Chapter 363 - The Foshan Journey (Part 16)

Liu San had always kept his family elders' ancient counsel in mind: "No matter how dynasties change or who assumes power, our family practices medicine as its calling. Never associate with the military, police, guards, or secret services—neither provoke them nor befriend them too closely." Yet here he had somehow entangled himself with a Great Ming secret police chief.

Since the connection was made, perhaps it could prove useful in future. This channel should be reported to the Intelligence Department upon his return—it might yield intelligence leads.

"Elder Brother has also agreed to handle our consignment sales now. This is all thanks to you." Yang Shixiang said enthusiastically. "Our medicines have established a foothold—just in Foshan alone, we can sell several thousand boxes annually!" He added with some concern: "But with Master Li's order, our raw materials won't suffice—"

The transmigrator group's orders, Li Luoyou's order, plus inventory for Yangrunkai Hall—combined, they exceeded their supply of expensive and common ingredients alike. Even emptying the shop's entire stock wouldn't be enough.

Liu San didn't hesitate: "I have more money." He withdrew two additional notes. "Tomorrow, speak with Yang Shiyi. Get all the ingredients gathered. Order double the quantity needed."

Yang Shixiang shook his head vigorously: "Getting enough is fine, but extra just ties up capital!"

Liu San shook his head: "Shixiang, you need broader vision. A few thousand boxes—what's that? We're aiming for tens of thousands, hundreds of thousands of boxes. Little Foshan is merely our first step."

"Hundreds of thousands of boxes!" Yang Shixiang exclaimed. "Where would such buyers come from?"

Liu San thought this Shopkeeper Yang truly had a dull commercial mind—perhaps too long in backwater Lingao.

"Do you really think all of Foshan, one of the Four Great Towns, can only move a few thousand boxes yearly? I'd estimate Foshan alone can handle forty or fifty thousand boxes of Plague-Repelling Powder. Add Guangzhou, and a hundred thousand annually presents no problem."

Yang Shixiang shook his head skeptically: "Doctor Liu, though Foshan and Guangzhou have large populations, most are poor folk. Few can afford safety medicines."

"Foshan's foundry and kiln workers are numerous, and they'll be heavy users," Liu San countered. "The workers are poor, can't afford it—so we make it affordable. Whatever else, lives matter."

"How can we make it affordable?" Yang Shixiang puzzled. "Even at a five fen profit margin, one bottle of Plague-Repelling Powder costs one hundred twenty wen in Wanli coin. Workers earn two or three taels monthly at most—how can they manage?"

"I'm thinking ten wen," Liu San said.

"Ten wen?" Yang Shixiang nearly jumped up. "We'd lose money on every sale!"

"We won't." Liu San picked up a medicine bottle. "Fifty grams of Plague-Repelling Powder in here—" He recalled Yang wouldn't understand metric measures. "That's about one liang plus. We shrink the packaging—three grams per dose, use bamboo tubes instead of porcelain bottles."

Smaller specifications, cheaper packaging materials—common tactics in the modern business world, but novel for pharmacies of this era. Yang Shixiang acknowledged the idea was clever, though it felt somewhat devious.

"At ten wen per dose, everyone can afford it." Liu San continued: "We're not selling Plague-Repelling Powder for sick people to take. It's a daily summer medicine. People enjoy using it, so they keep using it. This is called cultivating consumer habits."

"Making it habitual?"

"Precisely." Liu San pointed to the tea on the table. "Take tea—from the Emperor down to destitute commoners, anyone with provisions for tomorrow includes it among life's seven necessities. Without tea, would people die? No. This is consumer habit. Foshan has many foundry and kiln workers. Make it cheap and useful, and they'll naturally buy."

Yang Shixiang felt enlightened: "Just like rich families taking tonics."

"Exactly. Rich families take tonics; laborers and farmers can use safety medicines too. Who doesn't wish to be free of illness and disaster?"

"Correct! Correct!" Yang Shixiang's excitement mingled with worry. "But even at ten wen per box, if people don't trust it, sales won't develop quickly. We'd need a year or two of slow cultivation before word-of-mouth brings substantial sales."

"Slow cultivation works, but we cannot wait." Liu San said. "We'll build the brand ourselves. So initially, we give medicine away."

"I understand that approach." Yang Shixiang answered calmly. "All pharmacies occasionally donate herbal teas. It's charity, but doesn't much help sales."

Liu San smiled: "I said earlier—we need to cultivate consumer habits. Waiting for people to discover our medicine on their own takes a year or two. We give it away directly so they immediately know its benefits."

Yang Shixiang asked: "If we give freely, wouldn't that become a bottomless pit? Free goods would cause a stampede."

"I've considered that too." Liu San said. "First, distribute at Yangrunkai Hall's counter to customers filling prescriptions, plus samples to drug wholesalers. Second, we organize people to visit foundries and kiln sites directly, distributing to the workers."

"That works." Yang Shixiang nodded repeatedly.

"Once distributed in those places, business will naturally grow." Liu San continued enthusiastically. "As for Zhuge Marching Powder, I plan to donate some as well."

"Donate to where?"

"Naturally, the examination halls." Liu San said. "Whether for county examinations, prefectural examinations, or provincial examinations, we'll send people to distribute Zhuge Marching Powder to the examination candidates. Have you been inside an examination compound?"

"No," Yang Shixiang shook his head. "I hear they're extremely cramped—barely room for one's body."

"The examination cells—you can't stand straight or lie fully extended. Most scholars aren't robust. Examinations mostly fall in spring and summer. Hundreds, thousands of people crammed in such spaces for nine days. In bad weather, many contract epidemic illness. With Marching Powder, their safety is assured."

"Scholars' words carry weight—everyone trusts them," Liu San continued. "They come from all directions. From small county examinations to provincial examinations—all scholars who attend will know our medicine. This kind of effect cannot be bought with any amount of silver spent plastering advertisements everywhere."

"Truly," Yang Shixiang laughed. "Doctor Liu, who knew that besides superior medical skill, you're also amazingly talented at business! Ideas no one else would conceive of, you think of. Why don't we form a partnership? Open a branch right here in Foshan! If we leave everything to my elder brother, I won't feel comfortable."

Liu San thought: This is exactly what I've been waiting for.

"Partnership we can discuss slowly upon return. I share the same intention." Liu San said. "But a Foshan branch should wait. Your elder brother just agreed to help with consignment—we need him to distribute our medicines regionally. Best not to offend him. I suggest establishing a representative office instead."

"Representative office?"

"Right. Like officials maintaining liaison quarters at their superiors' posts." Liu San explained: donating, promoting—these activities required guarding against Yang Shiyi taking credit. Better to handle them personally. Select one or two capable, trustworthy clerks to station here permanently, specifically managing donations, promotions, deliveries, accounting, and purchasing. They wouldn't even need shop premises.

"Such a clerk carries heavy responsibility—not anyone can handle it." Yang Shixiang considered. This person had to be honest, loyal, and able to navigate social situations. After thinking through his staff, only Liu Benshan seemed suitable.

But Liu Benshan was the head clerk at the shop. Transferring him to Foshan would deprive him of an important right hand in Lingao.

"I think Liu Benshan would work," Liu San said.

"He's the only suitable one," Yang Shixiang said reluctantly. "But then I'd lose an effective manager."

"Haha," Liu San laughed aloud. "Shixiang, again I must say your vision is too narrow. How much business can Runshitang have in Lingao city? Just handling retail prescriptions and preparing some medicines. Liu the manager is already underemployed."

Yang Shixiang realized this was true. Given Runshitang's business volume, they had more clerks than necessary. Transferring one Liu Benshan wouldn't affect operations. He agreed.

The two then discussed partnership details. Runshitang had been Yang Shixiang's sole ownership; now it would convert to ten shares. Liu San invested four hundred taels of silver plus several validated formulas for 4.5 shares. Yang Shixiang contributed Runshitang's signboard, shop building, raw materials, inventory—all assets movable and immovable—for 5 shares. Shop employees collectively held 0.5 shares.

They drafted the contract immediately, stipulating that neither party could privately transfer their shares without the other's consent. Upon transfer, the partner held right of first refusal.

Yang Shixiang felt he now had important backing. Though Runshitang had sold half its shares, it would certainly develop substantially from now on. The Runshitang signboard, never particularly bright, could finally be polished up. Thinking of his father, who had struggled so hard in Lingao only to die disappointed running a struggling little pharmacy, he felt vindicated. He said to Liu San earnestly: "Doctor Liu! You're now a Runshitang proprietor too. Why don't we become sworn brothers?"

Liu San readily agreed. Such rapport-building with local natives through sworn brotherhood had Executive Committee approval—provided the person was useful.

"Brother Liu," after exchanging oaths, Yang Shixiang changed his form of address. "Plague-Repelling Powder and Marching Powder are nearly settled. But a pharmacy cannot survive on 'one trick.' What other plans does Brother Liu have?"

(End of Chapter)