. Stop making steel and iron yourself.
There were whispers below, all discussing in low voices.
They are all government officials and businessmen, very shrewd, and they all calculate the gains and losses.
Yang Fan was not in a hurry and sat on the main seat chatting with Wei Bancheng about home affairs. I heard that my wife was pregnant again. The doctor came to check her pulse and said it might be a girl.
Yang Fan congratulated him on his upcoming son and daughter. Wei Bancheng was so happy that he couldn't open his mouth from ear to ear.
The shopkeepers are all calculating the profits and losses.
Daming's pound is 600 grams, which is not easy to convert to Yang Fan's tons.
The price of Yang Fan’s open-hearth steel is so low that it makes people cry. At this time, the best steel in the Ming Dynasty was Su Steel, which was manufactured using the steel filling method. In Suzhou, you can get it for three and a half cents per pound.
From the thirty-seventh year of Wanli to the first year of Chongzhen, the price of iron fluctuated between 0.03/0.16 (two) per catty.
Scrap iron is 0.032 taels per catty. Pig iron is 0.006 taels per catty, cooked iron (Fujian iron produced in Fujian) is 0.02/0.016 taels per catty, and Suzhou Steel is 0.0365 taels per catty.
The performance of Yang Fan's open-hearth steel is far superior to that of Suzhou Steel, and it only costs one cent per catty. If I give everyone a 10% discount, that’s nine cents of silver. One ton is 2,000 pounds. About 18 taels. One thousand tons is eighteen thousand taels.
This number is not small. However, for government officials and businessmen, their capital is still relatively strong. Totally edible.
Then again, if it wasn't a bulk purchase, why would Yang Fan give them a discount? This stuff is in quantity and the turnover is very fast. A thousand bills of lading changed hands and went out quickly.
A bill of lading costs 18 taels, and can easily be sold to a merchant who comes to purchase goods for 20 taels. This profit is very amazing. Because the turnaround is quick, you can do it several times a month.
Many people got excited. A thousand delivery receipts are likely to change hands within a few days.
Of course, if they are willing to take the goods away instead of reselling the delivery documents, they will make more money by transporting them to the south.
Su Steel cost three-and-a-half cents a pound of silver. That was the price at the place of origin. It would be even more expensive to transport it to many places.
Open-hearth steel is so good that it can be sold more expensively than Suzhou Steel. If they were willing to transport goods over long distances, they would definitely make more money.
There were many provincial capitals and big cities throughout the Ming Dynasty, so there was no need to worry about selling the steel. At present, Daming Steel's production is in short supply and it is completely a seller's market.
"One order requires so much delivery. If we have sufficient funds to take a few more orders, how long will it take for Xinghe Iron Works to ship the goods to us?" Zhang Chong asked a more realistic question.
Steel prices are volatile, and there is a time risk if you wait too long to pick up the goods. At that time, there may not only be no profit but also loss of money.
Yang Fan immediately glanced at Zhang Chonggao. Others only saw profits. They could make two thousand taels of silver by reselling the goods once they picked up the goods. Zhang Chong saw the time risk. If the goods cannot be delivered on time and are delayed, he will have to bear the risk of price fluctuations.
If Yang Fan wants people to stock up on large quantities of goods, he must solve the risk problem.
Yang Fan said: "I am planning to set up a steel futures exchange in Zunhua. Each delivery document will be sold two months in advance. The document is valid for two months. The document can be bought and sold freely during the exchange's trading hours. If the price falls, If the issue price breaks, Xinghe Iron Works will repurchase it at the original price."
Zhang Chong immediately asked: "What if the price goes up."
Yang Fan said: "Two options. First, you can choose to sell it directly on the exchange, or you can directly use the receipt to withdraw the spot when it expires."
In fact, this was Yang Fan's guarantee of their funds. Only make money, no possibility of losing money. And Yang Fan won't lose money if he repurchases it, it's just a receipt. At most, you won’t make any money, so you’ll get your money back.
Zhang Chong asked: "Can I pick up the goods in advance?"
Yang Fan said: "The reason for this design is that we are not sure that the goods will be available at any time. If the goods are available, they can be picked up in advance, but Xinghe Iron Works will definitely deliver the goods on the due date."
This design basically relieves everyone’s worries.
In fact, these people purchased one thousand tons of goods at a time, worth 18,000 taels of silver. I became a wholesaler and got an affordable price.
These people all expressed that they would go back and discuss it with their master. They all said goodbye.
Even Wei Bancheng was jealous, this was a good deal.
Yang Fan explained to him: "Brother Wei, there are big profits and big risks here. I am doing this market mainly to avoid the risks of bulk purchasers through hedging. If you want to do it, you can come directly. Picking up the goods, no need to participate.”
Wei Bancheng accompanied Yang Fan to the second floor.
All the shopkeepers stood up and saluted, and Yang Fan returned the salute. Today, everyone is a partner, regardless of status, we are all equal.
"Everyone, I have just reached an agreement with the dozens of shopkeepers above. They will no longer operate iron plants and mines, but will become trading houses. They purchase bulk goods from Xinghe Iron Works. I also have some ideas for you local steel companies. , let’s discuss it and see if we can reach an agreement.”
Everyone nodded, and they saw that Yang Fan had finished talking with the shopkeepers upstairs. The shopkeepers went downstairs one after another and left in a hurry. It seemed like the deal was going well, and they were going back to discuss it with their master.
"General Yang, please tell us that you will give us a way out so that we can continue to operate without going bankrupt. We are all willing to accept it," everyone said one after another.
"Your technology is too backward. After the Xinghe Steel Plant is established, you will have no room for survival. I suggest that you withdraw from the field of metal mining and smelting and switch to other things."
Everyone looked at each other.
Zhou Fen cupped his hands and said, "I don't know what General Yang wants us to change production."
Yang Fan said: "The steel industry is a very large industry. Extraction and smelting are only part of it. But this part. If Xinghe Iron Factory provides you with steel raw materials, wouldn't it be more profitable if you transform into a metal processing workshop?"
Yang Fan looked at the crowd and continued: "Smelting relies on scale to produce benefits. Processing is different, it relies on technical content. For example, you produce iron nails, iron sheets, and iron products. I can even provide you with technology. , produces enamel products. Based on steel, there are thousands of ways to make money through steel processing. The profit in this area is far higher than that in smelting. You can transform into this area. I call this area light industry. You can think about it."
There is none today. I was delayed by something tonight. I will make up for the two chapters I owe tomorrow morning.
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