vstars Chapter 171 Training Ship
Chapter 171 Training Ship
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Liu Ye nodded and said, "I understand! Mingzi, what Lao Song said makes sense. If there is a market for perfume, we can guide some people to give up planting grain and switch to planting cash crops, using economic leverage to support the raw material supply market."
"Yes, that's right. As long as there's profit to be made, people will naturally vote with their feet and make choices that benefit them. However, will everyone rush to plant flowers and no one grow grains when they see that it's profitable?" Liang Xiaoming was slightly worried.
"You can rest assured about that. The market will regulate the balance of supply and demand. When there are too many people growing flowers, the supply exceeds the demand, and the price drops, which will squeeze out the excess people. In order to make a living, these people will have no choice but to grow grains again."
Tang Yu couldn't help but interject, "Master, since this ambergris was presented as tribute to the Emperor, it must be a fine product. Why not use it yourself? You could sell it. Why waste it on perfume?"
Liu Ye laughed heartily: "Haha, you silly girl! No matter how precious ambergris is, even if it were sold as gold, you could only find a few pieces a year. If you melt it down and use it to make perfume, a small piece could make a hundred or eighty bottles of perfume. Wouldn't that be incredibly profitable? Even if you use it yourself, a well-made perfume is better than a pile of whale dung!"
Tang Yu blushed and asked awkwardly, "Is perfume very profitable? More expensive than rouge?"
"You actually compare this cheap junk to perfume?" Liu Ye's eyes widened. "If the perfume were truly successful, it would cost at least ten or twenty taels of silver a bottle, wouldn't it?"
Everyone was stunned. Tang Yu exclaimed in surprise, "So expensive?"
Song Xiaobao was speechless; he was truly astonished and had never imagined that his creations could fetch such an exorbitant price.
Even Liang Xiaoming asked uncertainly, "Ten or twenty taels? Isn't that price a bit outrageous?"
Liu Ye replied confidently, "The specific price depends on the quality of your finished product, but the selling price absolutely cannot be less than ten taels."
"But will the market accept such an outrageous price?"
"Not at all outrageous. As long as your perfume is close to modern perfumes and can maintain its fragrance for a long time, I'm confident," Liu Ye replied firmly. "The pricing of a product depends on several factors: cost, market demand, and scarcity. First, the cost. Based on the amount of raw materials you mentioned, it would take dozens or even hundreds of kilograms of flower petals to make one bottle of perfume, so the cost won't be low. Second, the market demand. Ordinary people certainly can't afford it, but the women of wealthy families will definitely like it and can afford it. Perfume can enhance a woman's charm, and women who want to stand out in a family with many wives and concubines have sufficient purchasing power. Third, scarcity. It's the only one of its kind in the world. If you want to buy it, hehe, pay a premium!"
Liang Xiaoming pondered for a moment: "Are you planning to market this perfume as a luxury item?"
"Otherwise what? Do you want to sell it like toilet water? Do you know why a Gucci or Prada bag can cost tens or hundreds of thousands of dollars, while an ordinary bag that looks almost the same only costs a few hundred dollars at most? That's the sense of superiority that luxury goods bring."