Chapter 31 – Who is earning more?
Kirilenko had just stepped out of the airport and he saw a Russian car, Lada. Kirilenko felt very proud to see his country’s car in China.
But Kirilenko never expects Feng Yu to step out of that Lada.
Eh? Feng Yu changed car? He had changed into a Russian car for me? This is a really good friend.
Feng Yu, on the other hand, had never expected that changing car will increase Kirilenko’s impression of him. He only wanted a more comfortable ride.
“Ji Xiong (Chinese). Welcome to China again. I had arranged a dinner and top-grade Erguotou to welcome you.” Feng Yu said.
Kirilenko is feeling puzzled by the way Feng Yu address him. But when he heard Erguotou, Kirilenko’s eyes lit up.
After a heavy meal and drinks, Kirilenko is high again. Feng Yu explained to Kirilenko that “Ji Xiong” is a short form in Chinese for Brother Ki. Hearing this, Kirilenko is delighted. He held Feng Yu’s hands and insisted Feng Yu to stay with him at the International Hotel. But Feng Yu refused.
Sleeping in the same room with Kirilenko? Kirilenko might be able to fall asleep but Feng Yu will be tortured the whole night. The last time Feng Yu shared a room with Kirilenko, he didn’t even sleep a wink. Feng Yu thought to himself: “Wait till I learn how to fart while sleeping, grind my teeth, snore and talk in my dreams, I will share a room with you again. We shall see who can fall asleep first.”
The next day, Kirilenko saw Li Shiqiang waiting for him at the entrance of his hotel. Li Shiqiang then drove him to a strange place.
This looks like a warehouse.
The doors of the warehouse opened and Kirilenko saw a warehouse full of Soviet Union’s fast-selling products. What is the meaning of this? Did Feng Yu prepared for him?
Kirilenko heard a familiar voice from upstairs. It seems that Feng Yu is arguing with someone. Just when Kirilenko reached the second floor, he saw someone leaving the office and slammed the office door loudly. Feng Yu is also shouting in the office.
Seeing Kirilenko, Feng Yu smiled and said: “Brother Ki, you are so early today. Did you sleep well last night?”
“Feng, I heard you arguing with someone from downstairs. Did something happen?” Kirilenko asked.
Feng Yu faked a troubled expression and said: “Nothing. It is just the cooperative. They refuse to sell us any more goods as they had changed the manager. I had contacted other suppliers but the prices are high as this is the first time working together.”
“Feng, you had worked hard for me. I can understand. It doesn’t matter if it is slightly more expensive.” Kirilenko said.
“No. I will not let you suffer losses. I will get you the same prices like last time. Those goods downstairs are the same price as last time. I will reject those goods that are more expensive. I can’t let you lose money!” Feng Yu said.
This time, it is Kirilenko’s turn to feel embarrassed. He rubbed his hands and said: “Feng, my brother. I will tell you the truth. Actually, these goods are very profitable in my country. It doesn’t matter even if these goods are slightly more expensive.”
Feng Yu said: “How much profits can you get if my goods are so expensive? You still need to factor in the transportation costs. It will be good if you are able to get 10% profits.”
“No, no, no. You don’t understand the situation in my country. There is a strong demand for such goods. I am able to make around 40% profits.” Kirilenko said.
Fuck. Feng Yu couldn’t help but curse in his heart. He had estimated Kirilenko’s profit to be quite high, but he never expects it to be so high. The last time, Kirilenko brought 300,000 Rubles worth of goods. That means his profits is about 120,000 Rubles?
Feng Yu suspect that what Kirilenko said is pure profits. That is after deducting the transportation costs and his commissions.
Feng Yu suddenly remembered that the Soviet Union is currently preparing their defense against the US due the President Reagan’s Star Wars program (Strategic Defence Initiative: an ambitious project that would construct a space-based anti-missile system). The Soviet Union had utilized all of their resources and industries for military purposes and space programs. Very little resources are used for the civilians.
The Soviet’s economy is about to collapse. It seems that the time for the first country to leave the Soviet Union is not far away. Now it is the time to trade with the Soviet Union! Other than military industries, the Soviet Union had a shortage of everything else!
The Soviet Union’s industrial products are still more advanced compared to China. This is the time to acquire machinery and parts from them. China is still lacking in many industries and if it is possible to import these industries’ machinery from the Soviet Union, then earning a large amount of money is not a dream for Feng Yu.
But it is not easy to obtain the import and export permit. Feng Yu’s company still does not have any import permits. His company only have export permits currently and there are still many unfavorable conditions along with it. For instance, if there are foreign currencies in the account, then Feng Yu can only withdraw in RMB. The government will keep those foreign currencies.
During this era, creating revenue from trades is important for the government. The banks monitor transactions very closely. The government allows exportation but it will be very troublesome to do importation as foreign currencies are needed. For coastal provinces, they are still able to import from Hong Kong. But it is very difficult to do importation for the inland provinces.
Feng Yu passed Kirilenko a list in Russian and said: “Brother Ki, come, take a look. This is a list of items. Let me know what items you want. I will give you the lowest price. I will not let my brothers suffer!”
There are tears welling up in Kirilenko’s eyes. This is a real friendship. He had only mentioned these items in the phone call and Feng Yu remembered everything. He even arranged everything for me, saving me the trouble.
In the list, there are other items which Kirilenko didn’t mention in the previous phone call. Those items are dirt cheap in China. Kirilenko goes through the list carefully and fills in the quantities. He is getting everything on the list!
Feng Yu took out a calculator and started punching in the numbers while Kirilenko enjoyed a cup of red tea. Feng Yu calculated the total amount within five minutes.
“Brother Ki, I had calculated the total including the cost of loading on to the train. It should be around 520,000 Rubles. I am confident to lower it further to 500,000 Rubles. But I need about three more days.” Feng Yu said.
“Three days? The train carriage I arranged is for the day after tomorrow. How about this? I will accept whatever prices you give me but I had only brought 500,000 Rubles with me. If it is not enough, you can reduce some of the quantities.” Kirilenko said.
Feng Yu narrowed his eyes. Something is not right. This Kirilenko is not as simple as he looks. Feng Yu had only mentioned the prices of these goods casually earlier and Kirilenko had remembered everything. It should not be coincidental for the total amount to be slightly more than 500,000 Rubles. Kirilenko had calculated a rough estimation.
But even if Kirilenko is smart, he can’t be as familiar with the prices as Feng Yu. There is also no way for Kirilenko to check the prices himself as everyone will be quoting him a much higher price.
Based on the Feng Yu’s pricing arrangement with the suppliers, the total is actually around 430,000 Rubles and Feng Yu can have about 14% profits.
“Don’t worry Brother Ki. Leave everything to me. I guarantee you I will lower the price to 500,000 Rubles.” Feng Yu said and discreetly passed Li Shiqiang a signal.
Li Shiqiang said something loudly to Feng Yu and Feng Yu shook his head, refusing him. Kirilenko looked at them, not understanding what is going on until Li Shiqiang rubs his thumb against his other fingers. Kirilenko finally understood what the both of them are talking about. Li Shiqiang wanted money.
“Feng, this is 20,000 Rubles. Consider this as appreciation for your work. Do you think it is enough?” Kirilenko said.
“Brother Ki, there is no need for so much.…… Ok, I will just accept it. Rest assured. I will arrange for the goods to be loaded onto your train carriage tomorrow!” Feng Yu said while “reluctantly” accepts Kirilenko’s 20,000 Rubles.
It is always a pleasure doing business with Kirilenko.