Chapter 137: A Long-Term Arrangement

In Jiangcheng, the Zhongxin Electronics City has a very fitting nickname: "Little Zhongguancun."

The reason for this moniker is that more than eighty percent of all businesses in Jiangcheng dealing in electronic products and peripherals are concentrated here. The entire six-story mall is dedicated to electronics-related trade. In Jiangcheng, whenever people have the urge to buy an electronic product, the first place that springs to mind is Zhongxin.

After Zhang Wenhao finished setting up the card for Li Nan and transferred fifty thousand yuan into it, he drove him to Zhongxin. The two wandered around the electronics city for quite a while, only to find that the place was incredibly chaotic—virtually a mixed bag of the good and the bad.

First of all, aside from a few branded specialty stores, the rest of the electronics city consisted entirely of privately operated stalls. The atmosphere for shopping was also quite poor. For instance, if a specific laptop model sold for 5,000 yuan at the Dell specialty store, the owners of those private stalls would pat their chests and guarantee they could sell it for 4,000. However, they would often resort to trickery, either selling refurbished units or tampering with the specifications; their business practices were highly unscrupulous.

After roaming for a long time, Zhang Wenhao and Li Nan reached a consensus: if one wanted to buy a laptop, they must go to a specialty store. Only in this way could they best ensure their rights were not violated by unscrupulous merchants.

Li Nan spent a long time looking but could not find anything suitable. As Zhang Wenhao followed him around, he began to feel an itch of his own. He thought that if he were to go out into the world, having a laptop would certainly make things more convenient. He immediately made up his mind: if he were to buy, he would buy two—one for Li Nan and one for himself.

Li Nan was not particularly fond of South Korean or Japanese products, so he only looked at brands like Lenovo, Hasee, ASUS, HP, and Dell. Zhang Wenhao asked him if he wanted to look at Apple computers, as they had become very popular over the last couple of years.

To his surprise, Li Nan showed no interest at all, waving his hand and saying, "Apple computers are too expensive. Plus, I’m not used to the system; I’d rather stick with Windows."

As he spoke, Li Nan pointed to the storefront of the HP specialty shop and said, "Let's go in and take a look."

Once inside, a young female sales clerk approached them, asking if they were looking for computers, printers, or all-in-one machines.

Zhang Wenhao then realized that this HP specialty store didn't just sell computers; office equipment like printers occupied half the floor space. He immediately said, "We’d like to see some laptops. Do you have any with good performance and quality, something durable?"

"We certainly do," the girl said with a faint smile. "HP computers are of excellent quality, and our after-sales service is also very comprehensive. We have gold-standard service centers all over the country."

Zhang Wenhao nodded. After studying internet security, while he wasn't exactly an expert on computer hardware, he understood more than the average person. He asked the girl to show him a few laptop models priced above 10,000 yuan.

Li Nan took a liking to a 17-inch multimedia gaming laptop, as he felt such a machine looked quite imposing—unlike the 13 or 14-inch models, which he felt looked a bit delicate and lacking in presence. Zhang Wenhao, however, leaned toward practicality; for instance, a 17-inch laptop was inconvenient to carry, and the large screen consumed more power, meaning the battery usually wasn't as durable for mobile office use as smaller models.

As the two were making their selections, a female clerk nearby was introducing HP's latest laser printers and copiers to two young men in the printing section.

The young man laughed and said to the clerk, "Your HP printers are great in every way, except the consumables are too expensive. The toner cartridges are pricey, and the paper is expensive too. I mean, we can switch to other brands for the paper, but you don't allow us to switch the toner cartridges. If we use someone else's, you won't honor the warranty. That’s a bit heartless, don't you think?"

The sales clerk smiled faintly and explained, "Sir, the truth is, there is very little profit in the hardware sales of HP office equipment. For HP, selling printers isn't where the money is; the real profit lies in the ink and toner cartridges. Many brands are like this; they have strong self-protection mechanisms regarding the use of consumables. Take Canon printers, for example—not only is the quality inferior and less professional, but neither the machines nor the consumables are any cheaper than ours. They just have a slightly more fashionable look."

The young man waved his hand and laughed, "Our company uses them, not for display at home, so it’s better to buy professional-grade gear. Our company has been using HP office equipment for many years now; I’m just complaining a bit, don't take it to heart."

Listening to their conversation, Zhang Wenhao’s mind began to churn. As a student, he lacked knowledge of the office supply industry, but hearing them, he suddenly realized that office supplies were actually a massive market. Moreover, office supplies were almost entirely consumables—not something you buy once and are done with, but something you must continuously purchase as long as there is a need.

At the most basic level, things like notebooks, pens, sticky notes, A4 paper for printing, copying, and faxing, as well as ink and toner cartridges for printers, all fall into the category of standard consumables. Constant consumption is the nature of these goods. If he were to enter this business, would there be a degree of profitability?

Zhang Wenhao began to deliberate in his heart. First, whether for large companies or small ones, consumables are a necessity. As long as the price is right, it doesn't matter who they buy from. The difference is that the person in charge of procurement might choose a supplier that offers more kickbacks. Naturally, he couldn't sacrifice his profit margins to pay kickbacks; if he did, he would have no competitive edge. Everyone else is cutting prices and increasing kickbacks, so the key to winning is either having connections or winning a price war.

Only a fool would engage in a vicious price war. Zhang Wenhao now had at least some connections.

He remembered clearly that on the day Chen Feng hosted the banquet, he had received business cards from ten different bosses. Among them were two real estate development companies, and the rest were mostly trading companies. These companies all required a large number of office staff and, consequently, a large amount of office supplies. If he contacted them, provided the prices were consistent, they would surely be happy to let him earn that business. Once he had the connections and big clients, this business wouldn't require any technical expertise. He would just need to rent a storefront, find a suitable wholesale channel, and hire a few employees to man the shop, handle the accounts, deliver goods, and provide maintenance. It would be up and running in no time.

Having figured this out, Zhang Wenhao decided that he would only stand to gain, not lose. It also fit the "borrowing a hen to lay eggs" principle that Chen Feng had mentioned. Once the shop was open, he wouldn't need to involve himself further. With the storefront in place, fixed major clients, and people working for him, he could just sit back and collect the money. A business like this was too good to pass up!

His mind drifted away from the computers. While Li Nan was still struggling to decide which configuration was better or which design was prettier, Zhang Wenhao selected a 14-inch business laptop costing over 13,000 yuan. Li Nan remarked, "If you're buying this, you might as well buy an IBM. That’s a standard business computer."

Zhang Wenhao curled his lip and said, "IBM laptops were acquired by Lenovo. Yet, for the same model, the price for Chinese buyers is much higher than for Americans. With such a ridiculous practice, I’d rather buy something foreign."

Li Nan shrugged and said, "That makes sense." With that, he made his own decision. Gritting his teeth, he pointed to the 15,800-yuan computer and said, "I'll take this one."

Zhang Wenhao immediately asked the clerk to bring out two unopened new units from the warehouse. After checking that there were no issues, he paid by card. As they walked out, Li Nan wanted to head downstairs, but Zhang Wenhao pulled him toward the upper floor, prompting him to ask curiously, "Why are we going upstairs?"

"Just to take a look," Zhang Wenhao said, heading up first. Li Nan had no choice but to follow. The floor above was entirely a zone for consumables. Zhang Wenhao observed the area and found that many of the shops were doing quite well. Many customers didn't look around; they headed straight upstairs, ducked into a shop, had a friendly chat with the owner, and left empty-handed.

Logically, procurement staff for companies usually only needed to make a phone call to have the shop arrange for delivery, so there was no need for them to come in person. Perhaps the reason they came personally was to collect cash kickbacks.

Furthermore, Zhang Wenhao noticed that the owners here had no interest in retail customers. Specifically, when Zhang Wenhao approached to ask about buying two ink cartridges, the owner’s attitude was very cold, as if he had realized Zhang Wenhao wasn't a company employee but just an ordinary user. Such people might buy two cartridges and not need more for a year or two, so he didn't bother with them.

However, if someone walked in dressed more formally, looking like a business person, and they wandered around searching, the owners would enthusiastically approach them to chat. In their eyes, such people were likely procurement officers; once they secured them as a client, the business would be endless.

After observing for about half an hour, with Li Nan bored to the point of "vomiting blood," Zhang Wenhao finally snapped his fingers at him and said, "Let's go, back we go."

Li Nan didn't know what Zhang Wenhao was pondering, but he didn't ask. He followed him out of Zhongxin. Zhang Wenhao drove him home, told him he wouldn't be going to Melody in the afternoon, and asked him to keep an eye on things, before driving home himself.

Zhang Wenhao kept thinking about it, and the more he thought, the more feasible it seemed. Roughly calculated, a small company of dozens of people would consume about a thousand yuan a month on various office supplies and consumables. Not to mention that he had ten big bosses he could leverage, and each of them had large companies and enterprises with assets exceeding a hundred million yuan. Combined, their assets totaled billions. If he could monopolize their office supplies, the income would be substantial.

Most importantly, each of these ten big bosses was a point, but they were also a face; their social circles were extremely broad, and there were many other big bosses among their acquaintances who owned companies. If he could string them together, the market would be even larger. After all, he wouldn't be charging them more than anyone else, and they would be happy to grant him this favor. This way, the business could not only grow but also remain stable for a long time. Even if he left Jiangcheng for university in Beijing, the business could continue to run smoothly.

Another crucial point: unlike the business at Melody, if he went into the office supplies and consumables business, it would be entirely legitimate. He could discuss it with his family. Zhang Wenhao had long wanted his mother to stop working at the mold factory. If this shop opened, he could let his mother manage it. He would arrange everything, and she wouldn't have to do anything except manage the money. It would be relaxing, and the profits wouldn't be low.

Back home, his mother had already prepared lunch. As the family of three sat at the table, Zhang Wenhao organized his words and said, "By the way, Mom, a friend of mine wants to open a store for office supplies and consumables."

Song Huafang asked, quite surprised, "What about it?"

Zhang Wenhao laughed, "He wants to partner with me. I don't need to put up any money; I just need to help find clients, and I get a thirty percent stake."

Zhang Wenhao used the same story Zhang Zhi had used on Chen Feng. Song Huafang, however, was a bit opposed, saying, "If someone is doing business, it’s not right for us to take a stake without putting up any money. If you can help your friend, just help him out; there's no need to ask for money."

Zhang Wenhao felt a bit helpless. His mother was always so kind, but he was just looking for a cover to convince her. The shop, in fact, would be entirely his own.

He immediately explained, "I had dinner with Chen Feng the other day, and he introduced me to several bosses in Jiangcheng. Their companies consume a huge amount of office supplies and consumables every day. If I can secure this relationship, the income will be very high. I'm not taking the stake for nothing; I'm using my connections as equity. It's a win-win cooperation!"

Zhang Xingping seemed to understand this concept of using a network as equity and said, "That doesn't seem like a problem, but wouldn't you be owing those bosses a favor?"

Zhang Wenhao laughed, "Dad, they are all bosses with over a hundred million in assets; this bit of money is nothing to them. And it's not like we're taking it for nothing. Once we really cooperate, not only will the prices not be higher than anyone else's, but the service will also be the best and most transparent, which makes things easier and more reassuring for them."

Zhang Xingping nodded and smiled, "Anyway, you have nothing to do this summer. If you think it's feasible, give it a try." He then added, "But if you think this is really feasible, you could also tell your friend that you'll put up some money to partner with him."

Hearing his father say this, Zhang Wenhao felt a surge of joy. It seemed his father didn't oppose it, so he nodded and said, "Dad, then I'll take a few tens of thousands from our family savings and try partnering with my friend."

Zhang Xingping smiled, "Fine. You're grown up now, so if you want to do something, just go ahead. Even if it doesn't make money, it'll be good experience."

Zhang Wenhao wasn't looking for his parents to put up money; he just wanted to free his mother from the mold factory. He said, "Mom, my friend isn't usually in Jiangcheng, so he said that if we set this up, we need someone trustworthy to manage the accounts. I thought about it, and you're the best person for it."

Song Huafang said with a smile, "Your mom has a proper job, and besides, I’m not an accountant; how could I manage that?"

Zhang Wenhao urged, "Oh, Mom, you can take a leave of absence from the mold factory. We can pay for your social security ourselves, and it won't affect your retirement later. You’re working so hard at the factory for just over two thousand a month. Managing the accounts at the shop is just checking the outgoing goods against the incoming payments; anyone who finished elementary school could do it. My friend said it’s not just accounting; it’s a store manager position, with a base salary of five thousand a month, plus a six-hundred-yuan transport and phone subsidy."

"Whoa..." Zhang Xingping raised his eyebrows in surprise. "A base salary of five thousand? Your friend is certainly generous."

Zhang Wenhao continued, "It’s not just about being generous; it’s hard to find someone you can trust. If someone untrustworthy does it, they could easily skim off more than five thousand a month. That’s why I want Mom to do it. It pays more, the work is easier, and when there's nothing to do, she can just play on the computer. She doesn't need to run around; she can just sit there."

Song Huafang was slightly tempted and asked, "Wenhao, tell me more. If you two are partners, how are you going to run this shop? If I really go, what would I have to do?"

Zhang Wenhao explained, "It’s actually very simple. First, we have the connections to find fixed, major clients, so you don't need to go out and hustle for business. When they have a need, they’ll call the shop. You don't even have to answer the phone; we’ll hire a clerk for the errands. They receive the call, note down the order, and arrange for delivery. You just need to record how much went out today and how much money came back, and make sure the two match. Other than that, there's nothing else."

Song Huafang then said, "Since you’re hiring a clerk, how about your aunt? She’s working at the winery now, but business is bad, and her salary is only a little over a thousand a month. She even called me a while ago saying she didn't want to work there anymore."

Zhang Wenhao agreed immediately. "That works! Call her later and tell her the job starts at three thousand a month, and with bonuses, five thousand or more won't be a problem."

Zhang Wenhao didn't dare say too much in front of his parents, lest they become suspicious, but even five thousand was a very generous figure for his mother. He nodded and said, "Deal! Talk to your friend later about putting in your own money as equity, so you don't take the stake for nothing. Then I’ll go work there with your aunt."

"You got it!" Zhang Wenhao immediately nodded and smiled. "I’ll contact him later to get the shop open as soon as possible. You go handle your leave of absence at the factory, and tell Auntie. As soon as the shop opens, you two sisters can go straight to work!"