Chapter 7 Alternative Modes of Collaboration

Let us say that a single pig can yield dozens to hundreds of different products

Lin Dong was also left speechless and shook his head after hearing this

To be honest, the approach proposed by Guo Jie is truly enticing

To speak frankly, while I admire your current channel digestion capabilities, I do not intend to pry into your resources through collaboration. The reason I wish to cooperate with you is that I value your market predictions. Most importantly, the few products I previously focused on have significant limitations, with several of them being limited to fresh goods only. I hope to expand my business scope through this collaboration and involve as many products as possible; it would be even better if we could complete the entire set.

What is the method of cooperation

Following this line of thought, the domestic inventory of live pigs will only continue to decrease. When the number of live pigs reaches a critical point, the market will naturally rise again; it is merely a matter of time.

However, an individual's energy is limited, which gives rise to the existence of subcontractors

I will speak more directly, please do not take offense. Even if you reach a cooperation agreement with Xinlong, can you recruit so many workers in a short period of time? Moreover, how many of those workers from your hometown are willing to come here to work with you?

If we cooperate, I will take a week to retrieve the subcontracted products. Given the current market conditions, even if I retrieve those subcontracted products, those subcontractors can quickly find other projects to continue their contracts. Similarly, you should hand over the projects you are currently managing as soon as possible; a week should be sufficient to find someone willing to take over, right

He has the opportunity to catch his breath, cultivate employees, and develop more channels

African swine fever is not a controllable epidemic like blue ear disease and foot-and-mouth disease. It has a long incubation period, and there are no signs before an outbreak. Once it occurs, the consequences are devastating. In a short period, the domestic swine fever cannot be effectively resolved or controlled

As Lin Dong began to speak, Guo Jie remained silent. Only after Lin Dong finished speaking did he raise his head, offering a bitter smile and shaking his head

The three individuals remained silent, creating a somewhat awkward atmosphere, until Guo Jie finally took the initiative to speak up

Wang Quan fell silent; he did not dare to encourage others to lose money in this manner

For example: pig head, pig ear, pig tongue, pig brain, sky ladder, slot head meat, and more than ten other varieties

Casting a subtle glance at Lin Dong and noticing that he too was eager to try, Wang Quan understood that Lin Dong was equally tempted

His idea is excellent; by leveraging this collaboration, he can expand his business scope. In this way, over the course of a few months, not only will the employees become proficient in their operations, but his own sales channels will also become significantly broader

One week later, you will bring your personnel over, and I will continue to recruit on my side. The contract price is transparent. At that time, you can arrange for a financial staff member to come over, and we will set up a joint account. All transactions of goods payments will be verified and reconciled by the financial personnel from both sides.

Although Guo Jie did not say it, Wang Quan could guess that the by-products he subcontracted out must have involved collecting deposits from others. From this perspective, the amount of money he had staked in the Xinlong venue was not substantial.

Forget it, let's set aside these worries for now. The purpose of today's meeting with both of you is intentional. Guo Jie put on a smile, and there was an added sparkle in his eyes, saying, "I would like to collaborate with both of you."

Lin Dong and Wang Quan exchanged glances after hearing this. If you are not even planning to book the entire venue, how can we collaborate with you

A contractor selects several products he is familiar with to undertake. One pig, when calculated, can support several subcontractors.

Wang Quan resolved the two biggest challenges: funding and personnel

A single pig can yield a variety of by-products, and just from one pig's head, numerous by-products can be derived

Now, only the distribution of benefits remains

Profit, evenly divided

Wang Quan's expression paused; he naturally knew when this critical point of the Dao of Nature would appear, but he could not directly tell them. Moreover, the waiting time was indeed very long, lasting nearly five months

This is also the main reason for his financial losses during this pandemic

Seeing his expression, Lin Dong felt a twinge of frustration in his heart, unsure of how to continue persuading him

A loss of 20,000 per day amounts to 600,000 in a month, and 3 million over five months, not including the products that are in stock.

Margin and workers' equity participation

It is precisely because of its uncontrollability that the farms are in a state of panic, hastily selling off their stock of live pigs. However, if you think about it carefully, given the current market conditions, farms are already reluctant to sell pigs quickly; who would dare to restock in large quantities?

At the very least, it appears that the cooperation model he proposed is mutually beneficial

Wang Quan's actions are not aimless; rather, they are a reversal that has been played out in a previous life.

Guo Jie primarily dealt in pig hearts, pig livers, pig stomachs, pig kidneys, and lard, while other by-products were subcontracted to four subcontractors

Guo Jie looked at Wang Quan with confusion, yet there was a hint of anticipation hidden in his eyes

It is not too late, truly not too late, if you believe me

I am responsible for the entire package at Xinlong, and the deposit was also paid according to the total amount of the package. However, I have subcontracted a portion of the by-products to others. My intention is for us to collaborate and continue with the entire package at Xinlong.

At this moment, Wang Quan, who had remained silent, suddenly spoke up, staring into Guo Jie's eyes. For some reason, seeing the dejected expression on Guo Jie's face, along with the sense of despair he exhibited, made Wang Quan feel extremely uncomfortable. Perhaps it was sympathy, or perhaps an inexplicable sense of inner conflict, that prompted him to speak.

Wang Quan's eyes lit up, and just like that, the two biggest problems were solved

Guo Jie took a sip of tea and, noticing that the two were showing no signs of concealing their excitement, continued to speak with a smile: "In fact, after so many years in this business, I have quite a few channels. It's just that the sudden increase in slaughter volume caught us off guard."

I currently have workers who have come from their hometowns, but most of them are locals, and they are all skilled. In addition to my deposit, I will use the deposit and the experienced workers to invest. You only need to provide the channels. What do you think?

I believe that if both parties' channels are united, the output of the Xinlong venue will no longer be backed up, and in this case, the accounts will also be transparent

Perhaps having made plans in his heart long ago, when it came to discussing cooperation, Guo Jie was quite confident and wore a smile.

However, it is uncertain how far this cooperative relationship can go

As mentioned earlier, there are many types of contractors in the pig by-products industry, and the disparity in their capabilities determines their standing in the industry. However, there is also a method of contracting known as subcontracting.

Guo Jie’s straightforward personality led Wang Quan to accept his proposal, and Wang Quan himself was also not hesitant, directly asking about the method of profit distribution

Guo Jie seemed to be moved by Wang Quan's words, his eyes brightening, but in the blink of an eye, a look of disappointment reappeared on his face. "Brother, do you know how many live pigs there are in the country? Even if your idea is correct, when will this critical point arrive? Losing tens of thousands a day, can we hold on until that day comes?"

The five main products he operates, under normal circumstances, do not involve a wide variety, which can save a significant amount of effort, and the profits are quite considerable. However, in the event of market fluctuations, pig liver and pig kidneys can turn into loss-making items, as once these two products are processed into frozen goods, their value can depreciate by nearly half

Guo Jie spoke without any reservations, and it was precisely because he was so straightforward that Wang Quan felt such a person was worth befriending