Those Years When I Was Forced to Top the Forbes List

Chapter 64 What is the secondary market?
The next day.

Considering the possibility of meeting reporters, Chen Xuebing did not bring Ren Ying back to Chongqing this time, but Teacher Ren assigned him a lot of tasks.

In the morning, I memorized my lessons, did a set of practice questions, and then went straight to the Smartda Internet Cafe. I gathered everyone together, started checking Alipay accounts, distributed bonuses to everyone, and set strategies.

Zhang Hang is in charge of bookkeeping these days, while Lu Yiwen is in charge of outgoing and outgoing transactions; they are essentially an accountant and a cashier.

Having suffered many financial losses in his previous life, Chen Xuebing implemented a two-person supervision system from the very beginning when he started his business after his rebirth. Zhang Hang would call him every day to report on the general ledger, and he would then call Huo Xiaowen to inquire about the receipt and delivery status. He also kept his own daily inflow and outflow ledger.

Lu Yiwen is very reliable. Every day after transferring money, he would send Chen Xuebing a text message explaining the expenditure and balance.

However, the previous transfers were very troublesome. Lu Yiwen had to take Chen Xuebing's bank card and queue up. If the bank was full, he had to go to a more distant one. If all else failed, he had to go to the post office to send the money.

Things have become much simpler since we no longer need to hide the shipping channels from Huo Xiaowen.

Alipay already has a transfer function, so Lu Yiwen can transfer money directly from Chen Xuebing's Alipay to Huo Xiaowen's newly applied Alipay. Huo Xiaowen can then withdraw the money from the card and find an ATM to withdraw it. Even though Alipay withdrawals take two or three hours, it saves him the painful procedure of a traditional transfer.

Moreover, Huo Xiaowen already had some financial capacity to advance funds and could negotiate with General Manager Zhao to extend the payment period. Even if the cash withdrawal was delayed, the delivery would not be affected.

Currently, Alipay has saved him the trouble of having to queue at the bank at any time.

In fact, part of the reason Chen Xuebing thought of proposing to Taobao, "If you dare to pay, I dare to compensate," was to ensure the safety of his money when it went through Alipay.

The money was indeed substantial; in ten days, the Taobao sales reached 130,000 yuan, with a profit of 33,000 yuan.

The three thousand-plus change was the amount Huo Xiaowen settled with him through offline sales, while the thirty thousand came from the store's sales.

Sales were below expectations, but profit margins were quite high.

It's been a full ten days since the 29th. The homepage recommendation period ended a week ago, and the fixed first place in the category search ranking is gone. We'll have to wait until next Monday to get some periodic traffic again.

Sales have dropped significantly; only 72 machines were sold in 10 days, with two returned and six replaced through negotiation.

Half of them were sold before the New Year's Day holiday. In the week following the holiday alone, 42 units were sold, which is less than half of the number sold during the homepage recommendation period.

However, sales have already doubled compared to the same period last month.

The profit margin has also increased a bit. Last month, the purchase volume was close to 200 units, and Zhao Wanping gave up 3 percentage points.

The purchase price is 3%, but in reality, the profit margin is more than 3%.

This calculation would baffle many people who have never run a business before.

For example, if an item costs 500 and is sold for 600, the profit is 100. The profit margin is profit/cost, which is 20%.

The purchase price decreased by 3%, or 15 yuan, so the cost became 485 yuan, the profit became 115 yuan, and the profit margin became 23.71%.

The actual profit margin was 3.71% higher.

Moreover, half of the goods were sold in Chen Xuebing's store, and for this half, the seven "salespeople" only received a 5% commission.

They take a 20% cut from other stores' prices.

These price differences, in the process of wealth rolling indefinitely, amount to a considerable sum and can generate compound interest.

Cost, profit, compound interest—anyone in business must understand these concepts.

But it doesn't mean much to Chen Xuebing now, because he has enough funds, but his sales volume is insufficient, and his income is already fixed.

My Alipay account originally had 130,000 yuan, and I received 33,000 yuan. Last week, I withdrew 10,000 yuan and settled the 35,000 yuan owed to Zhao Wanping and the 8,000 yuan owed to Huo Xiaowen, leaving me with 110,000 yuan.

In addition, there were over 3,000 yuan in commissions for seven other people, and over 3,000 yuan in commissions for Huo Xiaowen. After Chen Xuebing finished calculating the accounts, he transferred the money into their Alipay accounts one by one.

Alipay balance: 103170.20 yuan (pending payment of 82550 yuan).

They're all Chen Xuebing's.

Bank card balance: 60128 yuan (6 yuan transferred from Taobao).

In those 10 days, the seven brothers each earned an average of 500 yuan, and they were all extremely excited.

"Damn, my dad only gives me 400 a month, and I've earned 400 in just ten days! Brother, from now on you're my real dad!" said Yu Yi, who came from the wealthiest family.

Gou Hongyi was the top salesperson again, earning over 600 yuan, and he was all smiles.

"Let's go sing karaoke tonight! It's on me!"

Everyone was discussing the evening's activities, but Chen Xuebing looked at his bank account and felt a pang of heartache.

The outstanding payments for the goods sold amounted to just over 80,000 yuan, while he had over 160,000 yuan.

Half of the money is idle and has become dead money!
"Singing my ass, save your money!"

As Chen Xuebing spoke, he turned around to give a speech, but there were quite a few people in the internet cafe, so he called everyone outside and had them sit in a circle for a meeting.

"Let me tell you something, everyone. Don't get cocky. We've made money recently, but look at your own stores. Sales have actually declined compared to last month. Most of the money came from my store. You guys are also operating Xin Mengzhen's crown-level store. Why can't you sell your products? Find the reasons yourselves."

“Brother, I noticed it a long time ago.” Gou Hongyi immediately said, “Your store sells exactly the same goods as ours, and the prices are the same too. Of course, people will go to the store ranked first in the category to buy! Look, starting this week, your store’s sales have dropped, while ours have all gone up!”

"So I've affected your business, haven't I?"

Chen Xuebing blushed slightly, but still maintained a stern expression and said:

"Taobao's traffic will grow rapidly, and your current credit accumulation will become an advantage in the future. Be sure to actively contact customers who give positive reviews."

In addition, we also need to take the initiative to think of solutions. Starting today, all our stores will offer free shipping. The next step is to send accessories. I will ask Huo Si to find a manufacturer to make our exclusive gift box, which will include a universal charger and headphones.

However, promotions should be launched one at a time to avoid causing too much disappointment among existing customers.

“Brother, a lot of people have asked about our phones, but some still think they’re too expensive. Will our phones be cheaper in the future?” Jiao Gui suddenly asked.

"Idiot." Gou Hongyi was still holding a grudge about being slapped by Jiao Gui on the winter solstice, and seized the opportunity to curse, "I told you, don't feel disappointed! What about the people who bought before you gave us a discount?"

Chen Xuebing waved his hand and said, "The price of old products will definitely decrease gradually! Our purchase price will also decrease, but that's market price adjustment, not a discount. If you think the price is too high, just tell him to wait a while and see. Mobile phones are updated quickly, and the price will eventually drop."

Jiao Gui immediately stood up straight, raised his hand and glared at Gou Hongyi: "Did you hear that! Will you surrender? Who's the idiot? Who's the idiot?"

Chen Xuebing smiled and said, "Jiao Gui, you won't be selling goods anymore. Go home and pack your things. Tomorrow, come with me to the Pengshui construction site. You can learn to drive there and run errands for me. I remember you can ride a motorcycle, right?" Jiao Gui put down his hands, his eyes shining: "Yes!"

"Okay, you can hand over your shop to Lu Yiwen. I'll give you a fixed salary starting from 1,000, including room and board, plus bonuses. I'll give you your first month's salary right away. You won't need much money working for me. Go back and talk to your parents about handing over a portion of your income to them for safekeeping."

As Chen Xuebing spoke, he glanced around and said, “You’re the same. I don’t care what your relationship with your parents was like before. You’re all seventeen or eighteen now. If you can’t even be filial, then don’t follow me. You will definitely earn more and more money, but I hope you can save some for your families first and improve their living conditions.”

Everyone looked at each other.

Some of them are still minors, but the soldiers have already made them start supporting their families.

The pressure is immense!

But thinking about it, it's actually pretty exciting!

“Brother! I’ll go buy my parents some clothes tomorrow!” Lu Yiwen immediately responded.

"Hey, I've already given my mom five hundred, but I bet she used it to play mahjong," Huang Jin said in a muffled voice.

"Haha...I'll give the same to my mom!"

"It's even worse for my dad; my mom might just confiscate it as his secret stash!"

"Hahaha……"

Everyone was laughing, but Gou Hongyi felt that the soldier's words were directed at him again, and he muttered, "I'd better save it myself! I won't ask my parents for money when I get married!"

Zhang Hang said somewhat sullenly, "Brother, my parents are gone, so you don't need to talk to my aunt and uncle about making money, right?"

Chen Xuebing smiled and reached out to pat his head: "You don't have parents, but you still have me as your brother. If you want to save money, you can give it to me, and I'll save it for you."

"Brother, I'm here for you!"

"I'm your brother too! My home is your home!"

A second hand, a third hand, and a fourth hand quickly landed on Zhang Hang's shoulder.

Chen Xuebing smiled.

"Work hard, and before long, you'll really have a new home."

Everyone:?
Chen Xuebing swept his fingers around the room: "You're making so much money in a month, you can't keep working and holding meetings in internet cafes all the time, can you? Lu Yiwen, take some time to look at the nearby office buildings. After the New Year, we'll rent an office, and I'll provide you with computers and 4 Mbps broadband!"

After he finished speaking, there was a brief silence.

What does 4 Mbps ADSL mean?

The smart internet cafe they frequent is advertised by its two broadband access lines (2+4), totaling 6 Mbps!

Using 50 machines at the same time!

Even so, as long as no one uses FlashGet to download anything or watch porn, or just plays QQ, games like Legend of Mir or Bubble Fighter, it's considered smooth!
If you give a few people a 4 Mbps broadband connection, they'll be flying high!

"Fuck!"

"Fuck!!"

"Brother soldier! You're like my own brother!"

Even Jiao Gui, who had always wanted to be Chen Xuebing's personal henchman, carrying his bags and driving him around, was openly envious.
"Bro...could you save me a spot in the office? If you don't agree, those bastards definitely won't let me use the computer!"

Chen Xuebing patted Jiao Gui on the back: "We'll be getting more and more computers, and we'll have new employees coming in. Don't worry, I'll definitely use the best internet speed in the office."

A group of people started howling like cannibals, fantasizing about surfing the internet from their own territory.

Chen Xuebing shook his head and smiled.

That's all.

4 trillion would drive me crazy.

He also wants 10 Mbps fiber optic cable.

As far as I can remember, the start of China's most bullish stock market was around May or June of this year.

By the end of April, he was preparing to begin planning and laying the groundwork.

When that breathtaking market coincides with a bull market, in the heat of the moment, the price changes every second, and within a minute, the trend can completely reverse.

He wasn't a stock market expert and couldn't remember the exact date and time when a particular stock was about to rise. As a seasoned investor, he knew very well that the stock market wasn't played that way.

Long-term growth of individual stocks requires patience, taking eight to ten years.

What's the use of remembering short-term growth, even if it's just for show?

Even if the stock price rises by 10% in one day and then rises for ten consecutive days, the compound interest is only 2.6 times.

Even if there's no limit to how many new shares you can subscribe to, you can't just buy as many as you want; countless large institutions are still waiting in line for the lottery to subscribe.

Moreover, the number of shares in circulation of an individual stock can be manipulated; what happened in one's past life may not be the same in this one.

Just when you've finally made a fortune and dream of making money by relying on some kind of prophet, and you're about to invest all your savings in a single stock, the long-term market manipulator receives a notification that the securities backend has detected another large influx of funds rapidly taking over the shares.

With a single thought, I'll cut you off.

The unpredictable secondary market is not for novices.

The fatter the newbie, the faster they die.

As I said before, the real opportunities lie in the overall market trend. Only by understanding the long-term market trend, policy changes, and the rotation of themes can one build the foundation for rapid, hundredfold returns.

However, to navigate this world smoothly, besides having a keen understanding of the overall situation, you also need access to brokerage firms, a shrewd trader, and top-notch internet speed—all three are indispensable.

4 Mbps internet speed?
Use as much bandwidth as you have!
The previous two!
I'll buy it no matter how expensive it is!
(End of this chapter)