Year: I had a good time when I was young

Chapter 956 Association and Export

When Bridge saw Chu Xiangqian refuse again, he cursed inwardly.

But he said without hesitation, “Stark, last year we auctioned 12 3-year-old horses for $936 million.

Twelve two-year-old foals sold for $12 million.

This year, 16 three-year-old horses were sold for $3 million.

Plus Sir Norton and behind him His Royal Highness Philip and Sir Mountbatten.

Even if 12 people share 500 million pounds equally, it would only be less than 42 per person.

But the benefits it brings are twice or even several times more than 500 million.

There is no reason for us not to do this business.”

Chu Xiangqian calculated silently in his mind, damn, these guys actually made 2668 million US dollars in two years.

Even after deducting the investment and expenses for horse farm construction, labor, breeding, etc., there is still 80% or even 90% profit.

Chu Xiangqian suddenly felt that he had suffered a loss.

Fortunately, if we calculate one point for each of the nine people, it comes to about $9 million per year.

Only then did I feel balanced.

After hesitating for a few seconds, he smiled and said, "A drop in prices is actually a good thing."

If you think about this carefully, you will understand it.

The market demand for the Arabian horse cannot remain so strong forever.

There will always be a day when rationality returns, and that will be when the price of the Arabian horse plummets.

Fortunately, the European and American markets are large enough.

Every year, Chu Xiangqian only takes out 40 or 80 Ferghana horses, plus the Ferghana horses in the hands of the people in the card club.

There are only fifty, sixty, or even a hundred horses entering the market.

When they are dispersed to Southeast Asia, Mexico, England, France and other European and American countries, the number seems very small.

Otherwise, it would be impossible to maintain the price of nearly one million US dollars per horse.

To put it bluntly, the Arabian horses sold by Chu Xiangqian were of really good quality.

The real purpose is to buy it back as a stud.

It would be best if you are lucky and get a good ranking, or even a mid- or low-level championship.

As for winning a first-level championship, the buyer himself doesn't even have high hopes for it.

The auctions in recent years have also proved Chu Xiangqian’s vision.

So perhaps in the past two years, there were still people who were gambling on their luck, hoping that Chu Xiangqian would make a mistake.

But in the past two years, buyers have been very clear that Chu Xiangqian will not put a really good horse up for auction.

Moreover, the outside world has always believed that the Arabian horses that Chu Xiangqian obtained were all transported from Central Asia.

This means that there will be 3 to 40 fewer good three-year-old foals produced in Central Asia each year.

As time goes by, the quality of the Arabian horses in Central Asia may gradually be surpassed by those in Europe and the United States.

At that time, the pricing power and the production area of ​​the Arabian horse were no longer exclusive to Central Asia.

With the operating experience of Europe and the United States in purebred horses, it would not be difficult to keep 80% to 90% of the profits of the Arabian horse in Europe and the United States, leaving aside the Central Asian countries of origin.

Just like diamonds from polar bears.

No matter how much you produce or how good the quality is, Europe and the United States hold the final say and do not recognize your diamonds, so the polar bears will not be able to sell them at a good price.

There is even a general market belief that the quality of polar bear diamonds is simply not good.

Of course, if polar bears were to sell diamonds at dirt-cheap prices, it would indeed destroy the entire diamond industry.

Therefore, European and American diamond giants often have to negotiate with polar bears.

In the end, leaving a certain amount of profit and export share for the polar bears can keep them hanging like throwing a piece of meat, bone or flesh.

After all, the market belongs to Europe and the United States. If the polar bear wants to make money in Europe and the United States by relying on diamonds, it is inevitable that it will suffer losses.

This method of playing is actually the same when used on Ferghana horses.

And horses are living creatures after all, not minerals buried underground.

It takes at least three years from birth to the time a horse can compete in a race. Horses generally conceive one per litter.

This means that in recent decades, the population of Arabian horses will expand very slowly and will naturally be a scarce commodity.

Once the polar bear tightens its embargo on the Arabian horse, prices will remain strong.

In addition, the Arabian horse itself has extremely strong endurance, so even if the bubble is burst, there will be a limit to how much the price will fall.

From Chu Xiangqian's perspective, the Arabian horse is actually more suitable for hype than diamonds.

Therefore, the price of the Arabian horse has remained high in recent years.

As the first group of people to try it out, Chu Xiangqian and the card friends club naturally reap the biggest profits.

For the people in the card club, as well as Philip, Mountbatten and Margaret, the more they can delay for a few years, the more money they can make.

Once you have earned enough money, you will have the capital to buy purebred Arabian horse foals from other horse owners and horse farms at a low price when the price of Arabian horses plummets.

They even hope that those horse owners and horse farms who follow the trend and raise Arabian horses will go bankrupt.

By then, the number of Arabian horses entering the market will decrease and the price will rise again.

If another champion horse emerges, it will be these people who will reap the biggest profits.

Bridge even suggested setting up an international exchange association for Arabian horses in Hong Kong Island to secretly control the price of Arabian horses.

However, whether all this can be accomplished actually depends on Chu Xiangqian.

In other words, if the association can continue to produce champion horses.

Only then can you truly manipulate prices behind the scenes.

Chu Xiangqian really needs to think carefully about this.
After a while, Chu Xiangqian changed his mind and thought that establishing an association could also attract attention to himself.

From now on, everyone will focus on the association and the auction house, and will also criticize the association.

When Bridge and others saw Chu Xiangqian smiling, they knew that this guy was interested in the association.

He smiled and said, "In a couple of days, after we have sorted out the association's charter, how about we discuss it in detail when we go to play cards?"

Chu nodded, "No problem." Norton beside him asked hurriedly, "Master, do you often get together to play cards?"

Hader and others couldn't help laughing, and Chu Xiangqian didn't make Norton anxious.

He smiled and said, "We formed a card-playing club a few years ago, and we get together to play cards and chat about who has good projects.

If you like, I'll take you there to play in a couple of days."

Norton understood as soon as he heard it. The so-called card club was the same as the popular salons in London.

They all get together to have fun and talk about cooperation.

In fact, the probability of success for business deals negotiated in such occasions is greater.

Chu Xiangqian finished chatting with the foreigners and glanced at Norton.

Norton chuckled, "Master, don't worry about me, I'll have fun on my own."

After saying that, he looked at a few beautifully dressed girls. Seeing this, Chu Xiangqian smiled and shook his head.

Patting Norton's arm, he reminded him, "You can have fun, but remember not to cause any deaths.

Lest your mother complain not only to Margaret, but also to His Majesty.

You have all these bad habits, and they were all caused by me, your uncle."

Norton smiled awkwardly. This was not Chu Xiangqian's nonsense. In May this year, Norton's biological mother did look for Margaret and Eliza. The reason was that this kid almost had an illegitimate child, and it was not the first time.

When he was called back by his family for a lecture, he simply said that Chu Xiangqian's business had problems and they needed his help in lobbying.

It was only a few days ago that Chu Xiangqian heard this.

If Chu Xiangqian hadn't been in London for a short time in the second half of this year, he would have caused trouble for this kid half a year ago.

However, this incident also made Chu Xiangqian realize that Norton's biological mother actually didn't have much brains.

There was no problem in going to Margaret to complain, but going to Eliza to complain was about the illegitimate child.

Just by imagining it, Chu Xiangqian felt that Elisa must have been cursing in her heart at that time.

Maybe, afterwards, Philips must have blamed Norton's biological mother for being stupid.

Now that Chu Xiangqian had said this, Norton was afraid that Chu Xiangqian would take the opportunity to teach him a lesson, so he quickly apologized to Chu Xiangqian, Hader and the others, then turned around and went to get the champagne to hide his uneasiness.

Seeing this, Hader and others couldn't help but give Chu Xiangqian a thumbs up.

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Chu Xiangqian shrugged. If he was unwilling to get involved in the royal family's mess, he would definitely be able to influence Philip and even Eliza's thoughts.

He said hello to Hader and others, and walked towards the circle where He Chaosheng and others were.

Seeing Chu Xiangqian coming over, He Chaosheng, Zheng Yutong, Zhao Congyan, and Zhou Xiyuan.

Le Jimin, Le Wen and Le Yan, father and son, subconsciously picked up their wine glasses and expressed their respect to Chu Xiangqian.

Chu Xiangqian smiled, drank a cup with everyone, nodded to Le Yan, and then said, "What are you talking about?"

Le Jimin was very happy to see that his son was valued by Chu Xiangqian.

As for the competition between Lejia Department Store and Chu Xiangqian's Electrical Appliance City, Le Jimin no longer cared about it.

The two companies have different main businesses, and it’s just a commercial competition, so there’s nothing to complain about if they lose.

Not to mention, the fact that Chu Xiangqian did not use any means to deal with Lejia Department Store was already something that the Le family was secretly happy about.

Le Jimin said with a smile, "Mr. Chu, there are more wealthy businessmen from Southeast Asia who have come to Hong Kong for inspection recently than in the past few years combined.

We are discussing how much impact these foreign capitals entering Hong Kong Island will have on everyone’s business.”

As soon as these words came out, everyone looked at Chu Xiangqian.

Seeing this, Chu Xiangqian smiled and shook his head, "Don't look at me, they are willing to invest, which is a good thing in the long run.

As for competition, to put it bluntly, with the rapid economic development of Hong Kong Island.

In addition to Chinese businessmen in Southeast Asia, we also need to face foreigners from island countries and Europe and the United States.

In the future, competition in this small market of Hong Kong Island will become increasingly fierce.”

When everyone heard this, they fell silent.

Chu Xiangqian naturally wouldn't just talk about the bad side, and continued, "But everything has its good and bad sides.

If others want to enter our territory, we can also use them as a shell to enter the Southeast Asian market.

Although the situation is not very stable due to Vietnam, it also means that the land price, labor and raw material costs are low, and the investment potential is great.”

After saying that, he looked at Le Jimin and said, "Mr. Le, just talking about cotton textile products, the purchase price of fabrics from China and Taiguo is 20% to 30% lower than that in Hong Kong Island.

Some can be 70% to 80% lower.

Although the quality may not be very good, small profits but quick turnover has always been the winning magic weapon for seizing the market and seizing new markets since ancient times.

If I were you, I would buy a batch and ship it to Los Angeles to test the waters.

I just don’t believe that a $2 shirt won’t attract those middle- and low-income housewives who often look for discounted goods in shopping malls.”

Le Jimin, Zhao Congyan and Zhou Xiyuan's eyes lit up.

Le Jimin even asked hurriedly, "Mr. Chu, you are well-informed. Do the housewives at Meiguo really like discounted products?

And a $2 shirt is already expensive, is it really selling well?"

The price of textiles these days is not cheap. It can even be said that clothes these days are not cheap relative to people’s income.

If you ship shirts, pants and the like to China, you'll definitely make a fortune.

Unfortunately, you have to wait until the 80s to make this money.

China has insufficient productivity, which leads to high costs for many things.

But in order to earn foreign exchange, they would even pay to buy cloth from merchants in Hong Kong.

Moreover, the bulk commodities exported by China to Hong Kong, such as food and timber, are profitable.

With the subsidies, we will definitely not make a loss and we can also earn foreign exchange.

Therefore, China actually hopes to expand its share of trade, but the British are unwilling to allow most of Hong Kong's low- and medium-priced goods to come from China.

So as to avoid being restricted or even controlling the market.

That's why I would rather buy some expensive ones.

As for Meiguo, labor costs have begun to become the main reason restricting the continuous decline of Meiguo's international competitiveness.

Chu Xiangqian remembers clearly that the average personal income of women in 1960 was about US$1883.

Simon, the cowboy manager who bought the Alisa Ranch, was paid $60 a week.

Simon's eldest son, Simon Jr., earned $17 a week when he was 13 years old, and only $26 a week after being hired as a regular employee a year later.

Other experienced cowboys earned $32 a week.

But at the beginning of this year, that is, at the beginning of 65, Margaret complained that ranch wages had been rising for three consecutive years.

However, cowboys are ultimately the lower class of cattle and horses, and their wages in big cities have increased by 70% to 80%, or even doubled.

Labor costs at all ranches in the town of Solvang have increased by less than 5%.

In other words, the vast majority of the average income of US$3818 per capita for women last year came from the skyrocketing income of capitalists.

The 20s and s were indeed a period of rapid economic development in China.

In the early 70s, when the oil crisis broke out, the price of oil rose from around US$2 all year round to US$3 occasionally.

It soared to a high of $13, hovered around $10 for many years, and then broke through $20 uncontrollably.

The upward momentum of magnesium women was curbed.

The 70s was also the decade when the polar bears gradually reached their peak strength.

Even the future Aunt Merkel ran away from West Germany controlled by France and Germany to East Germany, which shows how powerful the polar bears were at that time.

Of course, the continuous increase in women’s wages is also related to inflation.

According to ranch statistics, the price of beef and mutton increases by 4%-6% every year. If wages do not increase, people will not even be able to afford meat.

For women, this means that they are worse than polar bears, which is something that women politicians absolutely cannot accept.

Force the capitalists to raise wages without any hesitation.

Coupled with the growing influence of trade unions, the competitiveness of magnesium products is indeed declining.

But compared with magnesium, the product competitiveness of phthalates and phthalates is worse.

Only with the support of peers can the economy of women in the industry continue to maintain high growth.

At $2 a shirt, once shipped to Los Angeles, the largest customer group would be the numerous cowboys and farm workers in California.

As for the quality issue, a shirt that can only be worn for one or two years costs the same as four packs of cigarettes, so there will definitely be young cowboys who will buy it.

Even housewives who like to save money will definitely buy it.

After hearing Chu Xiangqian's words, the people present and those who pricked up their ears around them were so excited.

(End of this chapter)