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Chapter 120: Meeting old classmates [Tonight at 19:3...

After Liu Yan finished speaking, he went straight to the commercial wholesale market.

The market is located on the banks of the Ningcheng River in downtown Ningcheng City. Liu Yan soon arrived at the door of a clothing store.

In addition to Lu Tianhai and Huang Xiaoyang, there are two tall girls in the store. Several customers are choosing clothes, and the two girls are helping them try on clothes.

Seeing Liu Yan, Lu Tianhai and Huang Xiaoyang walked out immediately.

"We haven't seen you for two years, why haven't you come back during these holidays?" Lu Tianhai asked.

"I'm busy with social practice and research, but I'm all in the county." Liu Yan continued: "Oh, it's time to replace a shotgun with a cannon! Have you applied for a business license?"

Lu Tianhai said: "This was done before the National Day the year before last. At that time, a policy was issued, which said that under the overall planning and guidance of the state, the labor department would introduce employment and voluntarily organize employment and self-employment.

Many educated youths like us who have returned to the city have obtained individual business licenses."

"In the beginning, we set up a clothing stall. After the market was built last year, we rented a small shop here." Huang Xiaoyang continued.

Liu Yan looked around: "Although the store is small, the location is pretty good."

"The flow of people here is relatively large, and there are many tourists from out of town. Ningcheng locals also like to go here for a walk at night."

"Did you make money?" Liu Yan asked with a smile.

"After deducting rent and all expenses, I can basically make a few hundred yuan steadily every month," Lu Tianhai said.

"Okay! It's higher than your parents' salary combined. It seems that it won't be a problem for you to complete your three-year plan ahead of schedule."

"Haha! If you hadn't given us confidence at the beginning, it would still be a question of whether we could persevere."

"The key is not that I gave you confidence, but that the current policies are good! It's the country that gave you confidence, and you seized the opportunity. What are your plans next?" Liu Yan said with a smile.

"Liu Yan, we are looking for you to discuss something with you."

"What's the matter? Tell me."

"It's what you once said about the outsourcing of clothing processing."

"What? You want to create your own clothing brand now? Is there any sales?"

"Sales are constantly increasing. In the past two years, each of us has made less than 10,000 yuan.

The key is that there are more and more people selling clothes now, and there are no less than fifty companies in this market.

Moreover, the styles and grades are almost the same, and competition is becoming more and more fierce. Not only can profits fail to increase, but they are also constantly declining."

"Look, the few customers who were choosing clothes in the store just now have been looking at it for a long time, and now they go to the store next door. If this situation continues for another year or so, everyone will have almost no profit."

Liu Yan looked towards the store, and there were only two tall girls left in the store.

At this moment, another wave of customers walked into the store.

"What is your current sales profit?"

"About 40%!"

"Are those two girls your concern?"

"When we set up the clothing stall, they followed us. Every time we went to buy goods, someone had to watch the stall."

"Have you ever discussed cooperation with a clothing factory?"

"Since the end of last year, we have visited several state-owned garment factories in Ningcheng."

"How was the effect of the discussion?"

“They have no precedent of cooperating with outsiders, and they are worried that the clothes they produce will not be sold, resulting in inventory backlog and losses.

If we want to cooperate, we need to pay for the fabric, production and processing costs and labor costs first.

But we can't afford so much money at the moment.

The key is that in this way, all risks are transferred to us..."

Liu Yan said: "They want to make a sure profit without losing money. This is not called cooperation."

“Two companies expressed their willingness to cooperate, but they asked for a profit of 40-60 after deducting all costs. We would share 40% and the other party would share 60%.

We did some calculations and found that our profit is less than 30%, which is lower than the current wholesale profit from the southern coast."

Liu Yan continued: "This situation is entirely possible, because the clothing you wholesale from the southern coast has a large production volume and the production cost of a single piece is low.

The number of garments you entrust to be processed each time and the quantity of each style are limited, so the production cost of a single piece is definitely high.

Besides, Ningcheng is a big city and labor costs are relatively high. For those clothing manufacturers on the southern coast, many manufacturers are located in counties or towns, so labor costs are low."

"In addition to Ningcheng, we have also contacted several other prefecture-level cities in the province."

Liu Yan asked: "How is the contact situation?"

Lu Tianhai said: "We were all contacted by phone, and most of the conditions proposed were similar to those in Ningcheng. If transportation costs are added, the profit will be around 30%."

Huang Xiaoyang continued: "However, there are two old factories in Huaining City that were originally specialized in taking orders for uniforms in the 1950s, but they have been in recession in recent years.

They expressed interest in cooperation and hope we can negotiate. We would like to discuss it with you after you come back, and if possible, we can go and have a look after the Spring Festival."

"Let's do it! I happen to be going to Huaining after the Spring Festival. I'll help you understand the situation first. If the cooperation conditions are acceptable, you can go there."

"That's great! Sorry to trouble you! With you helping us check things out, we feel more at ease."

"Let's not be polite! My future job will be in Huaining, it's just a matter of a finger's work."

"Ah! I was just going to ask you when you graduated from college and where you were assigned to work. Why did you end up in Huaining?"

"Haha, I asked for it myself, and I went to work in a commune in a county under Huaining City."

"Why? Are you stupid after studying for four years? Do you feel that going to the mountains and countryside to join the queue for six years is not enough?"

"This is different from going to the mountains and countryside. I am going to work."

"Work? Why can't I do so many jobs in the city? Do I have to go to a poor place?"

Liu Yan said with a smile: "You will know this in the future. Take Huaining's clothing processing as an example. If it can be done, this is also a job for me!

It can not only revitalize local enterprises, but also solve the re-employment population in Huaining City."



[Author's digression]: Thank you all readers and friends for your support in different ways!

In order to meet the requirements of some readers, four chapters will be updated on weekends.

It's hard to type on a hot day. I hope my friends who keep books can support me.

Whether you can give me a thumbs-up, a check-in, a thumbs-up, or a criticism in the paragraph review, I would be very grateful!
Chapter completed!
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