Chapter 5: The Shuffle Begins
Both fresh and frozen products are two distinct concepts, even though they are both by-products of pigs
The price of high-quality products and ordinary goods is naturally different. By analogy, do customers who dare to purchase high-quality products fear that they will not be able to sell them? Or are they concerned about not being able to sell them at a good price?
Some products are profitable, some products are not profitable, and there are even a few individual items that incur losses
The clients he chooses to visit are all high-quality clients he has heard of in previous lives or has collaborated with; otherwise, there would not be only one or two clients in a region.
Due to the decline in product prices, items that were originally consumed every three days can now be enjoyed daily, leading to a rapid surge in market demand
The slaughter volume has been continuously increasing. The three small farms in Lin Dong's hands used to collectively slaughter a maximum of 1,000 heads a day, but now one farm alone can slaughter over 1,000 heads in a single day
Slaughterhouses rely on profits from dressed pork, and their slaughtering volume is determined by the market demand for dressed pork. When pork prices decrease, the public naturally consumes more, leading to an increase in demand, and the slaughterhouses consequently ramp up their pig slaughtering.
May I ask, when lean meat is cheaper than pork offal, which one would you choose
As September arrives, the epidemic situation becomes increasingly severe, with more and more farms resorting to large-scale sales of live pigs, leading to a worsening market condition
Customers with large orders often require a variety of products. If we only supply them with profitable products and exclude those that are not profitable, it will undoubtedly push the customers away. Over time, customers may find it troublesome, leading to a significant possibility of losing them.
At this moment, Wang Quan does not dare to hope for frozen products, as they are too expensive and beyond his means
The reactions of those who see this message vary
... ...
On August 15, in the jurisdiction of Lian Gang City, Jiangsu Province, pigs died under mysterious circumstances. On August 19, African swine fever was confirmed, and over 14,000 pigs in the epidemic area were culled and disposed of in a harmless manner
As for those who specialize in frozen products, Wang Quan does not wish to speculate
Lying on the bed, my mind is racing.
It is not.
Capable contractors can only grit their teeth and endure, hoping for a market turnaround
Additionally, products such as large intestines, pig stomachs, brain matter, pig trotters, and pig heads that are processed into frozen goods will not affect the prices, and the contractors will not incur losses
An increasing number of regions are experiencing outbreaks, with slaughter volumes doubling, while the price of live pigs declines daily. In contrast, the prices of pork and by-products are slowly rising, leading to a pathological reverse growth in the market
Wang Quan initially used the identity of the Lin Dong brothers to manage inventory. As he became more involved, some observant individuals discovered that the one truly in control of the client resources was, in fact, Wang Quan
Some people ignore, some are puzzled, and some reflect deeply
As for the two major clients in Hangzhou, there has been no response
The slaughterhouse disregards the life and death of the contractors, focusing solely on slaughtering pigs and selling meat
Since the shipment from Yang Dejun began, in the span of one month, Wang Quan now has fourteen stable clients, with a daily shipment volume maintained at around ten tons.
Lin Dong can only give up the plan to go out for stock replenishment and must honestly recruit workers to ensure the smooth operation of his venue
After being busy for half a month, this hurried pace has only just begun to slow down. Many subcontractors of by-products are developing new clients, the channels have increased, and the products sold at low prices have consequently become fewer.
... ...
On August 14, a slaughterhouse in a city in Zhongyuan Province reported unexplained deaths of pigs, and on August 16, it was confirmed as African swine fever, leading to the issuance of a quarantine order for the African swine fever epidemic area
It is precisely at this moment that the reshuffling of the industry quietly begins
It is important to note that in any given region, there are not just five or six, but even dozens of wholesalers engaged in this line of business
Coincidentally, Wang Quan does not lack high-quality clients
Yang Dejun, after listening to Wang Quan's suggestion, increased the volume of goods received by 30%. Due to the outbreak of the epidemic in Jiang Province, the price of by-products rose by nearly 1.5 in a short period. While expressing gratitude over the phone, he also indirectly inquired whether Wang Quan had any connections that allowed him to receive information in advance
Losing money for a day or two is still acceptable, but if the market continues to decline relentlessly, who can afford to lose money month after month
the end of August
The keen-scented by-product boss of the pig set off overnight in search of clients, while more by-product contractors, caught off guard, looked at the increasing backlog of products, scratching their heads in frustration. Left with no choice, they could only dispose of their products at a low price, thus providing a survival space for those specialized in product redistribution
Nevertheless, the number of clients collaborating with Wang Quan has exceeded 10
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Even so, Wang Quan still made a considerable amount of money, to the extent that he himself could hardly believe it. In less than a month, he earned over 100,000, most of which was made during the initial outbreak of the pandemic
Losing money is also unavoidable
Three others also called to inquire why Wang Quan knew the news in advance, speculating that Wang Quan might be involved, while simultaneously expressing their intention to collaborate
Just as I let out a sigh, the phone suddenly rang
Contractors with weaker capabilities either persist stubbornly or withdraw their investments and leave
It is important to emphasize one point here
Product differentiation exists at all times
A frozen goods vendor, specializing in pig tongues, commonly referred to as "kou tiao".
Contractors who originally hoped to achieve thin profit margins through high sales suddenly discovered that while sales had increased, profits had vanished, and many contractors found themselves in a situation where they were losing money while trying to attract attention.
The contractors of pig by-products appear to be contracted from the slaughterhouse, ostensibly presenting a relationship of mutual benefit, yet the reality is quite different
Hello, I am Wang Quan, engaged in the production of pig by-products in Zhongyuan. A few days ago, I had arranged to visit you, but due to special circumstances, I had to interrupt my visit. I hope you can understand. I sincerely suggest that you stock up in large quantities recently, in case of unforeseen needs
As in Wang Quan's memory, within a short period, multiple regions in the country experienced outbreaks, and suddenly, African swine fever became a topic of national concern among the public
To put it bluntly, he only conducts business for one month each year, making profits in the millions, which can completely be described as living off the earnings for three years after opening.
Do all contractors incur losses
The slaughterhouses are operating at full capacity, leading to a decline in the price of live pigs, a decrease in the price of pork, and a drop in the prices of pig by-products. While all products are experiencing a downturn, labor wages have increased, particularly for skilled workers, with a rise approaching 30 percent
Sigh
A shipment of over ten tons is simply too much for him to handle alone. Lin Dong also lent him another single-row vehicle and arranged for a driver and workers for him, although the wages must be paid by Wang Quan himself
The slaughter volume has been steadily increasing, while the sales of by-products have remained stable, leading to a contradiction.
... ...
Since the announcement of the outbreak in Jiang Province, Wang Quan has received several phone calls
After a day of hard work, Wang Quan no longer has any extra energy
I cannot believe it, yet I cannot deny it; he knows as well that those major contractors can earn as much as 200,000 in just one week when the market is favorable
After the initial panic, the market has regained its health, and with sufficient supply, the prices of pork by-products have begun to decline
In a previous life, he had encountered.
Those who engage in the transfer of goods are motivated by profit; it is merely a matter of earning more or less, and they will absolutely not incur losses
Thus, the importance of high-quality clients has become prominent
On August 17, in Wenzhou City, Zhejiang Province, pigs died under mysterious circumstances, and on August 22, African swine fever was confirmed
In just ten days, the shipment volume surpassed Lin Dong's previous monthly shipment volume. As a result, Lin Dong specifically purchased two single-cab trucks for the purpose of transporting goods, and this boss, Lin Dong, even personally took to the field.
In simple terms, the slaughterhouse and the contractor are opposing entities
Lin Dong is himself a contractor. Although he does not have a large company, he knows quite a few peers in the industry. At this time, Wang Quan is utilizing the limited time to transport more goods, as he has high-quality clients and a substantial volume of goods to transport, which inadvertently assists those large contractors.
In a year with twelve months, he spends eleven months purchasing goods and the remaining month selling goods
Wang Quan sent out a total of 11 reminder messages, half of the clients chose to cooperate, while the other half expressed that they would consider cooperation in the future
An increasing number of contractors are becoming aware of or have heard of the name Wang Quan, and the contacts for the by-products on Wang Quan's mobile phone are also on the rise