The Strongest Businessman-109 Chapter 109: Discussion
"That's all?" Steven and the others were shocked by Dylan's conditions. They confusedly looked at each other. They thought he was going to ask for outrageous demands but who would have thought he would only ask for the name of the joint establishment.
"Yes." Dylan said while he drank a glass of wine. He smiled at their reactions. Only he knew that the deal appeared fair in the surface but in reality it was not.
The true amount of the bottles that Dylan could make in one sitting is 4! With the support of these four, Dylan could create 80 bottles a month and he would only need to give 60 that would mean he would have a stock of 20 bottles every month!
Storing these 20 bottles of Radiant Due per month would make the wine's quality increase over time. Dylan planned to store them for a minimum of 1 year before displaying half of it. The other half would be stored for further maturity! He would continue this cycle every month and every year until he would reach a collection of wine of different shelf life!
Dylan also researched how wine has increased or decreased price over the years within the Thunder Clouds City. He discovered that a wine with a fairly good reputation could rise in price 50% per year for the next five to ten years provided that it is publicly recognized as delectable.
One must know that wine would taste better over time. With the catalyst of the optimum combination of spirit herbs, the speed of fermentation will raise the speed by 30%. If for example he stored a bottle of wine for 10 years, then it would mean would have a 13 year old wine which would be 6.5x the original price!!
Imagine in just one year, Dylan would have a stock of 240 bottles with varying storage length! In 10 years, he would have 2400 mouthwatering wine of 13 years old! If he managed to sell just one of them, his profit with just one wine would of course increase not only by twofold or threefold but almost sevenfold!!
Dylan had long crafted a long-term plan for the business of winemaking. He also had organized an approach on what to do for each year in this business.
The next reason why Dylan only asked for the name because he desired for his brand to have exposure! With the exposure of his business and support of the four sects, his business would gain more attention!
'Making a joint establishment with this four is the same as them acknowledging me and with their acknowledgement, I will asking be introduced to the regular customers of their businesses. With that in mind, the Soaring Herbal Garden's popularity will rise tremendously.' Dylan smiled thinking of the benefits of his plans.
With his brand's name in the surface, people will tend to remember his business more instead of the four sects. Of course, Dylan knew that the four heads knew what it meant.
However, he knew that despite of them knowing his intent, they would overlook it if the deal was equally beneficial for all parties. That's why Dylan immediately spoke after this thought without waiting for any of the businessmen to reply.
"With regards to the allocation and budgeting, allow me to impart with all of you what I had in mind." Dylan momentarily stopped and scanned the gazes of the four. After ensuring their attention was with him, he continued, "The first on my agenda is that we will only allocate 40 bottles of wine to be sold every month and leave the other 20 unexposed so that they would still have the time to age. This would also increase the rarity of the product."
"Mhm." All four nodded with Dylan's arrangement.
"The second is that the 20 bottles will be equally divided into 4 every month as something similar to shares." Dylan stated the next after receiving a response.
"For the ingredients, I would need 60 fruit-bearing spirit herbs such as Bubble Grapes, Tipsy Berries, Sweet Blood Due,..."
"For the equipment, I would need 10 large pots which are especially for winemaking that are about 1 meter in length, 15 fruit crusher hammers, 10 1.2 meter-long steel laddles,..."
"For the location, the most ideal one is Lot#34 at the crossroad Road #12 and #3 of the Lightning Boulevard which is 40 meters wide, 30 meters long and 2.5 meters high because we are going to need a lot of space for the production of the wine. The second ideal lot is..."
"In total, the four of you would have to spend 102,000 gold coins. Each, you would have to spend upto 23 gold coins each. We could earn a total of 40,000 a month. In addition, we could also bring out 5 of the month-old wine within the first and the next batch's 5 for the next month. This 5 one month old wine every month would have a price raise of 3.33% which is 1003 gold coins. The following month, the half of the two-month old wine would also be displayed which has 6.67% increase in its price with the one month old wines of the second month. If we follow this trend, the profit we would have would be 3% more in the first month, 10% more in the thrid month, 23.34% in the sixth, 50% in the first year and finally 100.02% more in the second year! One year later, our sales would automatically increase by half fold." Dylan finished the statements he had in mind.
Okemos and company were trembling in excitement as they heard of this. Although this amount would be small compared to their current income, however the potential that this winemaking business shows is awesome! Within just one year, they could already square off their capital! Imagine within a decade, they could already gain sevenfold of their capital!
"And, this is only based on the current production rate." Dylan's statement woke them up to reality.
"That's right!" They suddenly felt enlightened.
"Let's say for example, we raise production rate by half every month, what do you think would happen?" Dylan asked them
" Then that would mean within just a year we would gain... sevenfold for every bottle!" Okemos' calculations almost made his colleagues nearly fall of their seats!
"However, increasing it every month would be difficult." Arman rechecked by using logic. Finding the right personnel and teaching them the method would take time and training. This training would at least take 2-3 months for them to perfectly execute the technique. Thus, it would be really difficult for them to increase it every month.
"I know. That's why we'll only start after one year of opening. During that year, we improve productivity by half for every 3 months. In the third year, we can start doing it in every month." Dylan suggested.
"So you mean to say that the one year, would be for the training of the workers of the business?" Yander inquired.
"Yes." Dylan answered.
"May I ask whether Young Noble only has one wine that he knows?" Steven raised the most important question in the discussion.
"Of course, I know of five and among them, Radiant Due is only the fourth of the most delicious but the last one is not far off from the flavor of the Radiant Due." Dylan responded with preparation.
His reply stunned and excited the four heads. They never expected that Dylan would posses four more wine recipes wherein 3 of which are more superior in taste than Radiant Due with 1 that is slightly inferior.
"Unfortunately, right now, I still can't make them due to lack of materials. However I can assure you that the third is 2 times more valuable than the Radiant Due. Similarly, from third to second or second to first." Dylan reassured.
Although he was unable to make the others at the moment, he assured them that their values are either equal or greater than the Radiant Due.
"Hahahaha, marvelous! Marvelous!" Okemos applauded from joy and excitement.
"It seems that this partnership is definitely worth the bargain!" Arman laughed joyfully.
Hearing Dylan's word's made all of them beyond happy. Never would they have thought that they would discover such a fine deal within the city! It was akin to finding a hidden cave filled with gold!
"If that is all, then, I, Yander Cooper, would wholeheartedly accept in the name of my Steel heart Sect." Yander was all smiles as he picked up his glass and raised the glass of Radiant Due.
"My Quadra Fang Sect will accept this as well." Arman Heinze lifted his wine glass.
"My Firebull School will naturally agree to such a partnership!" Steven raised his as well.
"My Charon Clan would do the same as well." Okemos slowly did the same.
"Hahaha, thank you for the trust, gentlemen. I won't let you down." Dylan heartily laughed as he raised his glass.
"Cheers!" All 5 uttered at the same time as they moved their glasses to the center of the table.
*Ting*
The sound of glasses ringing was soon heard which marked the start of a successful business partnership. They discussed some more details as well as the date of the construction and opening of the store. Finally, they decided that it would be three weeks later in order to fulfill the necessary preparations.
After the meeting adjourned, Dylan bid farewell to the four heads who all left with smiles placated on their faces.
"Time to work." Dylan turned around and helped his employees serve the customers.
It was only an hour past noon but they were already able to serve all of the 700 customers with more customers still arriving.
By the time they closed the stores, it was already 10 in the evening. The moon shined brightly that night and shone on the bodies of the weary workers of the Soaring Herbal Gardens. It was no surprise that they were extremely tired as they were able to serve 1012 customers today!