Chapter 101: Chapter 87 Tengsheng Fruit’s Planning

The next day.

Chen Pingsheng went to Tengsheng Fruit headquarters.

Operations were running smoothly, with Zhang Tao currently in overall charge.

As the deputy general manager of Tengsheng, he still served as the general manager himself.

Since being forced to cancel the recharge promotion last October, Tengsheng had been steadily operating a stable and solid business model.

At present, there are two sets of data that are particularly worthy of attention.

First, the net profit margins of Tengsheng Fruit Supermarket chains generally maintained between 8% to 12%.

Although these figures might not seem high, it is worth noting that the daily turnover of a fruit supermarket can easily exceed thirty thousand.

As for the smaller Tengsheng Community Stores, their net profit margins are usually around 10%.

From last year to this year, Tengsheng Fruit has opened a total of 68 stores.

The monthly turnover is around fifty million.

This is quite an impressive figure.

This year, the plan is to open another sixty to one hundred and twenty stores.

This goal is not too ambitious; they currently have the capacity to accomplish it.

Tengsheng Fruit adopts a shareholding system, with each store having at least three on-site shareholders.

This is enough to guarantee the stability of the stores.

And through financial calculations, the investment for a fruit supermarket is generally between one million two hundred thousand to one million five hundred thousand, depending on the transfer fee and rent of the shopfront.

This is the largest expense.

Without card recharging, the payback period for an individual store is maintained between eight to twelve months.

That is to say, it breaks even within a year, which is considered a very decent investment.

Dividends are still paid out on the fifteenth of every month, which is set in stone.

Tengsheng Fruit has particularly high liquidity; if he wanted to, he could easily withdraw tens of millions.

This is both an advantage and a temptation.

Countless businesses which were otherwise doing well have brought about their own downfall by misappropriating funds.

He constantly warned himself that he must never start such a practice.

He’d rather make less profit than take big risks.

By the end of this year, Tengsheng Fruit has an excellent chance of becoming one of the top five fruit enterprises in Capital City.

Once this year’s store opening target is met, they will have over a hundred large fruit supermarkets in Capital City.

The monthly sales volume will be over one hundred million, which is undoubtedly very impressive.

Unfortunately, the fruit industry doesn’t have high barriers to entry; every area has its own strong chain of fruit stores, and expanding from Capital City to other areas means immediate competition with these locally developed brands.

Without core advantages and relying solely on price, it is highly likely Tengsheng Fruit will not expand beyond Capital City.

Conquering the fruit market in one place is much better than expanding without making a profit.

Chen Pingsheng’s goal for Tengsheng Fruit is just that; the low barrier to entry in the fruit business is its biggest barrier.

Anyone can open a store, which means that the fruit market in every area is bound to be saturated.

It’s quite normal for a neighborhood to have three or four fruit stores at its entrance.

Rather than expanding, it’s better to earn money steadily and securely in Capital City.

Fruit retailing is different from the catering business, especially chain catering, which has high barriers to entry.

For instance, many chain restaurants today, if a chef opens a franchise with support from headquarters, it is very likely that they can run that one store well.

If an outsider, meaning someone who’s not a professional, tries to franchise a restaurant, and they don’t have much money to start with.

Out of ten of them, at least nine and a half will most likely suffer losses.

Unless it’s franchising a brand like KFC or McDonald’s where you don’t have to manage everything yourself.

Chen Pingsheng also came to know this through analyzing various financial data.

There really isn’t any core selling point in the fruit industry.

To be successful, it simply comes down to competing on a few key factors.

Wide selection, low prices, fresh produce.

Just these three points, as long as they’re done well and the location is decent, there’s basically little chance of failing.

A fruit brand that can take off locally will undoubtedly excel in these three aspects.

In such cases, venturing into someone else’s territory to compete can easily make one a target.

The main reason not to leave Capital City is that the fruit market is too prone to saturation.

Frankly, a fruit store is a red ocean market destined for extreme saturation.

Once the market becomes saturated, price wars and all sorts of conflicts break out.

Honestly guarding the local market in Capital City is undoubtedly the best choice for Tengsheng Fruit Supermarket.

After this year’s development, it could rely on a steady annual income of tens of millions.

Not just him, but Zhang Tao and Liu Jing could each make five to six million a year from Tengsheng Fruit.

Regarding the shares, whether they are few or many, the initial brothers who started the business together are now getting rich together.

Actually, starting a business with brothers isn’t unfeasible, but it’s best done after they are all over thirty years of age.

Only after turning thirty do men’s minds mature enough to handle things rationally.

At thirty, if one’s mind is still immature, Chen Pingsheng wouldn’t consider such a person as a partner, regardless of how good the relationship is.

Chen Pingsheng hasn’t yet disclosed his own plans; he’d rather saturate Capital City first.

However, Zhang Tao suggested renting another headquarters for Tengsheng. After all, it is a company with nearly a billion in annual sales, much stronger than many listed companies.

The key issue is that they can’t park trucks here, so he wants to move Tengsheng Fruit’s headquarters to the suburbs where parking is easy and rent is cheaper.

Getting a building in the suburbs would be much better than being crammed in an office building.

Chen Pingsheng thinks it’s feasible since the fruit industry isn’t a high-end business; there’s no need to put on airs like real estate does.

Everything should still prioritize convenience.

But since there are already so many employees here, renting a new headquarters would have to take them into consideration.

They should try not to move too far.

Chen Pingsheng feels that this year, at any cost, he must get a commercial building of his own in Capital City.

Otherwise, it would be troublesome having these companies moving around all the time.

Which sizable company doesn’t have its own headquarters building?

It’s both a symbol and a hallmark, and he must secure one this year.

He feels his planning for this year isn’t bad, with Tengsheng Fruit providing stable earnings, which he plans to leave for Chen An’an to inherit.

Fei Yangyang is advancing its IPO plans, and once complete, he will undoubtedly seize the opportunity to fully penetrate the catering industry.

As for Water Cloud Space, that is his Golden Finger’s real treasure trove.

As long as he can manage Water Cloud Space well, he will be able to rely on the card recharges for a continuous stream of funds.

Tengying Entertainment is where he attracts traffic, also serving as a flow output station to support his various enterprises.

His targets are clear, and his planning is evident.

Buying a ten-plus story headquarters building within the second ring of the city this year shouldn’t be too difficult, right?

Chen Ping thought to himself.

After spending one day at Tengsheng Fruit Supermarket, he then stayed at Water Cloud Space headquarters for a few days for training.

Mostly young ladies there, he, being the boss, was naturally popular.

He went through a kidney and shoulder-neck maintenance session at their strong recommendation.

After assessment by a Health Preservation Specialist.

He had been a bit overheated recently and needed regular kidney maintenance.

Once a week, that kind.

Due to long work hours in the early years, he had developed a minor issue with his shoulder and neck.

Sitting for long periods easily led to lower back pain and mild dizziness.

All these problems were caused by congestion, which could be managed with regular treatment over a few months.

As for his own health issues, he must be persistent.

He didn’t want to be under forty and have to put goji berries in his tea.

It wasn’t until the other Fei Yangyang stores were about to open that he went to his own Tengying Entertainment.