Chapter 81 Talking Business
With this in mind, Shopkeeper He didn’t bother to jostle with Ye Xinyan any longer, and judging by the current situation, sparring with her seemed pointless.
Shopkeeper He spoke frankly, "Lady Qi, let me be honest with you. If you were to collaborate with another establishment, your desserts would certainly affect our restaurant’s business in the summer. However, simply allowing you to ride on the reputation of Great Crane House to grow and launch your business, we feel at a loss. So, our managers suggest you give up a bit more of your profits and continue to partner with us. It would be mutually beneficial."
"Hehe, Shopkeeper He, you flatter me. I dare not presume to ’partner.’ I merely hope that your esteemed establishment would sell our desserts on our behalf. I’ll share the naked truth with you, the 20% of the selling price we’re offering for Ice Cream is because it’s a novelty, one that others won’t be able to replicate easily, and its price is inflated. For the double-layered milk custard and other desserts in the future, there won’t be such high profits, so besides the 20% of the selling price for Ice Cream, we must renegotiate the rest."
Shopkeeper He was taken aback. Just when he thought he had a favorable situation, within a day, everything became passive for him.
Ye Xinyan smiled and said, "Actually, Shopkeeper He, you don’t need to fret. Great Crane House is a place us poor commoners can hardly dream of reaching. Before coming here, my family carefully considered making the greatest profit concession to Great Crane House, hoping to bask in its glory and establish a prestigious and high-quality brand, so our business can successfully take off."
Ye Xinyan wasn’t wrong—speaking of the desserts delivered to the restaurant, when customers order her family’s desserts, they are sent directly to the restaurant. Great Crane House doesn’t have to spend a shred of manpower or resources, nor expend any effort, and yet it can take a 20% commission of the selling price; that income is essentially free money.
Indeed, what Ye Xinyan mentioned was a 20% of the selling price, not 20% of the net profits. In regular business dealings, having a net profit margin of 20% of the selling price is quite good; it’s impossible for the commission to be that high.
Of course, the profits from Ice Cream cannot be measured by the standards of usual business, as it contains physics knowledge accumulated over a millennium. Therefore, a higher selling price originates from the priceless nature of knowledge and the business rule of scarcity creating value.
Ye Xinyan paused for a moment, then continued, "Also, making frozen treats during the peak of summer is a selling point for Ice Cream. But no matter the secrecy, the techniques for making Ice Cream will ultimately be revealed. Hence, our Qi family needs to sign a supply contract with Great Crane House with a set duration—one year at a time, or perhaps every six months."