Chapter 99 – Settling the Sales Channels (1/2)

“Director Feng, we will not do any promotions for your sugar. There is no room to discuss for this, but we will place your sugar together with your soybean oil, and it will be at an eye-catching place of the store. This is the biggest concession I can give.”

Feng Yu saw Zhou Kehua’s firmed att.i.tude and knew that there was no point bargaining further. Anyway, he still has advertis.e.m.e.nt slots in the papers and TV stations. The sales of his sugar will not be too bad.

Feng Yu only wanted to sign a three years contract with the Food Department and nothing more than that. In 1993, this department will cease to exist. Actually from this year onwards, after the opening up of the food and oil market, the status of the Food Department had been declining.

Now, Zhou Kehua had a lot of authority but in 2 years’ time, he would either be transferred to another department or forced to move to a more relaxed position.

“Wait, Director Feng, why is your sugar so expensive? The supplier rates you gave us is almost as expensive as our retail prices.” Zhou Kehua saw the contract and said.

“Ours is pure fine sugar, and it is sweeter. Also, the sugar will be in packets. We do not sell in bulk. Furthermore, this sugar is produced using the most advanced techniques from the Soviet Union. It will not be discolored easily or attract pests. These are somethings that the sugar produced by your department can do.”

In this era, people buy sugar loosely in small paper bags. The sugar in the Food Department’s stores was stored in a large paper bag. If they did not store the sugar correctly, it could attract ants easily. After people buy the sugar, they would transfer to small bottles to store them. The sugar also turns yellow easily. This was not as attractive as packing the sugar in small packages. Sugar is not like salt or cooking oil. No one uses sugar every day.

“We also produce fine sugar. The cost is not that high. Who would buy your sugar when you price it so high?” Zhou Kehua felt that Feng Yu was messing around. People buy the cheapest product typically. Who would buy the most expensive ones?

“Chief Zhou don’t need to worry about this. You just sell according to the prices I listed. If the sales are not good, you can look for me, or you can be a consignee. I will give you 2 cents for every packet sold.”

Feng Yu sighed in his heart. Old mindset thinking that no one will buy expensive things. Wait for another 2 years, people then, will not buy food products if they were selling at low prices!

“Consignment? No, we will not do consignment. Then let’s see if your sugar will sell at this price. If there is no one buying, then you don’t blame me if I don’t order more of this sugar!”

“Fine. If you have no problems with these terms, then please sign.”

Feng Yu left with the contract. Chief Zhou lit a cigarette and was deep in thoughts. Why was that kid so confident that people will buy his sugar? Isn’t those regular fine sugar? Why were they priced so much higher?

Feng Yu made a phone call to notify the newspaper agency to release the advertis.e.m.e.nts for the sugar. It was still soft-sell advertis.e.m.e.nts. These advertis.e.m.e.nts will continue for the next 2 weeks. Feng Yu believed that with the people’s current knowledge, they would be buying his sugar. Also, with the help of the TV advertis.e.m.e.nts, everyone would remember this Tai Hua Fine Sugar.

The contract was photocopied to a few dozen copies, and Feng Yu arranged Wu Zhigang and the rest to other areas in the province. The cooperatives were still smaller compared to the Food Department’s stores. People in the cities prefer to go to the Food Department’s stores to purchase oil or rice. Feng Yu wanted the Food Department of that area to look at the contract signed between him and Bing City. He will then use the same conditions to sign a similar contract with the Food Department of those areas. This would let most people know about Tai Hua’s brand.

……

“What are you here? Is it a holiday today?” Feng Xingtai saw Feng Yu at the factory, and he did not behave like other fathers, who were happy to see their sons. He asked angrily: “You skipped school again?”

“Dad, don’t hit me first. I have something important. Have you discussed with the Farm Department Officer? Is the pig farm buying our animal feed?” Feng Yu dodged Feng Xingtai’s slap by jumping back.