Chapter 584 – Free repainting of the public buses
In the afternoon, the people in-charge arrived at Zhang Ruiqiang’s office to discuss the Hypermarket with Feng Yu.
“Manager Feng, although the overall construction of our mall had not been completed, the structures and exteriors were completed. The interior can be renovated anytime. You had saved lots of time. So, can we increase the prices a little?” An official from the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) asked.
“Chief Bai, you should not say this. If you are opening a restaurant, the renovations and interior of the store must be suitable for the restaurant. Although the exterior of this mall was completed, we still need to modify the interior. For instance, the current interior layout does not fit our Hypermarket. We still have to change the whole layout. This is much harder than building it from scratch. That’s why I cannot increase the price. Instead, I need you to reduce the prices. Don’t forget that we are paying you the full amount of the building at once. This is not something anyone can do.”
Chief Bai retorted: “This mall is supposed to be used by us. We had spent a large sum of money, and we should get some profits in return.”
“How much is the construction cost of that building? How much have you marked up when you quote me the prices? The profits you are getting is already higher than other commercial buildings in Bing City. I only request you to give me a price that is at the market value. Am I asking too much from you?”
This building had 5 stories, and there was 3,000 Sqm each floor. The total floor area was over 15,000 Sqm. The Hypermarket only needs 2 to 3 levels. The remaining spaces need to be rented out, and even so, Feng Yu felt it was too big.
In the current era, the economy was not developed yet. Those that invested in cinema industry were bound to make losses. China’s first blockbuster only appeared after Hong Kong’s return to China. That blockbuster was directed by Feng Xiaogang. Currently, many Chinese does not have the habit of visiting the cinemas on weekends, and there were not many movies showing. Those that built cinemas can only lose money.
The remaining was fast food restaurants, arcades, fashion boutiques, etc. were the industries that could rent the remaining spaces. But it was not easy to get them to rent the spaces. Tai Hua Supermarket was not opened yet, and the businessmen do not know whether the supermarket could attract the crowds. There was not even an example. It will not be easy to charge high rental for the remaining spaces.
Of course, these will be handled by the ones in Beijing headquarters, and Feng Yu does not need to handle these. He was only helping them out by getting a building 3 to 5 stories high and have 3,000 to 5,000 Sqm floor area each floor. The building must be in a good location surrounded by residential estates. He will only purchase the building, and the rest will be handled by other people.
But Feng Yu could not spend too many funds on purchasing this building. Bing City is located near the borders and the price quoted by Chief Bai was almost the same as the property prices in the developed cities along the coastal regions. Although Bing City had a high population and was one of the first city in China to have private housing, if Feng Yu were to use the cost of living to calculate, the price was too high.
Furthermore, Fu Guangzheng and the rest had negotiated with almost 20 cities. This price quoted to Feng Yu was among the top 5 highest. This would make Feng Yu look bad.
Chief Bai looked at Zhang Ruiqiang and noticed that he did not have any expressions. Chief Bai does not know whether if he should give in or not. After all almost every government official in Bing City knew that Feng Yu was very close to Zhang Ruiqiang. It seems that the mayor has no indications of asking him to lower the prices.
“Manager Feng, we need to include the land cost into the price. The construction materials might not cost much, but what about the land? Sometime back, a Taiwanese businessman had come to us, and he also wanted to build a shopping mall. The price he quoted was also very high.” Chief Bai continued to try to get as much as possible for the City.
“The land? Then tell me how much is the land, the construction materials, the workers’ salaries cost? We can see how much the city will be getting from this breakdown.” Feng Yu said.
Chief Bai was speechless. How can he tell Feng Yu about the exact cost? How can someone be so shameless to request for these costs directly?
At this time, Zhang Ruiqiang said: “Feng Yu, you also do not mind this small amount. What is the difference between 40 million and 50 million RMB to you?”
“There is a huge difference. We will be buying 20 buildings all over China at the same time. If I am paying you a higher amount, the other cities will also take the opportunity to raise their prices. The prices you quoted can purchase a similar mall with the same floor area in Beijing and Shanghai. But this place is Bing City. Are you telling me that Bing City is already comparable with Beijing and Shanghai? 40 million RMB is already very high. It is our average price.”
“Since you are only willing to spend so little money, why should we sell this building to you?” Zhang Ruiqiang asked.
“Because we are able to make this area prosperous. You all can build new commercial buildings nearby, and their value will increase. This area will become a shopping district and our Tai Hua Supermarket will be a landmark in Bing City.”
This was a fact. In Feng Yu’s previous life, the value of the land around Carrefour and Walmart increased. This was also the reason why Carrefour and Walmart were popular.
“But I still think that we are at a disadvantage and making a loss here.” Zhang Ruiqiang shook his head.
Feng Yu lowered his head and said with a painful expression: “How about this? I see all the public buses in Bing City are a bit old. I will donate money and send workers to repaint all our public buses. This is also not a small amount.”
Zhang Ruiqiang immediately raises a new condition: “You must include the bus stops too.”
“Hey, there are so many bus stops in Bing City. If we refurbish, all the bus stops it will cost at least a few million.” Feng Yu said.
“We can report in the papers that it is your Tai Hua Super Market Enterprise that sponsored the refurbishment of all the buses and bus stops. This is considered helping you all to advertise.” Zhang Ruiqiang cunningly said.
“Fine. I will add shelter and also a big bus stop sign for all the bus stops. But I want to add something besides the bus stop sign. You all cannot stop me.”
“What do you want to add?” Zhang Ruiqiang felt that Feng Yu had agreed too quickly. There must be something wrong somewhere.
“Advertisements. The bus stop is about so long. After reserving the spaces for the buses to stop and the passengers, there are still lots of spaces available. We can put our advertisements here. What’s wrong? This is also considering making full use of all the available resources.” Feng Yu wanted to own all the advertising spaces at the bus stops. Bus stops have high human traffic.
Advertising at the bus stops? Zhang Ruiqiang’s eyes became big. Why should the City give this to Feng Yu? The City also has the money to build bus stop shelters and signages. It would be better for the City to earn this money themselves.
“Forget about the bus stops. The City can build it ourselves. You just repaint all the public buses. Don’t try to hoodwink us. Make sure every single public bus must be repainted.” Zhang Ruiqiang said.
“No problem. You can include this in the contract. I promise you that not a single bus will be left out.”
After signing the contract, Feng Yu left Zhang Ruiqiang’s office. He sat in his car and laughed. Repaint all the public buses? I will repaint it as advertisements. The contract also did not state that this cannot be done. The ads on the bus stops can be changed easily. But public buses are much harder.
If the city has enough money, repaint those buses again. Will the City be willing to spend that amount of money? This was mobile advertising, and it will cover every corner of the City. The amount paid was worth it!
Translator’s notes: Lol, Zhang Ruiqiang thought he had taken advantage of Feng Yu. Cunning.
State-owned Assets Supervision and Administration Commission of the State Council (SASAC)
https://en.wikipedia.org/wiki/State-owned_Assets_Supervision_and_Administration_Commission
The Dream Factory (film)
https://en.wikipedia.org/wiki/The_Dream_Factory_(film)
Feng Xiaogang
https://en.wikipedia.org/wiki/Feng_Xiaogang