Chapter Twenty-Three: The Price War

He Zhongan was taken aback. He had not expected "Great Strength" to be quite so strong; his power was far greater than he had imagined.

"Let's go."

At this point, there was nothing left to discuss. He Zhongan turned and began to walk away.

"Third Master He," Hu Tu shouted, "if you dare to walk out that door today, you are choosing to drink the toast of punishment instead of the toast of hospitality."

He Zhongan let out a cold snort, ignoring him entirely, and strode out.

Hu Tu’s expression was incredibly ugly. He turned toward the stage and bellowed, "Why did you stop? Who told you to stop? Keep playing!"

The performance continued. A fresh table of food and wine was brought out. But as Hu Tu recalled He Zhongan’s arrogant demeanor, he felt a level of humiliation he had never experienced since attaching himself to his current patron. A blind, uncontrollable rage flared up, and he could no longer contain it. He flipped the table over and roared, "He Zhongan, I’ll make you pay for this!"

***

Inside the carriage leaving the Guangde Pavilion, He Ziqi looked worried. "Third Young Master, looking at how arrogant Hu Tu was, he doesn’t seem to be without backing. Here in the capital, under the Emperor’s feet, who knows who a seemingly unremarkable person might be connected to? Doing this..."

He Zhongan replied, "This isn't about what we think."

"If Hu Tu had any real sincerity, he wouldn't have brought up a ten-thousand-tael buyout. At the very least, he would have revealed his background so we knew who we were dealing with."

"He wouldn't even disclose that much, so what are we supposed to talk about? How can we talk? Just as he said, doing business in the capital isn't just about money, yet money was all he wanted to discuss with us."

"To put it bluntly, if his backers truly had the power to have my father transferred back from the Western Seas, I would gladly hand this business over to them. I would even give them an extra hundred thousand taels."

"A hundred thousand taels?" He Ziqi gave a bitter smile. "You are the only one who would dare say such a thing."

Though it sounded like boasting, He Ziqi believed He Zhongan was capable of it.

"Then what should we do now?" He Ziqi asked.

"What to do? Meet force with force, and water with earth," He Zhongan said. "Uncle Seven, I need you to do one thing: ensure that the Shuntian Prefecture and the minor officials below them don't cause us any trouble."

"Rest assured," He Ziqi said. "I’ll handle it immediately. Though, I think it’s unnecessary. The Shuntian Prefecture is the most difficult office in the world to manage. In matters like this, they would prefer to know nothing at all. How could they possibly meddle?"

"But what about the other aspects?"

He Zhongan smiled calmly. "Leave that to me."

***

At the headquarters of the Fengyu Firm, Hu Tu looked at the coal briquette in front of him. "Is this what we produced?"

"Yes."

"I found a few craftsmen to break it apart and study it closely. It’s just coal dust mixed with clay—eighty percent coal and twenty percent dirt. The cost is even cheaper than raw coal dust."

"What is our cost?"

"One wen for ten."

"Good." Hu Tu tightened his belt. "We will begin distributing immediately. The He family sells five for one wen; we will sell six for one wen. Furthermore, spread the word: anyone in the capital who dares to do business with the He family is an enemy of the Fengyu Firm. Tell them to weigh their options carefully."

Hu Tu’s decree spread through the Beijing business community. He Zhongan immediately felt the impact of the "toast of punishment."

First, many merchants who had signed contracts for the next few months rushed to demand refunds. Second, the shipments from the North Gate coal yard became sluggish and hesitant. Finally, and most importantly, the common people prioritized cost above all else. With one extra briquette per wen, they voted with their feet, and sales plummeted overnight.

He Ziqi was pacing in circles. "What are we going to do?"

He Ziqi knew He Zhongan’s financial situation all too well. He Zhongan was making money, but it was all being poured back into expansion, leaving him with very little cash on hand. If the merchants’ deposits were returned, his capital chain would be in jeopardy. If the coal yard demanded payment instead of following the monthly settlement agreement, the entire chain would collapse.

He Zhongan smiled calmly. "It’s fine. Uncle Seven, go see those merchants and ask them: do they think that just because they are afraid to offend the Fengyu Firm, the He family is a soft persimmon?"

"They want their money back? Fine."

"Uncle Seven, record their names carefully right in front of them."

He Ziqi took a deep breath, gritted his teeth, and a murderous glint appeared in his eyes. "I understand. I am a professional when it comes to taking action."

He Zhongan quickly added, "Uncle Seven, I’m only bluffing. In business, harmony brings wealth. If they have any sense, they wouldn't dare offend a Marquis's estate. A Marquis's estate has plenty of ways to make things difficult for a merchant without needing to resort to violence."

He Zhongan was worried that if He Ziqi truly took action, no one would ever dare do business with the He family again.

He Ziqi felt a hint of disappointment. He was a brave warrior on the battlefield but knew nothing of the business world. If he could have applied his skills here, he could have shared He Zhongan’s burdens.

"Then tell them," He Zhongan continued, "that they can resell their coal briquette orders. We recognize the order, not the person. If they find it inconvenient, we can help them."

Since coal briquettes were a novelty, there was no shortage of buyers.

"I understand," He Ziqi said. "A slap in the face followed by a piece of candy."

***

"Exactly," He Zhongan said.

But He Zhongan’s intentions went deeper than that. Knowing who your friends are and who your enemies are is the primary principle of politics. Once you identify your enemies, you must strike them down without mercy, to the bitter end. But if they are not your enemies, you must not push them into a dead end; you must provide them with a way out. If you can win them over, that is best.

Could He Zhongan use the influence of the He family to refuse the merchants' refund requests? Of course he could. The contracts were signed in black and white; he would be well within his rights. His current financial state wouldn't even allow for the refunds. But if he refused, he would be forcing these people to suffer a loss, turning them into his adversaries.

By arranging for the orders to be transferred, the outcome was different. The merchants suffered no loss, and He Zhongan’s cash flow remained intact. Both sides saved face, making it easier to talk business in the future.

He Zhongan sent He Ziqi to resolve this, then summoned the manager of the coal yard. The manager arrived looking timid. He Zhongan saw through the man’s thoughts at a glance—he was terrified of both the Fengyu Firm and the He family. Neither was a party he could afford to offend.

He Zhongan smiled. "I know you’ve been in a difficult position lately. But I have some words—would you be willing to listen?"

"If Master He has instructions, how could I not listen attentively?"

"Have you told your Prince Consort about this matter?"