Chapter 443 - 402: Drastic Measures (Part 1)
"Specializing in refining magic treasures for two hundred years. Fair prices, honest dealings..."
A large notice board stood in a prominent location at the market’s entrance.
The board was composed of over a hundred rectangular wooden planks. Most of them displayed shop advertisements, along with a few official documents, public notices, and wanted posters.
What surprised Zhao Lin was that over half the notice board was empty and not being fully utilized.
But on second thought, he understood. Most cultivators believed that good wine needs no bush. Many of the larger, more famous shops disdained posting advertisements, feeling that crowding in with unknown stores would only lower their own prestige.
It wasn’t that cultivators lacked business sense, but rather that commerce hadn’t developed to the point where they recognized the importance of advertising.
’In that case,’ he thought, ’placing an ad for my own shop might yield some unexpected results.’
"Shopkeeper Zhao, what can I do for you?"
Zhao Lin walked into the administrative office, where he was once again greeted by Steward Liu.
"How much does it cost to rent a spot on the notice board at the market entrance for a month?"
"Fifty Yuan Spirit Coins."
Zhao Lin paused. "That cheap?"
Hearing this, Steward Liu smiled. "If only every shopkeeper thought that way. Would you like to rent a plank, Shopkeeper Zhao?"
Zhao Lin answered readily, "I’ll rent. Give me six, for two months."
"Six planks!"
This time, it was Steward Liu’s turn to be stunned. He asked doubtfully, "Shopkeeper Zhao, how many shops do you own?"
Zhao Lin smiled. "Just one. But my shop sells a wide variety of items. I’ll need six planks to write it all down."
"I see."
Steward Liu reluctantly accepted this explanation. He grabbed an abacus, flicked the beads a few times with a CLACK CLACK, and said, "Six planks at fifty each is three hundred. For two months, that’s six hundred Yuan Spirit Coins in total."
With that, he took six wooden plaques from a nearby cabinet and handed them to Zhao Lin. "Just bring them back once you’ve written on them, Shopkeeper Zhao."
"Thank you, Steward Liu."
Zhao Lin paid the Spirit Coins and left the office with the six wooden plaques.
"Elder Wan, could you help me write a few things on these plaques?"
Back at the Golden Core Hall, Zhao Lin placed the wooden plaques on the counter and spoke to an elderly man in his seventies.
The elder was the accountant sent over by the prefecture government. His name was Wan Jingsheng. He had originally been an ordinary accountant in the mortal world, but had followed his son to the Chenghua Sect after the boy showed a talent for cultivation.
"What should I write, Shopkeeper Zhao?"
Wan Jingsheng asked, taking the plaques.
"Hmm, let me think... On the first one, write: ’For pills, come to Golden Core Hall on Ding’an Street.’"
"On the second: ’For talismans, come to Golden Core Hall on Ding’an Street.’"
"On the third: ’For Spirit Tea, come to Golden Core Hall on Ding’an Street...’"
Gu Dezhao, listening from the side, frowned. He couldn’t resist walking over. "Shopkeeper Zhao, you’re making advertisements? If you have six, why not write everything on a single plaque?"
Zhao Lin chuckled. "It’s the constant repetition that leaves a lasting impression."
’Not making all six plaques identical is already me showing mercy,’ he thought.
"All done!"
Wan Jingsheng put down his brush and blew on the plaques to dry the ink.
"Excellent calligraphy!"
Zhao Lin offered a word of praise. "Elder Wan, please help me log this in the accounts: six advertising plaques, rented for two months, for a total of six hundred Spirit Coins." With that, he grabbed the plaques and headed out.
"SIGH!"
Gu Dezhao winced when he heard the cost, letting out a deep sigh.
"They say he who isn’t in charge of the house doesn’t know the cost of living. Our Chief Shopkeeper, really..."
At some point, Gu An had sidled up to him and whispered this.
"Go cool off somewhere!"
Gu Dezhao snapped at him. ’I need to have a talk with Zhao Lin tonight,’ he thought. ’This kind of extravagant waste is unacceptable.’
But before he could find Zhao Lin, Zhao Lin made the first move.
That evening, Zhao Lin gathered Gu Dezhao, Tang Zhengquan, Gu An, Zhuang Heng, Li Sancai, and the accountant in the back courtyard for a meeting.
"The shop has been open for four months, and business has been middling. We’re only just managing to break even. If this continues, we won’t be able to pay the year-end taxes, let alone turn a profit for dividends."
"I’ve called you all here today to discuss a new business strategy, one that will make this shop flourish."
Zhao Lin came straight to the point, setting the tone for the meeting.
Tang Zhengquan, Gu An, and the others were astonished. Zhao Lin had been a hands-off boss for four months, and now he was finally taking charge.
Gu Dezhao thought Zhao Lin was about to assign blame. A bitter feeling rose in his heart, but he steeled himself and said, "The shop’s poor performance is my responsibility..."
"Elder Gu, what are you talking about?"
Seeing that Gu Dezhao had misunderstood him, Zhao Lin quickly cut in. "I’ve done some research. At least thirty percent of the shops in this market are operating at a loss. The fact that we’re breaking even is actually quite an achievement."
"Please don’t misunderstand, Elder Gu. I just want to help the shop reach new heights."
Gu Dezhao froze. So it had been a misunderstanding. He had just been thinking that Zhao Lin was looking for a scapegoat.
Zhao Lin glanced around at the group. "I stayed out of things before because I didn’t understand how to run a business. I believe you shouldn’t speak on matters you haven’t investigated."
"Now I’ve finally learned a thing or two and have thought of a few small improvements I’d like you all to weigh in on."
As he spoke, Zhao Lin took out a small notebook.
Everyone grew curious, craning their necks to see what he had written inside.
But Zhao Lin merely glanced at it before snapping the notebook shut. SNAP.
"First, we’re going to revise the prices of all our merchandise to end in the number nine. For example, jade slips priced at two hundred Spirit Coins will now be one hundred ninety-nine. Communication Talismans at one hundred Spirit Coins will be ninety-nine."
"A canister of low-grade Spirit Tea is sixteen Spirit Coins; we’ll raise the price to nineteen. In short, with very few exceptions, all prices will end in nine!"
Everyone was completely baffled, glancing at one another in confusion.
Gu Dezhao shot Gu An a meaningful look. Gu An took the cue and asked, "Shopkeeper Zhao, adding or subtracting one or two Spirit Coins... surely that won’t have much of an impact on our revenue?"
Zhao Lin smiled faintly. "This is called a charm pricing strategy. It seems like a minor change, but it creates the psychological effect of dropping into a lower price tier, which stimulates a customer’s desire to buy."
"For example, even though two hundred Spirit Coins is only one more than one hundred and ninety-nine, customers will perceive the latter as being significantly cheaper."
"It also gives the impression that the seller has calculated the price precisely, rather than just picking a random round number. This makes the price seem more authentic and trustworthy."
They listened, only half-understanding, but they all felt he had a point and raised no further objections.
Seeing their acquiescence, Zhao Lin continued, "Second, starting tomorrow morning, I want you to cook thirty jin of Spirit Rice and display it in the most prominent spot near the entrance."
"Customers will be able to see and smell the fragrant, golden-yellow Spirit Rice the moment they walk in."
Gu Dezhao thought for a moment, believing he understood Zhao Lin’s aim. "Shopkeeper Zhao, is this so customers can witness the quality of our Spirit Rice for themselves?"
Zhao Lin nodded. "Correct, but that’s only one reason. You have to remember, many cultivators travel a long way to get here. They arrive hungry, but eating at a restaurant is too expensive, and the portable, pre-fried Spirit Rice just doesn’t taste very good."
"If we cook the Spirit Rice here, we can both demonstrate its quality and offer a convenient meal. It kills two birds with one stone."
Gu Dezhao stroked his beard. "A fine idea. I’ve seen something similar at the market fairs before."
Zhao Lin continued, "Furthermore, every day, I want you to take one jin of Hidden Sword Cold Fish, cook it, cut it into small pieces, and offer free samples to our customers."
"Free?"
Gu An let out a cry of alarm. "What if people just come for the free food?"
"It’s fine. We’ll cut the Spirit Fish into tiny pieces."
Zhao Lin held up his pinky finger, indicating the size of his nail. "Pieces this small. You can get several hundred pieces from a single jin of Spirit Fish. Even if someone is shameless enough to ask for a few extra, it won’t amount to much."
"As long as one customer decides our Hidden Sword Cold Fish is worth the price and buys some, we’ll have earned back the cost and then some."
At this point, Zhao Lin turned to Li Sancai.
"Third, I want you to place our best-selling and most profitable items on the right-hand side of the shelves, at a height between four and five chi. Give them eye-catching labels, like ’Fan Favorite’ or ’Our Signature Treasure.’"
He explained before they could even ask, "People’s eyes are accustomed to scanning shelves from top to bottom, and from left to right. This placement will best attract their attention and help increase sales."
"Brother Sancai, I’m putting you in charge of this."
Li Sancai was a diligent worker who kept the shelves meticulously organized. He logged every item that came in or out of storage, and even an old hand like Gu Dezhao couldn’t find fault with his work.
"Right."
Li Sancai agreed readily.
