WeTried Translations
Translator/Editor: LilGuyBlastoise
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◈ The Economics of an Alchemist ◈
Chapter 25
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“Sell them half a monopoly, at a very high price.”
“Half a monopoly?”
“Yes. Instead of tying it to a period of time, we offer temporary exclusivity only for a specific quantity we produce by expanding the production line.”
Jang Myeonghwan's answer made Jaeha's brow furrow slightly.
There was an unwritten rule in distribution contracts. Exclusive contracts were generally bound by a term of three months, six months, or as long as a year.
That was the best way for major platforms to seize a small company's leash and shake it around. Jaeha leaned forward at Jang Myeonghwan's words, which overturned that convention.
“Temporary exclusivity... Is that possible?”
Jang Myeonghwan pushed up his glasses with a crisp motion. The experience of someone who had built G-Mall's systems naturally radiated from him.
“If an ordinary small-business owner suggested it, G-Mall would laugh in their face.”
“So it is different for a major company.”
“Yes. Quantity-limited exclusivity is a VIP-only card. When ultra-large companies like Oh-seong or A-ple release new products, they throw it out there like, ‘We'll give you exactly ten thousand units, so sell them however you like.’ For a small company to dare demand that of a major platform? By industry standards, it is blatant insubordination and utter madness.”
“But you are saying Valence can pull off that madness?”
“A year ago, G-Mall would not have even snorted at the idea. But the situation has changed significantly lately. Social-commerce companies like Dealmon and Wip have been growing explosively by hammering customers with half-price coupon discounts, and now the established open marketplaces have a real fire at their feet.”
His gaze turned to Jaeha's A-phone on the table.
“A-phone users are the most valuable customer base in the e-commerce ecosystem, with the strongest purchasing power. From the merchandising manager's perspective, they need bait to lure these picky, wealthy customers to G-Mall, and the Aegis Case, with 5,000 back-in-stock notification requests alone, has rolled right into their lap. They cannot possibly let it go.”
“So even if we draw the line by quantity, they will accept it.”
“Correct. Make a counteroffer to supply exactly ten thousand units exclusively. If the merchandising manager recognizes the Aegis Case's potential, they will pour every main banner and push notification at their disposal into selling those ten thousand units as quickly as possible and delivering results.”
Jaeha quietly nodded at the sharp analysis of a veteran who understood the ecosystem of massive platforms inside and out.
“How far can we specifically push our demands in exchange for quantity-limited exclusivity?”
Jang Myeonghwan's eyes widened slightly at Jaeha's question. The moment he heard the proposal, Jaeha was already asking how much bigger they could make the deal.
With a faint smile, Jang Myeonghwan raised three fingers and began counting them down.
“First, a main banner on G-Mall's homepage. It is a spot worth tens of millions of won, but we demand that they run it free until the exclusive quantity sells out.”
“Even if all ten thousand units sell, total sales will only be a little over 200 million won. G-Mall's profit would be around ten million won. Would they really give us a free banner?”
“They never would if they were looking only at their commission margin. That is why we do not ask for a paid advertising slot. We ask them to put us in a promotional showcase slot that the merchandising manager controls directly. To those platform bastards, the Aegis Case is not merely a product that earns ten million won.”
Not merely a ten-million-won product?
Jaeha found the answer at once in Jang Myeonghwan's earlier words. Its value looked different from the platform's perspective.
“...It is bait. Bait to hook the most valuable A-phone users wholesale.”
“Exactly. Customers will not enter G-Mall, buy only a case, and leave. While they are there, they will buy bottled water, clothes, and browse other electronics. Considering that chain-purchase effect, the banner cost is pocket change.”
“And the second?”
“Cutting the sales commission. Until the exclusive stock sells out, they need to reduce the standard category commission from twelve percent to ten percent or lower.”
Jang Myeonghwan folded down the last finger, putting force into his voice.
“Third, advance-purchase payment for the ten thousand units we will supply. In other words, we demand full payment upfront.”
“Payment upfront? Before G-Mall even receives the products?”
Jaeha's eyes gleamed at the idea of advance purchasing, which went beyond the early settlement he had considered.
Major platforms operated on the principle of merely brokering sales. They never made advance purchases, taking on inventory themselves and paying first.
“Under normal circumstances, they never would. But what they fear most right now is that we promise ten thousand units, then fail to supply them because we run short, or divert the products somewhere else.”
Jang Myeonghwan looked utterly certain.
“If we play hardball and say we need cash immediately to expand our production line, G-Mall will have no choice but to send the advance-purchase payment in order to tie Valence down. The product is guaranteed to sell out. We can expand our equipment and grow the company using someone else's money, borrowed interest-free.”
A main banner, lower commissions, and advance purchasing.
Jaeha weighed the gains and losses of the price Jang Myeonghwan had set for exclusivity before slowly speaking.
“No matter how desirable the Aegis Case is, the scales seem tipped a little too far if we try to extract banners, reduced commissions, and advance purchasing in exchange for exclusive supply of ten thousand units.”
“That is exactly why you need someone who can get those conditions from the other side.”
Jang Myeonghwan answered in a relaxed tone. It was the practiced appeal of someone proving his own worth, as if to say that he could do it.
“If our demands are excessive, the other side will become defensive. Wouldn't negotiations take quite some time? What if we simply increase the exclusive quantity to around fifty thousand units?”
Jang Myeonghwan firmly shook his head.
“Of course, if we call for fifty thousand, they will rush over wanting to sign immediately. But with Valence's current production line, how long would it take to make fifty thousand?”
Jaeha listened to the end.
“If we impose quantity exclusivity but need three or four months to fulfill it, then we are effectively falling into the swamp of time-based exclusivity ourselves.”
When he finished, Jaeha's lips curved into an appealing smile.
“What if we can produce fifty thousand units within a month?”
“...Pardon?”
Jaeha laced his fingers on the table and calmly added,
“In a week, production will increase to at least five times its current level.”
Jang Myeonghwan was genuinely surprised.
He had never imagined that Jaeha would already be quietly expanding his own production line only days after launching the product.
“Fifty thousand... If we can pour out that much stock within a month, it will not merely be a bait product. It will become a mega-event that drives G-Mall's entire quarterly performance. We may be able to get even more.”
“Mr. Jang.”
“Yes, CEO.”
“I would like you to oversee Valence's sales and logistics.”
Jang Myeonghwan's eyes flew wide at Jaeha's words.
“However, there is something I should tell you in advance. Our company has only just started walking, so in addition to planning sales strategies, you may need to lend a hand with odd jobs like operating equipment, packing boxes, and checking shipments. Overtime will probably be a regular part of the job. Would you still join us?”
Jang Myeonghwan looked taken aback. It was an offer honest almost to the point of shamelessness.
“Of course, you will be compensated accordingly.”
“I will do it!”
A deep smile spread across Jang Myeonghwan's face.
The blazing competitive spirit he had forgotten while standing at the edge of a cliff, begging for a job, ignited in his chest once more.
“Then can you begin work today? Your first task will be securing an exclusive contract proposal from G-Mall.”
“Of course! Leave it to me.”
The two men rose and gripped each other's right hands tightly.
After they shook hands, Jang Myeonghwan asked,
“However, CEO, may I ask one thing? Is there a particular reason you need to sell only through G-Mall?”
“Well, not enough to call it a particular reason.”
“The more cards you hold in a negotiation, the better. If you use competitors as leverage, you can make the person at G-Mall sweat much more easily.”
At his careful question, Jaeha gave a light shrug.
“Wouldn't it be a little bothersome to move elsewhere right away? But... if the negotiations do not go smoothly, I am prepared to pack up and move without hesitation at any time.”
Jang Myeonghwan gave a satisfied smile at Jaeha's attitude, which showed he had nothing to lose.
“That is reassuring to hear.”
Jaeha added one instruction.
“Depending on the situation, you may negotiate the banner and commission reduction flexibly. But secure the advance-purchase payment at all costs. Even if negotiations with G-Mall collapse and we move to another platform, that condition cannot be conceded.”
“Yes! Understood.”
Jang Myeonghwan answered boldly, then looked as though he was hesitating over something. Noticing it, Jaeha asked casually,
“If there is something you are curious about, feel free to ask.”
“Ah, then... if you have any spare Aegis Case samples, could I take one?”
“To bring to the negotiations?”
“That too, but... my children both use A-phone 4s. They were expensive, and I am worried they might break them. My son especially is very rough with his things...”
It was an excuse.
He had spoken with Jaeha and joined Valence on the spot, but he still had doubts about the Aegis Case's performance.
As the head of sales, he wanted to test firsthand just how good the product he would be selling was. It was not something he could say in front of the CEO he had just agreed to serve.
Jaeha nodded without any particular suspicion. Even his youngest brother, Jaeseong, had broken a phone screen before.
“Ah, I see. How many children do you have?”
“One daughter and one son.”
“Then I should give you two. Your daughter will feel left out. I will pick out clean ones for you.”
“Ha ha, thank you.”
Jang Myeonghwan laughed to smooth over the situation.
And a few hours later.
Jaeha was silently continuing to work overtime with Jaeseong and Lee Minho.
Park Mijeong, who had joined the company on the day of her interview and typed until her fingers cramped from her first day, had been sent home at the regular quitting time.
Jaeha had told her that if she logged into the administrator account from home to handle customer service, he would count her login time as overtime. Delighted, she went home in high spirits.
“Whew...”
Jaeha checked his phone whenever he had a moment between tasks. He was anxiously waiting to hear from Jang Myeonghwan.
“I know the G-Mall merchandising manager handling Valence very well.”
Jang Myeonghwan's wicked smile came to mind as he said that before rushing off on outside business.
‘He said they were like a bat, didn't he?’
It was not that Jaeha did not trust him, but an important contract was at stake. He could not help being nervous.
Just as he was too distracted to focus on work,
Bzzz, bzzz.
The phone in his pocket vibrated loudly. The caller displayed on the screen was “Director Jang Myeonghwan.” Jaeha hurriedly pressed the call button.
“Yes, Director Jang.”
“CEO, it is me.”
Jaeha knew things had gone well. Barely concealed exhilaration colored the voice coming through the phone.
“I dangled the Aegis Case exclusivity deal in front of them as they were about to leave work, and they came running to a café in a panic. When results are on the line, even a bad history means nothing. I even went after their personal Achilles' heel and stripped them down to their soul.”
“I see. What was the result?”
Jaeha's lips rose as he urged him on.
“I got every condition you wanted without leaving out a single word. They promised that they would get their division head's approval tomorrow morning and have the advance payment released. Ah, and I added a bonus.”
“A bonus?”
“G-Mall has agreed to attach a ‘10% special discount coupon’ to the Aegis Case using its own budget.”
“They are reducing the commission and making an advance purchase, yet they are adding a coupon too? Is there anything left for them?”
“It seemed G-Mall has quite a bit of marketing budget set aside defensively to keep the rising social-commerce companies in check. I laid the groundwork for them to use the Aegis Case as bait and gather up all the A-phone users. Customers will be thrilled to buy it cheaply, but G-Mall's marketing team will bear the full discount, so our margin will not fall by even a single won.”
“You have done outstanding work!”
Jang Myeonghwan let out a pleased laugh at Jaeha's sincere praise.
“Ha ha, not at all. To be honest, I did not do the real work. There is another reason the manager surrendered so easily.”
“There is?”
“I think G-Mall had already acquired an Aegis Case and conducted its own durability test before meeting me today.”
“A test?”
“Yes. To see whether TechPark's review was real. The result is obvious, is it not? All I did was tag along behind the overwhelming product you made, CEO.”
“You say you only tagged along? I would like to tell you to rest well tomorrow, but I am sorry that the circumstances will not allow it.”
“Ha ha ha, I have rested for over half a year. I am tired of resting now.”
After exchanging a few more casual remarks with Jang Myeonghwan, Jaeha ended the call after telling him they would meet tomorrow.
The curve on his lips did not disappear throughout the overtime shift. With the advance payment to give Yeongshin Polymer, the raw-material manufacturer, taken care of, it felt as though an aching tooth had been pulled.
Though tired, Jaeha headed home in good spirits.
Beep, beep, beep. Jaeha opened the front door and entered the living room with Jaeseong. Seo-yun was sitting at the dining table with a laptop open before her, wearing a grave expression.
It was common enough for an accountant with so much work. With audit season approaching, it was also the time when she would be on edge from wrestling with numbers.
“Oppa.”
Before Jaeha and Jaeseong could even say they were home, she called Jaeha in a low voice.
“No matter how I calculate it, it does not add up.”
“What doesn't?”
Tap. Tap.
Seo-yun struck the Enter key sharply, then slowly turned her head to stare at Jaeha. Her gaze was cold and sharp, the gaze of an expert who dealt in numbers.
“About 200 million won. Oppa, where on earth did that much money come from?”
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