Chapter 65: Monopoly to Competition

First of all, Huzhou's raw silk is transported to Suzhou, which involves transportation and tax payment, and there is another link, which is about 20% higher than that in Huzhou;

Second, Suzhou is a place where silk weaving factories gather, and merchants can obtain much higher profits by directly producing silk and selling it after obtaining raw silk, so they prefer to keep it for themselves rather than sell it;

Third, according to seasonal factors, the previous year's raw silk was almost used, and this year's raw silk has not yet arrived, and it is the time when the green and yellow are not connected, which also inadvertently pushes up the price of raw silk.

The price of Huzhou silk is about one pound of raw silk one yuan and six corners, and made of silk, one or two pieces of silk will reach four corners and five cents, and the price of one pound of silk is seven yuan and two corners, according to the calculation of a weaver producing five taels of silk a day, the silk weaving will not be high, you can estimate how much profit in the middle, and you can also understand why the merchants in Suzhou are not very willing to sell raw silk.

(Note: one or two silk silver dollars four corners and five cents, in fact, the price of silk investigated by the British in Ningbo, because they could not find the price of Suzhou silk in the forties, and directly borrowed the price from Ningbo)

Zhao Dagui talked to the merchants here about the business of foreign cloth and foreign goods, but there were many people who were interested, both willing to buy directly, and some warehouses willing to act as agents, but if you want to let the warehouses act as agents, you must negotiate the price, and then give 5, 10 to 15 percent of the agency fees according to the eagerness to get the money.

In addition, Zhao Dagui felt that the settlement method of Suzhou merchants was very interesting and could be used, that is, when the merchants here delivered the cost of goods, if the two sides were more familiar, it was not cash delivery, but settlement every three or four months, of course, according to the habits of Chinese merchants, it was best to settle clearly at the end of the year.

Zhao Dagui recruited a few shopkeepers who are particularly familiar with Suzhou, which is naturally Zhao Dagui's consideration of this situation when he was recruited, Zhao Dagui sold a batch of foreign cloth with the help of their connections, rented a compound in Suzhou, and hired a group of local guys and shopkeepers, which can be regarded as the formal establishment of the Suzhou branch.

The variety of goods in Suzhou is very rich, and the types of tea are even more than that of the magic capital, that is, the raw silk also has Jili silk, large silk, round silk and Shandong's tussah silk, etc., so that Zhao Dagui can operate a lot more types of goods.

Zhao Dagui took a batch of tea and raw silk samples and returned to the magic capital to show some merchant captains and powerful foreign merchants.

The magic capital has only been open for three or four months, and the goods that these Western businessmen have been exposed to before are mainly limited to the surroundings of the magic capital, and when they saw Zhao Dagui bringing a batch of goods from Suzhou, they all gathered around curiously.

"Your firm is really strong, and the variety of goods is very complete.

It's just that the price of this tea is about the same as before, and that's it, but is the price of raw silk much higher than before?

The price of Orys is at $480 per pack, and you remember that you used to sell it for between $420 and $450. Soon, businessmen pointed out unusual places.

"Some time ago, it was cheap to sell raw silk because it happened to be the season for harvesting raw silk, and the price was relatively cheap.

It's just that I went to Huzhou twice before and after I went to Huzhou and sold thousands of bags of silk, so that the silk merchants in Huzhou did not have much inventory in their hands, and the price was naturally going to rise.

Besides, it is the turn of winter and spring, the mulberry trees have not yet pulled their leaves, and the silkworms have not grown, so it happens to be out of stock.

If it comes in the fall, after the raw silk is purchased, I guarantee that the price will come down. Zhao Dagui explained half-truthfully.

This time, Zhao Dagui went to Suzhou to get raw silk, and the cost was much higher than that of Huzhou, so he was ruthless and set the price of raw silk high, Jili silk sold for 480 yuan per package, large silk sold for 365 yuan per package, and round silk sold for 470 yuan per package.

Normally, the price of Seri silk should be between 390 yuan and 480 yuan per pack, the price of large silk is between 300 yuan and 365 yuan per pack, and the price of round filigree is between 280 yuan and 470 yuan per pack.

Western businessmen were naturally not satisfied with this, but they knew that it was indeed not the season to harvest raw silk, and there was almost no raw silk on the magic city, so they were a little helpless.

However, taking into account the sentiment of foreign merchants, Zhao Dagui thoughtfully introduced some flexible sales policies, that is, merchants could use foreign cloth and foreign goods to barter with the goods of Dagui Commercial Firm.

A few months ago, a ship of foreign cloth to the magic capital, a few days can be sold, Zhao Dagui himself is the person who created this myth, but now the foreign goods into the more, the sale is not so fast, compradors and foreign companies are to entrust foreign goods to the local powerful warehouse, ask them to sell on their behalf, after the goods are sold out to give a certain agency fee.

Zhao Dagui is willing to exchange raw silk and tea directly for foreign goods, which can greatly shorten the transaction cycle of merchants, and there is one less transaction link, and merchants can reduce a lot of costs, so the high price shouted by Zhao Dagui is not so unacceptable.

Zhao Dagui agitated his tongue and pouted for a long time to attract a merchant captain who was eager to buy goods and return to China, and was willing to exchange foreign goods for raw silk and tea.

After Zhao Dagui and the captain determined the type and quantity of silk tea he wanted to buy, he sent people to Suzhou to find merchants who were willing to use silk tea to obtain foreign cloth, and then asked the Suzhou merchants to transport the goods to the magic capital and store them in the warehouses that the Suzhou merchants trusted.

Then, Zhao Dagui arranged for British merchants and Suzhou merchants to deliver the goods, and finally completed the business, the fly in the ointment is that after the delivery, Zhao Dagui got not cash, but a batch of expensive foreign cloth, and he had to find a warehouse to sell on his behalf.

The silk tea resources in the magic capital are also rich, but because there are too many Western businessmen who come to buy goods, it seems that the goods are insufficient, and now with Suzhou as the source base, this business can naturally be bigger.

However, Zhao Dagui thought that by this approach, he could monopolize the trade in Suzhou for at least a few months, but he did not expect that there would be no fools in this world, and other compradors and foreign firms quickly saw the benefits of doing so, and they followed suit and sent people to Suzhou to establish relations, and Zhao Dagui's so-called monopoly could not even be maintained for a month.