Reborn in 08, a heretical cultivator starting a business

Chapter 28 A financial crisis is coming, let's lower the rent!
As for the operating model, Wang Junshan had already figured it out: he would rent a store near the dormitory area of ​​the school and open a small supermarket.

We don't need much, about 50 square meters will do. It can be a supermarket and also a pick-up point for YouTuan!

Opening a large supermarket on a school campus faces significant resistance; other supermarkets will object, and it often requires spending heavily to compete for the right to operate.

But opening a small supermarket of only 50 square meters is much easier, as it requires minimal assets and has high turnover.

There's no way around it; these school supermarkets rely on high prices to fleece students and are very resistant to low-priced group buying. Even when begged to become pick-up points for group buying, they refuse.

They might even use their connections to prevent YouTuan delivery trucks from entering the school.

However, if the self-pickup point is set up outside the school, at the school gate, which is far away, it will discourage many students.

It would be better to just rent a small supermarket of about 50 square meters in the dormitory area.

It doesn't cost much, it's convenient for trucks to enter, and it's also convenient for students to pick up their goods.

The profits from daily retail sales in small supermarkets are enough to cover costs such as rent, and there is still a decent profit.

For YouTuan group buying, it's pure profit!

The winter melon business can also be quickly replicated!
Wang Junshan toured the School of Hotel Management, surveyed the terrain, and then went to the logistics department:
"Hello, I noticed there are some vacant shops in our dormitory area, and I'm planning to rent one."

Upon hearing this, Ke Jianhong, the director of the logistics department, became interested.

Although the global financial crisis did not fully erupt for another three months, the current economic situation is already very bad.

This year, people in all walks of life have clearly felt that it's harder to make money.

In addition, with the end of the semester approaching and students going on holiday in a month and a half, the supermarket will not make any money.

Therefore, many stores with poor business simply terminated their leases.

No one came to rent a shop a month before the holiday.

The logistics department was also very anxious as they saw more and more vacant shops that they couldn't rent out.

Wang Junshan's decision to rent a shop at this critical juncture became an anomaly, and he was immediately given a warm welcome by Ke Jianhong:

"Hey, you want to rent a shop? That's great!"

“Our school has a lot of students, so business is bound to be good. We have all kinds of shops. You’ve come at the right time.”

Wang Junshan laughed: "Is it because there's a holiday next month and no one will rent it?"

"Ahem." Ke Jianhong was a little embarrassed: "That's partly true, but summer vacation is only a month and a half, so it won't have a big impact. I can lower the rent for you a bit."

Wang Junshan had a plan.

It's clear that with the holidays in July and no one around in August, it's really hard to rent a shop in June!

Nobody wants to rent a place, set it up, and then have it closed for the holidays, wasting money.

Instead, they would choose to rent in late August and make a huge profit when school starts in September!
"I want to rent a small supermarket in the dormitory area. It doesn't need to be big, about 50 square meters will do."

"About 50 square meters, a small supermarket, a dormitory area..."

Ke Jianhong turned on his computer, looked at it, and his eyes lit up:
"Yes, right here, in the commercial street of the dormitory area, there's a Boya Supermarket. It's in a very good location."

"50 square meters, it's not big, but it comes with a 50-square-meter basement that can be used as a storage room!"

"Look, the basement entrance is right here at the back door, which makes parking and unloading convenient. It doesn't affect business at the front door either."

Wang Junshan looked at it and thought it was indeed good: "How much is the rent?"

"The dormitory area rent is cheaper, only 40,000 yuan a year. The dining area is more expensive, 60,000 yuan a year!"

"40,000 a year is a bit expensive, and summer vacation is coming soon. I estimate that by the time the renovation is finished, it will be summer vacation, and I will lose two months' rent for nothing."

Wang Junshan was quite satisfied, but on the surface he looked troubled.

Ke Jianhong also understood this principle; it was true that one couldn't earn money during the summer vacation.
"How about this, I'll waive 4000 yuan of your rent for the first year, so it'll only be 36,000 yuan, and 40,000 yuan every year thereafter!" But to his surprise, Wang Junshan wasn't buying it at all:
"With summer vacation approaching and no one renting, it's only natural to waive the rent. The main issue is the poor economic situation this year; even the fifth-largest investment bank in the US has collapsed. A financial crisis might be on the horizon, and then rents will have to be reduced!"

Upon hearing this, Ke Jianhong became interested: "You're also interested in this?"

"Hey! How can we not pay attention? The global economy is a whole; if they go down, we'll suffer too. I can clearly feel that business is getting harder and harder this year."

Ke Jianhong strongly agreed: "Yes, the rate of tenants terminating their leases this year is about 20% higher than in previous years."

“Take Boya Supermarket for example. The owner had been working there for five years and never gave up the lease, but he gave up the lease this year.”

"We had some items left in the supermarket that we didn't want, so we used them to pay off the overdue rent. We're really at our wits' end, so we had to hire two employees to take turns watching the store!"

"Could a financial crisis really be on the horizon?"

Wang Junshan nodded: "They will definitely come, and I predict it will be within the next few months."

Ke Jianhong's heart skipped a beat: "Does that mean it will be even harder to rent in a few months?"

Wang Junshan nodded: "Of course, not only will it be harder to rent out a house, but rents will also have to be reduced by 20%. House prices will also have to drop. If you plan to sell your house soon, do it now, as prices will only get cheaper later. If you plan to buy a house, then wait. Wait until the financial crisis really hits before buying at the bottom!"

"That makes sense, absolutely makes sense!"

Ke Jianhong strongly agreed.

He works in the logistics department. He doesn't have much to do most of the time; he just reads newspapers, watches the news, and keeps up with international events.

The more I look at it, the more worried I become, and the more I feel that a financial crisis is coming.

Hearing Wang Junshan say that today only makes me more certain of this: "Classmate, you're not a student at our school, are you?"

"Yes, the one across from me."

"The one across the street? Hengxing Vocational College? No, impossible. Hengxing can't produce someone like you. That must be Binda University!"

"Teacher, you have such keen insight!"

"Hehe, no wonder, the top students from Binzhou University are really amazing."

"In this way, if you sign a three-year contract at once, the annual rent will be calculated at 36,000, and the rent increase upon renewal will not exceed 20%!"

"36,000 is fine. Let's sign a seven-year contract upfront, and the rent increase upon renewal won't exceed 30%!"

"Seven years..." Ke Jianhong hesitated.

"Teacher, once a financial crisis breaks out, the impact won't be just for one or two years; it might take five or six years to recover."

"Hmm...that makes sense, but a 30% rent increase upon renewal is too low. After all, it's seven years from now, and the rent could change drastically. Let's change it to no more than 50%!"

“Okay,” Wang Junshan agreed.

36,000 a year, signed for seven years directly, definitely a good deal.

Although a financial crisis was expected to break out, everyone thought the impact would be severe and long-lasting.

However, the impact on the domestic market is not particularly significant.

Even housing prices bottomed out and rebounded just three months after the crisis broke out.

Signing a seven-year contract for 36,000 is definitely a good deal.

In the early stages of his business, Wang Junshan was short of money and had to be very careful with his finances.

"Let's go check out the supermarket!"

Ke Jianhong led Wang Junshan to Boya Supermarket:
"This is the place. It's in a great location, right next to the commercial area of ​​the dormitory. Students pass by it on their way back to the dormitory, so the foot traffic is pretty good."

Wang Junshan followed them into the supermarket. The space was only fifty square meters, not very big, but it was very well organized.

(End of this chapter)