Chapter 162: Manufacturing (1)
Chapter 162 – Manufacturing (1)
“Do you have enough capital?” asked Shu Yan directly.
Old Zhang remained silent for a bit then said, “I have been thinking about it; I can take out a second mortgage. If I don’t at least git it a try, my factory will really go belly up.”
“Why don’t we work together then?” asked Shu Yan all of a sudden.
“What do you mean by that?” asked Lao Zhang as he looked at Shu Yan nervously.
“I will give you full rights to produce them. I’ll also provide the materials and you provide the location and salaries. We will split the profit 50/50. What do you think?” Shu Yan leaned back and waited for Lao Zhang’s answer.
When she first made the underwear, Shu Yan was just testing water. Had Lao Zhang not come, she’d have gone to Boss He. In fact, working with Boss He would probably be even more beneficial. He already had built-in customers. But then Shu Yan would also not be able to get 50/50 split. She’d be lucky to even get 20%.
Besides, Boss He might seem like a passionate guy but he has his cunning side. Lao Zhang, on the other hand, was much more of a trustworthy person. Shu Yan was 100% sure that if Boss He was the one making the fall set for her, he’d have been producing and selling them elsewhere way before now. Let alone coming to get her consent.
“I… let me think about it.” Lao Zhang wasn’t able to make a decision.
***
Lao Zhang paced back and forth. He didn’t need to consult Shu Yan at all and there was nothing that she could do had he produced and sold her designs. There was no such thing as patent on these things. Except his principles wouldn’t allow him to do that. He believed that being trustworthy was an important quality. It was what his father had always taught him since he was a child. And exactly because of that, his workers at his factory never abandoned him at their most difficult time.
What Shu Yan had proposed was very tempting. A second mortgage was the last resort. It was their home. It was their home. If they lost their home, his wife and children would have nowhere to go. He could be a transient, but he couldn’t let his wife and children became homeless as well.
If he chose to work with Shu Yan, she’d be fronting all of the cost at this stage. There would be no need to take out a second mortgage and the risk would be split. Lao Zhang couldn’t think of any reason to decline that.
Shu Yan fully expected Lao Zhang to agree to her proposal. The two of them had lunch together the next day and signed a contract. They went over to the market to pick out materials and fabrics that very afternoon.
Shu Yan had been producing red and black ones. Chinese really like their red and it was the most popular color. She had subsequently added grey and black for men; those did alright as well. Now that they were going to wholesale them, these color selections were a little bit lacking. They added pink, aqua, and purple for women’s style and also added blue for men ones. They’ve produced a few other colors ones but were only using them as samples. The colors mentioned above were the ones they would be producing for wholesaling.
There would be four different sizes for each color. 200 sets of each came out to be 6,400 sets. Along with the other colors, 6,500 sets total. The cost of the materials came out to be 30,000 ~ 40,000 yuan. This entire amount was all paid for by Shu Yan.
“Are we going overboard on this?” Lao Zhang was a bit hesitant when he watched Shu Yan paid.
“It’ll be fine. When push comes to shove, I’ll have a promotional event to get rid of them.” That had always been part of Shu Yan’s plan. Underwear would not go out of style. She could always have a couple of promotional events at the end of the year and they’d be all gone. “Do you still have the numbers of your old customers? Call them up and see if they are interested.”