Chapter 70 Primitive Monopoly
On one side, his heart was tired and helpless, and on the other side, there was a vulgar celebration deliberately created by red paper firecrackers. Tian Wenliang always felt that the rumored firecrackers and hilarious sounds seemed to be right in his ears. .
Even though I knew it was a fantasy in my ears or asked my family to close the window tightly, my lifelong efforts seemed to have been ruined and I would never have the energy I used to be.
Now that things have come to this point, the rest of the workshop owners of the Glass Guild know how to choose.
Staying behind means waiting for death. Even the guild president is already desperate. If he holds on, he will be able to be annexed for one road and has no choice but to do anything.
Even though I knew that Chen Jian’s banquet would not be a good thing, I had to accept it.
On the evening of the banquet, more than ten glass guild workshop owners gathered at Chen Jian's invitation, and they were inevitably a little embarrassed between them, but everyone was embarrassed by each other, so they would no longer be embarrassed.
Chen Jian did not try to resolve these embarrassments, and the dispute over interests ultimately depends on the balance of interests to resolve them.
It is not good to offend too many people. Not being afraid does not mean that one has to die of hatred. A person’s power is limited and an interest group is needed to help Chen Jian gain a foothold in Fujian City.
After the greetings, the arrived workshop owner sat quietly before the table, not knowing what the opening remark should be like.
Chen Jian didn't know how to start the show, so he had to put a few pieces of paper full of words in front of everyone.
"Everyone, this is my suggestion. You can take a look. Let's discuss this matter today."
Without much nonsense, Chen Jian sat in front of the table, trembling his legs in a bored manner, waiting for the workshop owners to propose to finish reading.
Everyone lowered their heads, and after a long period of silence, they couldn't help looking at each other and winking.
Finally someone spoke out and asked, "Chen Jian, what do you mean is that our glass guild is not only a formal guild, but also amalgamation? Our respective glass workshops must be merged into a whole? Is this what it means?"
"That's right, that's what it means."
Many people took a breath and found it unimaginable that there had never been such a guild organization.
"Since everyone is in the glass industry, it is beneficial to merge them together. First of all, after they merge together, there will be no competition within us. We just rely on equity dividends. If the overall industry makes more money, we will also share more."
"Secondly, everyone can control prices, alkali, coal, silica sand, etc., with a large demand, so that joint bargaining can be achieved, thereby reducing costs. As the cost is reduced, the more people make. In addition to the cost, there is also the remaining bargaining power, which is beneficial to everyone. Everyone opens glass workshops just to make money. What's the difference?"
Everyone did not trust Chen Jian and did not dare to accept this new workshop model. However, under the roof, people had to bow their heads, and they still had concerns with each other.
"You mean that in the future, our glass guild will no longer be a joint venture between individual workshops, but will become a separate large glass factory? All bargaining and production links will be agreed upon by all shareholding holders and dividends will be distributed according to the shareholding at the end of the year?"
"Yes. According to the amount of share capital held, the right to propose and veto power is no longer a separate or old guild production workshop, but is combined together. Not to mention the problems of previous sales distribution and production distribution, the production efficiency will be completely different from before. Since you are all wearing clothes, you must know the steps of textiles, right?"
"Of course I know."
"In fact, glass is the same as textile. You ask a person to start from planting cotton, to harvesting, peeling seeds, washing, and spinning to finally cut into cloth. This may take a whole year, that is, more than three hundred workers. But if someone harvests, someone spins and someone cuts, 300 workers can do ten or even twenty times the amount of work per person. Our glass workshop will also be in this way in the future, specializing in burning fire, calcining, selecting, and blowing. Each employee only does one thing, and the efficiency will be much faster."
Everyone whispered and discussed it, but agreed with this statement. In addition, the cost of glass on Chen Jian's side was difficult to make them object.
"Everyone, our glass was only sold near Fujian City, and the sales volume was not large. We had no way to reduce costs, nor could we join forces to sell in other counties. The strength of a single person is limited and we cannot compete with the guilds of other counties. But if we unite, let alone not talk about the quality of this large piece of flat glass, the ability to compete with them to reduce prices will be much better."
"Even if the price is the same, we can reduce the price, and we can squeeze the workshops across coastal counties by one year by one, and their small workshops are just like you are now, and you all know that the guild has their own ulterior motives. A year later, once the workshop is suspended and the glass craftsmen leave, even if it is profitable, they may not be able to open it again in a short time."
"I have calculated the cost of transportation and the roughly sea fracturing losses. Once we synthesize a large glass factory, we will definitely have the ability to squeeze through other workshops."
This proposal is essentially a primitive monopoly organization, a striking original organization between syndicate and trust.
These people are all businessmen and workshop owners in Fujian City. They have wealth and influence and control over the local area. It is entirely possible to monopolize the coastal generation of glass industry with the help of shipping. It is also possible to use improper means such as price reduction and price reduction to squeeze glass workshops across other counties.
At this time, everyone was already moved. In a sense, this was also mutual benefit and win-win, and it was an olive branch that Chen Jian took the initiative to extend after the failure.
Chen Jian himself does not have that much power, and he also needs to rely on their power, and he must stabilize the local opposition and constraints in Fujian City.
Faced with this proposal, everyone was still struggling and worried that it was a trap.
Chen Jian simply made it clearer.
"Everyone, we had no hatred before, and the hatred a while ago was just because of interests. There is no benefit to compete with each other. Isn't it better to win-win for mutual benefit?"
"We can set up a special department within us to check money and supervise each other every day. All problems will be solved by the stock capital. If you have any worries, you might as well say it out and say it openly. If you still have doubts in your heart, then I have to go find someone else. I think there are still many businessmen with extra money who will invest in this glass factory."
"After all, my foundation is still too shallow, so I don't want to spend it with you. Another thing is that I want to monopolize the glass manufacturing industry in coastal counties. It may take me three to five years alone, but it's just a matter of time, but there is no possibility of failure. I just want to make more money earlier."
The words have reached this point, and these people really have no choice. Now no one wants to continue like this. And they also know that their side has actually failed, an irreversible failure.
After a long time, someone asked, "What is the model of capital, distribution and operation of our glass factory?"
Many people also responded, this is what they care about very much, and they have used our statement unintentionally, and Chen Jian was relieved.
"This is something we have to discuss with everyone. After we have discussed it, we will decide. As long as everyone agrees with the most basic proposal, we can talk about the rest."
Everyone no longer objected, and the atmosphere of the banquet finally had a warm atmosphere.
While drinking and having fun, the final plan was finally agreed.
Chen Jian used flat glass, lead glass and defoaming technology, plus a part of glass and Nan'an's glass workshop as the share capital, equivalent to 50,000 silver coins. The remaining sixteen companies invested in the accumulated alkali, crucibles, blowpipes, apprentices, and 40,000 silver coins in total.
Relying on the suppression that had fought hard before, we finally had an overwhelming advantage. As Chen Jian's bottom line, the rest of the people had no choice. After all, they were just guilds, with loose organizations and many internal conflicts. No one trusted each other, and were worried that someone would make peace with Chen Jian alone.
Besides, Chen Jian has forced them to this point, and he really can't hold on anymore, so he can only accept it if he is aggressive.
In fact, even if Chen Jian is sold, he will not be able to sell 50,000 silver coins. However, Chen Jian overdraws the money he might have earned in Fujian City in the next few years and raises the cash from the rest of the people.
This amount of money can try to quickly monopolize the glass trade in coastal counties. In the long run, it is not cost-effective for Chen Jian, but what Chen Jian lacks is time, and both sides take their needs.
After determining the model of equity, dividends, operation and shareholders' meeting, the framework is decided.
The glass factory temporarily followed the name of Nan'an County's private glass factory, and after it expanded its sales to other counties, it was renamed as the Mincheng Glass Merchant United Factory.
The other workshops mainly dismantled their own small workshops and built a large workshop by the river in Fujian City. They did not produce flat glass, but mainly produced various glassware, lead glass fake crystals and partially grinded lenses. This required skilled glass craftsmen to complete.
The glass workshop in Nan'an has expanded to produce only flat glass. As its main business, it is supervised by Chen Jian.
All purchases, raw material prices, etc. are handed over to a dedicated person for handling, and the bargaining is jointly discussed by shareholders.
Chen Jian’s chemical workshop provides alkali to glass factories at market prices, and the chemical workshop has priority for alkali.
As a cooperative trading company, charity trading companies open up markets in capitals and coastal counties and have exclusive monopoly rights for two years. After two years, they can auction the exclusive monopoly rights.
Internal technological innovation is purchased by internal funds and blocked technology. Equity cannot be sold to the outside world and can only be digested internally. Shareholders of Chen Jian’s new workshops and new technologies have priority equity investment.
Chapter completed!