Chapter 700: Popular Demand
Chapter 700: Popular Demand (Part One)
Mother Lin saw Lin Hu come over and couldn't stop her mouth from smiling. "It's only been twenty minutes, and we sold 51,669 bottles, and the sales are still growing. Our friends and we had spent a total of three hundred million in loans on the first batch, and Little Dong used their company's name to get a loan for 500 hundred million; altogether we were able to get 100K bottles. The other two online stores don't even have this much supply. Little Dong felt that the sales would be a hit and told me to open sales for 100K of the Gold bottles at once; it's been half an hour and we're already at 50K sales!"
Lin Han quickly elbowed Mother Lin. "Check quickly how much money you have in the account."
Mother Lin nodded. "Yes, yes, I forgot."
She hurriedly entered her account verification and saw her Paypal account info, $452,537,769 yuan.
Lin Hu leaned over and counted the number. "452 million. Mom, how much profit did you make?"
Father Lin took out his calculator and then smiled. "There's a profit of thirty million yuan! That's net profit, and if the remaining 40K bottles are sold out today, there will be a total net profit of 70 million yuan!"
It was easy to tell that they were happy as they couldn't help smiling.
Lin Hu, who was next to them, once again spewed out a mouthful of rice.
One day, 70 million yuan in net profit?
That was an unbelievable amount of profit! Even if it was because today was the first day, and the sale next day fell to 10K bottles, that would still be just the guaranteed worst result. With that in mind, then it would be equivalent to 30K bottles per month and 360K bottles per year, and factoring in a profit of $88 USD per bottle, it would be the same as 2.3 billion yuan!
2.3 billion in net profit! Not to mention the 500 million license operating fee, it would be up for grabs even if it was a 100 million profit. A lot of people probably didn't dare to test the waters because they weren't sure how popular this Revitalization series would be, but today or rather after the first quarter, many people would regret their decision because of the limited licensed operator rights.
Lin Hu felt that the most tempting thing would probably be the sales license!
There would be people bidding high prices for the rights in the future.
The profit was definitive, and as long as their parents wanted to transfer the operator rights, many people would be willing to bid high prices for a chance to have it.
Lin Hu swallowed air because he didn't even know if his own project could earn him enough to have a profit in the next two year, and someone next to him was crazily earning money as if they robbed a bank. If his project was to fail, then he was prepared to sell that land for a rough estimate of 300 million. However, his parent's operator rights would be sold at a conservative estimate of 5 billion! And they might not even sell it, because they could earn their money back in two to three years, and a baseline of 5 million that people would want to offer.
In the Huaxia division's first sale of Revitalization series, both major online shopping operators purchased 50K bottles each as they just wanted to test the market and ordered only that much from Mandala at first; and they were both shocked when everything was sold out within a day!
In one morning, all 50K bottles were swept away!
Chapter 700: Popular Demand (Part Two)
Even after everything was sold out, it was still difficult to stop the enthusiasm of the shoppers. They left comments asking for the product to be restocked, and some of them were working during the day, so by the time they finished work, they had missed the chance and were messaging customer support expressing their desire.
The two major online shopping centers were dumbfounded by the situation.
They were out of stock!
- Dongdong E-Mall -
"Director, Taobao has a store that was selling the products with an initial stock of 100K, and they were also sold out within the first three hours."
That director's eyes twitched a bit. "This means that the market demands are not met. Get in contact with those physical stores for me. They are not open for business yet, we need to cooperate with them so we could sell it here first, and we'll discuss the profit share."
The customer service person smiled bitterly. "We contacted them after we were sold out, but they refused. Their physical store's market price is 5% more expensive than online, and this 5% happens to be their extra profit, so if they take it online to sell it, their profit will decrease."
The director was angry. "These greedy businessmen, they just don't want us to have any of their profit! It's because they see the sales booming and they're not afraid that their stock won't be sold. As long as the quality and efficacy of the product works, they might even be able to price it higher."
That was when the office door opened, and the assistant general manager walked in. "Director, the general manager asked you to go to his office."
The director smiled bitterly and thought, Here comes what I was afraid of.
He arrived at the general manager's office and knocked on the door as he walked in.
The general manager sat behind his desk with one hand on the desk, and without looking up, he asked, "Do you know what I'm calling you here for?"
The director sucked in a breath and said. "President Liu, I'll reflect on my mistakes."
President Liu held a calculator in one hand, quickly calculating something with his head down. "50K bottles. We'll put aside the difference in net profit with the gold, platinum, or diamond bottles, we'll just all count it as $88 USD per bottle. 50K bottles would give us a profit of 35 million, and this is net profit in just one day! It's equivalent to a quarter's profit for those known cellphone brands in Shangcheng. You were initially responsible for signing the purchase contract, and because of your narrow-minded view of the market, we wasted our chance at this good opportunity. The next order would probably be open at least a week later, and you tell me, how should I calculate the amount of losses for the next six days? An unknown online store next door had 100K bottles in stock, and they were all sold out in the morning, which meant that they made 70 million in profit today! You are a director and you don't even have their guts, what do you do for a living!?"
The director felt embarrassed. "President Liu, I was afraid that the cost was too high and if we couldn't sell it all, then it would be a loss for us. I was looking out for the company."
As soon as he finished speaking, the President slammed the table with a furious expression on his face; it was a loss in money after all!
Just as he was about to rage at him, someone called his office phone.
He picked up to answer and his expression changed a little; after he hung up the phone, he said to the director, "Okay, we'll discuss this later. Right now, try contacting those physical stores and talk with their owners to discuss a possible cooperation. We could offer them the online platform to sell their products, and we don't want any profit from them. We just need to maintain our participation in this."
Director: "President Liu, you don't need to suck up to those people, since they have been contacting us to sell their products online for a while now. Who were the ones begging for their products to be put online? Now they decided to toughen up?"
President Liu slammed his hand on the table. "If you knew my strategy, you might as well become the CEO. I just received a phone call that our old rival on ACat had already sent someone to talk about a possible cooperation. They didn't want any profit shares and were fine as long they could get to put those products on their shelves. All they needed to do was to attract the high-end users to their website. Do you know which group of users buy the Revitalization series? If you knew anything about user management, you wouldn't just be a product operations director! Get out, find me someone to talk to, and if you can't find anyone, pack up and get lost."