After careful consideration, Ren Pingsheng decided to change the existing retail method into a distribution method and initially establish a distribution system in Hanhai City.

Compared with retail, distribution is an intensive sales model with lower management costs and sales expenses, that is, a sales method in which manufacturers radiate products to various sales terminals through distributors (agents) and finally sell them to customers through sales terminals.

The biggest advantage of distribution is that the sales terminal is planned and carried out by specific distributors. Manufacturers and large distributors do not need to invest huge costs, so they can put products into customers.

Of course, the distribution model also has disadvantages. Since channels and terminals are in the hands of small distributors in the downstream, it is difficult for manufacturers and large distributors to collect market feedback and customer needs in a timely manner, and it is difficult to carry out targeted innovations and reforms based on feedback and needs.

At the same time, the longer the distribution system is, the stronger the solidification effect of small distributors and channels is. It is easier for them to form offensive and defensive alliances under the guidance of common interests to increase bargaining power, threaten and kidnap decisions of manufacturers and large distributors, and form a situation where sales force manufacturing.

Due to these inevitable drawbacks in the distribution model, with the continuous popularization of the Internet and the gradual improvement of logistics and express delivery, Internet e-commerce has gradually begun to erode the market share of the distribution model.

In the past, large and small distributors had lost the need to exist on the Internet because the Internet could directly sell to end consumers, so there was no need to strictly divide the sales area and scope, and it was impossible to achieve a unified pricing within the area, so small distributors lost their meaning of existence.

Moreover, with the help of Internet e-commerce, manufacturers can collect customer feedback on products as soon as possible, which will help companies increase their innovation efforts and produce better and more suitable products for customer needs, which will greatly contribute to the development and value improvement of the company.

It is precisely with the power of the Internet that a circle of Internet e-commerce companies represented by Alibaba Mama has emerged and has become the leader in Chinese corporate innovation in the past decade, and has also created several e-commerce giants and a large number of e-commerce wealthy people.

However, in 2006, when the Internet e-commerce and direct sales models had not yet emerged, the distribution model was still one of the most efficient sales models.

The Indian Teresa sold by Ren Pingsheng is a product from India's LUBIN Pharmaceutical, which is a major distributor of LUBIN Pharmaceutical in China.

What he has to do now is to establish a next-level small distributor in Hanhai City, distribute the medicines he transported into the country to them, and let them sell them on their own.

As long as Ren Pingsheng continuously transports the freight into the country, he can sit at home and count money easily, without having to do it himself as before, making himself and his friends exhausted and he won’t make much money.

Ren Pingsheng was very thoughtful and had excellent eloquence. An Qi and Lin Lisong quickly accepted his idea and immediately set out to establish a distribution network.

Everything went smoothly. When the first batch of goods was sold, the group owners were given a 10% discount. Some group owners with agility and ability had already tasted the sweetness.

As soon as India's Teresa's distribution plan came out, they immediately smelled the business opportunities. Those with the means went to raise money to compete for the secondary agency rights, while those without the means also gathered together to compete. In just one week, several secondary agencies have emerged.

Ren Pingsheng divided Hanhai City into eight districts according to the distribution of various hospitals in Hanhai City, combined with geography, population distribution and economic conditions:

District 1 (Huangpu, Luwan), District 2 (Jing'an, Chabei), District 3 (Xuhui, Changning), District 4 (Putuo, Qingpu), District 5 (Hongkou, Yangpu), District 6 (Baoshan, Jiading, Chongming), District 7 (Minxing, Songjiang, Fengxian, Jinshan), District 8 (Handong New District).

When Ren Pingsheng was dividing the areas, he comprehensively considered the distribution of medical resources in Hanhai City, and achieved a combination of fat and thinness, which was a combination of poverty and poverty.

Based on the memory experience of previous lives, some areas that may be merged in the future during administrative division adjustments, such as Luwan being merged by Huangpu and Chabei being merged by Jing'an, etc., have been integrated first.

Although the Handong New District is not large at this time, it has great potential in the future. Ren Pingsheng also listed it as a separate district.

Under Ren Pingsheng's careful organization, the secondary agency auction chaired by An Qi was held at a remote military guesthouse in Handong New District.

According to Ren Pingsheng's arrangement, the minimum price of this secondary agency auction is RMB 1 million in one district, with no cap on the upper limit, and the price will be increased from 100,000 yuan.

Although Ren Pingsheng has tried his best to divide it scientifically, it is obvious that Hanxi, which has the most excellent medical resources and mature urban supporting facilities, is the most popular.

The price increase in each round was more than 500,000 yuan. Several powerful buyers raised prices with each other, but no one was willing to give in and quickly raised the price several times.

In the end, the first area (Huangpu, Luwan), the second area (Jing'an, Chabei) and the third area (Xu Hui, Changning) sold high prices of 4 million, 3.8 million and 3.2 million respectively.

However, the other five districts are not so popular, with the price increase hovering around 100,000 yuan, and there are few cases of competing with each other, but in the end, a total of 6.6 million yuan was sold.

After a rough calculation, Ren Pingsheng has earned 17.6 million yuan by auctioning the secondary agency rights, and he still has 25,000 boxes of Indian Teresa.

Although the purchase price he gave to the secondary agent was 60% off (480 yuan/box), this batch of goods could also contribute 12 million yuan in income.

Not to mention labor and transportation costs, the rough profit has reached 30.6 million yuan, which is 60 times more than the 500,000 yuan when I started my business.

It can be said that Ren Pingsheng’s first pot of gold is full of gold, which is enough to support him in carrying out his next entrepreneurial plan.

Of course, the real money and silver that the secondary agents have taken out for auction are not for nothing. They sold Indian Teresa to patients according to Ren Pingsheng's price, making a net profit of 320 yuan per box, with a high profit margin of 70%.

Based on An Qi's understanding of the number of patients in these hospitals in Hanhai City, secondary dealers in the first three districts can completely sell 10,000 boxes within one year.

A secondary dealer can recover the cost by selling an average of 5,000 boxes, which means that these secondary dealers can make money from the second year, and can easily make millions a year.

However, this auction also showed obvious class division, and the sub-dealers in the first three districts were not the group owners who were originally "danced with cancer" groups.

They are either relatives or friends of the group leader, or investors who are heard from the news, and their only common point is that they are rich.

Although the sales of drugs still need to be passed through those group owners, the bulk of the drug profit was taken away by investors, and the original group owner could only become a capital worker.

The few areas that were taken down by the original group owner were sold together by several group owners with relatively affordable positions, including An Qi's right-hand assistant Li Li.

She and several group owners were able to take photos of District 8 (Handong New District) and spent 1.2 million yuan. In order to collect enough cash for agency rights, she had to sell a house in Xuhui District.

Since once each area is sold, the secondary distributors who have obtained regional agency rights monopolize the sales of drugs in the area.

Therefore, in order to ensure their own interests, each secondary dealer not only makes great efforts to promote and sell drugs, but also strictly guard against secondary dealers in other areas to "overstep the border" operations.

Although everyone can still live in peace at this stage, the relationship between the "dance with cancer" group leaders has disappeared.

Ren Pingsheng and An Qi had no time to care about the feelings of these old group leaders. They were now immersed in the impact and pleasure brought by money.

The income from the auction of secondary agency rights alone allowed them to have nearly 10 million yuan in cash. An Qi did not inform Tang Jian of the disposal of this money, nor did he ask for the share he deserved, and he gave it to Ren Pingsheng for management.

Once a woman falls in love with a man, she will give everything to that man with all her heart.

A man can not only take away her heart and body, but also take away everything about her.

The more a woman loves a man without regrets, the more she will entrust her every penny to a man.

Because in her heart, love is everything, this is a woman.

What's more, along the way, Ren Pingsheng has proved many times that he has real talent and knowledge, a reliable and capable man, not as short-sighted and unreliable as Tang Jian.

After receiving the auction payment and the goods payment, Ren Pingsheng divided the money into three parts:

The first part is used to repay debts, including the funds raised by the Ren family and An Qi at the beginning of their business, and paid 100% of the interest expenses. The total expenditure of this item is 1 million yuan, including 500,000 yuan An Qi, 400,000 yuan Ren family, and 100,000 yuan Ren Xueping;

The second part is used to repay the 3.5 million yuan owed on LUBIN Pharmaceutical on credit, and reserve 5 million yuan as the payment for the next batch of purchases;

The third part is the remaining 20 million yuan. Ren Pingsheng plans to invest in new projects and open up new financial channels outside generic drugs.

An Qi naturally agreed with Ren Pingsheng's arrangements, and she felt more and more that this man was not simple.

Although he was young, he did not lose his mind like a nouveau riche in the face of such a huge sum of money. He began to squander revenge in order to make up for his humility in the past.

His every move seemed to be planned, without any slackness or mistakes.

Similarly, Ren Pingsheng once again deepened his trust in An Qi in the distribution of this money.

Her character of not fighting or robbing and taking into account the overall situation has solved many problems for Ren Pingsheng.

Of course he knew that the reason why An Qi trusted him unconditionally was the love she loved her.
Chapter completed!