Chapter 458: Price War

The boss of the garment factory in later generations could not imagine how beautiful the golden age of the garment and textile industry was from the early 80s to the early 90s, when the profits were really high, and the business was really good, but it was a pity that such a good market and such a high profit were tossed by themselves, and finally they were put on a "dumping" hat by outsiders, which was simply worth the loss.

Jiang Youxing and his Youmin Factory are like this now, using this kind of means to harm others and not benefit themselves, where is this to grab jobs? It's clear that they're here to smash the pot.

"Four words to describe it." Sun Yaoliang smiled bitterly and said, "Menacing." ”

"It seems that our expectations are not bad, what is the reaction of those cigarette paper shops now?" Song Yuanchao was not surprised by this answer, and asked.

"There are various reactions, but most cigarette paper stores still plan to continue to cooperate with us, after all, we are the first manufacturer to carry out the direct supply sales model, and the cooperation between each other in the past two months is very good, whether it is product sales or service each other is very satisfied." Speaking of this, Sun Yaoliang paused, and said: "But now Jiang Youxing and they have lowered the price, and the price supply of the drink in Youmin Food Factory is 5% less than our bottle, which is a big problem, and the salesmen are all responding to this matter, according to their feedback, the sales terminal is nothing more than asking the price to be reduced to the same price as Youmin Food Factory, otherwise it is difficult to guarantee that they will not consider purchasing from Youmin." ”

"Hehe, fight a price war?" Song Yuanchao shook his head with a smile.

Don't underestimate the 5 percent, you must know that soda belongs to fast-moving consumer goods, and fast-moving consumer goods run in quantity.

The daily output of a branch factory is less than 100,000 bottles, which is nearly 500 yuan according to the price of a bottle of 5 cents, and based on 30 days a month, it is 15,000 yuan, which is not a small number.

According to Song Yuanchao's previous calculations, the profit gap of 5% is almost the distribution cost plus part of the office cost, if the 5% profit is ceded, then it is equivalent to directly bearing this part of the cost from the original sales profit.

"What do you think about this?" Song Yuanchao asked rhetorically.

Sun Yaoliang didn't think about it, and said categorically: "The market must not let go, this sales model was originally the first we started, and the current sales channels in the urban area are also run down by the comrades of our sales company, which is clear to everyone about the energy and hard work." ”

"If quality is the life of the product, then the sales channel is the life of the people we are engaged in supply and marketing, and hand over the life to others? I can't do that! ”

"Isn't it 5 cents? They can lower this price, we can also drop it, the east wind blows the war drums, who is afraid of whom in the price war? ”

"That's right, you can let anything, but you can't let the channel!" Song Yuanchao knows very well that this is absolutely unyielding, and the profits of the entire clothing and textile industry have been greatly reduced since the mid-nineties, so as to enter a crazy bottomless competition.

Among so many entrepreneurs, isn't there a person who really has a vision? Answer: Eucalyptus is naturally no.

In fact, some entrepreneurs have seen the problem, but in the face of the entire industry and the entire market, they simply cannot do anything.

Because when the bottomless crazy competition begins, they can't stop, and once they don't join this competition, the result is to lose all orders, and thus face the end of closing the business.

When faced with the two options of "immediate death" and "chronic suicide" without a third way, everyone can only choose the latter, even if they are reluctant, which cannot but be said to be sad.

And now Song Yuanchao is also facing this choice, although today's market potential is far greater than that of later generations, even if the other party's price impact is avoided by the sales of a branch factory, it actually has little impact, but such a thing can not be done, because once it is done, it is equivalent to admitting defeat in the market, which is a very big blow to the morale of a branch.

"You can have a price war, but you need a strategy, and you can't simply cut the price." Song Yuanchao said to Sun Yaoliang.

"You mean ......?" Sun Yaoliang thought about it thoughtfully.

"The ex-factory price of 6 points is the current industry standard, and this price is set by the superior department, and the wholesale price of 7 points and the sales price of 8 points are also the same." Song Yuanchao took a puff of cigarette and stretched out his hand to light it on the coffee table: "From the perspective of supply and marketing mode, it is the whole link of factory-wholesaler-sales terminal-consumer. Our direct supply sales model is to directly jump out of the wholesaler environment, and adopt the way of cooperating with the sales terminal, so as to make profits to the sales terminal. ”

"I won't say much about the benefits of the new direct supply sales model, you also know it in your heart, but from the inside of the industry, although we have made concessions to the sales terminal, but in fact there are not many concessions, just to take out part of the profits of the original wholesalers, from this point of view, we have not broken the rules of the industry, and still retained part of the profits for the wholesalers, and the game was carried out within the rules, without jumping out of this range."

"But the price war is different, if you continue to give up the 5%, it is equivalent to completely ignoring the wholesaler, curbing the entire wholesaler channel in the local sales of this product, the impact is very large."

Sun Yaoliang pondered for a moment, then looked up and said to Song Yuanchao: "I understand, once the price war of Youmin Food Factory starts, the biggest loss is actually not us but them, after all, the wholesalers in the original supply and marketing channels of our branch factory only take the supply and marketing cooperatives as the main body, and there is not much cooperation with the other three major companies. In addition, the current sales direction of the supply and marketing cooperatives is basically in the urban-rural junction area, and the impact on the urban area is minimal, so we made a concession of 5% when we directly supply sales, which has no impact on the rules of the three major companies. ”

Sun Yaoliang is right, the rules are not affected, as for the impact of the product boom or unsalable, it is naturally not in it, limited to the nature of the current enterprise, at least one branch of the factory did not let people find fault in this point.

"But Youmin Food Factory is different from us, I have investigated before, Youmin's sales channels have always been on the side of the three major companies, and the sales of the three major companies account for more than 90% of their sales over the years. But now Jiang Youxing is learning that we are also engaged in direct sales, and in order to seize the market, we have directly reduced the price, which is equivalent to directly transferring the profits originally given to wholesalers to the sales terminal. The consequences of this are very serious for them, not to mention the rest, just a little bit, if I am the leader of the supply and marketing department of the three major companies, if I hear this news, then I will definitely not continue to cooperate with Youmin, because what is this still cooperating? The price they give themselves is 6 cents for a bottle, and the price for cigarette paper shops is also 6 cents, so there is no profit at all! If you add other costs such as warehousing, personnel, and sales, do you have to lose money selling a bottle of soda? Only a fool would do it! ”

Sun Yaoliang is not wrong at all, and this is indeed the case. Jiang Youxing was simply dizzy, he not only directly offended the original sales channel, but also offended his peers in the entire industry in Jinling.

Directly take out the factory price to the sales terminal, do you let other factories follow? Isn't this forcing other factories to reduce prices together?

Since the reform and opening up, with the gradual improvement of the people's living standards, everyone's life has improved little by little, which is obvious. But at the same time, everyone's wages are rising, the materials in society are gradually abundant, and the prices outside are also quietly rising, which is a very normal thing in economics, which is called "inflation".

Song Yuanchao knew very well that there were three waves of sharp price increases around the beginning of the mid-80s, and the main reason was caused by the "price breakthrough". With these three waves of rising prices, it has also caused a wave of "rush buying".

Song Yuanchao used to be a member of the rush to buy, and he clearly remembered that he and Zhang Jianguo and his wife ran to the department store and grabbed whatever they saw, as if the banknotes in their pockets were about to turn into waste paper.

I bought a lot of rice, flour, oil and vinegar and other common necessities, and even hot water bottles, soap, toothpaste and straw paper were also moved home, and the house was full, and many things Song Yuanchao used it for a year and didn't use it up.

The current retail price of soda is 8 cents a bottle, this price has been used since the end of the seventies, but Song Yuanchao specified that the price of soda will definitely increase when it comes next year, and the higher authorities will give new price guidance for many products next year, among which fast-moving consumer goods such as soda are one of them, and then the soda will directly break through one cent from the existing price, and even reach the price of one or one cent.

From this point of view, the short-term price war can be fully afforded by a branch, not to mention that it is now close to the end of August, and it will cool down in another month, and the sales of beverages will also enter a state of relaxation.

Song Yuanchao told Sun Yaoliang that they would accompany them to the end in a price war, but how to fight was strategic, after all, the rules of the industry could not be broken, let alone blamed in this regard.

Song Yuanchao and Sun Yaoliang chatted for a long time that day, and they didn't leave after work, and continued to discuss specific plans in the office.

Early the next morning, the sales company officially started at the new site, the first thing to start is that Sun Yaoliang convened all the salesmen for a sales meeting, at the meeting Sun Yaoliang explained to everyone that the current due to the reasons of the excellent factory caused by the impact of the urban sales terminal, facing the serious problem of sales channels being robbed.

According to this actual situation, Sun Yaoliang asked everyone to be vigilant, step up contact with the customer base in hand, stabilize people's hearts, and ensure the smooth flow of sales channels.

In addition, Sun Yaoliang also took out the countermeasures discussed with Song Yuanchao yesterday, and everyone listened attentively, and they did not dare to be careless about this matter, after all, how the efficiency of the sales company is determined entirely by sales, once sales decline, then they are the salespeople who will be most affected.

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