Cherreads

Chapter 23 - Fighting on Two Fronts

The meeting with Mr. Tilford was scheduled at the headquarters of his Tilford Trading Company on Fifth Avenue.

This was less a shop and more a small commercial palace.

The gleaming marble floors, tall Greek-style columns, and well-dressed, polite staff in neat uniforms all showcased its owner's status in New York City's business world.

Allen, accompanied by Catherine, was respectfully led by a butler into Mr. Tilford's private office.

"Mr. Williams, Miss O'Brien, welcome."

Mr. Tilford rose from behind his massive mahogany desk, a businessman's characteristic smile on his face.

"Please, have a seat. Your tasting event has been the most successful topic in New York City's social circles these past few days. Now, my ladies are all complaining to me because they can't buy your canned goods."

"It is my honor to receive your praise."

Allen sat down with a smile, while Catherine, beside him, placed a folder on her lap.

"Truly a remarkable young man."

Tilford sighed with a hint of admiration, then got straight to the point.

"I want the exclusive sales rights for your canned goods in Upper Manhattan. Name your price."

Allen, hearing this, smiled and shook his head.

"No, Mr. Tilford. I cannot give you the exclusive sales rights for all products."

Tilford's eyebrows rose, clearly surprised by the unexpected answer.

"Why not, Mr. Williams? You should know that in New York City, there's nothing our Parker & Tilford Trading Company can't sell."

"I certainly know that. But precisely because of that, I have prepared an even better cooperation plan for you, and for myself."

Allen remained unperturbed. He glanced at Catherine.

Catherine understood. She opened the folder and handed it over, saying clearly,

"Mr. Tilford, our company has segmented the market positioning for our products. We believe Williams brand canned goods can be divided into two product lines."

"The first is our widely popular Standard Red Label series in the Bowery District. It is of excellent quality, affordable, and aimed at the broad middle class and urban families."

"The second is the Premium Gold Label series that we showcased to you and your esteemed guests at the tasting event. It will only use specially selected, the most exquisite beef shoulder, with a small amount of French brandy added during stewing for enhanced aroma, and will use more exquisitely designed, gold-labeled can packaging. Its production will be strictly controlled, never exceeding one-tenth of our total output."

Allen took over, his gaze fixed on Tilford.

"Mr. Tilford, what I am prepared to offer you is the exclusive sales authorization for this 'Premium Gold Label' production line, for one year, throughout the entire Manhattan area."

"As for the 'Standard Red Label' series," Allen added, "I hope it can appear in every corner of New York City, allowing all New York City residents to eat clean, hygienic, and delicious canned goods, so I cannot completely lock down its distribution channels."

Tilford fell into a long silence.

His experienced eyes, which had seen countless people, scrutinized Allen and Catherine back and forth.

He was completely stunned by this strategy of "product grading" and "channel segmentation."

This was a business approach he had never heard of, yet it was incredibly clever.

By launching a "premium version" exclusively for the upper class, it could satisfy the pursuit of "exclusivity" and "scarcity" by top trading companies like his, thereby generating high profits.

And with the larger-scale "standard version," it could capture the vast mid-range market, establishing national-level brand recognition for the entire brand.

The two lines complemented and supported each other.

"A brilliant concept..."

He couldn't help but praise it again in a low voice.

He looked at Allen, and for the first time, he genuinely placed this young man on an equal footing with himself in conversation.

"Alright, Mr. Williams." He leaned back in his chair.

"Since it's an exclusive high-end product, then its profit should also be 'high-end.' Tell me about your financial proposal."

Catherine spoke again, rattling off a series of meticulously calculated figures.

"According to our calculations, the production cost of the Premium Gold Label is much higher than the Standard Red Label. Therefore, the wholesale price we offer you is seventy cents, and the suggested retail price is one dollar per can. While ensuring you have sufficient profit margin, it also ensures our company obtains a modest net profit."

Of course, the cost data Catherine mentioned was certainly not that exaggerated.

However, the profit of the Premium Gold Label was indeed a bit higher than the regular one, with a net profit 10% higher than the regular 30%.

Tilford was a little surprised, but he quickly accepted it.

He, of course, knew there was an issue with the other party's statement, but it didn't matter.

Because with his channels and the uniqueness of this product, he could even sell it at double the retail price, earning more profit than Allen.

"I agree."

He decisively extended his hand.

"It's a pleasure working with you, Mr. Williams. I hope to see the first batch of 'Gold Label' canned goods on my shelves within two days."

"You will see them."

Allen shook his hand firmly.

As they walked out of Tilford Trading Company, the New York City noon sun shone particularly brightly.

"Sir, we succeeded!"

Catherine's face was filled with uncontrollable joy.

"Yes, we won the most crucial battle."

Allen's mood was also incredibly cheerful.

However, the immense success immediately brought immense pressure.

After returning to the factory, Catherine, upon receiving the letters of intent from Tilford Trading Company and a dozen other regular shops in Upper Manhattan, took only an hour to reach a chilling conclusion.

"Sir, there's a problem."

In the office, her expression was more serious than ever before.

"Based on the total estimated volume of all new orders, our future monthly demand will reach at least sixty thousand cans. This means that our daily output must immediately increase to over three thousand cans to barely meet market demand."

"Three thousand cans?"

Jones, the production manager, exclaimed, "Sir, with our current two shifts, we can only make about fifteen hundred cans a day! To achieve a daily output of three thousand cans, we simply don't have enough equipment or staff!"

"What about raw materials?" Allen asked.

"The raw material problem is even bigger!"

Catherine's tone was filled with worry.

"I spoke with Mr. Bill earlier. He told me that he and all the butchers he knows have already scoured New York City for offal and secondary cuts of meat, and it's still not enough to meet our current consumption rate! He said if we still want meat, we'll have to buy it elsewhere, and the price... will increase by at least thirty percent!"

Insufficient production capacity, raw material shortage.

These two most classic and deadly bottlenecks in corporate development appeared simultaneously before Allen.

In the office, everyone looked at Allen, awaiting his decision.

Allen showed no sign of panic.

He walked to the map on the wall, looked at the small New York City, and a confident smile appeared on his face.

"Don't worry, this isn't a bad thing," he said.

"This proves that our company is growing wildly at a healthy pace. Now, it's time to loosen the soil and water it."

Then he turned around and issued a series of clear commands.

"Jones, starting today, you are responsible for overseeing the second phase of factory expansion. I want you to find the best blacksmiths in the city and, according to our existing equipment blueprints, forge twenty more copper pots and five foot-pedal canning machines for us. I want to double our production capacity within one month!"

"Yes, sir!"

"Catherine, you are responsible for recruitment and finance. I authorize you to recruit thirty new workers for the factory and establish an office team of three to five people to assist you with tasks. The salary standards for all newly recruited personnel will be determined according to company regulations."

"Understood, sir."

"Miller!"

"I'm here, sir!"

"With factory expansion and increased staff, safety is paramount. Your security team also needs to be expanded. I need twenty-four-hour, comprehensive patrols and monitoring. I do not want any accidents to occur in my factory."

"Please rest assured, sir!"

"Then, what about raw materials, sir?" Catherine asked, "The raw material problem is the trickiest."

"Of course, I will solve it."

Allen's hand drew a circle on the map, centered on New York City, encompassing surrounding New Jersey and Pennsylvania.

"Since one New York City's raw materials can no longer feed us, then I will turn the entire Greater New York City area into our ranch!"

His eyes gleamed with a nearly greedy light.

"I want all butchers and ranchers to know that Williams Food Company is their biggest and most generous buyer. I want them to compete with each other to sell meat to us!"

He chose not to go to more distant places but to start by integrating the resources around him.

Step by step, steadily and surely.

First establish a foothold in New York City, then radiate outwards to the surrounding areas.

Slowly build a production and sales network and supply chain, then expand it further.

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