Chapter: 3728

Some types of pills, such as Black Chicken White Phoenix Pill and Six Flavors Ginseng Pill, were basically made directly by kneading the medicinal mud into different shapes.

If the medicine tasted too bitter, they would usually dry the medicinal mud first and then put it on the production line to wrap it in a sugar-coated pill, like the most common Vitamin C Silver Jade Pill and Yellow Celandine Pill.

Lei Chen took some of each medicinal mud and crushed them between his fingers to smell them, satisfied with the result. He nodded and said, "These two medicines are both very good. Remember to give the team a red envelope when you get back."

Wei Lian let out a sigh and said hastily, "Don't worry, I'll package some red envelopes for everyone as soon as I get back……"

As he spoke, he added, "By the way, Master Ye, the cost of producing this medicine is indeed very high. It's all precious medicinal materials, and just testing out this batch of medicinal mud required nearly one hundred thousand yuan worth of materials..."

Ye Chen nodded thoughtfully, saying, "Medicines of this kind are very demanding when it comes to their raw materials. The cost will definitely be quite high, and if we were to sell this medicine on the market, I'm afraid only those with deep pockets could afford it."

Wei Lian sighed, saying, "This is just commercial logic, and also a realistic situation. It's like those luxury cars that cost hundreds of thousands of yuan, their costs and brand value all piled up there, serving only those who are wealthy. Ordinary people don't stand a chance."

Ye Chen sighed in agreement, saying, "Indeed, this is just commercial logic. There's nothing we can do about it."

As he spoke, Ye Chen turned to Wei Lian and said, "Wei Lian, why don't you try producing a batch of this medicine first? Use it as an upscale tonic for our Nine Heavens Pharmaceutical Company to enter the market with. As for the price, we'll naturally have to set it higher, with a domestic retail price at least ten times our total cost, and overseas prices at twenty times or more."

"After production, we can give some high-end customers a trial run to see how they react. If they're extremely eager for this medicine, then we can also adjust the price upward accordingly."

It's not that Ye Chen is heartless; it's just that the pricing of high-end medicines inherently has a very high markup component, especially when it comes to high-end tonics.

The heat of these years may have cooled down some of the enthusiasm for wild herbs, but their prices haven't dropped at all. High-end wild herbs sell for more than gold per kilogram.

As for ginseng and deer horn, it's the same story.

Wei Lian naturally understood this commercial logic and didn't hesitate to tell Ye Chen, "Master Ye, don't worry. I'll get started on producing a batch of samples as soon as I get back."

As he spoke, he again hurriedly said: "Ah, Master Ye, considering that these kinds of tonics are so valuable, I advise we don't turn them into pharmaceutical products. Instead, let's make them health supplements. The inspection systems for health supplements in various countries are much more lenient, and once we position ourselves as a health supplement brand, not only can we sell them at pharmacies, but also online and at supermarkets. That would give us greater freedom."

Ye Chen nodded: "Let's go ahead with that plan."

Wei Lian asked him: "What should we call this health supplement?"

Ye Chen thought for a moment and blurted out: "Just call it the 'Jiu Xuan Solid Gold Powder'! We'll dry the powder thoroughly, then encapsulate it as high-end health supplements."

As they spoke, Ye Chen cautioned him again: "However, we shouldn't rely on any pharmacies or supermarkets to sell our products. After all, our product is undoubtedly the best in its class, and Nine Xuan Pharmaceuticals has already gained a certain reputation, making us not need to rely on others' sales channels."

"Letting others sell for us not only takes away our profits but also brings management risks," he said.

"It's just like some well-known white wines called 'national wine', which are heavily marked up by distributors. The market is flooded with fake products, and many people mix genuine and fake products to confuse the market."

"A 1499-bottle of wine was already expensive to begin with, but it's impossible to get your hands on one even if you want to. You'd have to pay twice the price to buy one, which is essentially a result of distributors' hype. So we'll just cut out the middlemen and do direct sales!"

"When the time comes, we'll open an online flagship store where all users can order directly from us. As our product line expands, we can also convert physical stores into online ones, ensuring stable terminal prices and eliminating fake products."

Wei Lian agreed without hesitation: "Alright, Master Ye, I'll start working on setting up the official online flagship store immediately!"

Master Ye has always abhorred the old marketing model, not just because of the problems with that particular well-known white wine, but also because traditional car dealership models have been criticized by many. It's common knowledge that many 4S stores don't sell cars according to the book, jacking up prices for popular models by tens of thousands or even hundreds of thousands. Occasionally, there are unscrupulous dealerships that package damaged or salvaged vehicles as new ones and sell them to unsuspecting consumers. JrNovels.com