Chapter 40: If you don't advance, you retreat
Listening to Kang Chengdong's complaint, Du Zhongxiao asked carefully, and only then did he know what was going on.
The fur industry in Bingzhou has developed, attracting huge fur resources from the surrounding area, and it has spread to a wide range in a few months. Hedong Road is famous for raising sheep, plus the Datong Mansion area of the Khitan in the north, and even the party has a large number of furs from the Khitan into the state. The supply of goods has grown explosively, and the state's processing capacity is quickly running low. Led by Kang Chengdong and others, some fur merchants from other places wanted to open another tanning workshop, but they were boycotted by the government and guilds. They were not allowed to open tanning factories again, and at the same time, the processing fee increased, making it unprofitable for foreign merchants.
After talking about what happened in the past few months, Kang Chengdong said: "Don't hide it from the officials, the small one has some connections in the north, and last winter and this spring, he hoarded a lot of furs and shipped them to the state. Now the tanning factory does not process cooked skins for us outsiders, and the raw hides are worthless, so we are forced to have no way out. ”
Du Zhongxiao was stunned for a while before he figured out the relationship.
At this time, industry and commerce were guild systems, which was conducive to the control of the government, but also gave them a tendency to monopoly. For the local tanning and skin-selling guilds, it was easy to ignore the interests of the out-of-town merchants. Instead of increasing investment and expanding the factory, the people in the tanning guild should directly increase the processing fee, and no one competes with them except the official tanning factory. The furrier chamber will be more clear that by suppressing merchants from other places, especially in the northland, and lowering the price of hides and skins, they can make more profits.
This is a typical monopoly price increase, Du Zhongxiao did not expect that a small fur industry in a city and Zhouzhou would come to this point in just a few months. The guild also controlled the tanned craftsmen, and it was not easy for the industry to expand.
After drinking another glass of wine, Kang Chengdong arched his hand: "Official, this business is something you have done with great difficulty, and it is a pity to waste it like this." Little Baba is waiting for you to come back, looking at what you want to wear! I just hope that the officials will take action, so that everyone can have something to eat. ”
Du Zhongxiao nodded with a deep sigh: "Don't worry, wait for me to ask, there must be a way." Now that business is booming, it is a good time to make business bigger. It's not a good thing to rest on your laurels and push your business outward. ”
Kang Chengdong said yes again and again, and he couldn't stop persuading him to drink.
drank until the beginning of the lantern, Du Zhongxiao said goodbye to Kang Chengdong and left Chunfeng Building.
The wind blows on the body in late spring, and there is no chill, which makes people feel extremely comfortable. Du Zhongxiao walked on the street with Tao Seventeen and Thirteen Lang, looking at the bustling crowd in the market, and felt comfortable. Life in the mountains for a few months was too hard.
The city is not big, and before I knew it, I walked near the freight yard.
Tao Qiqi looked at the bustle in the freight yard, and said to Du Zhongxiao: "That Kang is full of nonsense, look at the crowd in this freight yard, where is it deserted?" I'm afraid that his business will not do well, so he deliberately made up these words. ”
Du Zhongxiao shook his head: "Seventeen, you said badly. Kang Yuanwai's words did not say that the business of the freight yard is not good now, but that the prospects of the fur business are bleak. There are a lot of sheep raised on Hedong Road, and the fur business here is thriving, and the sheepskins from several surrounding states are trafficked, how can it not be lively? What Kang Yuanwai said was that there was a number of skins processed in the city in a year, and there were more sheepskins in the local area, and those who came from the north to sell furs would not be able to do business. This matter is really worrying and should not be underestimated. ”
After turning around, Du Zhongxiao went to a tea stall on the side of the road and sat down, and said to Tao Seventeen: "Go and call Qi Kongmu to come over, and I will talk to him." ”
Tao Seventeen agreed, turned around and left, and after a while, Qi Kongmu hurriedly came over.
After seeing the ceremony, Du Zhongxiao asked Qi Kongmu to sit opposite him. After a few words of gossip, Du Zhongxiao said: "Kongmu, I heard that the business in the freight yard has been booming recently, and the goods in the tanning workshop are piling up, and they can't be made, and the price has risen, yes or no?" ”
Qi Kongmu arched his hand: "Back to the official, it's true." Since the reputation of the city's fur business spread last winter, sheepskins from dozens of surrounding state armies have been trafficked, and the business is really booming. In addition, the countless sheep in the north are also trafficked here. Where can so many hides be produced in two tanning workshops? The price has risen again and again, and there are countless hides in the yard, which is a problem. ”
Du Zhongxiao said: "The price of tanned skins has risen, isn't it unprofitable to trade raw hides?" ”
Qi Kongmu was a little unconcerned: "The business is already on the market, the price of tanned skins has risen, and the price of cooked skins has risen." It is nothing more than the price of cooked skins rising, and it is not profitable for merchants who sell raw skins from far away in the Northlands. Most of these people are engaged in Khitan and party business, and they don't need to pay attention to them. ”
After listening to Qi Kongmu's words, Du Zhongxiao somewhat understood the crux of the problem. The greater the processing capacity of the state, the better, this is a real industry, and the more it gathers, the more likely it is to transform towards industrialization. Others may not think this way, as long as they make money, they don't have to expand their processing capacity. If the processing capacity is insufficient, can the price increase increase and increase profits, and do so much work, but make more money, isn't it good?
Seeing that the freight yard was still brightly lit and crowded, Du Zhongxiao sighed in his heart. This difference in thought determines the rise and fall of an industry. With the agglomeration of the industry, the processing capacity is continuously increased, and the price is not increased, or even the price is gradually reduced, which can make the industry bigger and bigger. One fur industry can lead to many other industries. From nitrate making, tanning leather, to tanning, clothing, boots, the industrial chain is getting longer and longer, and more and more people are benefiting. Satisfied with immediate interests, taking advantage of a short-term monopoly position, raising prices, and not expanding or even shrinking processing capacity, can only benefit from a while. There are raw materials, there is a vast market, and sooner or later there will be other places to develop processing capacity to replace the current status of the state. At that time, the fur industry in the state will inevitably go on the road of contraction, and its efforts will eventually be in vain.
After thinking about it again and again, Du Zhongxiao aligned Kong Mu and said, "Kong Mu, what kind of money do you think we will make by building a freight yard?" ”
Qi Kongmu smiled: "Merchants buy and sell, we collect our own taxes. Now this freight yard has a lot of commercial taxes drawn by the state. ”
Du Zhongxiao shook his head: "What Kong Mu said is bad. It's good that we take a tax on the sale of furs, but it's not a big part of the money. What really makes money in this industry is actually tanning skins, the money from raw hides into mature skins. The business has become big, and there is money for tanning, clothing, boots and the like. As for the commercial tax, it is actually a subsection. Why do people sell hides and skins here? Because tanning is fast and good here, once this benefit is gone, soon no one will be able to sell furs here. As the business grows, tanning should be as cheap as possible. Tanning is expensive, which means that there are not enough tanning workshops now, and the site should be expanded and manpower increased. The bigger our tanning workshop is, the less profitable it is to tann elsewhere, attracting hides from all over the world. When one day, not only the road, but also the sheepskins of the Khitan and the party are all trafficked to Bingzhou, and at that time, only this kind of industry, Bingzhou City can be rich. ”
Qi Kongmu shook his head: "Official, how easy is this matter?" There are only so many tanners in the city, and there are two workshops, and they are not in the government, but in the people. Rebuilding the workshop was not only unwillingness of the members of the guild, but also of the craftsmen in the workshop. ”
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