Chapter 85: Spreading Public Opinion
Ah Qi didn’t expect Brother Jun’s question to be so… practical.
‘Maybe this counts as a test…’ Ah Qi thought to herself.
‘Brother Jun, I don’t know about this question… there’s too little information… I need more information.’
‘For example, where the arcade is located, how much foot traffic there is, how long the business hours are, how many people come to play on average per day, how many rounds each person plays, how much the rent is, how much the labor cost and water and electricity fee are… how much is the protection fee?’ Ah Qi threw back a series of questions instead.
Brother Jun felt upon hearing this that the other party was at least more professional than himself.
“Located on Long Jin Road or south of Long Gang Road, foot traffic is not an issue, there’s no other arcade in the Walled City, the machines are the newest, they’re fully packed outside every day, with people lining up to play… tables turn over every 5 minutes, no labor cost, water and electricity fee… who pays water and electricity fee in the Walled City?”
There are actually two arcades in the Walled City, but they both have old machines.
Anyway, he was going to buy old machines, he could ask around later. If the other party didn’t plan to sell… send someone to smash it, and there would be no competition.
As for labor costs, henchmen needed to be kept anyway, just arrange two people over, no real cost.
“Wait a minute…”
Ah Qi stood up and hopped around the cramped space, holding onto the furniture as she went to rummage for things.
Brother Jun turned his head and watched her hopping around in her home clothes rummaging for things, feeling that her figure under the clothes… was as poor and shabby as this home.
Moments later, Ah Qi took out a pen and notebook, sat back on the sofa, pulled over the table, and jotted notes on it.
She was still very interested in Brother Jun’s question; she studied financial management, so she was naturally interested in this area and wanted to put it into practice.
Anyway, she was just calculating based on the information provided by the other party.
If it’s inaccurate… that’s because the information given by the other party is inaccurate, can’t blame her.
“Doing business, the first step is to calculate the costs clearly, divided into fixed cost and variable cost…”
“Initial investment, 15,000 per machine, 150,000 for ten… renovation and tables and chairs are necessary, right? Calculate at 10,000, there might be some other miscellaneous expenses, I’ve never been inside an arcade, only seen from outside…”
“Initial investment comes to 165,000.”
“Then monthly fixed cost, rent 5,000, no electricity fee, no labor, protection fee… you didn’t say so none, repair reserve 1,000, machines will break, right? If broken, need to repair… other miscellaneous 500…”
“Monthly fixed cost is 6,500.”
“Then variable cost, costs that change with revenue, but for arcade business, variable cost is very low, just include it in the monthly fixed cost…”
“Then income…” Ah Qi flipped a page.
“Even if your arcade is open 24 hours, it won’t have lines all day, tables turn over every five minutes, 12 times an hour, normally 120 times a day, weekends more, calculate 160 for you…”
“2 yuan per time, so 240 per weekday, 22 days, 5,280.”
“Weekend 160 times, 320, for 8 days, 2,560.”
“So one machine monthly income 7,840, ten machines 78,400.”
“Subtract cost 6,500, monthly income 71,900… of course, this is just rough data, definitely not exact.” Ah Qi added a caveat after calculating.
Brother Jun only saw the number 71,900, his eyes lighting up.
That means recoup investment in a little over two months, the rest is profit…
Investment under 200,000, earning over 70,000 a month, even better than buying property.
If there’s a problem, it’s this Ah Qi who calculated wrong.
Ah Qi flipped another page: “Doing business definitely needs to consider risk.”
“At least predict according to three scenarios.”
“Conservative scenario, business not as good as you think, income only 60%, monthly income 43,140, then needs 3.8 months to recoup cost.”
“If normal scenario as you said, monthly income 71,900, needs 2.3 months to recoup cost.”
“If business better than you said, recoup cost even faster, under two months.”
“Calculated this way, it’s pretty profitable.” Ah Qi thought even the conservative scenario only needed 3.8 months to recoup investment, this business’s profit was too high.
Of course, this kind of business isn’t for ordinary people.
“One more thing, you need to consider if your business booms, whether others will open the same shop to compete with you…”
“I get it.” Brother Jun nodded.
There would definitely be competition.
Once he made it big, not to mention Li Dong, others like He Tu might do it too.
The Four Heavenly Kings wouldn’t look at this business, others… whoever has the bigger fist.
But Ah Qi’s calculations gave him a better understanding of calculating business costs and profit, no wonder companies need financial management talent.
He needed it too.
Although Brother Jun had been used to making quick money since starting martial arts practice.
But he knew that this kind of steady cash flow business was the foundation.
Ah Qi had more to say, but seeing Brother Jun’s expression, she felt it didn’t matter if she said it or not.
She asked directly: “What do you want to learn?”
“Learn everything, my foundation… isn’t solid.” Brother Jun thought and said.
“What education do you have, did you go to high school?” Ah Qi asked conservatively.
“Middle school…” Brother Jun said expressionlessly.
“No problem with middle school, I’ll give you a few problems first to check your foundation.” Ah Qi thought and said.
Moments later.
Crack, crack… Brother Jun expressionlessly broke off chunks of the corner of Ah Qi’s table, crushed them, then broke off another piece.
That hand didn’t look like a human hand, more like a large steel clamp.
Ah Qi’s eyelids twitched, her smile somewhat stiff.
Even if foundation isn’t solid… basic algebra should be known, right?
Finished middle school, even if dumb, should know algebra, functions, systems of quadratic equations, right?
And the other’s science and social science were also very poor…
Watching Brother Jun treat her table like a cookie, Ah Qi wisely said nothing.
“Today is just to understand what you want to learn, I need to prepare some things. I don’t have middle school books prepared, tomorrow I’ll borrow some from someone…”
“Then I’ll come again tomorrow.” Brother Jun stood up and left.
As soon as Brother Jun left, Ah Qi reached to pinch the table corner, one hand not enough so both hands together.
Used all her strength, still couldn’t pinch off a piece, then confirmed her table really wasn’t a cookie.
Brother Jun went out the door and saw Ah Fei and Xiang Zai smoking in the corridor, Xiang Zai leaning against the wall, holding a small thing in hand playing.
“What are you playing?”
Brother Jun glanced and immediately saw it was a kids’ plastic ring game console, a box with two buttons, top with water and some small plastic rings, press button to push water flow, drive the plastic rings onto the two vertical pins in the middle.
“Brother Jun, so fast!” Xiang Zai quickly pocketed the game console.
“What fast? Next time be clearer. Your cousin just asked what I want to learn, she needs to prepare teaching material.”
“And you, playing kids’ stuff! My younger brother in third grade elementary doesn’t even play this.” Brother Jun laughed as he walked.
“Yeah, I just said it’s for kids too.” Ah Fei said from the other side.
“It’s my little nephew’s, just grabbed it to play.” Xiang Zai was a bit embarrassed.
“Ah Fei, find two shops on the main road and Long Gang Road, to open arcades.” Brother Jun instructed Ah Fei.
This thing has such high profit, if opening, open two at once.
As for the main road, it’s Long Jin Street running east-west through the Walled City.
“Rent on the main road isn’t cheap, how big?”
“As large as possible, but not too big, enough for ten to twenty machines.” Brother Jun said.
“Can’t just put Street Fighter 2, put a few other machines too, like Final Fight, shoot ’em up and such, and a few slot machines.”
“Street Fighter 2, two coins per play, others one coin.”
Brother Jun was familiar with arcades, he often went during school.
Just didn’t know before that this business had such high profit.
And previously no blockbuster like Street Fighter, profit indeed wasn’t this high.
…
At this time, in a 50-60 square meter unit in the Walled City, though not as big as Sha Jiu’s place, but much more luxurious than Sha Jiu’s place.
Brother Ji Xiang reclined on the sofa watching television.
“Boss, all inquired.”
After Brother Ji Xiang learned the whole story of the conflict between Brother Jun and Kai Lun, he pondered and said.
“Spread the news of the conflict between Brother Jun and Kai Lun.”
“Say… Brother Jun is so prestigious now… Kai Lun followed Sha Jiu for so many years, can’t even protect her own henchmen…”
“Don’t make it too obvious.” Brother Ji Xiang said reclining in the chair.
“Brother Ji Xiang, I know, I’ll go do it now.” The henchman said immediately.
After the henchman left, Brother Ji Xiang sat there dazed for a bit, then smiled.
Sha Jiu is the boss, yes.
But these henchmen have their own ideas.
And… getting things done relies on these underlings.
First bring the conflict between Brother Jun and Kai Lun to the surface… Kai Lun cares about face after all…
And once hearts are scattered, can’t lead people.
Then he could go pull in Kai Lun.
And back then Kai Lun and Brother Jun had such a good relationship, now Brother Jun gives no face at all…
If Sha Jiu keeps indulging Brother Jun like this… Hua Zai Rong, A Hao, Cun Bao and the others will definitely think more too.
Moments later Brother Ji Xiang took out the telephone, flipped the phone book, dialed one: “Brother Nan, long time no see, sit down and chat?”
“Sure… see you there.”
Fei Nan is Xin Ye’s man.
Brother Ji Xiang now got angry just looking at Brother Jun.
Brother Jun’s momentum too fierce, plus Sha Jiu’s favoritism, this seriously affected his status.
Previously Sha Jiu called him to company meetings, now calls Brother Jun to meetings, even henchmen could see Brother Jun had higher status in Sha Jiu’s heart…
If do nothing, sooner or later lose power.
So he needed two preparations.
On one hand, unite with Kai Lun and them, Sha Jiu had to care about these people’s thoughts.
Otherwise who below would work at ease?
On the other hand, if really can’t stay later, worst case go work for Xin Ye.
After all, Xin Ye is the real boss.
As long as Xin Ye asks for him, go work for Xin Ye, even Sha Jiu couldn’t say anything.
