Chapter 38: 38 Contracting Fees and Management Fees
Mr. Song's eyes lit up, "What conditions, are they about the management fees?"
Suming was not originally going to talk about management fees, but since Mr. Song mentioned it, he naturally took the opportunity to say, "Of course, I hope the management fees can be as low as possible."
Mr. Song chuckled and said, "You can rest assured on that matter, as long as the business is run well, the zoo won't charge you extra management fees. The 10% from the pavilion side definitely won't work, after all, Shuijun Lake is a major attraction, and the zoo needs to justify it, but within my authority, I can give you the lowest rate."
In the zoo, Mr. Song's authority was of course beyond doubt. His words, to some extent, were like a declaration to Suming that he would not profit off the management fees.
Just like before at the pavilion, a good boat business would drive the zoo's ticket revenue, which is the main profit growth point for the zoo.
Seeing Suming nod, Mr. Song quickly followed up with, "However, there's one thing I need to clarify with you."
"Go ahead."
Mr. Song said, "I hope that if you need to hire help in the future, you'll consider our zoo comrades first, after all, it's best not to let the 'water flow into someone else's field', and it can also be a small benefit the zoo offers them."
The zoo staff had fixed incomes, not much work, and most of them were idle for a big part of their working day. If they could earn some legitimate extra money, that would be an indirect benefit from the zoo to its employees.
Suming nodded, "Of course, I wouldn't feel reassured hiring someone from outside. But what I wanted to discuss wasn't about the management fee."
Mr. Song glared at him, "Then what have you been going on about?!"
"Heh." Suming chuckled. After all, you were the one who brought it up.
Then he spoke seriously, "I hope to contract the entire Shuijun Lake, not just the boat business on the lake. In other words, everything in Shuijun Lake, including the water, fish, and even the mud and rocks on the bottom, I want management and ownership rights during the contract period. Also, the surrounding ancillary buildings, like the Whisperwind Pavilion you just mentioned, while I don't contract them now, I want the priority to do so under the same conditions in the future."
When Suming finished speaking, Mr. Song was startled and asked curiously, "What do you want all that for?"
Without waiting for Suming to reply, Mr. Song suddenly realized and said, "You're not thinking of fish farming, are you? Su, you're new and might not be aware, but Shuijun Lake is an artificial lake, quite large but with very poor water quality, not suitable for aquaculture."
Mr. Song even thought Suming had watched too many films or read too many novels and wanted to search for treasures on the bottom of Shuijun Lake. He continued, "Although our place is a 'scenic and historic interest site', we all know that the so-called historic site is just a gimmick; we are far from the Chibi Ancient Battlefield. Even if you were to unearth an historic relic, that would belong to the nation."
Suming hadn't thought that far. The lake only had a twenty-year history; it was impossible there would be anything valuable in it. Forget about salvaging, at most one could find a few mobile phones that tourists accidentally dropped into the lake.
He simply felt that since he was contracting, he should have complete control over the lake. He did not want to be in the middle of business and have others interrupt him for some strange reasons.
As for the ecological problems in Shuijun Lake, Suming wasn't worried; with the ability of 'Animal's Friend', was there not a place for him to use his skills in such a large body of water?
Beyond that, there was a main reason Suming hadn't mentioned.
The geographical location of Shuijun Lake is excellent, right next to the back mountain, and there isn't even a fence between the lake and the mountain, with the end of the lake leading directly to the mountain.
The mountain is a branch of the Qinlin Mountain Range, filled with countless animals, it can be said to be a natural treasure.
Geographically speaking, to occupy Shuijun Lake is to control the passage to the back mountain. Whatever you do in the back mountain, traveling through Shuijun Lake is very surreptitious and not easily discovered.
"If I can't lease the entire Shuijun Lake, then I won't lease it at all," Su Ming stated bluntly and played the rogue.
Mr. Song laughed, pointed at Su Ming, and said, "I didn't see it coming, you're young, but your ambitions are big. If you really want to lease the entire Shuijun Lake, it's not impossible. However, there are two major principles you have to adhere to, and if you can meet them, I'll represent the zoo and sign a contract with you."
"Please, tell me," Su Ming said
"First, you can't change the public welfare nature of Shuijun Lake. You must allow visitors to recreate on the lake and ensure their safety. If an accident happens, you will be held responsible. As long as you can do this, I don't care what you do in Shuijun Lake; you could even raise sharks if you have the means."
"Okay," Su nodded.
"Secondly," Mr. Song shook his head, looked at Su Ming with a somewhat helpless gaze, and said slowly, "It's about the fee. If you simply lease the boating business of Shuijun Lake and are willing to invest in a few more boats, then as for the management fee, like I said earlier, I have the authority, at most it's 30% of your total revenue, and it's negotiable.
But now you're proposing to lease the entire Shuijun Lake, including the income from the lake, that's a different matter. You won't be paying a 'management fee' but a 'lease fee,' and these two are entirely different concepts. Although it's clear to everyone that the lake can't sustain fish, thus not profitable, after all, it is a significant national asset, we must have an explanation for the higher-ups.
Plainly speaking, whether you earn or lose, you'll have to pay a hefty lease fee in full, and in advance."
"How much exactly?" Su Ming asked.
"Three hundred thousand per year. If you lease Whisperwind Pavilion together, the minimum lease term is three years," Mr. Song added, "That's the lowest limit I can decide on my own."
That is, regardless of whether you make or lose money in the future, you must first pay 900,000 to the zoo.
Seeing that Su Ming remained silent, Mr. Song thought the amount had frightened him. Recently, the boating business had been lucrative, but it wasn't to the point where one could easily come up with nearly a million.
Moreover, this 900,000 is just the lease fee paid to the zoo. To develop Shuijun Lake, whether for aquaculture or anything else, substantial additional investment would be required. Without several million in funds, it's impossible to secure the lease.
"Su, I know you're bold, but one has to eat one bite at a time. I still suggest that you stick with the boating business for a few years, then slowly expand after you have a certain amount of savings. To be honest with you, there have been businessmen in the past who wanted to lease Shuijun Lake and even came for on-site inspections, but they all came to the conclusion it isn't suitable for aquaculture. Other projects can't be set up in just a day or two either."
Save up for a few years? That's the normal route. If, with the help of Animal Friends, he still scrimped and saved, afraid to take any risks, Su Ming felt he might as well bash his head in. Even with the biggest golden finger, he would at best be a hangman with a golden finger, living a menial life.
"Ninety thousand is ninety thousand, Mr. Song, I'm willing to lease it. Get the contract ready, and we'll sign it as soon as the money is handed over!"
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