Extraordinary Genius Chapter 30
Chapter 30 – Buying cars
Many sales representatives from factories came to look for Feng Yu. They were there to negotiate deals with Feng Yu. Some of them are contacted by Feng Yu and some are the contacts, Li Shiqiang got from his friend at the cooperative.
These people came like a swarm of flies once they heard that there is a company doing wholesale for their products.
Feng Yu had a silver tongue and with some small tricks, he managed to fool these salesmen. He got the products at a very lower price and all of them agree to collect payments two days after Feng Yu loaded the shipment.
Only three factories require some partial down payments. These three factories are state-owned enterprise and they must collect down payments.
Down payments? Feng Yu sneered. He changed the down payment to deposit!
Deposit and down payments are completely different in China. Deposit means the goods are reserved. According to the contract, one party must pay the other party double the deposit amount. For down payment, it means that the deal is finalized. If one party breaks the contract, he would have to compensate the other party double of the full amount. Feng Yu is not that stupid to be fooled!
Feng Yu only knows what Kirilenko probably wants. However, the quantity is not confirmed yet. If there are slight differences in the quantity, Feng Yu is confident that these factories will not pursue any compensations from him as he is considered a big customer and there will be future orders from him. Even if there are compensations, Feng Yu can also afford.
If it is a down payment, then Feng Yu still have to pay the full amount of the goods which Kirilenko does not want.
These salesmen were very surprised by Feng Yu’s ability to take note of these wordings. They did not expect someone so young to be so alert. Feng Yu is not easily fooled. But they still agreed to sign the revised contract. The provisions of the new contract are very clear and precise on the responsibilities of both parties. The date of payments is also clearly stated.
Do think the state-owned factory salesmen are very honest. They will also seek compensations and block people’s door for payments. Of course, in this era, it is uncommon to go to court for compensations. So, both parties must be careful and if they did not receive any payments, they will not do the loading.
The reason for Feng Yu’s request making payments the day after loading of the goods is to create a reliable impression. After a few deals, he will be able to get a longer credit term with these factories.
When that happens, there will be no need for Kirilenko to come over personally. With just a phone call, Kirilenko can order the types and quantity of goods and Feng Yu will just send it over. Kirilenko can make payments after he received the goods.
At that time, Feng Yu’s International trade can be considered officially started. He can use a small amount of money to do trading of large quantities of goods.
On the third day, those goods had reached Bing City. Some of the factories’ warehouse is not big enough to store them and are sent directly to Tai Hua Company’s warehouse. Feng Yu’s warehouse quickly filled up, stacking to the brim.
During this time, Li Shiqiang is still trading Treasury Bonds. Although Treasury bond prices had raised a little in Bing City, the price in Shen City is still higher. Li Shiqiang can still earn a bit from the differences in prices.
Feng Yu let Li Shiqiang carried on doing this business. He knows that once more cities opened up the trading of Treasury bonds later in the year, this trade will hit the peak.
But to travel between cities every day is too tiring. Feng Yu would have quit a long time ago. The last trip almost tired him to death and the smell on the train is unbearable.
Feng Danying also complained about Li Shiqiang several times. Because of his traveling, they had little time to meet up. However, Li Shiqiang just smiled. Feng Yu had told him that this trade can only last until around June next year. Once most cities opened up Treasury Bonds trading, the prices between cities will stabilize.
While there are still differences between cities now, they must grab this opportunity to make money. After next year, there will be no more money for them to make.
Li Shiqiang also has good news for Feng Yu. His comrade had told him that the Government is replacing a batch of old cars. The Government had already purchased new cars. However, the city is disposing the old cars in batches of at least three cars and are not selling to individuals.
Feng Yu raised his brows and said: “This is not a problem. Isn’t it only just three cars? We will just buy three cars. One Jeep and two Lada. We can always sell one of the Lada away. I do not believe there are no buyers for such good cars!”
There are no problems with the conditions of these disposed government cars. These cars were all properly maintained and there is absolutely no problem with the cleanliness. Once they got the cars, they can just send them for an overhaul and it will be as good as new. There will be no problems selling it.
“Xiao Yu, three cars can be too expensive. The Jeep is still fine. Only around 10,000 RMB. Lada cost at least 40,000 to 50,000 RMB. Do we still have enough funds in the company?” Li Shiqiang said.
Feng Yu had thought that since most commodities are cheap in this era, everything else is also cheap. He had forgotten that cars are much more expensive compared to his time in his previous life. This is especially so for imported cars. The prices are outrageous.
There are enough company funds. Their business deals are worth millions but Feng Yu had only used 60,000 RMB as deposits. He only needs to make the full payments after loading the goods. There are still about hundred thousand RMB in the company’s account.
“So, what if it is expensive. We are not short of money! Later, you will drive the Jeep during Summer and Lada during winter. This is the company’s benefits to the top management. Brother Li, help me get a license too.” Feng Yu said.
“You can drive?” Li Shiqiang looked at Feng Yu in astonishment.
“Psssssssssssst ~ ~ ~ It’s only driving a car. At our farm, any family who owns a tractor will know how to drive. Don’t worry. Later we will find an empty lot and I will show you my driving skills.” Feng Yu said.
“If we get two cars, will Uncle Feng be angry?” Li Shiqiang hesitated.
“If you don't say and I don't say, how would he know? Money earned is to be spent. Don’t you want to drive a Lada?” Feng Yu replied.
Feng Yu is a person who likes to live a good life. If he can drive a good car, of course, he will drive one. If he is not short of money now, he will buy imported cars such as Mercedes and BMW!
“Well, I'll go talk to my comrade and see how much it costs to for the three cars. He is working there and I will ask him to pick three of the better ones.” Li Shiqiang said.
Brother Li, treat him to a dinner and give him a red packet. Don’t be stingy. Give him 100 RMB.” Feng Yu said.
100 RMB? That is more than a one month's salary. But Li Shiqiang nodded. He knows that this money cannot be saved.
Li Shiqiang acted quickly. As Tai Hua Company is the first company which wants to buy the cars, the City government gave them a good price and even allow Li Shiqiang to choose from the fleet.
Most of these cars had not been used much. It was a waste of these cars as the City is not using them and not assigning them to the villages. Even when the City is getting new cars and there is a shortage of cars in the villages and small towns, the City still chose to sell these cars.
Li Shiqiang’s comrade had informed him in advanced There are two 70% new Lada and an 80% new Jeep. But they are too dirty and people seldom use them.
Li Shiqiang pretended to check every car by opening the hoods. But in fact, he is looking for the markings his comrade left for him.
“I want this, this, and this one. Where do I make the payment?” Li Shiqiang said.
Feng Yu was taking a nap when he woke up by the sound of car horns. He looked downstairs and saw the three cars.
Finally, he can seat in a sedan. He had enough of that broken Jeep!
This era, driving a Lada is comparable to driving an imported sports car in his previous life.
Now It’s time to go for a ride!