Chapter 104: Someone Has a Factory Building

Thursday and Friday were free from sales, a perfect time to sharpen the axe before chopping wood.

Sumu found a somewhat remote warehouse near Palo Alto, close to the San Francisco Bay. Originally owned by a fisheries company, it covered over 400 square meters and rented for only three thousand dollars a year. Not far from the sea, it was an ideal location.

While arranging for the warehouse to be cleaned, Sumu also sought help from a human resources agency to recruit several salespeople, offering a relatively high salary: a base of twelve hundred dollars per month plus commission.

More than twenty candidates showed up for the interview. When they saw Sumu and Li Ping’an, they were a bit incredulous. By Friday evening, after the interviews, nine candidates were hired.

Given Penguin Company’s modest financial reserves—just over ten thousand dollars—paying salaries for even a month could lead to bankruptcy. Hiring so many people was undoubtedly a risky move.

Still, Sumu was optimistic about the computer sales industry, especially targeting enterprises and universities. He hoped to secure enough orders within a month; otherwise, he would have to dip into his own pocket.

Saturday and Sunday were spent training the new hires to memorize computer specifications and pricing before sending them off to work. Sumu transformed overnight into a big boss with staff and a “company headquarters.”

Including Li Ping’an, there were ten employees in total. The old warehouse reeked of fish and needed thorough cleaning before use. Over the weekend, Sumu found time to hire craftsmen to paint three garages adjacent to the warehouse.

At the same time, he commissioned an advertising company to design an English signboard. The company’s logo was yet to be finalized, so he enlisted professional art students for help. They had decided on a penguin as the emblem, though Sumu couldn’t sketch the concept himself.

Busy with all these tasks, Sumu’s head buzzed with activity.

Fortunately, the nine salespeople showed promise. On their first day, they secured two orders: two schools purchased ninety computers, yielding a profit of about one hundred dollars per unit.

Salespeople received twenty percent commission on profits. With such generous rewards, they boldly canvassed schools throughout Silicon Valley, even reaching Stanford University.

Starting a company was easy; sustaining it was the real challenge.

Sumu had barely established a company, using money to keep employees—most older than himself—in check. For now, things seemed stable. Li Ping’an dreamed of wealth daily, but Sumu knew this kind of sales job was a one-shot deal anyone could attempt.

It wouldn’t be long before stronger suppliers caught on. Then, competition would become fierce and profits would inevitably fall. Sumu only hoped to seize the opportunity quickly to earn a solid sum before thinking about long-term growth.

Unnoticed, October 31 arrived.

A few days earlier, Boss Han had called to announce the grand opening of Supermarket No. 1. He had once again taken leave from his teacher to lead a team on a Greyhound bus bound for Los Angeles. Li Ping’an stayed behind in Silicon Valley to “hold down the fort” at Penguin Company.

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Back in Los Angeles, Sumu did not go home immediately. Instead, he booked five motel rooms near Chinatown for five employees—Penguin Company’s first batch of salespeople. The other four remained in Silicon Valley to continue seeking markets, while these five accompanied Sumu.

After they settled their luggage, Sumu gathered them in a small room for a meeting. There weren’t enough chairs, so they all sat on the edge of beds.

“Our company is just starting out with limited resources. I’m sorry we can only offer you accommodation like this,” Sumu said, standing by the bed.

The employees were all older than him. One was a thirty-two-year-old white man named McKay, who smiled and replied, “That’s alright. As long as, like you said, we can make money, I’m fine—even if it means sleeping on a park bench!”

“Hahaha! Yeah! As long as there’s money to be made!” laughed a young man named Matthew.

At the start of training, these men were reluctant to listen to Sumu because he was so young—a teenage boss managing adults—which they found hard to accept.

But last night, Sumu had handed out bonuses exceeding a thousand dollars to two employees who secured orders, McKay among them. The lure of dollars kept things calm.

“Trust me,” Sumu said.

“If you work hard enough, every one of you can make money! This market is still untapped. There are dozens of schools in Los Angeles, including the University of California campuses in Los Angeles and Burbank—these are places where you can profit!”

Trying to appear composed, Sumu cleared his throat and continued, “With so many schools, even if only a third purchase from us, we could sell over a thousand computers. That means each of you could earn more than six thousand dollars!”

Matthew interrupted, “How do you know a third will buy?”

“I visited seven schools myself; five agreed to purchase. Internet development in schools is an unstoppable trend. Even President Reagan advocated learning computers from a young age. No principal wants their school to fall behind. This is our chance. Tuition is high, and these schools have the money…”

“That’s true. I was planning to send my kid to a private high school, but the tuition scared me off,” McKay added.

“Ahem, Mr. Phelps, let’s chat later.”

Sumu sighed inwardly. People always interrupted him, revealing his lack of authority. He was seen as a child, and there was nothing he could do.

He pressed on, “It’s best to divide the territory and assign each of you an area. Avoid internal conflicts. If you have questions, ask me. For now, find your own markets. Once you secure orders, call Li; he’ll arrange delivery. I’ll keep track of your sales.”

“I have a question!”

“Mr. McKay, go ahead.”

“When will bonuses be paid? Weekly? Biweekly? Or monthly?”

“Either weekly or monthly—both are possible.”

When it came to money, Sumu’s confidence wavered. With a poker face, he boasted, “I invested a hundred and fifty thousand dollars over the summer to build a supermarket that opens tomorrow.”

“Our funds are sufficient. If you’re free tomorrow, you can visit and shop there. Just take a taxi and ask the driver for the address; it’s not far from here.”

One hundred and fifty thousand dollars was a fortune for wage earners.

Since recruitment day, these employees had worried about sudden unemployment. Now, reassured by the company’s ability to pay salaries, they fell silent.

Fueled by the prospect of money, as soon as Sumu left, they began dividing territories and marking schools on a Los Angeles map.

They earned twenty dollars per computer sold, and schools and companies often bought dozens at a time. Universities could purchase hundreds. No one wanted to miss out on making money…