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"Mr. Song, how is this possible!" Ah Long exclaimed in surprise, "Those speculative merchants hoard goods to drive up prices, they won't listen to us."
Song Hao laughed and said, "Anyone who doesn't speculate wouldn't be a businessman. They can't listen to us, but they have to listen to the market. What we need to do is manipulate the price of Gastrodia elata, a single variety, in the March Street medicinal herb market, and then influence the prices of medicinal herb markets across the country, ultimately forcing them to sell to Tianyitang at what we consider to be the ideal price. You'll understand the specifics of how to do it later, but you must do as I instruct."
"Are you confident?" Tang Yu asked.
Song Hao laughed and said, "It's just like treating an illness. As long as you control the timing, you can use mild medicine when to use strong medicine when to use mild medicine. I am a doctor, and the disease should be under my control."
From this point onward, Tianyitang launched its Gastrodia elata procurement campaign at the Dali March Street Medicinal Herb Market. Later known as the "March Street Gastrodia elata Procurement War," this event unexpectedly added a significant and legendary chapter to the history of Tianyitang.
Song Hao first had A Long bring Li Xin and Wang Hongli over, and then had Zhao Lida send five people from the Kunming office. He then transferred 10 million yuan from Tianyitang headquarters to officially begin operations. At the same time, he ordered all purchasing personnel to temporarily halt the procurement of Gastrodia elata from major medicinal herb markets, closely monitoring market trends and the actions of Li Quan, Liu Shun, and Zhang Zhifa, who held large quantities of the product.
Song Hao held a meeting with A Long, Li Xin, and others. Li Xin and the others were surprised and delighted that Song Hao and Tang Yu had personally come to Dali to oversee the acquisition of Gastrodia elata, but they also felt a deep sense of awe.
Song Hao said, "Starting tomorrow, you will purchase as much Gastrodia elata as you can from the Sanyue Street medicinal herb market, under the guise of out-of-town pharmaceutical merchants."
Li Xin said in surprise, "President Song, there shouldn't be much gastrodia elata in stock in March Street. We can buy it all up in one day, but this will inevitably cause the price to rise, which will be very unfavorable for our large-scale purchases in the future."
Song Hao smiled and said, "This is just a catalyst. What we're doing is causing fluctuations in the price of Gastrodia elata on March Street, which will then affect the price of Gastrodia elata in Chengdu's Lotus Pond. Let's not worry about any unexpected events for now; we'll take it one step at a time."
Li Xin, A Long, and the others exchanged bewildered glances, then nodded in agreement and dispersed to prepare their own plans. Song Hao then briefly explained his audacious plan to Tang Yu.
"Song Hao, while your plan is feasible, it also carries enormous risks," Tang Yu warned.
“I know that,” Song Hao said. “And we must see results within half a month to achieve our goal. Otherwise, we will still acquire it at double the cost price. Let’s play a game with these big pharmaceutical companies. They think that by hoarding a certain product with their vast financial resources, they can control its market price and achieve a certain degree of monopoly. Theoretically, this is possible, but not absolute. If the cost is high, the price of our medicines will increase, and the patients suffering from the disease will suffer, while the merchants will profit. For the sake of the patients and for Tianyitang’s investment costs, we have to bite the bullet and try. Tianyitang’s ultimate goal is to serve the patients, and we must be responsible for them at every stage. Even if our acquisition plan fails, we will still sell at the originally planned price. At most, we will give up Tianyitang’s profit. Because what we are doing is a business of helping people through medicine!”
"Song Hao!" Tang Yu was naturally moved upon hearing this.
"Don't worry!" Song Hao reassured him, "I'm 80% confident! The market research department of the purchasing office provided timely and comprehensive information. Li Quan, Liu Shun, and Zhang Zhifa, these three major pharmaceutical merchants, are also at the point where they need to sell off their stockpiled Gastrodia elata. Before we dump them on the market, we need to drive down the overall price. The data says they bought it for between 60 and 70 yuan per kilogram. In the current situation, we can't force them to sell at a loss, but we also need to make sure they don't make too much money. Consider it as them storing goods for Tianyitang, and then transferring them to us; we'll just pay interest. For a true businessman, the key to a good product is circulation. Goods worth millions or even tens of millions of yuan sitting in a warehouse can be speculated on for a huge profit if there's an opportunity, but if there's no opportunity for speculation, they'll eventually sell them to obtain funds to stockpile other goods. Besides, this time we're forcing them to sell passively. As long as things go well in March Street, things should develop in the direction we've set."
"The secret lies in the unpredictable! For now, let the two of us know the details of this plan, and let others carry it out. Letting them carry it out in a state of confusion will achieve the ideal effect of deception. I believe that even a god would fall into this trap," Song Hao said confidently.
That evening, Song Hao received a call from the squad leader.
"President Song, we've found the pharmaceutical factory that used to produce 'Gastrodia elata oral liquid' that you asked me to look for. Although it has switched to other products, it's not doing well and is on the verge of bankruptcy. I've inquired, and they seem willing to transfer ownership or contract it out. The price isn't high; if it's contracted out, the annual fee would be only 100,000 yuan," the squad leader said on the phone.
“Very good!” Song Hao said, “Then let’s contract it for another year and give them a contract fee of 100,000. But tell them that we will not take over the production. They should continue as they normally would. They just need to cooperate with us in terms of personnel, especially the purchasing agents from those pharmaceutical factories. Try to find them as many as possible and have them do what we tell them.”
"Understood!" the sergeant replied.
The next day at noon, Ah Long and Li Xin came over.
"President Song, we've bought up all the gastrodia elata in March Street at 155 yuan per kilogram. There are over three tons. What's our next step?" Li Xin asked.
"Well done!" Song Hao laughed. "Transport them out of Dali overnight, then repackage them and await orders. When the time is right, send someone else to transport them back to March Street and sell them all at below-market prices."
"President Song!" Li Xin hesitated for a moment and said, "This method has been used before. Can we do it this way too?"
Song Hao laughed and said, "The same method can produce different results. It all depends on who can reach a higher level. Others are only doing it temporarily and in one place. What we are doing is aiming to influence the price of Gastrodia elata in the national medicinal herb market."
That very evening, Ah Long returned and reported, "President Song, after we bought up all the Gastrodia elata in the March Street medicinal herb market, a small amount of goods have started to be transported into Dali from other places. It is estimated that there will be more tomorrow. And the price has already risen to 180 yuan per kilogram."
"As expected!" Song Hao said, "We'll continue buying tomorrow, as much as we can. The price should break through the 200 yuan mark in the next couple of days."
At 10 a.m. the next day, Li Xin called anxiously: "President Song, we haven't even arrived yet, and in March Street, some pharmaceutical merchants have already brought in more than five tons of Gastrodia elata from other places overnight. The price has risen to 193 per kilogram. Should we continue to buy it?"
"Continue the acquisition! Buy up all the gastrodia elata that was delivered to the March Street market today," Song Hao said calmly.
That evening, Li Xin and his accomplices bought up nearly ten tons of Gastrodia elata that the pharmaceutical merchants had urgently transported from various places.
"General Manager Song, there are signs that the price of Gastrodia elata at the Chengdu Lotus Pond Medicinal Herbs Market has increased," Wang Hongli reported.
Song Hao said, "Very good, it's starting to affect the nearby lotus pond, a chain reaction has begun. Tell our people to closely monitor the price trends of Gastrodia elata in major medicinal herb markets, and report back twice a day, once in the morning and once in the afternoon."
Ah Long said worriedly, "At this rate, the amount of loose Gastrodia elata arriving at March Street tomorrow should reach 15 tons, and at least 20 tons the day after tomorrow."
Song Hao said, "The more the better. We should reach a price peak in the next day or two. However, once we reach a certain quantity, the price will start to fall, and then our main show will begin."
On the third day, 14 tons of Gastrodia elata arrived at the Sanyue Street medicinal herb market and were bought up by Li Xin and others. The price per kilogram soared to 220 yuan.
The unusual price fluctuations of Gastrodia elata at the Sanyue Street medicinal herb market naturally caught the attention of Li Quan, a major pharmaceutical merchant from Anguo, Hebei. He made a phone call to his associate Zhang Zhifa at the Hehuachi medicinal herb market.
“Old Zhang, something’s not right at the Dali March Street Medicine Market! Why would buyers who need large quantities of goods go there?” Li Quan said.
"Who the hell knows what's going on? But the market for Gastrodia elata is rising, which is good for us. The higher the better. Mine has already broken through 200. The batch we stockpiled last year should be ready to be sold soon. We can make double the money even with our eyes closed. You're really farsighted, brother!" Zhang Zhifa replied excitedly.
“Old Zhang, you live relatively close to Dali, you should send someone to check which pharmaceutical company is buying up Gastrodia elata. What I find strange is why they chose March Street. The market is constantly changing, it's not time for us to be complacent yet,” Li Quan cautiously reminded him.
Thirty-two
The Spiritual Tortoise's Method for Cultivating Will: Cultivating will means preventing the mind from wandering. When there is a desire, the will is present and thought is focused on it. Will is driven by desire. Too many desires scatter the mind; a scattered mind weakens the will; a weakened will leads to obstructed thought. —Guiguzi, *The Wordless Heavenly Book*
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Zhang Zhifa said, “I’ve already sent someone over today, don’t worry, everything’s fine. I reckon it’s some small pharmaceutical factory buying up Gastrodia elata. That’s even better, it’s reduced the inventory on the market, and the price has gone up. Right now, the new stock hasn’t come in yet, and the old stock is out of stock. When the purchasing agents from those pharmaceutical factories that need large quantities come to us, we’ll be able to set the price, because we’ve already monopolized the bulk stock. Even if we dump it on the market, we’ll still make a profit. Old Liu from Haozhou called me last night, asking when I was going to sell my stockpiled Gastrodia elata. I said there’s no rush, now the three of us basically control the Gastrodia elata market, this is a once-in-a-lifetime opportunity, it wouldn’t be worth it if we didn’t make a fortune. That small pharmaceutical factory buying up Gastrodia elata in March Street has really given us a boost, haha! It’s really heaven helping us!”
“Liu Shun is a very cunning man. He’ll try to sell his goods before we do. And he’ll most likely dump them on the market, which would affect our strategic objectives to some extent. So, don’t tell him anything special from March Street for now,” Li Quan said.
Zhang Zhifa laughed and said, "Don't worry about him. Our target is large pharmaceutical companies that need more than 40 or 50 tons. They don't have the time or energy to buy loose goods in the market, so they can only come to us."
“Old Zhang, listen carefully. The first two years of Gastrodia elata harvests were all poor due to natural disasters in the main producing areas, which is why we risked everything last year. But this year, with favorable weather, we're sure to have a bumper harvest. In the two months before the new crop hits the market, we must sell off our stockpiled stock. These unusual fluctuations in the March market are extremely important; they could make us rich or they could ruin us, so you must pay close attention to everything that's happening there. If there's any sign of trouble, be sure to tell me immediately,” Li Quan instructed.
“Okay, I’ll listen to you. I’ll figure out what’s going on in March Street within two days,” Zhang Zhifa said.
On the fourth day, the medicinal herb market in March Street was exceptionally bustling; the words "Gastrodia elata" had become commonplace. This single herb had brought unprecedented prosperity to the March Street market. Loose Gastrodia elata from several provinces and cities near Yunnan were almost entirely transported here, reaching over 20 tons, essentially "saturating" the market. At its peak, the price per kilogram soared to 242 yuan. However, after the large-scale arrival of goods, prices began to slowly decline. After Li Xin and others purchased another 10 tons, Song Hao ordered them to immediately stop buying and wait for further developments. Tianyitang, after three days of frantic buying, spent nearly six million yuan to acquire almost 25 tons of Gastrodia elata.
A tense atmosphere prevailed in Song Hao's hotel room, as Li Xin and the others were unsure of their next move.