Chapter 194: We Aim to Marry in Our Junior Year (Part 2/3)

“Yes,” Tang Feng nodded, saying, “Only by making every link as perfect as possible can the produced wine withstand the test.”

“But in doing so, won’t we be spreading ourselves too thin? And with that, Lirui Winery would truly become a heavy asset company, meaning it would have to bear greater risks,” Su Gang worried.

“There’s no other way! To make truly world-class wine, this is the only path! Otherwise, there’s no way to guarantee quality,” Tang Feng stated calmly.

“In that case, let’s do as you suggest! However, this will inevitably require a significant investment. It looks like I’ll need to talk to the bank leaders to see if I can apply for a loan,” Su Gang agreed.

“Uncle Su, you don’t need to take out a loan from the bank! Once you figure out how much money is needed to make this happen, just let Xiaoli invest,” Tang Feng offered.

“How would the shares be calculated if there’s an investment?” Su Gang asked.

“Shares are calculated based on valuation. Uncle Su, don’t see investment as a flood beast; everything has its pros and cons. Having an investment company backing us will be very beneficial, whether the company is raising more funds or going public. Besides, the investment company is established by Xiaoli, who owns the majority of its shares. So, it’s very cost-effective,” Tang Feng replied.

“Little Feng, to be honest, I’m completely clueless about capital. Many bosses I know are pretty much the same as me. We all diligently run our businesses. When we’re out of money, we think of ways to borrow from banks or private lenders. Financing and such has never really crossed our minds,” Su Gang said.

“Relying on our own funds for development, it’s very hard to expand the scale of the company. Nowadays, there are quite a few investment companies in the country, whether VC or PE, and some funds are very strong. The reason I had Xiaoli set up an investment company was also to take a share of the pie,” Tang Feng said lightly.

“It looks like I still need to learn! Otherwise, once the company hits a development bottleneck, it will be hard to break through,” Su Gang sighed.

“Yes,” Tang Feng nodded, “We must keep learning. In many industries, in the end, there might only be two or three companies left. Some small businesses will either be acquired or go bankrupt! It’s inevitable.”

“Dad, you can discuss any ideas with me, and I will provide appropriate advice. If I don’t know, I can ask our professors in the Economics Department. They are very impressive experts and scholars,” Su Xiaoli said.

Su Gang nodded.

“It’s getting late. Uncle Su, I should be going,” Tang Feng said.

“Ah? It’s almost mealtime, where are you going?” Su Gang was visibly startled.

“I’m going back home first, then taking my parents to Emperor Square,” Tang Feng replied.

“Xiaoli, are you going with him?” Su Gang asked.

Su Xiaoli nodded.

“Okay! Then you guys go! I’ll study these formulas,” Su Gang said.

Then, Tang Feng and Su Xiaoli left.

After lunch, Tang Feng took his parents to Emperor Square.

Emperor Square has three floors.

Tang Feng quickly met the owner of Emperor Square.

After some bargaining, Tang Feng spent five million to buy the basement level.

The area was three thousand five hundred square meters.

This price was very cost-effective.

After all, it’s January 2004, and the real estate prices in Binjiang District are in a slowly rising state.

Tang Feng was very clear in his mind that in a few years, real estate prices would at least double!

Soon, both parties completed all the procedures.

On the way home, Tang Long and his wife felt as if they were dreaming.

“Little Feng, with such a big supermarket, can we employ relatives from our family?” Tang Long asked.

“Yes! Why not! It doesn’t matter who we employ, as long as they do their job well!” Tang Feng replied.

“In that case, let me call your Third Uncle and gather them for a meeting,” Tang Long decided quickly.

“Dad, I definitely agree with employing family relatives. After all, it’s better to keep things within the family. However, we must perfect the company’s rules and regulations. Whoever violates the company’s regulations must be punished,” Tang Feng advised.

“I know,” Tang Long nodded, “I’ll emphasize this point during the meeting.”

Back home, Tang Feng had barely sat down when his phone rang.

He glanced at the caller ID and saw it was Guo Wei calling.

He quickly pressed the answer button.

“Mr. Tang, where are you?” Guo Wei asked.

“I’m at my hometown,” Tang Feng replied.

“I’ve found a contract manufacturer, both the computer chips and memory are using your designs. In a week at most, we can deliver ten thousand units,” Guo Wei sounded very excited.

“Have the specialty stores opened?” Tang Feng asked.

“Currently, we’ve opened three stores, located in the Capital, Modu, and Xuzhou,” Guo Wei replied.

“What about the after-sales service centers?” Tang Feng continued to ask.

“We have a bit more of those. We’ve established after-sales service centers in fifteen cities,” Guo Wei responded.

“Does that mean our products can only be sold in these cities?” Tang Feng frowned.

“It’s an unavoidable situation. If we were to establish after-sales service centers in all cities right now, it wouldn’t be cost-effective for us. After all, many users in smaller cities still prefer to buy locally,” Guo Wei replied.

“Once the first batch of computers is produced, take out five thousand units and sell them on Jianbao Network. As for the price, that’s up to you,” Tang Feng instructed.

“I plan to price them about a third cheaper than similar competing products. This way, our net profit will still be very substantial,” Guo Wei shared his plan.

“A third? Can’t it be cheaper?” Tang Feng asked.

“Yes, but I want to keep some profit margin. After all, the competitors are very strong! Once the competitors drop their prices, we must follow suit! Otherwise, our products will lose their competitiveness,” Guo Wei replied.

“You’re right to think that way. After the new year, I’ll try to nationalize other computer components as well. This way, costs can be further reduced,” Tang Feng said.

“The main issue is the display screens. The current display screens are just too expensive! If we can bring down the price of the display screens, then our products will be much more competitive,” Guo Wei said.

“The production line for display screens is very expensive. But don’t worry, once I return to the capital, I will definitely find a way to solve this problem,” Tang Feng reassured.

“Now, those foreign computer chip companies have started to band together! Unless something unexpected happens, it’s very likely they will lower the price of computer chips. By then, our products might lose their advantage,” Guo Wei worried.

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