Reborn as Zhao Ruilong of Handong, I will defy fate.

Chapter 349 Interests determine stance! Sincerity is always the ultimate weapon!

Wei Guanghong looked sincere.

He wasn't afraid of Zhao Ruilong.

Instead, it shows at least some respect for making money.

Zhao Ruilong, who was not very clear about his background, was naturally a little hesitant.

The clever and quick-witted Zhong Xiaoai immediately smiled upon seeing this:

"Mr. Zhao, Brother Hong just arrived and told me that he wants to talk to you about cooperation."

“We’ve known each other for many years, and my dad and his dad have been friends for many years.”

"Moreover, Dou Jiansheng, the deputy general manager of Yanjing Automobile Company who came for a test drive yesterday, is a sworn brother of Brother Hong."

"So Brother Hong is definitely a trustworthy and very capable partner. Why don't you chat with him for a few minutes, and I'll arrange for the guests to take test drives?"

Zhong Xiaoai's words were naturally a double entendre.

The introduction suggests that Wei Guanghong is reliable and has a distinguished background, making it worthwhile to have a chat with him.

But what about reality?

She not only reminded the two men that their fathers were good friends, but also implied that Wei Guanghong was part of Ge Junshan's faction.

Still worried that Zhao Ruilong might not have understood, he specifically mentioned Dou Jiansheng, who had come uninvited yesterday.

He engages in joint ventures and acts as a comprador; Zhong Xiaoai gave a detailed introduction last night.

This way.

Zhao Ruilong naturally knew that Wei Guanghong had come with ill intentions.

In public.

Everyone here is a respectable person.

Now that Wei Guanghong had spoken, how could Zhao Ruilong possibly refuse?

My father, Zhao Lichun, often said that politics without human touch is short-lived.

This is why he knew Wei Yun had ill intentions and was very greedy.

But out of respect for Mr. Wei, we still have to cooperate with him and help him make money.

As for Wei Guanghong...

He was rugged and fierce, and while he had some intelligence, it wasn't much.

Not only did he fail to grasp Zhong Xiaoai's implication, but he also smiled gratefully at her.

"Okay, then go ahead!"

"Brother Hong, this way please!"

Zhao Ruilong smiled and gestured for him to enter.

Wei Guanghong was taken aback, and waved his hands and shook his head repeatedly.

"No, no, no, Xiao Ai calls me Brother Hong, I can accept that."

"You call me Brother Hong, this... this is really too much of an honor for me."

"How about this, you call me Lao Wei, and I'll call you Ruilong, okay?"

Zhao Ruilong smiled and nodded.

"Okay, let's go over there and talk!"

As he spoke, Zhao Ruilong looked around.

The two guards wisely did not follow.

After walking a few steps, Wei Guanghong took out a cigarette and offered one to Zhao Ruilong.

After lighting a cigarette and exchanging a few brief, polite words, Wei Guanghong, fearing he would go over time, directly stated his purpose.

Fearing that Zhao Ruilong might disagree with the cooperation, he specifically mentioned that he had extensive connections in Northeast China and could ensure a smooth cooperation.

But Zhao Ruilong perceived this seemingly superfluous statement as a threat.

Having a strong network of contacts can ensure smooth cooperation.

If I refuse to cooperate, wouldn't my business, Zhao Ruilong's business, be doomed to all sorts of setbacks?

Not only in Northeast China, where 4S stores under construction are unable to open normally, but even Huilong chain internet cafes, which have been operating for a long time, are also affected.

Regardless of whether Wei Guanghong was coercing or enticing him, Zhao Ruilong had neither the interest nor the time to beat around the bush with nonsense.

“I believe you have a lot of influence in Northeast China, and I also believe that if you become our dealer, our Land Rover M9 will definitely achieve good sales in the Northeast region.”

"But the problem is that, in order to better serve our customers, we will not only adopt the direct sales model for this model, but also for all models of the entire Land Rover brand in the future."

Wei Guanghong frowned.

"What do you mean? No dealers or distributors? No middlemen taking a cut, the manufacturer sells cars directly to consumers?"

"Yes!"

After taking a drag of his cigarette, Zhao Ruilong explained calmly:

"Currently, most major car manufacturers wholesale their cars to dealers across the country, which naturally brings many benefits to the car manufacturers."

"First, it can quickly open up market sales channels; second, it can transfer inventory pressure; and finally, if there are problems with the cars, the blame can be shifted to the dealers."

"However, this model also has many problems. For example, even if it is the same brand and model of car, different 4S stores in the same city may have different prices."

"Consumers who want to buy a car at the best price often need to spend a lot of time and energy, going to many 4S stores to bargain."

"Moreover, in order to maximize their own profits, 4S stores often engage in bundled sales and price gouging for vehicle delivery, and they are also particularly ruthless in terms of maintenance and repair."

"If we want to build the number one brand of new energy vehicles, and a high-end luxury brand at that, we obviously can't use the traditional marketing model; we must innovate."

“Even if you set up brand-owned stores, the construction of stores, employee training, and marketing promotion will bring huge operating costs to car companies, and it is not possible to quickly cover the whole country.”

"But the direct sales model allows car manufacturers to directly face consumers, thereby better enhancing brand value, providing customers with more flexible and faster services, and eliminating middlemen taking a cut!"

"Especially the last point, no matter which store a consumer goes to in the country, the price of any service is the same, and if there are discounts or promotions, the discounts are the same, so there is no need to worry about being ripped off by 4S stores."

Wei Guanghong's head was buzzing.

The traditional authorized agency distribution model has long been deeply ingrained in people's minds.

People are used to buying new cars at 4S stores or auto trade centers.

That's why Wei Guanghong thought of becoming an agent to sell Zhao Ruilong's new car in Northeast China.

But now...

Zhao Ruilong told him, however, that Land Rover adopts a direct-sales model.

There is absolutely no need for agents or distributors to act as middlemen.

Zhao Ruilong couldn't possibly lie about such an important business strategy.

After all, you can easily find out if a store is directly operated by the owner by asking around afterwards.

"So... I made a wasted trip?"

Wei Guanghong's face betrayed his undisguised disappointment.

Zhao Ruilong smiled calmly.

"It wasn't a wasted trip!"

"We don't need distributors or franchisees, but we do need investors to grow and thrive together!"

Wei Guanghong scratched his head and frowned, looking puzzled.

Zhao Ruilong took a deep drag on his cigarette.

"Simply put, Land Rover will become a separate joint-stock car company."

"We will conduct multiple rounds of financing to have sufficient funds to build a high-standard automated production base and create brand-owned stores covering major cities across the country."

"So if you're interested, you can prepare your funds first and participate in the financing to become a shareholder. I believe that once the company goes public, you'll definitely get a good return on your investment!"

Wei Guanghong naturally understood such simple, plain language.

"You mean, instead of becoming a dealer and selling cars, I'd invest directly and become a shareholder?"

"Yup!"

Zhao Ruilong said solemnly:

"Think about it, even if I didn't adopt the direct-sales model, but instead went through the traditional authorized agency distribution model."

"If you want to build a 4S store in a major city in Northeast China, how much money will you need to invest and how much effort will you need to put in, from store decoration and renovation to staff recruitment and training, from vehicle and equipment procurement to spare parts inventory?"

"Even if you succeed, how long will it take to break even by selling cars, parts, insurance, and doing maintenance? Three years? Five years? You don't even need to do the math to know that the investment is too big and the payback period is too long!"

Wei Guanghong nodded repeatedly.

I didn't realize it until I did the math; I found out I'd been thinking too simply before I came here.

They only thought about the technological products developed by Zhao Ruilong—Xiaolingtong (a type of mobile phone), computers, MP3 players, and 3G mobile phones—and they knew that none of them were not profitable.

They naturally assumed that acting as an agent to sell the new energy vehicles developed by Zhao Ruilong would be a sure-fire way to make money.

Little did they know that cars are different from other products; they can't be bought and sold off on the street without even needing a shop.

We need to build a store, hire employees, buy equipment, wholesale new cars, spare parts and components...

Each step requires a significant investment, making it a typical example of a capital-intensive, long-term investment.

He is currently short of funds.

Not only did he gamble heavily in Haomen and lose a lot, but he also gave away a large portion of the profits that his good friend Gu Jinyang was entitled to.

With his funds stretched thin, he was unable to salvage the shoddy defense project, to the point that he had to coerce and bribe Ye Guanghui to take the blame.

Right now, he's only interested in making quick money; he has no ability to engage in long-term, heavy asset investments.

"You're right!"

"Investing in 4S stores yields too little profit and too slow returns."

"But you just said that if you invest and become a shareholder, you can get a lot of returns when the company goes public in the future. Is that true?"

"Of course it's true!"

Zhao Ruilong laughed and said, "Think about it, why would Xiao Jinhua and the others invest huge sums of money to build cars with me?"

"Are they really doing this so they can make money by selling cars one by one in the future? It's simply impossible!"

"Even if you can make a net profit of 10,000 yuan per car, you need to sell a million cars to make 10 billion yuan!"

"One million vehicles, what does that mean? Last year, we only sold less than three million vehicles nationwide!"

"So how can you make money quickly and in large amounts? Obviously, it's through finance, selling equity and stocks. That's obviously much more lucrative than selling cars!"

Wei Guanghong suddenly realized.

"I understand! I get it now!"

"You're planning to proceed in three steps!"

"First, we'll burn money at a loss to build the car well, seize the market, and achieve good sales."

"Secondly, with good sales and reputation, the company can obtain a high valuation and have the opportunity to go public via IPO."

"Finally, once the company successfully goes public, they can cash out and leave, or they can expand the company's scale, make the financial statements look good, drive up the stock price, and then cash out."

"Moreover, we don't have to wait for the company to go public. Once the company has a certain market size and brand recognition, we can pledge the shares for loans and use the money for other things or to continue investing."

"Buying low and selling high repeatedly after listing, stock trading is definitely more profitable than selling cars. Even if the listing is unsuccessful, if the company's market value increases, you can still make a profit by selling the shares to others!"

"Most importantly, with mature technology and supply chain, this business model can be replicated multiple times, investing in and creating multiple brands and companies, and gradually taking them public."

"With more brands and a wider variety of models, we can better meet the needs of consumers with different requirements, and thus take away more market share from joint venture cars. Although the companies seem to be competing fiercely, they are actually working together to make the market bigger and stronger."

Zhao Ruilong nodded with a smile.

As the saying goes, sincerity is always the ultimate weapon.

I don't boast or lie.

Simply being truthful was enough to convince Wei Guanghong, and he even started to wildly imagine the truth.

This business model, which has been successfully implemented by multiple new energy vehicle companies in another world, is naturally impeccable.

The objective is very clear, and the methods are also very simple.