"President Luo, I think the franchise system is good. I've done the calculations, and with our own direct retail sales, the profit exceeding the ex-factory price can completely cover the costs of opening franchise stores in various places. It doesn't matter if other pharmacies don't sell our medicine; we'll sell it ourselves. Minhong's reputation is there, and our medicines far surpass those of similar drugs. We're not worried about people not buying them." After saying this, Ding Ruonv scratched her head sheepishly. "It's just that the initial costs of opening franchise stores in other places are too high; it's probably going to cost a lot of money. Opening them ourselves would also take a long time. I haven't thought of a way to solve that, hehe."
Luo Jimin secretly praised him, thinking that this kid was not bad. He actually thought of the same idea as Minhong's future plan. He was a good prospect and worth cultivating.
Nodding in approval of Ding Ruonv's idea, Luo Jimin said, "Just do it your way. Go to the Internet Affairs Department and ask them to cooperate in issuing announcements and publicity. See if it's necessary to hype it up in other regions, and what kind of concept to use. Discuss this with the Planning Department and come up with a plan for me."
"By the way, what's the reaction from those three major distributors outside the province who have already signed agency agreements?" Luo Jimin suddenly remembered that these three distributors were also members of the offensive and defensive alliance, and at this time he should pay attention to their movements.
"General Manager Guo from Hunan and General Manager Yang from Beijing transferred the first advance payment to the company account this morning. Their finance department called to inform me that the company's finance department hasn't received the money yet, and we'll probably have to wait until tomorrow to confirm after receiving the bank statement. There's still no news from General Manager Yang in Zhejiang. I contacted their purchasing department, and judging from their tone, I think they want to continue to observe the situation." Ding Ruonu had a clear grasp of this information and reported it without difficulty. "I've looked into it, and Hunan Minkang Pharmaceutical and Beijing Jinkang Pharmaceutical already distribute children's cold medicine granules. This is a strategic product substitution. Zhejiang Kangkang Pharmaceutical hasn't distributed similar drugs before, but they are a large company, so I guess they want to use our product to suppress their competitors."
"Excellent, you've done a great job. Keep it up." Luo Jimin praised Ding Ruonv generously, deciding to give this capable young man a bonus. Minhong needed this kind of talent who could proactively expand his thinking.
"Xiao Ding, keep up the good work, you've been doing very well lately." Lin Hongmei praised him generously, then turned to criticize her husband Luo Jimin, "I told you that we should include a security deposit system when signing the agreement, but you insisted on not doing these things. How can business dealings be based on personal reputation? Now all the pharmacies in Chengdu are withdrawing their products and returning them. I don't know how many medicines have had their packaging damaged."
"It was my fault." Luo Jimin bravely admitted his mistake. "I saw that the sales at the exhibition were so hot that I was worried about something going wrong, so I lowered the signing standards. It wasn't because I completely trusted his personal reputation that I did this."
Turning to Ding Ruonv, Luo Jimin instructed, "The marketing department should produce several standard agreement templates, taking into account agreements from different channels. Everyone should discuss them and involve the legal affairs department, which is currently in the preparatory stage."
"Thank you, Mr. Lin." Ding Ruonv first thanked the boss's wife for the praise, and then turned to the boss, "Okay, I'll get on it right away." After saying that, she turned and left immediately, working decisively and efficiently, without any intention of flattering the boss or saying hello before leaving.
"Mr. Guo from Hunan and Mr. Yang from Beijing are both men who can accomplish great things. We should cooperate more in the future." Luo Jimin sighed, quite admiring the two businessmen's boldness and vision.
"Mr. Luo, do you think the purchasing department should find a few more suppliers? I think even if they are large suppliers, we should at least find three." The purchasing manager was a relative of Luo Jimin, named Luo Yafei. He had just returned to his hometown from the coast because of his parents. He was 27 years old and from Xindu, a suburb of Chengdu. He used to be the deputy purchasing manager of Southern Sanqi Pharmaceutical Group. He was very familiar with the purchasing of medicinal materials and was a talent that both Luo Jimin and Wen Youmin were satisfied with.
Seeing that Luo Jimin and his wife, as well as the young master Lin Yao who had just returned to the conference room, were all listening attentively to his report, Luo Yafei became even more excited. "Minhong's procurement volume is already quite large. According to the planning department's plan, the volume will continue to increase in the future. Therefore, we should not limit the raw material suppliers to one. Foreign production enterprise management standards clearly define this kind of thing. In order to prevent future risks, we must select more than three suppliers."
“The prices of raw medicinal materials across the country have not increased. Chuanlong’s actions have violated business ethics. We can completely abandon them without violating the terms of the agreement. Today I even went to their sales department to get a price list.” Luo Yafei said confidently, “There are several large-scale Chinese medicinal material suppliers in Anguo County, Hebei Province, Haozhou City, Anhui Province, and Yingkou City, Shenyang. We can contact those suppliers to avoid similar situations affecting production in the future.”
"Okay, submit that price list to the legal department for filing and get their opinion. Then, expedite contacting suppliers." Luo Jimin's gloomy mood immediately improved. With such a group of insightful people joining Minhong, how could they not achieve great things?
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Chapter 194 Yi Guoguo
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When the marketing and purchasing departments reported on their work, Lin Yao remained silent, observing his parents' responses. As time went on, his father, Luo Jimin, and mother, Lin Hongmei, gained more experience in business management and market development, gradually developing the demeanor of successful individuals. They were no longer the small-time owners of a processing plant with only a dozen or so people extracting gastrodin.
Lin Yao was very happy to see this change. His family had little experience in this area. His parents' thinking habits and limitations were deeply ingrained, making them less receptive to new things than he, as a young person, could easily adjust their thinking and strategies based on the actual situation.
Ultimately, the business would be managed by his parents. Lin Yao's goal wasn't that; at most, he would participate in some major planning aspects. As his cultivation deepened, he increasingly regarded improving his personal strength as his ideal. This improvement had three aspects: his own power, the growth of the little grass, and the improvement of medical skills, represented by medical true qi and alchemy.
Minhong's decision-makers anticipated the dealers' joint resistance on the very first night of the exhibition. The newly established planning department performed its duties admirably, even working through the night to devise potential difficulties and countermeasures. Lin Yao reviewed these plans and, based on his experience, felt they were of a very high standard; however, in practice, they were still somewhat imperfect.
With the powerful tool of establishing branches nationwide, Lin Yao didn't take this level of obstruction seriously.
There will definitely be difficulties, after all, Minhong's market policies have indeed damaged the vested interests of many pharmaceutical companies and distributors in the same industry. But difficulties can be overcome. As everyone understands it, in this era everything is decided by the market and by consumers. As long as a channel can be established to deliver products to consumers, that will be fine.
"President Luo, President Lin, this is an online direct sales plan jointly developed by the Planning Department, Marketing Department, and Online Business Department. Please review it." Meng Mu had previously left the meeting room to return to his office and retrieve several printed copies of the plan. He then pulled Ding Ruonv, the Marketing Department Manager who had already left, back into the meeting room. Also pulled in was the temporary head of the Online Business Department. The position of Business Department Manager had been reserved by Lin Yao for Zhang Yunan, an online expert recommended by Gou Xiaogou.
The Network Business Unit differs from other departments. As the head of this unit, management skills and professional knowledge are indispensable, especially a high level of network expertise. Otherwise, everything is just a castle in the air, lacking the foundation to tackle complex professional challenges. Zhang Yunan, recommended by Gou Xiaogou, happened to be the perfect candidate.
Lin Yao quickly glanced at the plan that had been distributed to him and secretly praised it. Although all the departments of Minhong were newly established and the employees were not yet well-coordinated, especially the marketing department which was recruited with medical expertise and was particularly inexperienced, he could still see a vigorous and upward-looking vitality just from this plan.
The plan, jointly drafted by the three departments, mainly designed an online direct sales scheme. It would utilize Taobao or establish an online payment platform through agreements between Minhong and major banks, allowing patients nationwide to directly purchase Minhong's medicines, although the cost would be relatively high.
Consumers need to pay extra for postage for each transaction, while Minhong needs to pay merchant fees for Alipay and online banking transactions. However, both fees are within an acceptable range for both consumers and Minhong. In particular, Minhong sells the boxes at five yuan each, and the profit margin above the factory price can easily support the single-digit percentage transaction fees.
The national industrial and commercial departments have not yet issued specific laws, regulations and policies for online stores, so opening an online store is simple and easy. However, this method will delay sales efficiency. If consumers urgently need medicine, the delay in financial transactions and the time it takes to mail the product will delay the best treatment time.
Regarding this issue, the plan offers a compromise: develop distribution points across the country, utilizing partner merchants throughout counties and towns as temporary warehouses for Minhong. After paying online using Minhong's designated methods, consumers can sign for and collect their products at the local distribution point using their registered identity and bank card information.
Of course, these delivery points do not charge consumers directly, which saves the delivery points in various places the trouble of handling special commodity sales procedures. They are just Minhong's cooperative delivery partners, and industry and commerce, taxation, medical and health departments and other industry management departments cannot restrict their behavior. After all, these online stores are not doing drug sales, but are just skirting the law.
"Excellent, excellent, I think it's a good idea." Lin Hongmei held the project proposal in her hand, her eyes shining brightly as if she could see tons of RMB floating in the air. Her smile was radiant. "My personal opinion is to start implementing it immediately."
"The plan is good." Luo Jimin praised generously, nodding in affirmation of the achievements of the three departments. "I think it can be implemented, but we should first ask the legal affairs department for their opinion on whether it is legal and compliant to cooperate with merchants in prime locations across the country to open delivery points. The management and operation rules for this model still need to be refined."
"Yao'er, what do you think?" Lin Hongmei's previous unpleasantness vanished, and she looked at her son with a beaming smile.
"I think this plan is good." Lin Yao smiled at the three department heads sitting across the conference table. "It's clear that a lot of thought has been put into this plan, and it's very feasible."
“However…” Lin Yao changed the subject, “I suggest we refine this plan first and not rush into implementation.”
"First of all, we need to seriously consider whether this kind of borderline approach will be restricted. Minhong has launched a measure and cannot abandon it halfway. Medicines have always been a special commodity under key national supervision. Although the distribution points in various places do not deal with funds and it does not seem to be a complete commodity transaction, the system is one thing and the actual operation is another. This requires good consultation with relevant departments to avoid consequences."
Secondly, establishing an official online payment transaction platform system takes a lot of time, and the system's stability also needs to be tested in practice. I suggest that after the platform is established, it should first be piloted in Chengdu, and then delivery points should be opened in various districts and counties to facilitate patients in picking up their medications.
Because we have dedicated Xingrentang pharmacies in Chengdu that sell our products, this operation will not significantly affect patients' future purchases if it becomes unfeasible.
In addition, I personally still prefer to recruit merchants nationwide. After all, the use of online banking is not very common, especially in county towns and townships, where it is unrealistic to rely solely on online shopping for the market.
Let's hold off for now. This time can be used to build and improve the system, which will also facilitate Minhong's nationwide recruitment of distributors. What we need are distributors who are truly aligned with Minhong's goals, which is of great strategic significance for the future.
Yi Fei appeared at the conference room door, and Lin Yao heard his voice, "Sir, Yi Guoguo and the others will be arriving soon. Would you like someone to pick them up from the train station?"
Lin Yao stood up and said to his parents, "Dad, I have something to do. You two talk first, and call me if you need anything."
After saying goodbye to Wen Youmin and Wu Jianwei, he nodded to the three heads of the Minhong department who were reporting on their work, and left the meeting room directly.
Yi Guoguo was arranged by Yi Yang. He had made prior arrangements. This time, Yi Guoguo was leading 100 disabled members of the Yi family to Chengdu for Lin Yao to treat them. They were currently on the train and were about to arrive in Chengdu.
Lin Yao had a clear understanding of the current situation. Minhong's development was encountering obstacles from all sides. While it could still find ways to overcome difficulties, the criticism it would face would only increase with the advent of new drugs. Without a strong background or influence, Minhong needed a powerful partner to achieve long-term development, and the Yi family was the best choice.
The Yi family, which has been able to quickly establish a foothold in most provincial capitals across the country, is demonstrating strength and sincerity that aligns perfectly with Min Hong's interests. Therefore, Lin Yao must enhance the Yi family's strength as quickly as possible to strengthen the cooperation between the two sides and gain greater support for Min Hong.
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Several minibuses drove into the train station platform, where a group of security guards arranged by Ge Yong assisted the people brought by Yi Guoguo in taking the disabled children out and then sending them to a place in the suburbs.