Chapter 22: Chapter 22 Market Share
Julian pulled out a complete roll of cigarettes from his pack Lion brand, twelve cts a pack and lit one, hoping it would make him appear a bit more mature, though it might have the opposite effect. He flicked the ash with practiced ease and said casually, "Sometimes you don\'t need to pay to buy something; sometimes, they\'ll ev pay us!"
Graf looked bewildered. Not having to pay for something while also making money? What kind of scheme was that? A chill ran down his spine, and he began to look at Julian with slightly differt eyes.
Julian knew he couldn\'t explain this to someone like Graf, who seemed to have muscles for brains, so he didn\'t continue the conversation. Next, they met with four more suppliers. The process was largely the same as the discussion with Richard. In short, ev if someone quoted a price of 50 cts per bottle, Julian would still frown and declare it too expsive.
Perhaps the negotiation with Richard had helped him find his footing, as he decided to raise the order from t thousand bottles to fifty thousand bottles per year!
If t thousand bottles would still allow Richard to save face and appear to be a successful businessman, th fifty thousand would turn the other four suppliers into eager dogs, wagging their tails a him. This deal would be equivalt to a year\'s worth of business, and they would fight tooth and nail to secure it.
Julian swiftly painted an ticing picture for these suppliers. By eving, he hadn\'t ev returned home wh Richard unexpectedly appeared while Julian and Graf were having corn chowder and grilled meat at a small roadside restaurant.
This couldn\'t be blamed on him. He had his m investigate Julian\'s company while keeping tabs on whether he had met with other suppliers. Wh his m reported that they had accidtally overheard Julian requesting fifty thousand bottles a year, Richard could no longer sit idly.
He didn\'t understand the saying that "delays can lead to changes," but his instincts as a businessman told him that if he didn\'t seize the opportunity, this big fish might slip through his fingers.
Though he found it a bit odd that Julian would be dining in a regular small restaurant, Richard didn\'t think much about it. The situation in the Star Empire was still very chaotic, and Ternell was a small border town. Only a few luxury restaurants were exclusive to local elites. So, Richard quickly rationalized Julian\'s somewhat odd behavior, coming up with a reasonable excuse for himself.
Feigning a chance counter, he expressed his surprise so dramatically that ev Graf muttered under his breath. "What a coincidce! May I join you?"
Julian nodded and tilted his head toward Graf, who rolled his eyes and took his plate to sit at a nearby table.
Richard casually ordered something to eat and said eagerly, "After you left, I thought about it for a long time. I believe we should try to establish a solid partnership, don\'t you think? Look, I have everything you need, and my prices will definitely satisfy you. That\'s a solid foundation for cooperation, wouldn\'t you agree?"
Julian set down his spoon, wiped his mouth with a somewhat frayed napkin, and said, "Mr. Richard, let me put it this way: I cannot accept your price…"
Richard, eager and somewhat rude, interrupted Julian, "No, no, list to me! Fate has brought us together; we should become frids. Price? That\'s not a problem—how about 60 cts per bottle?"
If Julian still hadn\'t realized what was happing at this point, he would have be truly foolish.
He smiled at the somewhat anxious Richard, chuckling lightly.
Julian pushed the plate in front of him away and leaned back in his chair, folding his arms as he looked at Richard. "Mr. Richard, I don\'t know where you learned about the prices from my other suppliers, whether they told you or if you overheard it by chance; it doesn\'t matter.
A large order of fifty thousand bottles a year was right before him. Forget about Julian mocking him a few times; he could ev smile if slapped.
Selling one item for a profit of t thousand dollars versus selling fifty thousand items for a profit of five thousand dollars might seem like the former offers greater returns. However, any wise businessman would choose the latter.
Among capitalists, there\'s a saying: "Unrefined traders sell products. Inferior businessm sell brands. Superior strategists sell markets." This saying reflects the evolution of business focus. Small traders seek profits from individual products, while slightly higher-level merchants emphasize brand value, recognizing that a strong brand can surpass the profit of any single product.
Take moonshine brand almond liquor as an example. A manufacturer might profit thirty perct per bottle, yielding a thirty million dollars for a hundred million bottles sold. However, the value of the brand itself could exceed fifty million and continue to rise as production and sales channels improve, far outpacing the product\'s intrinsic value.
At the highest level, merchants focus on market control. While others focus on profit margins and branding, these strategists target market share. Just one perct of a large market can gerate millions in revue.
Richard understood this principle. Wh Julian\'s demand for moonshine almond liquor rose from t thousand to fifty thousand bottles, Richard saw an opportunity. In the Ternell beverage market, fifty thousand bottles could represt a t to twty perct market share.
What does an increase in market share mean?
It signifies absolute control over a product, a brand, and a company within the market! No matter what new varieties of liquor moonshine brand launches in the future, they can quickly convert their market share into consumer power. Ev if they were selling the worst drink, during the decline in market share, they would still rake in a fortune!
An increase in market share means more than just higher sales; it\'s about control. Ev with new or less popular products, a dominant position allows the brand to convert market presce into consumer power. This wasn\'t just about selling liquor; it was about seizing an opportunity for the future.