Chapter 61 The Principle of Small Profits and Quick Turnover

Chapter 61 The Principle of Small Profits and Quick Turnover

Chapter 61 The Principle of Small Profits and Quick Turnover
In the absence of channel resources for external exports, Yang Wendong can only try his best to achieve results in Hong Kong first.

As long as you do well in the Hong Kong market and achieve results, you may be noticed by some traders with overseas resources.

As for trying to do the government's door-to-door rat extermination business, in addition to making some money from the business itself, another purpose is to indirectly promote their own sticky mouse board products.

Since all Hong Kong government departments are using it, it can be used as a selling point and a guarantee of quality. Even if you do foreign trade in the future, it will be a plus point to mention this.

As for whether the government needs it, that is inevitable. Even in the mainland where health management is extremely strong decades later, many buildings will still need to exterminate rats regularly.

……

A week later, Elena called and invited Yang Wendong to the Social Welfare Administration where she worked.

Yang Wendong naturally agreed happily, and arrived at the place at 9 o'clock the next morning.

This time the guard blocked him again, and someone inside had to come out to pick him up.

After a while.

"Mr. Yang." Elena's voice came from the front.

Yang Wendong smiled and said, "Hello, Ms. Elena."

Elena stepped forward and said, "Please come in."

"Okay." Yang Wendong nodded, then followed Elena into the courtyard wall.

The last time he came here, he just took a look inside from the door. Now when he came in, he found that the area here was very large and there were many gardens and lawns.

The office building was in front. On the way there, Yang Wendong said, "This place is so big."

Elena also smiled and said, “Yes, although this place is a bit old, the biggest advantage is that it is large, almost 6 square feet.

Our office building only occupies 10,000 square feet.”

"It's very comfortable to work in such an environment." Yang Wendong smiled.

In the 50s, Tsim Sha Tsui, and even the entire Kowloon Peninsula, were basically wild areas, mainly consisting of warehouses, docks and places where many poor people lived.

Because in this era, the real economic center of Hong Kong is on Hong Kong Island. If you live on the Kowloon Peninsula instead of for work, you are basically a poor person.

Elena smiled and said, "I like it here too, but I will be moving to Hong Kong Island in a year or so."

"Are you moving?" Yang Wendong asked, "To Hong Kong Island?"

Elena said, “Yes, the Hong Kong government has seen several new buildings on Hong Kong Island and moved us there. I actually don’t want to move because there are more people here who need our help.

If we move to Hong Kong Island, it will take up a lot of time to commute here, but we have no other choice."

Yang Wendong said with a smile: "As long as you have the heart, you can do good deeds anywhere."

"I hope so." Elena nodded and said nothing more.

Yang Wendong was naturally the same. He looked at the large piece of land around him and knew how high the value of such land would be in Tsim Sha Tsui in the future.

But now, Tsim Sha Tsui is only slightly better than other places in Kowloon Peninsula, and ordinary rich people are not willing to come here.
After entering the office building, Yang Wendong came to an independent small office. Elena smiled and said, "Would you like some coffee?" "Okay." Yang Wendong nodded. He hadn't had coffee for a long time.

After a while, Elena brought two cups of freshly ground coffee and sat opposite Yang Wendong. She said, "Try my craftsmanship. I really like grinding coffee, and I also like others to taste my coffee."

"It tastes very good." Yang Wendong took a small sip and praised.

"Thank you." Elena smiled, then put down her coffee and said, "Mr. Yang, I have discussed this with my leader, and he agreed to hand over the rat extermination business of this building to you."

"Really?" Yang Wendong was overjoyed: "Thank you very much."

Elena said, "Actually, you don't have to thank me. My boss didn't have much interest in this matter, but the day before yesterday, our entire building suddenly lost power. Later, we called an electrician to investigate and found that it was a mouse in the electrical cabinet that caused the short circuit."

Yang Wendong nodded and said, "Yes, mice can cause a lot of trouble to the circuit."

In his previous life, Yang Wendong also knew that in general factories, rats would occasionally be electrocuted to death because they entered the electrical cabinets. Similarly, dead rats were found in many people's cars during maintenance.

These nasty creatures are everywhere, and even when they are not in the presence of humans, they can cause a lot of damage.

Elena said, "How about the price?"

Yang Wendong recalled the area of ​​the building in his mind, and then said, "10 Hong Kong dollars a week."

There is no market price to refer to for this kind of business. Yang Wendong’s pest control company is the first company in Hong Kong that specializes in this kind of business.

"So cheap?" Elena said in surprise.

Yang Wendong said with a smile: "Office buildings are not as good as warehouses, and there must be fewer rats. So even if we contract it, they won't come once a day like in warehouses. As long as we handle it well in the early stage, maybe twice a week will be enough in the future."

Elena nodded and said, "So that's how it is. But I'm still quite surprised by the price. Can you make money doing business like this?"

Yang Wendong said: "Compared with short-term huge profits, I prefer long-term cooperation. I only need to maintain a small profit, and I can cooperate with many government departments, companies and factories for a long time."

Elena thought for a moment and said, "Your business concept is a bit special."

"This is called small profits but quick turnover." Yang Wendong smiled and said, "This concept exists in the manufacturing industry, but rarely in the service industry. But I think the service industry can also do this."

The later business philosophy of Coca-Cola may not have appeared in this era, but there were already a few smart people who were implementing this business model, such as Pao Yu-kang.

The shipping market in the 50s and 60s was extremely volatile. Freight rates might skyrocket in a few months, making the shipowner very wealthy. But in the next few months, freight rates would plummet, causing heavy losses.

Almost all ship owners sign short-term contracts with shipping companies or even sign a contract for each long-distance voyage, which has created the myth of high profits and high risks in the shipping industry.

Bao Yugang, on the other hand, adopted a long-term leasing model, signed long-term contracts with stable long-term benefits, and ensured his own stable cash flow, which led to his later development into the world's shipping king.

As the rat extermination industry is almost non-existent in Hong Kong's history, Yang Wendong is also prepared to go this route. It's not that he is completely sure, but if he quotes a high price, he will inevitably lose customers after the rats are almost exterminated.

Frequent changes of customers will lead to an increase in the operating costs of the rat extermination company. It is better to take the low-price, long-term route. As long as the quotation is low enough, many large companies or government departments will not pay much attention to it.

"Interesting." Elena nodded and said, "Okay, I'll report the price. I don't think there should be any problem."

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(End of this chapter)