My life skills in Daming Liver

Mr. Yu has been very sad recently.

He really didn't expect that he would actually make money by investing in Ren Fu's steam engine workshop!

And compared to products like matches, which have small profits but quick sales, steam engines are really profitable!

With the development of industry and commerce, especially the mining industry, the price of coal has further dropped.

Many mill owners found that rather than using unstable water power, coal-based steam engines produced more stable power.

In official mines in southern Zhejiang, steam engines have begun to gradually replace animal power.

The appearance of the steam locomotive caused the steam engine to dominate the newspapers for several days, which made the second master uneasy.

He suddenly realized that he seemed to have invested in such a thing?

Second Young Master Yu immediately called for Ren Fu, who was in charge of the steam engine workshop.

At that time, Ren Fu was inspecting equipment at the match factory in Lin'an. As the steam engine roared, a large number of wooden poles were squeezed and rotated, and were automatically fed into the paint bucket.

The matchsticks were stained with match heads, and then the conveyor belt began to convey, spreading the matches flat, and then transporting them to the assembly workshop behind.

Matches were automatically sorted into boxes one by one and dropped into the folded matchboxes. Lin An was still extremely shocked when he saw such a production workshop.

From the mixing of match powder, to the cutting and making of match sticks, to the packaging of paint, all processes are completed by machines.

What currently requires manual labor is folding the matchboxes and packaging and transporting the matchboxes. The production efficiency of the entire match factory has increased ten times compared to the previous match factory!

In other words, such a workshop is comparable to the previous ten workshops, and Lin An's matches can already meet the growing demand for matches.

The steam engine workshop of the match factory made many workshop owners ready to move into business.

They never thought that it would be so convenient and fast for machines to replace human labor.

It's not just a matter of labor costs.

As the scale of the workshop expanded, managing employees became a huge problem.

The world does not work like stereotypes, just like farmers do not necessarily mean being honest, and hired workers do not necessarily mean being hardworking.

As the number of employees increases, the difficulty and cost of management also increase significantly.

In a workshop with more than a dozen people, the employer and employees can still maintain friendship through friendship, make workers work hard by asking for help, and maintain the production of the workshop through human relationships.

But when the scale expanded to dozens or even hundreds of people, one workshop owner could no longer manage so many employees.

We must know that ordinary people cannot even manage their own families. How can they manage hundreds of people right out of the house?

The production and life of so many people are gathered together, resulting in countless conflicts.

Many employers find that as the number of employees increases, they need to hire a certain number of managers, and the cost of employment rises sharply.

For example, gunpowder workshops, match factories, and iron smelting plants require many people, but the operating procedures are complicated, and production safety accidents may occur. There are also great requirements for the quality of employees. The cost of hiring labor is high, and at the same time, Frequent safety education is required, and management costs are ridiculously high.

At this time, the workshop owners discovered that the steam engine was indeed different!

A steam engine can replace a dozen or even dozens of workers, and the machine can run stably without quarreling with other workers, or increasing management costs as the number of machines increases.

Especially after the explosion at Wang Gong Factory, the Southeast legislation stipulated the rights of employees. Once casualties occur during the workshop, the employer needs to bear responsibility.

Some dangerous factories must establish safety training mechanisms, and relevant workers need to pass safety inspections. Factory owners need to equip employees in dangerous positions with labor protection supplies.

After the workshop owners realized this, they even praised the steam engine. Ren Fu's factory orders have been scheduled until next year. The deposit alone has allowed Yu Zongyuan to recoup all his investment and even make a lot of money. .

Yu Zongyuan received the account book and immediately asked someone to call Ren Fu over.

Ren Fu and Lin An arrived at Yu Zongyuan's house. The old housekeeper looked at the two with a smile on his face and said enthusiastically: "The young master is waiting for you two in the study."

Ren Fu was also very proud. Among Master Yu's industries, his steam engine workshop was the one that invested the most and suffered the most losses.

So much so that his workshop damaged the reputation of Yu Gongzi, the god of investment.

Now that his steam engine workshop was finally making money, Ren Fu sent the silver coins and account books to Master Yu's house after he recovered all the deposits.

Yu Zongyuan sat in the study, looking at the balance on the account, he even felt fear.

In this era, the accumulation of wealth far exceeds everyone's imagination.

Yu Zongyuan's father and grandfather had relied on expropriation and annexation of land all their lives, and the paper wealth they accumulated was only one county. Their Yu family was also a prominent family in Nanping, and they controlled a thousand acres of land.

The output of the land is only so much, and the wealth in the family's warehouse is only so much. The Yu family's property can only be distributed to his second son, some shops, and thousands of taels of silver.

The Yu family is already considered one of the top wealthy families in Fujian, and this is how much wealth the family has accumulated over the past century.

There is a limit to the speed of industrial accumulation in the agricultural era. The cycle is long and returns are slow. It requires several generations of management. Once unworthy descendants appear, it can easily be ruined.

However, in the commercial era, the speed and amount of wealth accumulation exceeded the imagination of previous eras.

What does it mean to be extremely wealthy? Yu Zongyuan’s wealth on his books is just that!

Yu Zongyuan looked at the astonishing figures on the account. This was wealth that his family had not been able to accumulate for generations. He had accomplished it in only a few years.

There are countless factories, fleets and other industries under his command. With his financial resources, he can buy a large island in Nanyang!

Yu Zongyuan's profit for the year on his books was even comparable to the income of several prefectures in the central region. Yu Zongyuan trembled at the sight of these silver dollars, what a big fat sheep he was!

Relying on his relationship with the Governor, Yu Zongyuan knew that he would not be cooked by the lackeys, but if others knew of such a large amount of wealth, who could remain indifferent?

Ren Fu and Lin An walked in, and Yu Zongyuan looked very ugly.

Ren Fu couldn't read the expression, but Lin An could. He pulled Ren Fu and said hello to Yu Zongyuan.

Yu Zongyuan glanced at Ren Fu, coughed and said:

"Old Ren, why did there suddenly be so much deposit added to this account?"

Ren Fu immediately said: "Sir, this is the advance payment from other workshops. Our factory ships the goods according to the scheduled order."

Unexpectedly, Yu Zongyuan said: "Old Ren, you can't be like this."

Yu Zongyuan took out the method he had thought hard about and said:

"As we do business, credibility comes first. After you receive the deposit, you have to deliver the goods. However, some of these goods have been scheduled until next year. What if something happens and we cannot deliver?"

"What if a more advanced steam engine appears by then and customers don't want it anymore?"

"I don't think this model is appropriate."

Yu Zongyuan stood up and said: "Refund all the deposits, our workshop will only sell spot goods from now on!"

Only sell spot goods?

Ren Fu was stunned, and so was Lin An.

But Ren Fu is engaged in technology, and he quickly followed Yu Zongyuan's ideas.

Yes, there are too many variables in the scheduled shipment. After receiving the deposit, it must be sold according to the deposit price. What if the price of the steam engine changes in the future?

The price of steel for steam engine production fluctuates greatly, and the deposit also puts great pressure on the factory to produce.

Ren Fu felt a little ashamed. He was still too young and could not help Mr. Yu think clearly about business issues.

Although the deposit pre-sale will immediately withdraw funds, it will increase uncertainty in the future.

Ren Fu immediately said: "Young master is thinking carefully, should I refund the deposit right now?"

Yu Zongyuan nodded and said: "Refunded! All refunded! From now on, we will not charge deposits, we will only sell the spot goods in the order of registration, and we will sell each one produced!"

Yu Zongyuan thought for a while and said: "There is also steel. With the funds in your account now, you can buy some steel first, so that if there is a shortage of steel, production will not be suspended!"

This is also the method that Yu Zongyuan came up with. By purchasing more raw materials, the cost can be increased first. Then the originally profitable steam engine factory will lose money again.

Ren Fu is also worried about steel, because the price of special steel for the production of steam engines is high, and workshops on the market have begun to imitate steam engines, and the prices of this type of steel are also rising.

According to Mr. Yu’s method, buying more now will definitely be more cost-effective than buying in the future when the price increases!

He is indeed a young master! Really a business wizard!

Ren Fu thought of another thing. Since he didn't do pre-sales, could the steel factory do pre-sales?

If there is not so much steel, can we pre-purchase the steel produced by the steel factory in the future?

If I buy it at the current price, wouldn't I be able to save more costs?

Ren Fu even had some dark thoughts, was this Mr. Yu's way of attacking his competitors?

Buy all the raw materials! Sure enough, real business wars are so arrogant!

Ren Fu was so impressed by Zong Yuan that he admired him!