Chapter 602 – Exclusive Supplier
Bing City Pharmaceutical Enterprise had organized promotions near the schools in many areas, and Band-aid Company’s management was laughing their asses off.
What do you think you are selling? Stationary? Toys? Food? These were plasters! No one in their right mind would do promotions for plasters!
The promotional price of the regular waterproof and breathable plasters was cheap and selling for 80 cents per piece and 5 in a pack. The cartoon prints plasters were slightly more expensive, and the promotional price was 1.20 RMB per piece, and it was also sold bundles of 5.
When Band-aid’s management knew that Bing City Pharmaceutical Enterprise’s promotions were a success, they laughed harder. How much money can these plasters make? The most expensive was only 1.20 RMB. How many must it sell to cover the cost of wages and transportation?
These promotions were making losses for the company!
Who would buy medical products along the streets? Who would purchase medical plasters from the roads? Those people that need these stuff will go to the hospitals, clinics, and pharmacies.
Even if the promotions attracted lots of customers, Band-aid was also not worried. They had never heard of anyone doing sales promotions for medical products along the streets and will still sell well!
Band-aid still does not know that Bing City Pharmaceutical Enterprise staffs had tabulated the total sales for their promotions. In the past 3 days, the roadside promotions had attracted a large crowd and had successfully introduced Bing City Pharmacy Plasters to them.
The most popular plasters were the cartoon prints plasters. Many children pestered their parents to buy those printed plasters for them.
When children were at schools, they often play roughly with their friends and will usually get cuts or bruises. Getting some plasters on standby at home will be good. This was the advertising message by Bing City Pharmaceutical Enterprise.
Although the cartoon print plasters were more expensive than the normal ones, it was still within the acceptable range of the parents. Most importantly, their children will not think that plasters were ugly and do not want to put it on.
Bing City Pharmaceutical Enterprise had sold more than 1 million pieces over the past 3 days. Although the salaries for the staffs were not cheap, the profits from the plasters were enough to cover all the cost. Bing City Pharmaceutical Enterprise had not made any profits from the promotions, but it did not suffer any losses either. They were able to introduce their products to the consumers and let them remember their brand.
In the future, when families were to buy plasters, they will not only remember Band-aid. Some of the families will also consider buying Bing City Pharmaceutical Enterprise plasters.
During this period, Bing City Pharmaceutical Enterprise’s employees had contacted some distributors. They were the distributors who supply goods to the small stores.
When the distributors met the salespeople from Bing City Pharmaceutical Enterprise, they were shocked. We are the distributors supplying goods for those small stores. Why is a pharmaceutical company looking for us? Shouldn’t you be contacting those pharmaceutical sales companies?
But when they know that Bing City Pharmaceutical Enterprise wants to sell their plasters in the small stores, all the distributors were excited. The small stores were allowed to sell plasters? They were allowed to distribute these plasters?
All the distributors did not receive any information whether they were allowed to sell this product in the small stores. But there was also no written rule that they were not allowed to sell. Most of the people knew that plasters were not medicines. It is a small bandage use in emergencies.
Since the plasters were used for emergencies, then it should be sold at the most popular retail stores. There were not many pharmacies in China during this era unlike the future years, where there was a pharmacy at every corner. When people want to buy plasters, they had to go to the hospital, clinics or pharmacies.
Some villages, people had to travel to the town hospital. Not every village had a clinic. But every village will have a small store! It would be convenient for people to buy this product if it was sold in the stores.
Since this was considered a loophole in the regulations, these distributors will not miss this opportunity to earn money. But the distributors had to sign an exclusive contract with Bing City Pharmaceutical Enterprise. They do not mind signing this contract as the company had allowed them to return all the goods if the higher-ups forbid them the small stores from selling plasters. If the distributors were fined, the company would help them to pay the fines.
All these were stated in the contract clearly. The distributors immediately agree and signed the contracts. According to the agreement, all their retailers must put up a promotional poster at their stores.
Feng Yu was also not idling during this period. He was going through his contacts. He wanted to get a large order for his plasters!
……
General Gan, I am Feng Yu from Bing City Machinery Company. Are you free today? I need to discuss something with you.” Feng Yu called General Gan. He was the person in charge of procurement in the army. He should have some say for the purchase in medically related supplies.
“Oh, it’s Manager Feng? Are you thinking of treating me to dinner?” General Gan joked.
“Dinner is not a big deal. But what I wanted to discuss with you is very important. Are you fine with Quanjude? I will reserve a table this evening, and we can talk during dinner.”
“Fine, I will go over after work.” General Gan was looking forward to Quanjude. The army officers in this era were not earning a lot. Although the military had been spending a lot on weapons, with the Chief Architect around, who dares to receive kickbacks? Even though he was a General, he could not get reimbursement if he dines at Quanjude.
……
“What did you say? You want our army to use your Bing City Pharmaceutical Enterprise products exclusively?” General Gan felt this meal was not simple.
“That’s right. Our Bing City Pharmaceutical Enterprise’s medicines are comprehensive and are reputable. It is also cheap and effective. We have lots of experts working with us, and we are also working with overseas pharmaceutical companies. We are currently one of the top pharmaceutical company in China. If the military works with us, you will be able to get the medicines at a cheaper rate. This will save money for the military.”
General Gan shook his head: “Manager Feng, let’s stop the discussion now. I can’t help you with this. If you are talking about Songjiang Motors vehicles, we have plans for procurement next year, and I can promise you that we will order from you. But you are an automobile manufacturer, why are you investing in pharmaceutical companies?”
Feng Yu was disappointed. It seems that General Gan was not able to help him. But he will not give up.
“Then what about other products, or one particular product? Plaster? Currently, in the market, only Band-aid and Bing City Pharmacy brands are the better ones. The military should not feel comfortable if they were to order from the other small factories, right? Also, Band-aid is a joint ventured product. It would be better to let our fellow Chinese to earn this money rather than those foreigners. If you can allow us to advertise we are the sole provider of plaster to the Chinese army, I don’t mind supplying the plaster for free.” Feng Yu said.
“You wish! Don’t mention the vehicles. You still want the army to advertise for your plasters? No way. But it’s still possible for us to use your plasters on the condition that your plasters must be cheap.”
“Waterproof and breathable plaster cost 30 cents per piece, and it is 5 to a pack. The wholesale price is 1.5 RMB, and the retail price is 4.80 RMB. We are not getting any profits if we are selling at this price.”
“No profits? Then why are you still selling?” General Gan does not believe that there were no profits.
“We are selling so cheap because you are the army. This is also considered supporting the Chinese army. This is considered a good thing for you all.” Feng Yu said. Although the waterproof and breathable plaster had a higher cost, if it was produced on a large scale, the cost could be lowered to less than 20 cents. The company could still get some profits if they sell to the military.
“This…… Fine. I will ask for you. If your Bing City Pharmaceutical Enterprise’s plasters are cheaper and effective, then it should not be a problem.”
“Thank you. Let’s have a toast!” Feng Yu raised his half-filled glass of beer and knocked General Gan’s full mug. He drowned his beer. Feng Yu had toasted General Gan 4 times with the same mug!