Carrying a Jurassic on me
Chapter 492 - 186: The Meat is Quite Ordinary_2

Chapter 492: Chapter 186: The Meat is Quite Ordinary_2

This remark made the girl’s face even redder. Feeling embarrassed, she changed the topic, "Senior Brother Wang, we heard that bezoars are as valuable as gold, but Professor He says they are even more expensive. Why is that? I’m not doubting Professor He, just curious."

"The thing about Bezoars is that they don’t have a fixed price. Even though they are stated to be as valuable as gold, they really don’t have a market." Wang Jiuming explained. "You’re from a place where yellow cattle are raised, do you know how many are bred there? Among all those cattle did you ever hear about the bezoar?"

"Oh, so it’s about the rarity!" Xu Xiaoyan nodded. "But, something seems a bit off?"

"That’s the point." Wang Jiuming laughed. "Those who slaughter cattle to collect Bezoars, most of them have only heard about the value of this thing, but they have no means to sell it. Only the real end-users hold the power of speech. Do you understand what I mean? They need Bezoar and control the high-end market, ordinary people have no place to sell other than to them. If you hold it yourself, it is worthless, isn’t it? So the price can only be determined by them. They say it is as valuable as gold, but in reality, if you want to sell it to those herbal medicine businesses, you definitely can’t get the price of gold, right?"

Both of them nodded thoughtfully.

"This is actually normal. Information asymmetry, the confrontation between buyers and sellers, which lead to this kind of situation. It is actually another kind of distorted buyer’s market. I am sure you have more questions. Since they control the high-end channels, why do they claim that it has high value?" Wang Jiuming took the opportunity to lecture the pair.

"Because they do need this. If their bid price is too low, no one wants to make a great effort to sell it. Just consider yourselves, if you know this thing is only worth a few hundred dollars, would you take it to Provincial City? You must have sold it somewhere casually, the buyer may think it is really only worth a few hundred dollars, perhaps directly used in medicine, or sold as regular medicinal materials."

"This stuff is already rare. If used casually by others, there would be no stock for the high-end market that could really make big money out of it. How do they continue to operate? Isn’t this right?"

Both of them nodded thoughtfully again.

Wang Jiuming smiled and continued: "Let’s take the earthworms you’re raising as an example. If you want farmers to help raise them, you control the pricing power. Because they don’t know where to sell, and the scattering breed is not worth them spending too much energy looking for sales channels. This is information asymmetry, you can tell them that this is used as feed for feed factories, right?"

Yan Fei was a bit confused: "This is indeed for feed. What’s wrong with that?"

"That’s where the problem lies." Wang Jiuming began to analyze for him. "Raising earthworms in rural areas does not require any costs, right? It is straightforward to just find an empty land area. It doesn’t take much effort, so long as the method is mastered, one can manage it when they get spare time. The things produced under such circumstances are deemed valueless. Even if you offer them one dime per catty, they won’t mind, because they think these are used as fodder, which feeds livestock and poultry, how expensive could it be?"

"But in reality! You know the price. Because the addition of such ingredients and how to use them in the feed, no one knows except insiders. This is information asymmetry. If it wasn’t for the current scarcity of earthworm breeding, and a real shortage at the feed factory, they could offer you a lower price, and you still might, for it has a low cost and could help you to deal with the cow dung, right?"

True indeed, Yan Fei nodded.

"Same as the Bezoar, it’s used in medicine, but no one knows how much it contains. If a pill is made from several grams and sold for tens of dollars, and the Bezoar is just a tiny part of it, then no matter how high the price, they can still make money. Therefore, this thing has no fixed price. Because it’s rare, when they meet professional people, they’d rather pay more to buy it, after all, they are profitable, right?"

They both nodded at the same time: "Thank you Senior Brother Wang."

Their thanks were sincere. Typically, no one would explain these things to them. The key is that what Wang Jiuming spoke of is not limited to Bezoar and earthworms but can also be applied to other trading transactions. Although they might not have a use for it now, as their business grows, they will definitely find it useful.

Seeing that they had understood, Wang Jiuming smiled and nodded, and parked the car at the entrance of a restaurant: "We’re here. Get off! I bet Xiao Fei won’t be full, so let’s go and have some stewed noodles when we’re done."

The store was not big, but it was quite exquisite. The logo was unmistakably beef. There was also some English on it. The decoration style was completely different from the Quanjude store they passed, it had a foreign feel to it.

"A foreigner’s restaurant?" Xu Xiaoyan was surprised.

"No, it seems to be opened by a returnee from overseas. I am not sure, my business is different after all, I don’t pay attention to such things. Let’s go in and give it a try and see what the food of these foreigners is like." Wang Jiuming took the lead into the restaurant. "It’s upstairs. Let’s go through here."