Chapter 2: The Road to Success - 34. The Sales Battlefield (Part 9)

Of course, I understood the principle. But actually tackling the problem was fraught with difficulties. By now, the issues and conflicts were basically clear, yet they were beyond my authority to resolve. Ruan Changqing and I reported to and consulted with Factory Director Shi several times. Director Shi established a fundamental strategy for addressing the problem, which he kept strictly among the three of us.

The first step in the plan was to “startle the snake by beating the grass.” Director Shi alerted the Discipline Inspection and Supervision Department about the collusion between the sales system and certain clients that was harming the company’s interests. This quickly stirred a commotion within the sales team.

Soon after, rumors began circulating that Zeng Yunfeng was in trouble, possibly facing dismissal, and that higher-ups had already spoken with Director Shi. The gossip spread rapidly, becoming an open “secret” known to many. As the focal point of this storm, numerous people came to me, eager to learn the truth, but I consistently replied that I wasn’t clear on the details.

A few days later, as I was busy in my office, I was unexpectedly called by Li Qiang. I answered to hear his warm and enthusiastic voice, as if nothing had ever happened between us. I had to admit, Li Qiang was quite a character.

“Director Wang, last time we didn’t treat you well enough when you visited. When will you come again? I’ll make sure to arrange a proper reception.”

“Boss Li, you’re too polite. As I said before, I don’t care much about that kind of thing. Supporting my work is the best arrangement.”

“Director Wang, you’re right. I’m calling specifically to support your work. Regarding what you mentioned last time, we fully support your plan to set up an office. We welcome you and are happy to assist if needed. About the pricing, we agree to unify the sales prices with you, and we’re willing to reduce our discount margin. How about we maintain a 10% discount for now? That discount already covers storage, transportation, and financing costs, so our profit margin is slim. Give me a transition period of three to five years. My brothers need to eat too. Please understand. After the transition, once your market familiarity improves, we’ll withdraw. This smoother approach benefits you as well.”

For Li Qiang to make such a major concession was truly remarkable. I wasn’t sure if it was Director Shi’s tactic of “startling the snake” at work or something else. But I had no authority to agree.

“Boss Li, thank you for supporting my work. On behalf of the factory, I express our gratitude for supporting our office setup. As for the transition period and discount margin, you know I can’t decide on those. I’ll report to the factory as soon as possible and get back to you.”

I then relayed Li Qiang’s proposal to Ruan Changqing, who asked me to brief Director Shi as well. After the report, Director Shi smiled and looked at me.

“Little Wang, what do you think? Should we accept their terms?”

“My personal view is that it’s better to solve the problem completely. A 10% discount has quite an impact. But of course, whatever the factory decides, I will carry out.”

“Then let’s wait for now. Don’t respond to him yet,” Director Shi said with a smile.

With that, I had no choice but to follow his lead. Two days later, Li Qiang called again, and I told him the factory was still studying the matter. I could tell he was getting anxious.

But dragging it out wasn’t a solution either. While pondering what to do, one night as I lay in bed, I suddenly recalled hearing that Zhang Chi had some connections in Tongyang City. The next day, I asked Zhang Chi, and to my surprise, I made an unexpected discovery: Zhang Chi had a cousin who was currently serving as the deputy mayor of Tongning.

I immediately shared this information with Ruan Changqing, and together we reported it to Director Shi. After discussion, we devised a corresponding plan.

Given Lin Xiaolong’s long-term relationship with clients in the Jiangning market, the factory decided to replace Zhang Chi with responsibility for the Jiyang market and appoint him as head of the soon-to-open Jiyang office. The factory then spoke with Zhang Chi, and through his connections, Tongyang City incorporated the establishment of an office for Dongfang Chemical Plant as a key project in attracting investment. Deputy Mayor Zhang Guixin met with Director Shi, and the local press covered the event. I’m sure some people had sleepless nights after seeing that news.

Back at Huajiang, I thought this would be the moment to fully confront Li Qiang and his associates. But unexpectedly, Director Shi contacted Ruan Changqing and me, asking me to formally respond to Junqi Chemical. The policy was as follows:

1. A two-year transition period would be granted, with the discount set at 5 percentage points.

2. No more rolling settlements with Junqi Chemical; all transactions must be cash on delivery.

3. Junqi Chemical must support the office’s work, and external sales prices must be consistent with those set by the office.

I was somewhat puzzled by the decision to offer a 5% discount, but I complied with Director Shi’s instructions and conveyed this to Li Qiang. To my surprise, Li Qiang accepted readily and repeatedly expressed his gratitude. I had no choice but to admire Director Shi’s foresight—he knew when to hold firm and when to yield. This was true mastery. Although it seemed like a concession, it ensured the smooth progress of the office’s establishment and eliminated potential risks. The decision not to insist on completely revoking agency rights was a brilliant move.

Following the same policy, the factory proceeded to establish offices in other provinces. The scale of agency sales in those regions was smaller, and seeing that the largest agent had accepted the terms, they had little choice but to comply. Eventually, I suggested transferring Lin Xiaolong to another province to serve as an office head. No one is perfect, and the factory did not completely discard Lin Xiaolong. However, the market conditions in the other province were much worse, which served as a lesson for him.

Once these matters were settled, the Discipline Inspection and Supervision Department’s investigation into the sales system seemed to lose momentum, and rumors diminished. Zeng Yunfeng withdrew from public view and spoke less at meetings. A few months later, Zeng Yunfeng was transferred out of the factory. No one knew why, and few bothered to inquire. Though I regretted that the collusion and vested interests within the sales system were never thoroughly pursued, overall, the sales structure had been straightened out. The factory’s losses from agency rights were reduced, and the corrupt environment that had fostered collusion with agents was eradicated—a development truly worth celebrating.