Becoming a Russian Oligarch After Rebirth
Chapter 131: Three Fires_1

Chapter 131: Chapter 131: Three Fires_1

The New Sun Group may sound like a large operation, but in reality it doesn’t employ many people.

Besides the Market Management Department, it also includes the Logistics company running customs clearances, the Finance Department, the Security Department, and the Storage Department, etc.

All of the management personnel add up just to a dozen or so people.

As for the entire staff, there are currently over three hundred people, and more will be added depending on circumstances.

In the meeting room, Big Head Kong introduced everyone to Wang Ye and Ivan first.

Then he introduced the heads of each department to them one by one.

Although everyone had some doubts about Wang Ye, for he looked too young and didn’t seem like a Russian from his appearance...

No one said anything openly, they weren’t fools.

This was the new President appointed by the headquarters, their paramount superior, who would be so foolish as to question his identity...

After everyone applauded and welcomed him, Wang Ye started to speak.

Sitting at the head of the long conference table, he first took a moment to look around with a smile.

He then started talking, "I am very thankful to the board of directors and Mr. Hofchinco for their trust in appointing me as the President of the New Sun Group, and I am delighted to work with all of you."

The applause below resumed...

After waiting for two or three seconds, Wang Ye raised his hand, signaling for everyone to stop.

He continued, "As you all know, our Group has very strong capabilities, and the headquarters has been very supportive of us! The board of directors has authorized me to adjust the business strategies according to the actual situation. After careful consideration, I have decided to stop selling our present shop spaces and instead only offer them for rent!"

These words had a shocking effect, and the meeting room was instantly in an uproar.

Even Big Head Kong looked at Wang Ye in astonishment.

Because he was not informed about this and Wang Ye had not discussed it with him beforehand...

Wang Ye did not rush to explain but smiled and waited for everyone to calm down.

Big Head Kong, who was somewhat impatient, asked, "President Mikhail, considering the current situation, we shouldn’t worry about selling our shop spaces, so why suddenly stop the sale and transition to leasing? That would not favor our cash flow, would it?"

Wang Ye smiled and countered, "Even if we sell all the shop spaces, how much money could we get back?"

The current price for a stall in the New Sun Market is five thousand US dollars each.

There are thirty-five streets in total, with three thousand five hundred stalls.

If we deduct the three hundred stalls that Wang Ye has already bought on three streets, there are three thousand two hundred stalls left.

If each one is calculated at five thousand US dollars, the value would be around sixteen million US dollars.

Big Head Kong naturally knew how to do the calculations, and he immediately responded, "We could bring back around sixteen million US dollars, but the actual amount might be somewhat less because of the discounts for buying more."

Wang Ye simply said,

"That amount of money is considered small change by the Group!

With the problems at the old market, numerous merchants would be flooding into our new market!

If we keep the ownership of the shop spaces in our hands, besides management fees, we can collect rent!

You all should know how high the rents are in the old market.

Just to be clear, as long as our rental fees can reach the levels of the old market, just relying on the rent, each shop can bring in more than ten thousand dollars in revenue for the Group each year!

Please note, every year!

Isn’t that more profitable than selling the stalls?"

Everyone was struck dumb, suddenly realizing that the situation seems to be exactly as he described!

Big Head Kong still frowned, pressing further, "But there’s another problem, that is, how long will it take for our rent to reach the level of the old market? If we set the rent that high when the market has just started, will people really come?"

It’s not that he had any disagreement with Wang Ye, but he genuinely was worried.

After all, Big Head Kong had invested all his assets into New Sun Group, and he too hoped the company could earn big checks!

If Wang Ye messed up, and the company was not making money, but instead losing it, Big Head Kong would have nowhere to wail ...

Wang Ye shook his head, smiled, and countered,

"Who said we were going to charge high rent right now?

Not only will we not charge such high rent, but we are also going to implement a no-rent-no-management-fee policy!

First, lure in the merchants to build up popularity!

Only when we attract a crowd can we think about the next step!"

Big Head Kong had no retort, as upon careful consideration, Wang Ye’s method indeed seemed feasible...

Don’t sell the shops, but keep their ownership in our hands.

Attract merchants to settle by waiving rent and administration fees, and then when the popularity builds up, start charging rent!

If we can really achieve the popularity of the old market, just the rent would be a staggering amount every year!

.........

"I agree with the president’s proposal. This is in the best interest of maximizing Group profit. Besides, we now also have the best opportunity!" Ivan interjected.

He came here to aid Wang Ye, so naturally, he couldn’t possibly disagree with Wang Ye’s proposal.

Unless Wang Ye’s actions seriously impair the Group’s interest, he would then stop it.

Big Head Kong also started nodding slowly, indicating his support.

When these three key decision-makers all agreed, the rest of the middle and upper-level leadership surely wouldn’t have any objections.

Everyone unanimously agreed!

With the first item settled, Wang Ye started discussing the second item.

He looked at Ivan, smiled, and asked, "What is our group’s relationship with the local police station?"

Ivan answered succinctly, "Very good!"

"Then can we get them to set up a regular patrol route around our New Sun Market to ensure market safety? Of course, we need to tell them not to use any excuse to deliberately create difficulties for people within the market range," Wang Ye said.

Ivan had some difficulties as it’s not hard to arrange for a patrol route, but ensuring that these rogue cops won’t take the opportunity to make a quick buck could be troublesome...

"We will bear some of the security costs, consider it as a joint building effort between the police and the people." Seeing Ivan’s dilemma, Wang Ye added.

What he was doing was essentially paying a "protection fee"!

Instead of allowing these rogue cops to trouble the Chinese owners, the Group would give them a sum of money directly every month. Whether it was regarded as legitimate or illegitimate, as long as they divided it up among themselves, it didn’t matter!

Ivan thought for a moment, then nodded, "I estimate that fifty thousand dollars a month should be enough. We certainly can’t give too much, or their demands will get bigger and bigger."

"You handle the negotiations. Also, we must ensure the safety of all the people and assets doing business in our market. If even basic safety isn’t guaranteed, why would people come here to rent shops? And remember, you only tell the difference when you make comparisons! The old market was closed, many people suffered heavy losses, so if we can promise the customers that even if our market gets closed too, we would bear all their losses! Do you think those merchants would rush to rent stalls here?"

Wang Ye threw down another "trump card" at the end!

This commitment, if we can really follow through with it, would be greatly appealing to the Chinese owners!

Doing business in Russia, due to the gray area of customs clearance, many people live in fear every day, afraid that they might be suddenly investigated one day, which means they wouldn’t be able to get their goods back!

Just like the closure of the large market this time, many people were estimated to suffer heavy losses...

At a time like this, if the New Sun Market stands out and tells them, come do business with us, we’ll never get shut down.

If we do get closed, you lose however much, we pay you that much!

Wouldn’t people rush to come to the New Sun side...