Chapter 627: The War of Prices
When the franchisees of Yu-Gi-Oh received a request from Daqian to sell the three main products at a reduced price, these franchisees did show a certain degree of dissatisfaction and resistance.
But this resistance and dissatisfaction is not strong, and there are even many franchisees who are very happy about it, and they can finally reduce the price!
Of course, franchisees do not have the great sentiment of benefiting the masses, they are just frightened by the changes in the market for a while.
Since Gongcha began to exert its strength and carried out advertising and marketing on a large scale, the business of Yu-Gi-Oh milk tea has been robbed a lot. After all, although these franchisees have undergone formal training, these franchisees are doing business for themselves because they are doing business on their own, so they can save money in many places.
But Gong Cha is different, although Gong Cha is an employee working for the boss, the place where the style is bright is absolutely magnificent. Therefore, if the stores of the two sides are placed together, you will immediately feel that the stores of Gongcha are more exquisite and advanced.
Because of this difference, coupled with the fact that Gongcha is advertising and marketing on TV, the Gongcha business is very strong.
In addition, the number of franchisees is increasing, so the franchisees of Yu-Gi-Oh are no longer profitable a few months ago, and now these franchisees are generally starting to have a hard time.
There are even a small number of franchisees of Yu-Gi-Oh, whose daily profits are not worth the fixed costs, and they are about to go out of business.
Therefore, the franchisees of Yu-Gi-Oh generally hope that the head office can find a way to change the market environment. Now the company has finally stepped forward and engaged in promotional methods. Although it seems to be the most common means of price reduction, it is better than nothing!
After all, according to the agreement they signed with the head office, without the approval of the head office, no franchisee is allowed to make any changes in the price privately, otherwise tens of millions of yen will be imposed in liquidated damages.
In fact, there are many franchisees who have hoped to reduce prices to attract customers, but their suggestions have not been approved by the head office.
Now the head office has finally announced a comprehensive price cut, which has made some franchisees breathe a long sigh of relief.
Therefore, when the price reduction order was conveyed this time, the franchisee basically did not have any fierce opposition, and it was implemented very smoothly.
At the same time, it turns out that Boss Jia is right, the most ordinary way is the most effective way.
Just like before Aiduo VCD price reduction immediately gained the market, when the price of Yu-Gi-Oh's three main milk teas was reduced, the entire market was instantly pulled into the hands of Yu-Gi-Oh milk tea shop.
After all, 30 yen is not a small amount for many customers, and more importantly, many of them are heavy milk tea lovers and have to drink several cups of milk tea every day before they give up.
If you drink three cups of milk tea a day, you can save 90 yen a day, or 2,700 yen a month, and you can buy half a box of game cartridges.
In addition, those who are familiar with Yu-Gi-Oh and Gongcha know that the taste of the two milk teas is actually similar, especially the three popular models, the taste is basically carved out of a mold, and there is no big change, so everyone naturally votes with their feet and buys cheaper milk tea.
As a result, the consequences of the price reduction are quite obvious, the day before it was overcrowded, and there were people queuing up from time to time for tribute tea, and on the second day, it became a little crowded, and the door of the Yu-Gi-Oh milk tea shop began to queue up.
So although the price has been reduced, the total daily profits of many franchisees have risen, and all franchisees have begun to be happy.
Yu-Gi-Oh is happy, Honda Ichiro of Gongcha is naturally unhappy, at the beginning Honda Ichiro also planned to take this opportunity to open the brand gap, Gongcha is not to reduce the price, through the price to improve their grade.
So for nearly 10 days, Gongcha has been carried without price reduction.
But soon Honda Ichiro found out that it couldn't be done, because the market was too robbed, and even if each store of Gongcha did not produce any milk tea every day, the costs of employee employment, rent, maintenance, etc. were fixed.
The 7,000 stores in Fusang are added together, and every day is an extremely terrifying number, once the sales volume declines, Gongcha as a whole will have almost no profit at all, and it will lose money.
So after holding on for ten days, the tribute tea couldn't bear it, and they began to reduce the price.
At this time, an executive suggested that Ichiro Honda did not need to reduce the price to the same level as Yu-Gi-Oh, and reduced it to 125 yen, so that the price could still reflect the grade of both parties.
However, Ichiro Honda did not accept this suggestion, he felt that since the price was going to be reduced, he would reduce the price to 110 yen in one go, which was 10 yen cheaper than playing the game, so that he could directly grab all the customers of Yu-Gi-Oh.
At the same time, Honda Ichiro believes that he has more room for price reduction than Daqian, because the profits of Gongcha are his own, but the profits of Yu-Gi-Oh need to be shared equally by franchisees and Daqian.
And according to Jia Yapeng's treacherous business nature, he will never let Daqian bear the loss of profits, and these lost profits will definitely be all pressed on the franchisee, so once Daqian exploits the franchisee too hard and makes the franchisee unable to make money, it will be time for Yu-Gi-Oh to fall apart.
Honda Ichiro thought it was beautiful, but he forgot that his theory must have a premise, that is, the cost of both parties is indeed the same, only in this way, as a franchise system, the ability to bear profit losses is indeed lower than that of a directly operated store like Gongcha.
As a result, Gongcha finally reacted and announced that it would also reduce the price of all its original milk tea to 110 yen a cup.
In an instant, the entire market began to reverse, and the customers who originally ran to Yu-Gi-Oh every day to drink milk tea all went to Gongcha to drink milk tea, and for a while, it became Yu-Gi-Oh Milk Tea Shop.
However, Daqian's reaction was much faster than that of Gong Cha, and Yu-Gi-Oh quickly announced the next day that he would continue to subsidize it, and the price of each bottle of milk tea would drop to 105 yen a cup, no more, no less, 5 yen cheaper than Gong Cha.
Then the students voted with their feet again, and Yu-Gi-Oh milk tea started again.
Enraged, Ichiro Honda, after hesitating for three days, lowered all the products to the level of 100 yen a cup.
And this time Yu-Gi-Oh seems to be a little cowardly.,After hesitating for a day,Yu-Gi-Oh also pushed the price to the level of 100 yen a cup.,And then the price war between the two sides is stopped.,Let the audience be a little sad.,If the two sides keep reducing the price like this,How good it would be!
"Daqian can't hold on for long, his franchisees can't afford such a low price, they will definitely rebel against Daqian!" At the company's meeting, Ichiro Honda prophesied so loudly.