You All Lose Money, While I Make Money

For every person who cooperates with Lin Qi, there is someone Lin Qi does not.

The Old Gentleman who had been shouting, "Even if I go to hell, I won't sell you my factory," and "Go to hell with your greed," was now experiencing something else entirely.

His factory was completely seized; bank staff affixed seals to the outside of his factory, and a large number of workers began liquidation.

These actions could only be carried out with the permission of the Sabine City court and judges; in other words, the entire Sabine City judicial system supported the bank in doing so.

After all, everyone understands the principle of paying back debts, especially such a large sum of money.

Most importantly, he also rejected Mr. Lin Qi's kindness! Lin Qi wanted to help him, but he not only rejected Lin Qi's help out of kindness and compassion, but also falsely accused Lin Qi of being behind it all.

In fact, these people are all people who refuse to admit failure. They borrowed the money and spent it themselves. The decision to expand and increase production capacity was also their own.

The decision to stockpile raw materials when they are "cheap" is their own. Some people even sell the finished products to those who offer higher prices when the harvest is at its best, even if someone has paid a deposit.

The large backlog of unsold stock piled up in the warehouse, with no one willing to take it over, becoming one of the factors that dragged the factory down.

The old man stood outside the factory with lifeless eyes. He was no longer allowed to enter the factory because from this moment on, this place was a restricted area, and the property belonged to the bank; he was just an outsider.

Several workers hauled a truckload of raw materials out of the factory and laid them out on an open space. The people in charge of inventorying the goods were registering them so they could calculate their total value.

The old man stared at the almost brand-new raw materials, his heart bleeding. What he found even more unbelievable was that the person in charge of the assessment shouted out, "A truckload of secondhand production waste, gnawed by insects and rats..."

Now, the old man has not only lost the factory, but is also burdened with huge debts due to insolvency. He, his family, and everyone who enjoyed the comfortable life brought by this loan will be identified by the judge as joint debtors.

They will be forced to work to repay the bank's debts as soon as possible.

Of course, none of this has anything to do with Mr. Lin Qi or those who have given up and resigned themselves to their fate. For them, a new life and a new journey have just begun.

Immediately after taking office as mayor, Ferral moved out of Lin Qi and promised the citizens of Sabine City via television that starting next week, they would select some of the most disadvantaged families to work at Lin Qi's factory to resume production.

Announcing such news right before taking office immediately dispelled any doubts some people had about Ferral's abilities, and some even instantly became Ferral staunch supporters! And all of this is related to the job and employment.

"Once we clear out the inventory in these factories, they will start operating again, no later than the third week of this month."

Standing in the crowd, Lin Qi, who was standing next to Ferral, was announcing the news to some people in the community. Yes, this was Ferral's celebration ceremony. He had become mayor, and he was also holding such a ceremony in accordance with certain rules.

Of course, he doesn't have many people around him yet, but fortunately, he inherited a portion of the capital from Mayor Landon, and these businessmen who are unwilling to leave the area will begin to revolve around Ferral.

In addition to Ferral's own connections and some people from society, Lin Qi even saw some Middle Class here.

The new mayor represents new opportunities, and some people are overcoming difficulties that they could not have overcome on their own. A new "ecosystem" is taking shape.

People were curious about how Ferral got those jobs from Lin Qi, so Ferral pulled Lin Qi aside and had him talk to everyone.

Faced with Lin Qi's affirmative answer, some people showed an incredulous expression. "Mr. Lin Qi, we face a loss every time we start production. If your factories start operating... will they be able to cover their costs?"

Lin Qi shook his head. "This isn't about whether we can cover costs..." As soon as he said this, some people exchanged glances, realizing this was the most normal thing to do! Starting production at this time of year means losses; as long as production starts, losses are inevitable! This statement might sound a bit off, but it's precisely the current reality. Due to the economic downturn, many distributors no longer pay in installments before even seeing the goods, settling the balance once they receive them.

To mitigate their own risks, distributors now demand that goods be sold first, and payment made later.

This has led to a situation where, once construction begins, not only do we have to pay the workers' wages, but we also have to consume the corresponding raw materials and pay transportation costs, and yet we still can't get our money back.

It is very likely that some companies will be dragged into bankruptcy in this process, so most companies would rather do nothing than start operations.

In addition to these issues, the shift in the weight of the supply structure has turned factories from a dominant to a disadvantaged position, which is also one of the reasons why factories are currently struggling to make a profit.

In reality, it's impossible for any batch of goods to sell out completely, except for the most popular items.

Previously, the losses from unsold inventory were mostly borne by the distributors. They would buy 100 items, sell 80, and then sell the remaining 20 at a discount, but overall they still made a profit.

However, the current practice of distributors selling first and paying later has shifted all the risk of unsold inventory to the factory.

The factory will bear the full loss from the twenty unsold items, and the profit from selling eighty items may not even cover the loss from those twenty unsold items.

Distributors are moving upstream, becoming the most important link in the commodity supply chain. This is different from before, when factories used to dominate the entire supply chain. Now the situation has changed, and factories face greater risks.

Lin Qi's words led people to believe that he was willing to operate at a loss in order to support Ferral, which also gave people an accurate judgment of some rumors circulating in private, such as the close personal relationship between Lin Qi and Ferral.

But Lin Qi's next sentence left them momentarily blank.

"... My question is how much profit these factories and products can bring me!"

The people surrounding this "mainstream" circle were immediately in an uproar, finding it hard to believe that what they heard was the same as what they knew.

Everyone is complaining about how much money they've lost and how hard life is. Suddenly, someone breaks the mold and says they're thinking about how much money they want to make. It just feels like they're trying to get attention.

"Please forgive my rudeness, Mr. Lin Qi, but how do you guarantee your profits under such circumstances?" A businessman squeezed out of the crowd and stood in front of Lin Qi, introducing himself as a Shoe Factory owner.

The others were also watching Lin Qi, waiting to see how he would answer the question.

Lin Qi laughed and said, "I won't keep these goods for sale in the country. If I sell these things to the Federal, I will definitely suffer losses."

He glanced at the others, speaking slowly and clearly, making sure everyone around him could hear him.

Perhaps it was because there were too many people around, or perhaps some voices had spread out, that some people were gathering here.

"But if I export the goods abroad, I might not lose money, and I might even make a little money..."

"If you pay a little attention to some of the latest news, you will find that the word 'internationalization' is appearing more and more frequently. Internationalization has actually become integrated into our lives."

"Rapidly developing technology has shortened the distance between us and the world, making it easy for us to sell our goods abroad and all over the world."

"If you pay attention to some international trade policies, you will find that exported goods can now be refunded for taxes, and some goods also have additional subsidies."

"These will greatly reduce our pressure, and the international market is much larger, more in-depth, and more comprehensive than the domestic market."

"Every product has a suitable place to sell it. We just need to find that place and then ship the product out!"

The unnamed gentleman who had asked the question followed up with, "Mr. Lin Qi, are you referring to Nagaril?"

Lin Qi glanced at him and nodded. "You could say that, but you could also say that. What I'm saying doesn't mean that Nagaril is the only place that suits the interests of us businessmen."

"It's just that I personally think Nagaril is more suitable. Think about it, ladies and gentlemen, it's a country with two hundred million people!" Lin Qi said with a smile, using gestures to describe the "large" scale.

"We are nurturing this country, this market."

"Once a market of 200 million people is established, and each of them spends ten dollars a year on goods from the Federal, that's a market of two billion!"

"But gentlemen, for a materially backward country, their material needs are definitely not as small or simple as ten dollars!"

"It could be twenty yuan, thirty yuan, fifty yuan, or even one hundred yuan!"

"We're cultivating this market, making it more suited to our needs, and then..." Lin Qi smiled, raised his glass, and took a sip. "It's that easy, ladies and gentlemen!"

Lin Qi remained silent. He was always very honest, and he did indeed intend to sell these goods in Nagaril, only the method of sale would be slightly different.

"Bang!"