Сhарter 111: Coорeratiоn and Divergеnсе
Аftеr сhatting for а while, Madam Gong and Yао Niangzi turnеd baсk tо thеir rеspесtivе shорs. Bеfore leаving, Yаo Niаngzi also toоk two sticks оf Qingyun Ink, loоking аs if shе fеаrеd missing оut on a bаrgаin.
"Cоusin, whу did уou sаy wе’rе giving them awау as рart of a рromotion? Тhеsе two stiсks of ink cost twо qiаn оf silver. In mу орiniоn, еvеn lowеring thе priсe tо match Luо Familу’s оrdinаry ink wоuld bе bеttеr than giving them awаy for free. Mаdam Gong is fine, but Yаo Niangzi is thе most mоnеy-mindеd and loves petty gains. Who knows, she might even send her shop assistant to claim more later."
Hearing Hua’er’s words, Zhen Niang couldn’t help but laugh. Indeed, Yao Niangzi’s nature was perfectly captured by Hua’er’s few words. However, when it came to lowering prices, Zhen Niang said to Hua’er, "The price absolutely cannot be lowered. Once it’s reduced, it’s hard to raise it again. Li Mo’s craftsmanship is the most meticulous among all ink workshops, and its cost is also the highest. If the price can’t be raised, how can the business continue?"
Zhen Niang intended to teach Hua’er, so she explained things clearly to her. The kind of self-destructive behavior like the Tian Family’s was something the Li Family would never engage in.
Hua’er nodded in understanding. Just then, Chang San, an assistant from the neighboring cloth shop, hurried into Ink Manor. "Miss Zhen, I heard you’re giving away ink as part of a promotion here?"
As soon as he stated his purpose, everyone at Li’s Ink Manor laughed. Yao Niangzi had truly been predicted by Hua’er.
Hua’er immediately rolled her eyes and said impatiently, "The promotion is over."
"Miss Hua’er, please be kind. Our mistress sent me here. If I go back empty-handed, I’ll likely get a good scolding." Chang San clasped his hands together, looking somewhat helpless.
"Go get it," Zhen Niang said to Hua’er.
Hua’er then turned and went behind the counter, taking her time before finally pulling out two sticks of Qingyun Ink. She handed them to Chang San and said, "Here, the last two." Then, raising her voice deliberately, she added, "Go back and tell your mistress the promotion is over. There won’t be any more."
"Alright, alright," Chang San replied, satisfied as long as he got the ink, not caring about anything else. He then scurried back to report.
Zhen Niang shook her head and smiled. People like Yao Niangzi were everywhere, just one of the many facets of life, and there was no need to take it too seriously.
However, turning her thoughts back to the shop’s business, the liquid ink sales had taken off since the opening day, with quite a few sold already. The initial launch was a success, but the sales of other inks were not as promising.
Take Qingyun Ink, for example. It was originally the best-selling ink, but due to the Tian Family’s price war, it was now hardly moving, with everyone complaining about the high price.
"Miss Zhen, it’s been several days since the opening, and apart from liquid ink, nothing else is selling. Most people don’t even ask about quality—they only care about the price. As for those who don’t mind spending money, they insist on the Tribute Ink brand. So, even if our high-end ink is cheaper, people still prefer to buy the more expensive Tian Family ink. Sigh..." Zheng Fuli, who was tallying accounts nearby, said anxiously.
Business could be quite interesting at times. Those who cared about prices would only go for the cheapest options, while those with status seemed to only choose well-known brands or expensive items. It was quite the extreme contrast.Therefore, in the high-end ink market, despite the Tian family repeatedly raising prices, their Tribute Ink reputation ensured steady sales, leaving other ink shops with no chance to compete.
Similarly, although Li Mo's introduction of liquid ink impacted the Tian family's ordinary ink sales, it still couldn't rival their high-end offerings. Thus, it couldn't fundamentally harm Tian ink's core business.
Imperial Tribute Ink represented authority.
"This matter can't be rushed. Let me think it over carefully," said Zhen Niang.
Zheng Fuli naturally understood that business wasn't built overnight and replied, "We should all give it some thought."
"Miss Zhen, how's business?" At that moment, Zhu Gui, the owner of the Zhu Family Ink Manor, entered, glancing around before asking.
"Aside from the newly introduced liquid ink, nothing else is selling. Even the Han Xizai's Night Revels Collection Ink I've displayed here attracts many viewers, but no one buys—they all say it's too expensive," Zhen Niang replied somewhat helplessly.
"That Tian family is like a stick stirring up trouble, throwing the ink industry into chaos. At least you have liquid ink to rely on. Over at my place, even sparrows are practically flying indoors," Zhu Gui grumbled angrily. By now, the Wei family had returned to Songjiang, the Tian family needed no explanation, and even the struggling Li family had a stronger foundation than his Zhu family. Currently, he was having the hardest time.
Hearing Zhu Gui's words, an idea suddenly occurred to Zhen Niang. Her eyes sparkled as she said, "Would Shopkeeper Zhu be willing to sell liquid ink?"
Zhu Gui felt somewhat displeased at this: "Miss Zhen, that's not right. No matter how poorly Zhu Mo performs, there's no reason to sell Li Mo's products in my own shop."
Realizing Zhu Gui had misunderstood, Zhen Niang quickly clarified, "Shopkeeper Zhu, you've misunderstood. I mean, we at Li Mo would provide the formula, and your Zhu family would produce it, all under your Zhu family's brand."
"Such a good deal? Are you joking?" Zhu Gui exclaimed in surprise, his eyes wide.
"How could I joke about such a thing? But there are conditions," Zhen Niang said seriously, emphasizing this was no jest.
"What conditions?" Zhu Gui asked urgently. If he could obtain Li Mo's liquid ink technology, his Zhu Mo might just manage to hold on.
"For every bottle of liquid ink Zhu Mo sells, I'll collect a ten percent royalty for the formula. Taking the current price of my liquid ink as an example—one hundred wen per bottle—the royalty would be ten wen per bottle. This arrangement lasts ten years; after that, Zhu Mo won't need to pay a single wen," Zhen Niang explained, essentially applying the concepts of patent royalties and licensing terms from later eras.
Earlier, from Zhu Gui's tone, she had sensed Zhu Mo's struggles. If Zhu Mo withdrew from the Nanjing market now, only Li Mo and Tian ink would remain in competition.
At that point, Li Mo would be somewhat isolated. Therefore, it was better to ally with Zhu Mo, first securing the liquid ink market together. This would lay a foundation for future development and create an opening against the Tian family.The technology for liquid ink is actually not too difficult, mainly involving preservation, preventing sedimentation, and solidification. It's just a matter of two or three additives. Although others might not figure it out within a year or two, given three or four years and a sample of our ink, other ink workshops could overcome this technical challenge without much difficulty. Therefore, it would be better to offer the formula now. Ten years of licensing fees would certainly yield more than what the Li family could earn by monopolizing the technique.
After all, the production capacity of the Li family alone is ultimately limited.
As experts in the ink industry, Zhu Gui could roughly estimate the profit margin of the Li family's liquid ink. Taking the Tian family's ordinary ink priced at seven qian per jin as an example, one ink stick weighs about eight qian. Thus, the price of one ink stick would be around seventy to eighty wen. However, the amount of ink ground from one ink stick far exceeds what is contained in one bottle of the Li family's ink. From this perspective alone, the Li family's liquid ink is considerably more expensive than the Tian family's ordinary ink. Moreover, the price of one bottle of the Li family's ink is twenty to thirty wen higher than that of one Tian family ink stick.
However, on one hand, liquid ink is a novel product, convenient to use. Additionally, the design of the porcelain bottle is excellent. Packaged in such a bottle, the entire product appears refined, making a price of one hundred wen seem not too high. Furthermore, ink sticks are sold by the jin. Even the lowest-grade ink from the Tian family costs seven qian per jin. For ordinary households, seven qian of silver is not a small sum. On top of that, using ink sticks requires preparing an inkstone, which adds another expense. Therefore, after calculating, most customers find that although Tian ink is actually cheaper, they still prefer to buy the Li family's liquid ink.
Thus, the profit margin for the Li family's liquid ink is very high, though the cost of the porcelain bottle must be deducted.
Zhu Gui estimated that although the porcelain bottle looked attractive, the porcelain used was not of high quality, so the price was not high. The cost was around twenty wen, leaving about eighty wen. The total cost per bottle, including various taxes and fees, would not exceed fifty wen, resulting in a net profit of thirty wen. After paying the Li family a licensing fee of ten wen, there would still be a profit of twenty wen. In other words, the liquid ink yields a pure profit of twenty percent, making it a viable venture.
However, bargaining is part of the process. The licensing fee was still a bit high. Although Zhu Gui had already decided to proceed with the deal, he still intended to negotiate the price. He said, "The licensing fee is too high. Liquid ink is a novelty, and the initial selling price is high. Once my family introduces it, the price may drop. Ten percent is too much; five percent is more reasonable."
"Five percent is too little. My Li family spent several years researching this. How about ten percent for the first four years and five percent for the following six years?" Zhen Niang proposed, which was basically fair.
"No, ten percent for the first three years and five percent for the following seven years," Zhu Gui countered.
Thus, the two began haggling. Zhu Gui had figured out that Miss Zhen intended to support the Zhu family and collaborate with the Li family to compete against the Tian family, which gave him leverage in the negotiation.
"Shopkeeper Zhu is indeed shrewd. Fine, as you say, ten percent for the first three years and five percent for the following seven years," Zhen Niang nodded in agreement.
"Not at all. Seeing Miss Zhen's approach, I truly feel that the younger generation is surpassing the older," Shopkeeper Zhu laughed heartily.
"Deal. I'll take this business," Zhu Gui then finalized the agreement on the spot."Alright, then let's draft a preliminary agreement," Zhen Niang said.
Hua'er didn't quite understand the intricacies involved, only knowing that her cousin was actually planning to provide the Zhu family with their best-selling liquid ink formula. Wasn't that just shoving money straight into the Zhu family's pockets? Naturally, she grew anxious and quietly tugged at Zhen Niang's sleeve from the side.
Meanwhile, Zheng Fuli pulled her aside by the arm to avoid disturbing Miss Zhen.
Hua'er truly didn't grasp the complexities at play.
Zheng Fuli, having received guidance from Old Steward Shao, naturally had ample experience in such matters. Hearing Miss Zhen's conversation with Shopkeeper Zhu, Zheng Fuli's eyes lit up. A ten-year formula usage fee—10% per bottle for the first three years, and 5% for the following seven years. These days, Zheng Fuli was most familiar with the sales figures for liquid ink. Putting everything else aside, once this contract was established, the Zhu family would become the Li family's treasure trove.
Moreover, Zheng Fuli thought further ahead. The world's ink workshops weren't limited to just the Zhu and Tian families—there were countless workshops, large and small. If they could select a few more major ones and license out the usage rights for this liquid ink formula, this single source of income alone could support half of the Li Family Ink Workshop's future operations.
This was absolutely a worthwhile deal.
Once the Li and Zhu families had negotiated the agreement, drafted the preliminary contract, and reached a preliminary understanding, specific clauses in the contract—such as regular account inspections—would require Shopkeeper Zhu to return home and discuss further with his family. Only after all details were settled would they find a mediator to sign the formal contract, thus concluding the process.
Zhu Gui was an impatient man. Once the broad strokes were agreed upon with Zhen Niang, he didn't linger a moment longer. He rose and headed straight for the Zhu Family Ink Manor, hoping to finalize everything in the shortest time possible. This way, the Zhu family could also temporarily alleviate some of their difficulties.
Zhen Niang saw Shopkeeper Zhu out the door. Just as she was about to turn back into the shop, she spotted Luo Jiu emerging from a nearby bank, teacup in hand, strolling leisurely toward their ink manor.
Zhen Niang paused at the entrance and called out from afar with a smile, "Brother Luo, your business dealings seem quite leisurely—truly enviable."
"Not at all. I see you, Miss Zhen, though busy, are thoroughly enjoying yourself," Luo Wenqian replied with a laugh, then shifted the topic. "By the way, Miss Zhen, there's something I'd like to ask you about."
"What is it?" Zhen Niang asked curiously. Luo Jiu's sources of information were far more extensive than hers.
"Last time, your uncle-in-law acquired quite a bit of land, right? He now holds a considerable amount, and keeping it all in hand is rather troublesome. Coincidentally, I'd like to purchase a batch of farmland. Could you ask your uncle-in-law if he's willing to sell?" Luo Wenqian said.
Zhen Niang found this odd and asked, "If you wanted land, why didn't you buy it when prices were low? Why think of it now?"
"I never intended to buy land before. It's just that Marshal Qi came by this time and mentioned that a group of veterans in his army were retiring, many of whom had no home or land. He entrusted me with helping to settle them, which is why I thought of purchasing land now," Luo Jiu explained.
"This..." Zhen Niang felt somewhat conflicted. Originally, the Han family had been able to afford land and overcome their difficulties largely thanks to the Yi Hou Sheng Bank. Logically, her uncle-in-law's land should be prioritized for Luo Jiu.The problem is, although these lands are currently still in her uncle-in-law's hands, they were long ago agreed to be sold to the Xu family at a fair price. However, due to the large-scale nature of this land transaction, it must be handled privately and gradually to avoid drawing attention, which is why the deal hasn't been completed immediately. They were simply waiting for some time to pass before proceeding slowly.
Therefore, at this moment, there isn't much land available to sell to Luo Jiu.
Moreover, in at most three years, Hai Rui would come again to investigate land matters. Although Marshal Qi and Luo Jiu were acting for the sake of the old soldiers, a general and a merchant partnering to buy land and support troops—when viewed on a larger scale—could become rather ambiguous.
Although Hai Rui was upright and honest, he lacked flexibility in handling matters. Thus, Zhen Niang genuinely believed that Luo Jiu buying land in Nanjing at this time to settle the old soldiers was not an appropriate move.
Zhen Niang then continued, "Although my uncle-in-law does have farmland, he has already promised to sell it to the Xu family at a fair price. Going back on his word now would likely be impossible."
Upon hearing Zhen Niang's words, Luo Wenqian was first surprised, then furrowed his brows. "What? Is the Xu family so overbearing? Haven't they already taken advantage of your uncle-in-law enough? Now they still want to snatch a bargain? They truly go too far. Do they really think that with Hai the King of Hell gone, they can do as they please?"
Luo Wenqian's expression carried a hint of menace, his voice cold and hard.
"It's not entirely the Xu family forcing the issue. It's mainly because it was agreed upon earlier, and one shouldn't go back on their word," Zhen Niang explained somewhat awkwardly.
What kind of reasoning was that? Not going back on one's word? When the Xu family had cheated the Han family first, it was right to uphold integrity with gentlemen, but must one also keep faith with scoundrels? Luo Wenqian looked displeased, the menace in his expression not fading. After a while, his face returned to calmness. "Oh, if that's the case, then forget it. I have matters to attend to at the shop. I'll take my leave and not disturb Miss Li any further." With that, Luo Jiu turned and left with a dark expression.
He was tall and long-legged, and in just a few steps, he was out of the Li Family's Ink Manor. Zhen Niang stood there speechless, having originally intended to explain that buying land in Nanjing to settle the old soldiers wasn't suitable and that it would be better to purchase some land in Anqing Prefecture instead. She had heard that land was cheap there, and many people from that area had gone to the Lianghuai region to engage in the salt industry, leaving much land abandoned—making it a good place to settle the old soldiers.
But before she could even utter these words, Luo Jiu had already disappeared from sight, leaving her with a mix of amusement and exasperation. This man—how could he turn hostile at the slightest disagreement?
In truth, even these explanations weren't easy to give. Speaking them might inevitably give the impression of making excuses to evade the matter. Thus, whether she said them or not felt somewhat pointless.
The whole situation left Zhen Niang feeling troubled, and she tapped her head in frustration.
The northern frontier had made Luo Wenqian stronger, but it had also forged his domineering and menacing temperament. Moreover, after all, he came from a young master's background, so his temper was naturally not the best. In Luo Jiu's view, since the Han family had been so severely exploited by the Xu family before, even if they didn't seek revenge, it made no sense to ultimately sell their land to the Xu family at a fair price.
Therefore, the Han family's actions could only be interpreted in two ways: either they were currying favor with the powerful, or at the very least, they lacked backbone. Although flexibility was unavoidable in business, when someone had previously slapped you hard across the face, how could you afterward offer your cheek again? Such behavior simply didn't sit right with him. Moreover, in the downfall of his own Luo family, the Xu family's eldest master had played a significant role.Back when the Luo Family obtained the Tribute Ink Privilege, the Xu Family had wanted a share of the pie. The Luo Family refused, and Lord Xu had held a grudge ever since. When Luo Longwen’s incident occurred, Lord Xu naturally took the opportunity to kick them while they were down, leading to the Luo Family’s downfall and ruin. Otherwise, the Luo Family might have faced hardship, but not to the extent of being left with only him, all alone.
Thus, he bore an irreconcilable enmity with the Xu Family. As for the Han Family’s actions, while he could perhaps try to understand them, he couldn’t help but feel that their paths diverged, and he no longer wished to collaborate with them.
For a moment, he felt disheartened. In truth, he knew that the Han Family had the right to sell the land to whomever they pleased, and no one could interfere. Yet, a sense of loss lingered in his heart, though he couldn’t pinpoint where it came from.
Little did he know, Han Yigui had originally not wanted to sell the land to the Xu Family again. After all, there were many high-ranking officials in Nanjing. While the Xu Family might be like kings in Songjiang, in Nanjing, they couldn’t have their way so easily. As long as the Han Family didn’t hold onto the land and give the Xu Family a handle against them, there was little else the Xu Family could do to harm them.
However, Zhen Niang supported Madam Han Li’s decision, as these lands were like ticking time bombs for the Li Family. Zhen Niang didn’t want the Xu brothers to escape the great calamity three years later.
In a way, this was a trap Zhen Niang had set for the Xu Family. Yet, such matters were impossible to explain, and even if she tried, it would be difficult to make others understand.