The despair of a tea boss: most of my wealth is tied up in inventory.

Those who invest in stocks enjoy speculating about getting out of a loss.

But in recent years, the tea bosses are also studying how to escape. Many tea merchants have invested their fortunes into inventory.

In good times a few years ago, the business was booming and we didn't feel like we were being squeezed by losses. But as the market started to go down, all the cash was concentrated in tea stocks which couldn't be sold short-term.

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Realising is wealth Two days ago, a tea boss came to persuade Old Yang to sell his tea.

He said: "You're not a seasoned tea drinker yet, you don't have many teas to sell. You should understand the flavor of the old mountain."

The tea shop owner said confidently: "I have 6 tons of tea leaves, and I can sell you the good tea that we've been collecting at a price of 45% off. Even if you sell it on the market, you will still make a profit."

He probably thinks Old Yang is in his mid-twenties and can be easily fooled. Old Yang could only say it diplomatically: My sales channel is narrow, making it hard to sell.

The tea boss continued to spin a tale: last year, I had an evaluation agency come to evaluate my tea wealth, 6 tons of tea leaves, with the famous tree- aged tea and ordinary mountain tea, worth 7.8 million, averaging out at around 1,300 yuan per kilogram, so I can give it to you for roughly 550 yuan a kilogram.

I wouldn't even consider selling my tea to others, but we can definitely collaborate on it.

Old Yang said resolutely: "I can't sell it, only realized value is wealth. By this calculation, there are hundreds of thousands of bottles of red wine lying in warehouses in Guangdong Province, and how much will they be worth then?"

Tea leaves, red wine, or any other merchandise - it's all about cash flow. Piling the cash flow onto the merchandise is not a wise choice regardless of the industry or market trends.

"The past two years have been tough for business, keeping cash flow steady is most important."

To avoid embarrassment, Lao Yang said: I'll give you an Icelandic cake of bent tree, free of charge.

However, the tea boss was not interested in tea either, and changed his tact again: You are still too young and do not understand tea. Pu-erh tea is not like red wine, if you plan to stay in the tea industry for a long time, now storing tea, later there will be no tea to sell.

What's that magical reasoning? There is a lot of tea stored now, and the bet is that the price will rise in the future to make huge profits. But now it's hard for tea prices to rise again.

Even if it rises again, when prices reach a certain level, they become separated from tea lovers. When tea lovers can't afford them, prices are just numbers.

No matter how much tea is produced year in and year out, as long as one doesn't crave the high profit margins of the future price hike. In an era where there's a surplus of tea production, can you really not sell any tea?

However, the tea boss reiterated: Pu-erh tea has a long timeline, storing tea is equivalent to accumulating wealth. Selling it earns liquid assets; not selling it earns investment.

For those who make tea: selling old tea can finance growing new tea.

The premise is that there must be cash flow - as long as there is cash flow, it's possible to make wealth by selling and not selling or investing.

The question is: selling tea, you have to look at how big your market is. If a day can sell several tons of good tea with economic value will not be out of stock. But if the market is limited, stocking up will only bring loss to oneself.

Good quality, attracting people to actively sell your tea, this is an endorsement. Telling exaggerated stories of appreciation in order to cheat the younger generation into selling their tea, that's just making empty promises.

When the economy is good, people like to spend money. When the economy is bad, tea will be hard to sell.

There's surplus production, the economic situation is general, and the industry competition is fiercer, it's hard to sell tea.

At such a time, new tea leaves cannot be sold by old tea masters and their stockpiles. Money is all tied up in the stockpiled inventory.

He's also been caught and is now miserable too, but he can't just say that Puer tea isn't good. If he says so, who will buy it?

The world belongs to adults, the road is chosen by oneself, endure it slowly!

There is no text to translate.

Getting out of a difficult situation? Hurry up! A foot of ice doesn't form overnight.

The tea vendor's inventory is accumulated over years of making tea. Solving, takes time.

Light Operation

In present market conditions, tea companies should operate with a light hand. If cash flow is limited, absolutely do not engage in so-called investments, such as building "tea mountains" or setting up factories, and can hold off for the time being.

Some small tea businesses can talk to their employees, pay a little less salary if they really cannot withstand it. The tea boss saves the employee's job, and the employee gives up a bit, and they go through together.

Compared to going without food, having something to eat every month is better (use it sparingly, and avoid losing valuable employees if not absolutely necessary).

Making a profit from tea guests.

Most tea companies are only relying on selling tea for a living. However, the current price of tea leaves is somewhat too high.

This leads many tea customers who have eyed a good tea and had already wanted to buy it, but because of its price, hesitated.

High-quality tea, squeeze off foams, give benefits to customers, as much as possible collect back some money.

Avoid Leverage

Many tea shop owners are actually running high-leverage operations.

While it is hard for tea business to get loans, some of them gamble with the idea that they will be okay tomorrow.

Shopkeeper was out of cash and had to find the tea farmer: Bro, I'll give you 20% in advance, let me take away the tea leaves, and then pay you back at year's end.

We all know each other well and the farmers are very happy about it. Most tea farmers have a hard time selling their own tea, let alone to a trading company, so they're naturally willing to take a small risk.

In the end, by year's end, tea farmers would call to demand their money back. The tea boss would scrape together what he could and pay them back, but in return he had nothing left except a pile of tea leaves.

Next spring I'll make tea again, and I'll get in touch with some clients first. Then I'll go find the farmer, saying "Brother, give me 20% of the payment up front and let me take the tea away..."

It has become a norm that tea merchants earn very little money after all the expenses, almost like migrant workers. They get some hard-earned wages in between but most of it goes to the tea farmers.

High-leverage operation that is digging one's own pitfall should have stopped long ago.

The tea boss is rational: As many orders as you have, make that much tea.

Don't hoard tea anymore

The tea market has not been as good in recent years as it was ten years ago, but tea prices are still on the rise.

The main reason is: in the tea market, there are too many small and medium-sized tea companies, each one selling tens of kilograms of tea. With thousands to nearly a million companies, it only takes one to buy 10 kilograms, which is quite objective. This has led to the background where it's still hard to sell tea, and yet the phenomenon of people buying up all the tea on the mountain still exists.

So, even if tea prices of famous mountains are hard to go up again, they will not fall either.

However, some tea bosses like to hoard raw materials, bring money to the tea mountains, exchange it for tea leaves, and put them in the warehouse. This state of stockpiling tea is also one of the reasons why tea prices are sky-high.

Market-oriented production and sales mean that tea merchants no longer hoard teas. As a result, tea material prices also fluctuate accordingly. In the long run, this is good news for both tea merchants and tea drinkers.