Capítulo 22: Chapter 22 Market Share
"What do you want to ask?"
Graf chuckled, "Are we really going to buy ten thousand bottles? We don't have that much money, and Mr. Heidler said the funds would be given in installments, so we might not make it in time."
Julian pulled out a complete roll of cigarettes from his pack Lion brand, twelve cents a pack and lit one, hoping it would make him appear a bit more mature, though it might have the opposite effect. He flicked the ash with practiced ease and said casually, "Sometimes you don't need to pay to buy something; sometimes, they'll even pay us!"
Graf looked bewildered. Not having to pay for something while also making money? What kind of scheme was that? A chill ran down his spine, and he began to look at Julian with slightly different eyes.
Julian knew he couldn't explain this to someone like Graf, who seemed to have muscles for brains, so he didn't continue the conversation. Next, they met with four more suppliers. The process was largely the same as the discussion with Richard. In short, even if someone quoted a price of 50 cents per bottle, Julian would still frown and declare it too expensive. Perhaps the negotiation with Richard had helped him find his footing, as he decided to raise the order from ten thousand bottles to fifty thousand bottles per year!
If ten thousand bottles would still allow Richard to save face and appear to be a successful businessman, then fifty thousand would turn the other four suppliers into eager dogs, wagging their tails around him. This deal would be equivalent to a year's worth of business, and they would fight tooth and nail to secure it.
Julian swiftly painted an enticing picture for these suppliers. By evening, he hadn't even returned home when Richard unexpectedly appeared while Julian and Graf were having corn chowder and grilled meat at a small roadside restaurant.
This couldn't be blamed on him. He had his men investigate Julian's company while keeping tabs on whether he had met with other suppliers. When his men reported that they had accidentally overheard Julian requesting fifty thousand bottles a year, Richard could no longer sit idly.
He didn't understand the saying that "delays can lead to changes," but his instincts as a businessman told him that if he didn't seize the opportunity, this big fish might slip through his fingers.
Though he found it a bit odd that Julian would be dining in a regular small restaurant, Richard didn't think much about it. The situation in the Star Empire was still very chaotic, and Ternell was a small border town. Only a few luxury restaurants were exclusive to local elites. So, Richard quickly rationalized Julian's somewhat odd behavior, coming up with a reasonable excuse for himself.
Feigning a chance encounter, he expressed his surprise so dramatically that even Graf muttered under his breath. "What a coincidence! May I join you?"
Julian nodded and tilted his head toward Graf, who rolled his eyes and took his plate to sit at a nearby table.
Richard casually ordered something to eat and said eagerly, "After you left, I thought about it for a long time. I believe we should try to establish a solid partnership, don't you think? Look, I have everything you need, and my prices will definitely satisfy you. That's a solid foundation for cooperation, wouldn't you agree?"
Julian set down his spoon, wiped his mouth with a somewhat frayed napkin, and said, "Mr. Richard, let me put it this way: I cannot accept your price…"
Richard, eager and somewhat rude, interrupted Julian, "No, no, listen to me! Fate has brought us together; we should become friends. Price? That's not a problem—how about 60 cents per bottle?"
If Julian still hadn't realized what was happening at this point, he would have been truly foolish.
He smiled at the somewhat anxious Richard, chuckling lightly.
Julian pushed the plate in front of him away and leaned back in his chair, folding his arms as he looked at Richard. "Mr. Richard, I don't know where you learned about the prices from my other suppliers, whether they told you or if you overheard it by chance; it doesn't matter.
A large order of fifty thousand bottles a year was right before him. Forget about Julian mocking him a few times; he could even smile if slapped.
Selling one item for a profit of ten thousand dollars versus selling fifty thousand items for a profit of five thousand dollars might seem like the former offers greater returns. However, any wise businessman would choose the latter.
Among capitalists, there's a saying: "Unrefined traders sell products. Inferior businessmen sell brands. Superior strategists sell markets." This saying reflects the evolution of business focus. Small traders seek profits from individual products, while slightly higher-level merchants emphasize brand value, recognizing that a strong brand can surpass the profit of any single product.
Take moonshine brand almond liquor as an example. A manufacturer might profit thirty percent per bottle, yielding around thirty million dollars for a hundred million bottles sold. However, the value of the brand itself could exceed fifty million and continue to rise as production and sales channels improve, far outpacing the product's intrinsic value.
At the highest level, merchants focus on market control. While others focus on profit margins and branding, these strategists target market share. Just one percent of a large market can generate millions in revenue.
Richard understood this principle. When Julian's demand for moonshine almond liquor rose from ten thousand to fifty thousand bottles, Richard saw an opportunity. In the Ternell beverage market, fifty thousand bottles could represent a ten to twenty percent market share.
What does an increase in market share mean?
It signifies absolute control over a product, a brand, and a company within the market! No matter what new varieties of liquor moonshine brand launches in the future, they can quickly convert their market share into consumer power. Even if they were selling the worst drink, during the decline in market share, they would still rake in a fortune!
An increase in market share means more than just higher sales; it's about control. Even with new or less popular products, a dominant position allows the brand to convert market presence into consumer power. This wasn't just about selling liquor; it was about seizing an opportunity for the future.
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