Chapter 804 Increased Budget
Although it was just a simple meeting and a few simple words, it was the first time for both parties to face each other and test each other. It can be seen that Li Jingwei is determined to win . This is a very strong opponent, and Song Yuanchao dare not be careless at all.
Li Jingwei had the same idea at this time. After completing the procedures and submitting the documents, Li Jingwei took his people and left the organizing committee.
After leaving the door, Li Jingwei looked serious. He didn't expect that this time, in addition to Shen Mei who he already knew, Si Te would also show up, and Chairman Song Yuanchao also led a team to submit the documents in person.
Li Jingwei had heard of Sit Company and Song Yuanchao a long time ago, and although the two sides had never met before, they had been competing in the market for a long time. Especially before, Jianlibao took advantage of the Olympic Games to soar to the sky, turning a small factory into a domestic second-ranked beverage giant in a very short period of time, which was enough to show Li Jingwei's ability and means.
Originally, Li Jingwei's Jianlibao would have made greater profits from it, but he never expected that when Jianlibao was making great strides, Sit suddenly came up with a so-called international gold award, and all media reported it extensively, making Sit beverages famous and overshadowing Jianlibao, which was in the limelight.
For this reason, although Jianlibao has achieved success, it has not achieved the huge gains it had in the past. In addition, Si Te has been competing with Jianlibao in the market, and the two sides have been fighting fiercely, neither giving in.
At present, Jianlibao has a slight advantage in terms of single products, especially in several provinces and cities across the country, where the sales of Jianlibao single products have exceeded those of several beverages of Sit. However, in terms of the total volume of beverages, Sit is currently the leader of domestic beverages. In addition, although Li Jingwei has never met Song Yuanchao, he has known him. Although Song Yuanchao is young, he has a unique vision and extraordinary business methods. Although they are rivals, they have to admire him.
Meeting today, it really lived up to its reputation. Song Yuanchao was much younger than Li Jingwei, but he spoke very carefully, and both sides felt that the other was not simple.
Song Yuanchao's personal visit to the organizing committee was enough to show that Si Te was determined to win the beverage sponsorship for this National Games, which made Li Jingwei dare not be careless at all.
Back at the hotel, Li Jingwei smoked a cigarette and concentrated on thinking about something. After a long time, he put out the cigarette and picked up the phone to call the company.
"I'm Li Jingwei!" After the call was connected, Li Jingwei asked, "How is the money I asked you to prepare?"
After hearing the answer from the other end of the phone, Li Jingwei thought for a moment and said, "Add an additional 1 million in reserves immediately. It must be done within three days!"
"Boss Li, this may be difficult..." The subordinate on the other end of the phone couldn't help but say, "The company is currently under great financial pressure. It takes time to recover a lot of payments. It's not impossible to transfer another 1 million, but it must be done in three days..."
"I'm not negotiating with you, I'm ordering you! It's a must!" Li Jingwei ordered in an unquestionable tone: "If you can't handle this matter, I will deal with you directly! That's it, I'll give you three days, and the funds must be in place. I don't care what method you use, I just want the result!"
After saying that, Li Jingwei hung up the phone directly. His expression was still solemn. He continued to light a cigarette and smoked with a frown.
Today's Jianlibao is no longer the small factory it once was. It took Li Jingwei only two years to grow from a small factory to its current size. In this respect, he is indeed a genius.
In addition to the product, Li Jingwei's courage and determination are the most important keys to success. In order to break the deadlock, Li Jingwei was the first to take the initiative to sponsor the Olympic Games, which made Jianlibao famous and successful.
You should know that when Li Jingwei sponsored the Olympic Games, the entire factory had only 280,000 yuan in its account. But even so, he still took out 200,000 yuan to sponsor the Olympic Games.
After the sponsorship, Jianlibao had only 80,000 yuan left in its account, which was barely enough to maintain production. In addition, fast-moving consumer goods, especially beverage products, require a large proportion of funds in production and sales, and the recovery of payments is relatively slow. If one is not careful, the capital chain will be broken, and the factory will be ruined at any time.
Li Jingwei took a huge risk by sponsoring the Olympics, because no one could guarantee whether such an approach would pay off. If it failed, the newly established Jianlibao would become history, and Li Jingwei would be like a gambler who put down the last chip on the gambling table and lose his last penny.
However, Li Jingwei made the right bet in the end, because Chinese athletes achieved excellent results in this Olympics, and this was also the first time that China returned to the Olympic Games, so it received widespread attention across the country.
Taking advantage of the opportunity of the Olympics, Jianlibao became the famous oriental magic water, followed by a flood of orders and market demand, which pulled Jianlibao back from the edge of the cliff and achieved huge success.
Last year, Jianlibao's annual sales reached 130 million, making it the second largest beverage company in China. The company and Li Jingwei himself also gained huge honor and benefits.
Because of this, Li Jingwei set his sights on the National Games again, intending to repeat the old trick and once again promote Jianlibao to a higher level through beverage sponsorship. In order to get this sponsorship, Li Jingwei had prepared about 2 million yuan in advance for bidding, but he did not expect that the two companies, Si Te and Shen Mei, also set their sights on the National Games. The sudden appearance of a powerful opponent made Li Jingwei feel the pressure, so he decided to increase the sponsorship ratio temporarily, and he had to grab the sponsorship rights from his opponents.
2 million is a lot of money. You should know that Li Jingwei only spent 200,000 in the last Olympic Games. The funds currently prepared are already ten times more than the Olympic sponsorship. Li Jingwei was very confident at first, but after meeting Song Yuanchao today and having a brief conversation with him, Li Jingwei suddenly felt that this money might not be enough, so he urgently called the company to ask it to increase the funds by 1 million.
Although Jianlibao's current annual sales are very high, reaching 130 million, Jianlibao actually does not have much liquid funds available.
On the one hand, this year Jianlibao needed money everywhere because of its rapid expansion, including factories, production lines, recruitment, market coverage, sales sharing, etc. Each area required a large amount of capital investment. Often the money that just came in was spent with the right hand, and not much was left.
The second aspect is the capital investment and recovery ratio of the fast-moving consumer goods industry. Due to the special nature of fast-moving consumer goods, a large amount of product backlog is usually required during the production to sales process, and the inventory will maintain a relatively high ratio.
This part will take up a large amount of funds, and there are also pressures of funds and products from the actual sales to the stage of payment collection. With nearly 10 million accounts receivable and almost the same proportion of product backlog every month, Jianlibao faces considerable pressure on its working capital.
In fact, this situation is not only happening with Jianlibao, but also with Sitter.
Since its establishment, Sit Company has been expanding. Although the output value has been increasing at a considerable rate every year, Sit has always been under great financial pressure.
In particular, at present, Sit has divided the company into two major industrial divisions based on the different nature of its products, and has adjusted the structure of its branch factories in various places in order to reintegrate some of the problems caused by Sit's expansion and thus reduce the pressure faced by the company.
But compared with Jianlibao, Song Yuanchao paid great attention to the issue of funds from the very beginning, and had special requirements for the recovery of funds in the sales link.
As early as when he was in the first branch, Song Yuanchao required the sales company to attach equal importance to the issue of capital recovery while pursuing sales volume. At the same time, he rated each dealer, gave them scores based on sales volume and capital recovery, and divided them into different levels.
Such operations have certain limitations in quickly occupying the market and expanding sales. For example, this is not the case with Jianlibao, which takes a sales-first attitude towards the market. As long as sales are met, the payment period can be relaxed. This is also a means for Jianlibao to quickly cover the market in a short period of time.
But at Sit, this model is not allowed.
Song Yuanchao pays attention to the product market and sales volume, but he is more concerned about the issue of capital recovery. In particular, in the dealer rating process, the proportion of capital recovery is very high. Among dealers with the same sales ratio, if one dealer pays more promptly than another dealer, the former's score ratio is much higher than the latter, the dealer level is higher, and the service and wholesale price received are also different.
Under this operating model, the capital turnover status of Si Te Company can be said to be the best among all domestic enterprises at present. However, it is also for this reason that Si Te Company is relatively slow in the entire market channel process and is not as fast as Jianlibao.
In fact, some people within Sit have proposed changing this model, focusing on markets and channels and relatively relaxing some of the requirements for capital recovery.
However, this suggestion was directly rejected by Song Yuanchao, because Song Yuanchao knew very well that the good financial operation of an enterprise would determine the future sustainability of the enterprise. Moreover, the domestic market is now in a state of disorderly competition. Many problems are masked by the rapidly developing economy, but these problems still exist, and with the passage of time, the problems will continue to magnify.
It won't be long before the domestic triangular debt situation will erupt. Song Yuanchao, who has experienced this period, has witnessed many companies that were originally doing well having their capital chain broken due to the problem of triangular debt, resulting in serious consequences.
Even in the 21st century, the problem of capital chain of enterprises still exists due to the drag of funds, thus restricting the further development of enterprises. This problem must not be considered for solution after the problem occurs. It is the most disgusting thing for Song Yuanchao to do this. He must cut off this possibility from the beginning, even if it costs a certain price.
