When news of Second Grandfather’s passing reached the ears of three unscrupulous tea merchants, their eyes gleamed with opportunity. With devious minds at work, they concocted a scheme to hoodwink the unsuspecting village chief, take advantage of his ignorance about market trends, and maliciously slash the price during their purchase!
If they had been here to purchase other farm crops, Su Ling might not have had much insight. However, the same could not be said for tea leaves…
A faint smile tugged at the corners of his mouth as his gaze settled upon the potbellied Qi Yue. “Correct me if I’m wrong, but isn’t the market price of average quality tea leaves for Dewfall Tea approximately 3,000 yuan[1] per catty?” He reminisced, “In fact, just this year, my family purchased a tin of premium-grade Dewfall Tea for well over 10,000 yuan[2]. I must admit, its flavor was nothing short of extraordinary.”
Qi Yue’s smile faltered at his words. “W-wait, you’re a tea connoisseur?”
Su Ling nodded his head. “Cultivating tea may not be my forte, but I’m quite adept at tea tasting. Growing up, I’ve been drinking tea alongside my family’s elders for more than a decade, so I can tell the quality of tea just by its aroma, taste, and appearance.”
As a matter of fact, Su Ling was a tea connoisseur in his own right, with impeccable standards and a refusal to settle for anything less than the finest brews. It was no coincidence that Dewfall Tea found its way into his cup regularly, so he knew its price like the back of his hand.
Huang Xing and Zhang Zhong shared a knowing glance, realizing with a pang of apprehension that their meticulous plan was about to take an unexpected turn. Despite their careful preparations, they had failed to anticipate one crucial detail — Second Master Su’s grandson was a master of tea tasting!
Qi Yue cleared his throat discreetly before attempting to mince his words. “As we all know, tea prices fluctuate over time, varying from month to month. It’s only natural for prices to increase during the gift-giving season at the start of the year. However, as we’re well into April now, it’s reasonable to expect that prices have already declined.”
Zhang Zhong chimed in, “Can you believe it? Just between last month and this month, the price difference is easily several tens of yuan!”
Rubbing his hands together, Huang Xing remarked, “Given the time-consuming nature of both tea harvesting and processing, we shouldn’t expect it to be market-ready until June or July. And who can predict how much the prices will fluctuate by then?”
Village Chief Jin let out a disdainful snort and retorted, “No matter how sharply the prices may drop, they couldn’t possibly dip below the production costs, could they? What’s more, the price Old Su set is already exceedingly fair. Selling a catty[3] of freshly harvested tea for a mere hundred yuan[4], so I’ll leave it to you to do the math and see just how much profit is being made in between.”
Qi Yue’s voice carried a note of urgency as he exclaimed, “Wait, no! The cost calculation isn’t as simple as that, Village Chief Jin! It takes four to five catty[5] of fresh tea leaves to produce a catty of dried tea leaves, and if the moisture content is high, even more fresh leaves are required. And that’s not all — there are labor costs, transportation fees, packaging expenses, advertising costs, and more. So, the costs are only mounting and not diminishing.”
Village Chief Jin asserted, “Didn’t Xiao Su just make it clear? Ordinary quality tea fetches over 3,000 yuan per catty. Even with estimated costs of 1,000 yuan[6], your profit margin still exceeds 2,000 yuan[7]. Moreover, given the exceptional quality of Dewfall Tea from our Mount Phoenix, your selling price will undoubtedly be higher and, thus, greater profits for you!”
“No…” Qi Yue’s expression twisted into a pained smile, his frustration evident. “You’re unfamiliar with the market situation, so you don’t understand…”
“Pray tell, why wouldn’t I understand?” Village Chief Jin fumed, “In his final hours, Old Su entrusted me with the task of selling a catty of fresh tea leaves for no less than 100 yuan[8]!”
As the situation grew more heated, Su Ling pulled out his phone from his pocket and casually proposed, “I happen to have a friend who’s in the tea business. Why don’t I give him a call and see if he can shed some light on this?”
Discreetly, Zhang Zhong tugged at the corner of Qi Yue’s clothes and shared a knowing glance.
Qi Yue gritted his teeth and declared, “80 yuan per catty, that’s our final offer!”
Zhang Zhong echoed, “The road leading to Stone Creek Village is in such poor condition that trucks can’t even make it through. We’re stuck shelling out heaps of cash every year just to transport the tea leaves manually.”
Setting his phone aside, Su Ling turned to the village chief and inquired, “Do we have any documented contract between Second Grandfather and these merchants?” This chapter was taken from novelping.com without permission.
“Yes, we do.” Village Chief Jin retrieved a stack of papers from the desk drawer and handed them to Su Ling. “The road from Stone Creek Village to the town is undeniably difficult to traverse, but your grandfather’s pricing doesn’t cover their manual transportation expenses.”
Su Ling grabbed the contract and swiftly skimmed its contents. His gaze honed in on the pricing section, confirming his hunch: transportation expenses beyond the village were not covered. But there was more — flexibility. The price of 100 yuan per catty was just the starting point. Depending on market conditions, he could potentially sell at a higher price.
Placing the contract on the table, Su Ling directed his gaze toward the middle-aged men, his countenance radiating a warm and amiable smile. “I believe,” he began, his voice carrying a tone of consideration, “that valuing fresh leaves at 100 yuan per catty sells them short. Even at 200 yuan[9], it’s still a fair price. Given your long-standing business ties through my grandfather, I’m prepared to extend a personal gesture. What if we settle at 180 yuan[10] per catty, covering transportation costs beyond the village? Does that sound reasonable to you?”
180 yuan?! How’d the price shoot up even after our best attempts at bargaining?!
Su Ling’s words struck the three tea merchants like a bolt of lightning, leaving them wide-eyed and jaw-dropped in sheer astonishment.
“Not to be the one to say it, but… when Second Master Su was around, we’ve never had to deal with price hikes like this. I mean, 150 yuan[11] is already pushing it, and now you want to jack it up to 180 yuan?! I-isn’t that just daylight robbery?” A look of worry and distress etched across Zhang Zhong’s face as he voiced his grievances with a sense of helplessness.
“Is 150 yuan truly your upper limit? Have you added in transportation costs beyond the village?” Su Ling arched an eyebrow, his eyes gleaming with curiosity. “When considering transportation expenses, the total might exceed 180 yuan. So, my offer that’s inclusive of transportation costs is no doubt a more favorable deal for you.”
Huang Xi was absolutely flabbergasted. How on earth did they get caught up in it all and blurt out 180 yuan so carelessly? After all, they had a rock-solid plan to negotiate it down to below 80 yuan before even setting foot inside!
Observing their evident hesitation, Su Ling lamented regrettably, “Having been in business with my grandfather for well over a decade, you hold the right of first refusal. However, it’s worth noting that the contract doesn’t explicitly prohibit me from selling to other tea merchants. As for premium-quality Dewfall Tea, it can fetch prices ranging from 300 to 400 yuan[12] per catty. Given the substantial demand in the market, I believe… If it doesn’t pique your interest…”
“Stop right there! We’ll take it! We’ll gladly accept 180 yuan!” Qi Yue jumped in eagerly, taking advantage of the moment to be the first to speak. For years, their partnership with Second Master Su thrived on the excellence of Dewfall Tea from Mount Phoenix. The price difference between Grade 1 and Grade 2[13] was huge, and with a tad bit of marketing magic, they could turn it into a goldmine. After years of success, letting go of this golden opportunity was out of the question!
With gritted teeth, Huang Xing and Zhang Zhong eventually succumbed to Qi Yue’s influence and reluctantly acquiesced.
Su Ling’s lips formed a tight line as a soft sigh escaped him. “180 yuan with transportation costs… Looks like I’m on the losing end.”
“No way! You’re not losing out at all!” Worried he might refuse to sell, Qi Yue chuckled, “It’s settled then. Let’s get the contract drawn up right away, and I’ll have someone harvest the tea the day after… No, scratch that, tomorrow! How does that sound, Mr. Su?”
Su Ling did not rush to answer him. Instead, his eyes swept over to the village chief and questioned, “What’s your take on this?”
With the tea business passed into the hands of the village chief, he found himself compelled to seek the village chief’s counsel on the matter.
The village chief solemnly stroked his goatee and nodded his head slowly. “The decision is yours to make.”
This lad may look young and inexperienced, but his mind is sharp. With just a few words, he can easily ensnare those around him. Truly, his talent is nothing short of remarkable. The source of this chapter is g.com.
With the village chief’s nod of approval, Su Ling could not help but heave a sigh of relief. “Alright, then. Let’s draft the contract.”
Despite being clueless about the latest market prices of fresh tea leaves, he was well-informed about the price of the finished product. At 180 yuan per catty, those vibrant tea leaves were practically a steal. However, Lin Feng once mentioned that business dealings were akin to psychological warfare and that one must possess the ability to analyze speech and observe body language to extract valuable information.
Since they had the nerve to push the price down to 80 yuan per catty, he dared to flip the script and jack it up to 180 yuan. Factoring in the transportation costs was a calculated psychological maneuver, creating the illusion that they were snagging a bargain. And just as expected, they inadvertently blurted out the high price of 150 yuan at the mention of this price.
Now that Su Ling had control over the prices, he exuded a sense of confidence, knowing he held the upper hand in negotiations.
Undoubtedly, the cornerstone lay in the enduring partnership between these three tea merchants and Second Grandfather, spanning over a decade. Their steadfast commitment spoke volumes about the impeccable quality of Dewfall Tea from Mount Phoenix, ensuring a premium price for the final product. With profits at stake, they were bound to be reluctant to relinquish this golden opportunity.
Still, he remained overly conservative, hesitating to even utter prices between 200 to 300 yuan per catty. His performance made it clear he was not cut out for the business world.
[1] CNY 3,000 is approximately US $414.77.
[2] CNY 10,000 is approximately US $1382.55.
[3] 斤 (jīn): A catty is a unit of weight used in some Asian countries. In China, a catty is approximately 500 grams or 1.1 pounds. You can read more about it here: https://en.wikipedia.org/wiki/Catty
[4] CNY 100 is approximately US $13.82.
[5] 4-5 catty is approximately 2-2.5 kg.
[6] CNY 1,000 is approximately US $138.24.
[7] CNY 2,000 is approximately US $276.49.
[8] CNY 100 is approximately US $13.83.
[9] CNY 200 is approximately US $28.20.
[10] CNY 180 is approximately US $25.38.
[11] CNY 150 is approximately US $21.15.
[12] CNY 300–400 is approximately US $42.30–$56.41.
[13] Tea leaf grading systems are used to classify tea leaves based on various factors such as leaf size, shape, color, aroma, and overall quality. These grading systems help tea producers, sellers, and consumers understand and differentiate between different types and qualities of tea.In China, while various factors are considered in evaluating tea quality, some regions or certain types of tea may employ a numerical grading system. This system typically ranges from 1 to 5, with 5 being the lowest grade and 1 being the best. However, it’s important to note that the grading process in China often encompasses a broader range of criteria beyond numerical ratings, including leaf characteristics, processing techniques, and regional distinctions.