Chapter 191: I haven't eaten steak for a few years
"Tesco Supermarket took the initiative to contact us and wanted to exclusively represent the products of our ranch. The agency fee given was US$13.1 million for two years."
Chen Mo looked at Bright, stood up, opened the refrigerator in the living room, took out a bottle of mineral water, and handed it to Bright with both hands... This guy is going to make me kneel.
Merchants have always taken the initiative to contact supermarkets and pay shelf fees. When have you ever seen supermarkets proactively contact merchants and ask for agency fees...
Brett is capable, Chen Mo has always acknowledged it. However, he is a bit like James Cameron, capable, paranoid, and a perfectionist... he can make money, but he can also spend money.
No matter how much money he has, this guy will find a way to spend it all.
"When did it happen?" Chen Mo said.
"At the beginning of the month, the other party has been here several times, and we have been talking..."
"Exclusive agency, impossible. We have a contract with Ellison Logistics."
Bright saw that Chen Mo's expression had softened a lot, and he quickly took the mineral water and said cautiously: "I know this, it's just the exclusive rights of the supermarket, including fruits, beef, mutton..."
Agency fees are expenses incurred after signing the loan agreement, that is, the expenses for obtaining the franchise.
River Valley Ranch sells its products to the other party, and the other party has exclusive rights, including pricing rights.
River Valley Ranch is responsible for products and product quality. The other party is responsible for sales...
Through the operation of Albertsons Stores, River Valley Ranch has gained a good reputation in the San Francisco Bay Area and the Los Angeles metropolitan area. For example, the wholesale price of fresh goat milk from River Valley Ranch is US$70 per barrel, and the supermarket price is US$137.5.
Now it is saturated production, more than 15,000 pounds per day...
Fresh milk has a shelf life of more than ten days, but it can only be sold in supermarkets for five days. This is a stipulation in the contract with the Albertsons store... If it is not sold out, it will be returned to the ranch. There are 100 fresh milk returned to the ranch every day.
Hundreds of barrels.
These fresh milks are still within the shelf life. If the Albertsons store is willing to hold a special sale, it will easily sell out. But in order to maintain the product price and their own profits, special sales promotions are not even considered. This is famous
'Pour the milk'…
When the fresh milk is returned to the pasture, it cannot be sold again, so we drink it ourselves and use it to feed cows and sheep.
Tesco Supermarket is similar to Albertsons Store in terms of positioning. They are both supermarkets focusing on high-quality life. The two supermarkets are in a competitive relationship. But in terms of customer stickiness, Albertsons Store has a higher customer stickiness.
…
"The purchase price given by Tesco Supermarket is 110% of the current purchase price of Albertsons Store. Moreover, the demand for fresh goat milk is 3,000 barrels per day, which will not be returned. The demand for fresh goat milk is 1,000 barrels per day, and the same
It will not be returned. But the demand for mutton is not too much."
The final pricing of the product not only affects the profitability of their supermarket, but also has a great impact on the ranch.
In the end, neither too high nor too low a price will work.
After sitting at home for a while, the two went to the office, and Bright took out the preliminary contract drawn up by Tesco Supermarket.
"If we cooperate with Tesco Supermarket, what about the liquidated damages of Albertsons store?"
"Paid for by Tesco Supermarket."
Chen Mo rubbed his chin. It was difficult to have both sides of the situation in the business world.
Tesco is a British company and grocer. Their main business is in Europe... At the same time, they are also an e-commerce company. Although their physical stores are high-quality stores, they also pay attention to small profits but quick turnover. Their business in the United States is not big.
…
The benefits of cooperating with Tesco Supermarket are also obvious. They have fixed purchases, and they want as much as you have. The contract signed is for two years... and there is also a franchise fee.
But the cooperation between River Valley Ranch and Albertsons Stores is quite pleasant, and they promote River Valley Ranch products almost every week.
Albertson's product displays are themed, and it also provides recipe cards and seasonal product displays.
In its flagship stores in the San Francisco Bay Area and Los Angeles, River Valley Ranch products are prominently displayed in almost every exhibition.
"This... is too favorable. According to this contract, two years... that is, a contract of nearly 200 million US dollars." It is true that Tesco Supermarket is a giant, but Chen Mo is a little doubtful whether he can take this contract.
After all, their business is mainly in Europe, and the main product of Valley Ranch is fresh milk, with a shelf life of only ten days.
Chen Mo rarely participates in the management and sales of River Valley Ranch, and always feels that there is something fishy in it.
Chen Mo carefully checked the contract and found a note that part of the fresh milk required by Tesco Supermarket was organic milk certified by the United States Department of Agriculture...
Every year, at least 600,000 barrels of organic fresh milk need to be provided to Tesco supermarkets.
The liquidated damages are also as high as US$100 million.
The signing fee is US$13.1 million and the liquidated damages are understandably as high as US$100 million.
"We are just ranches and producers, and we are responsible for the products and quality. As for how to sell, that is a matter for agents. Albertsons stores only sell our products in the San Francisco Bay Area and Los Angeles, and have no intention of further expanding sales channels.
…I don’t think it’s too much to change agents.”
"Changing agents is a big deal. Besides, the contract we signed with Albertsons Store is only for one year. Furthermore, how to sell is not just a problem for agents..." Chen Mo touched his chin: "Albertsons Store is promoting products in
There is a good deal up there, and it is directly high-end and classy. But if we leave it to Tesco Supermarket, can we improve the product status of our ranch?"
Brett opened his mouth...
After a while, he said: "With tbl, people all over the world now know that our ranch is a high-end and high-end ranch. There is no need for Albertsons store to promote it."
The produced Brett beef and Tomahawk steaks have sold for $400 per pound, and demand exceeds supply.
River Valley Ranch. Bright Beef Tomahawk Steak has been featured in gourmet magazines many times...
Wagyu Tomahawk Steak, French Laundry, Dougson's Restaurant, New York's Long Island Park Restaurant and other Michelin-starred restaurants are all available. There are no special requirements for diners. This is gourmet food that can be eaten if you have money. Each portion costs two
More than 100 to more than 600 US dollars.
River Valley Ranch. Bright Beef Tomahawk Steak, this is not only a product name, but also a dish name in the restaurants where it is sold. So far, only three restaurants are selling it, the French Laundry in Napa Valley, Tangxia Yipin in Los Angeles, and Flo
Dougson's Restaurant in Rida...
The output of Bright Beef is limited, and the current output cannot fully supply any restaurant. For example, Dougson Restaurant, ordinary customers who want to eat this dish must make an appointment in advance, pay a deposit, and wait in line. Even if they have a black card from the TBL Alliance
Customers, gold card customers, also have to wait in line. Some people even applied for TBL black card or gold card in order to taste the Bright Beef Tomahawk steak again...
"River Valley Ranch. The Brett Beef Tomahawk Steak has been featured in World Food Magazine, and Michelin magazine called it 'a delicacy that can be tasted at least once in a lifetime.' At Dougson's Restaurant, a complete Brett Beef Tomahawk Steak,
The current price is 3,500 US dollars, so hurry up. For diners who have paid a deposit to make a reservation, Dougson said that there are already more than 600 people in line. And TBL black card and gold card customers enjoy priority...these 600 or so are
Customers, as far as black card and gold card customers love Brett beef, and the output of Brett beef... It is unlikely that ordinary customers will be able to taste Brett beef tomahawk steak in a few years."
If they are not TBL's black card and gold card customers, how many years will ordinary customers have to queue for normal reservations?
Damn it, legend has it that you can’t eat steak for several years...