Extraordinary Genius - Chapter 114 – Wind and Rain Logistics
Wind and Rain Logistics Limited Liability Company was a new company registered by Feng Yu. But it does not belong to him. The company belongs to Li Shiqiang.
The Li family knew that they could enjoy their current lifestyle was because of Feng Yu. However, how could Li Shiqiang work for his younger brother-in-law? Li Shiqiang had wanted to start something himself after getting his dividends.
Just happened that this opportunity came. Feng Yu wanted to set up a logistics company and even got a fleet of trucks. Li Shiqiang then told Feng Yu that he wants to run this logistic company and does not want Tai Hua Trading’s shares.
Feng Yu also agreed, but he told Li Shiqiang that he had already registered Wind and Rain Logistics. He had wanted to create a brand alliance to increase their competitiveness in future, and because of this, Feng Yu was willing to pay Li Shiqiang a sum of money to compensate him.
Li Shiqiang agreed without any hesitation. He does not care about the company name, and there was no need for any compensation. Feng Yu change the owner of the company to Li Shiqiang and then gave Li Shiqiang over 1 million RMB of dividends. Tai Hua Trading’s shares were also changed to Feng Yu’s name. Now Feng Yu can change his title on his name card to General Manager.
Feng Yu was finally 16 and had his identification card. It would be easier for him to do things now.
The City’s Transportation Department were old friends with them. They gave a red packet to the Chief, and the documentation was quickly completed. All the vehicle’s number plate will be ready in a week’s time.
A new logo was sprayed on the doors of the trucks. Even the bonnet was sprayed with the Wind and Rain logo. Li Shiqiang also hired a batch of ex-military drivers. How much can they earn if they were working at the units? If they worked at Wind and Rain Logistics, they would get 50% more than their current salary, and there will be a bonus too!
Very soon, over a hundred drivers applied for this job. Li Shiqiang also followed Feng Yu’s suggestions to conduct a test for these applicants. Not only their driving skills were to be tested, their safety awareness and especially their responsibility.
Feng Yu said that this Wind and Rain Logistics will be occupying at least 3 provinces in the Northeast region and might even occupy the markets as far as Beijing. These drivers will be outside most of the time with a truckload of goods. What happens if the driver disappears with the goods?
This was not scaring Li Shiqiang. There were incidents like this that happened before. Feng Yu had read the news of such cases on the internet in his past life. It was many years later when the culprits were caught.
But Li Shiqiang was better than what Feng Yu had thought. Not only he tested the drivers on the things Feng Yu told him, but he also tested their familiarity with the roads. After these screenings, the remaining 80 drivers and over 10 salesmen were hired.
Li Shiqiang knew the importance of salesmen when he was at Tai Hua Trading. If there were no salesmen getting sales and the company was just there waiting for customers to go to them, the company would close within 1 to 2 years.
Feng Yu also helped him with the advertising. Feng Yu had advertising contracts with the newspaper agency and their local TV station. He helped Wind and Rain Logistics do few advertisements to create awareness and let more people know that there was a logistics company in Bing City with 80 Gaz trucks.
Wind and Rain Logistics, Delivering regardless of rain or shine!
Everyone knew about this advertising slogan in less than 3 days.
Wind and Rain Logistics became well known in Bing City. Tai Hua Trading’s office was in the warehousing area, and Li Shiqiang was familiar with many companies there.
Li Shiqiang visited every company in the warehousing area. When they knew that Li Shiqiang had just set up a Logistics Company, had 80 trucks and was able to take on jobs for from Bing City to Ji City and Shen City, many companies signed contracts with him. They will let Wind and Rain Logistics handle their deliveries in future.
Feng Yu had also helped Li Shiqiang to get some deliveries orders from the Motor Factory and Machinery Company. Coupled with Tai Hua Trading’s deliveries, Wind and Rain Logistics will not lose money in future.
However, if a truck was traveling with a full load to a destination and returning with an empty load, they might not lose money, but they are not maximizing their profits either. Feng Yu reminded Li Shiqiang to set up branches in Ji City and Shen City. This way, the trucks can travel to and fro more efficiently. They must also build a good reputation and get more customers now.
Setup branches? Li Shiqiang was troubled. One company was enough to keep him busy, and now he still got to set up branches? Feng Yu’s idea was to set up offices in Ji City and Shen City first and later set up offices in all the cities in the province. Then slowly expand to the 3 provinces in the Northeast region and even Beijing. This was to create a complete logistics network.
Although this will not create a monopoly, with the complete logistics network, the business would be better. Now there were more and more private companies in the 3 provinces of the Northeast region. There will be a lot of delivery orders for just the mountain areas and the farms alone.
Li Shiqiang became nervous when he heard all these. How many branches must be set up in future? Then he must hire at least more than a hundred salesmen? One truck must generate enough to pay for at least 2 to 3 people? How can he make profits if this was the case?
Feng Yu patiently explained the pros and cons to Li Shiqiang. The situation now was considered the initial stage, and it was fine if he were to lose some money. The demand for logistics was growing, but he won’t feel it even if there were a lot of orders. But 2 years later, others will also set up logistics companies, and at that time, it would be difficult for him to expand his market share. Also, with the logistics network set up, anyone who needs delivery, would think of Wind and Rain Logistics first. That would be the time when he can reap the profits. His trucks will always be moving around with a full load.
Li Shiqiang was still hesitating. Although he felt that what Feng Yu said made sense but he still thinks that it was not wise for him to invest so much now. Why not wait for another 2 years and see how it goes. Feng Yu might be familiar with electronic products and trade, but logistics were very different from those. Setting up branches in the country cities? What logistics business does the country cities have? They deliver their goods by trishaws.
Feng Yu sighed and turned to Li Shiqiang: “You can get a franchise if you don’t want to set up branches. Franchise shops will be allowed to use Wind and Rain Logistic brand to receive orders, and Wind and Rain Logistics will be doing the deliveries. All Li Shiqiang needs to do was to give these shops some commissions.
The would solve the problem of trucks returning empty to the city. Li Shiqiang does not need to invest more money, and 2 years later, he could even collect franchise fees. As for now, if he were to receive franchise fees, not many will join him.
With this suggestion, Li Shiqiang understood. This was a good idea. He could save money and does not need to hire so many salesmen!
Li Shiqiang excitedly arranged his salesmen to do sales calls, and he brought the rest of his staff to give out flyers and paste advertisements on the lamp post and telegraph poles. This was also taught by Feng Yu. In that era, no one will bother with these small advertisements like this if these advertisements were not pasted on people’s walls.
Feng Yu looked at the energetic Li Shiqiang and felt that this was the brother-in-law he knew from his memories.
Li Shiqiang was happy, but Feng Yu became depressed. Li Shiqiang went on to set up his own business, and Feng Yu must get a new person to take charge of Tai Hua Trading. He still needs to go to school……