After more than a month of arduous and complicated mobilization and persuasion work, the number of employees of the Municipal Daily Chemicals Company was reduced from 1,067 to 852. Among them, there are 642 front-line production workers and 210 second- and third-line management and logistics personnel.

The 215 employees who were downsized were not laid off, but were shunted to suitable positions in other second-level units of the group company through two-way selection of reemployment.

At the same time, most of the individual shares in the hands of employees were transferred to the investors in Xingzhou at twice the price after negotiation, and only a few people resisted the temptation to double their profits and were willing to continue to hold shares, but the proportion has fallen to an insignificant 2 percent.

In addition to streamlining personnel, the company's management organization has also carried out large-scale mergers and reorganizations, streamlining management levels and responsibilities, and greatly improving work efficiency.

On the eve of May Day, Zheng Qunying and Lang Yiqi rushed to the headquarters of the group company to report to Geng Wenyang the effect of the company's streamlining and rectification, and then told him a bad news.

"Mr. Geng, the company has lowered the market price of each bag of laundry detergent from three yuan to two yuan, and it is said that the price will continue to be reduced." Zheng Qunying said worriedly: "The ex-factory price of each bag of our products is only eight cents a piece, and if we don't reduce the price, the wholesalers will not buy from us."

"Two dollars for a bag of laundry detergent?" Geng Wenyang touched his chin and pondered: "This is to use low-price dumping to occupy the market and squeeze our company to death."

"yes!" Lang Yiqi said angrily: "Qiu Hongxiang called us yesterday and gloated and asked when we would stop production. I was so angry that I scolded him."

Geng Wenyang said, "Lao Zheng, tell me the truth, what is the cost of each bag of laundry detergent in our company?"

Zheng Qunying said: "Before the rectification, it was about five or six pieces, and after the rectification, it can be reduced to three or four pieces."

"A piece of three or four ......," Geng Wenyang tapped his fingers on the table and thought for a while, and said decisively, "Then we will also reduce the price!" Let's go down to five and see what happens in the future before we decide what to do."

The ex-factory price is five, the wholesale price can reach six or seven pieces, and the retail price is about seven or eight pieces, which is only two or three cents different from the company's products, and I am afraid that the people will not necessarily buy it.

Zheng Qunying worried: "Mr. Geng, if it comes down to five, we will only have a profit of more than a dime, and there will not be much left after deducting taxes and fees."

"This is a special time, and the situation forces us to take special measures." Geng explained: "The purpose of their dumping at low prices is to squeeze us out of the market and starve us to death. Therefore, as long as we survive this economic war, we will win."

He sneered, "I guess they'll continue to cut prices. As long as they fall, we will also fall, even if we lose money, we have to occupy the market, and we must not give up easily."

Continued price reductions? Zheng Qunying and Lang Yiqi were taken aback when they heard this. The ex-factory price of each bag of laundry detergent is reduced to five per piece, and the profit is only a little more than a dime. If it drops again, it will really be a loss of money.

"Mr. Geng......" Zheng Qunying tentatively discussed, "Actually, we can reduce the price a little first, such as to a piece of six, and then see if the situation goes down further."

"yes!" Lang Yiqi replied: "In this way, we can earn more than two cents per bag, and even after deducting taxes and fees, we can still make a slight profit."

Geng Wenyang shook his head and said, "The ex-factory price has risen by a dime, and when I get to the retailer, the price of each bag of laundry detergent is not much different from that of the company. The two products are about the same price, who do you think the people will choose?"

Baicheng Daily Chemicals Company has been stained with the light of a local enterprise and has always had a reputation for cheap and high-quality products in the minds of the people. However, due to the limitations of technology and formula, as well as the lack of advertising, the company's products are still much inferior to those of tall international companies.

In the past, people chose local products to be cheap. If the price difference between the two is substantial, consumers are more likely to switch to a company with a better image and quality.

But Zheng Qunying said this with his own considerations, and insisted on his opinion: "Even if ordinary people don't buy our laundry detergent, they will only earn a little less, but they will not lose money. If it's a dime down, let's

It's close to trading at a loss, and it doesn't make much sense to maintain production."

Geng Wenyang saw that the concept of the two of them was still stuck in the idea of a large enterprise with a planned economy, so he had to point out: "When people buy the same commodity for a long time, they will recognize it, thus forming a consumption habit. If our products are squeezed out of the market by the company, even if they raise the price after a while, the people will no longer recognize our products."

He paused and continued: "So even if we lose money and make money, we have to continue to produce, in order not to let the people lose the recognition of our brand."

"This ......?" Zheng Qunying hesitated, "Is the price too much?"

"How can you get something if you don't give?" Geng Wenyang said: "It is impossible for business competition not to pay a price, the key is whether the value of the generation paid is not worth it?"

He looked at the two of them and said, "The ex-factory price is set at one and a half yuan, and we can still make a small profit. In fact, if you follow my meaning, simply reduce the price to one dollar per bag, and use the method of Jedi counterattack to grab the other party's market, this is much more practical than the other party's price reduction."

A bag of laundry detergent for a dollar?! Zheng Qunying and Lang Yiqi were directly stunned when they heard this, and only after a while did they mutter: "Mr. Geng, not even a dollar is enough!"

"So you two have to continue to find ways to save energy and reduce consumption and reduce costs when you go back!" Geng Wenyang instructed: "After the two of you go back, you will immediately carry out energy-saving and consumption-reducing activities in the whole field, and mobilize front-line workers and technicians to use their brains to find a way, and we must reduce the production cost to about one dollar. In this way, we have the confidence to accompany the company to the end."

Zheng Qunying and Lang Yiqi saw that his tone was resolute, and they knew that it was useless to oppose it, so they had to say, "Okay, let's have a meeting when we go back and do everything we can to reduce the cost."

Baicheng Daily Chemicals Co., Ltd. has greatly reduced the price of ex-factory laundry detergent from eight cents per bag to five cents per bag, thus quietly withstanding the overwhelming attack of the company's two-yuan products. Although some old users have been lost, fortunately, most of the people still recognize their brands, and the sales volume has not decreased much.

Qiu Hongxiang saw that the low-price tilting strategy was not effective, so he lowered the market retail price of each bag of laundry detergent by two cents, which has reached an unprecedented eight cents a piece.

After Geng Wenyang got the news, he immediately commanded Zheng Qunying to reduce the ex-factory price to nine cents, and the retail price in the market was only three or four yuan. Such a low price not only protects its own market users, but also recovers some of the lost users.

Qiu Hongxiang was directly confused by the other party's behavior of not playing cards according to the routine: "Nine cents and a bag of laundry detergent, aren't these guys really crazy?"

What he didn't know was that after the concerted efforts of the whole factory staff, the daily chemicals company took effective measures to save energy and reduce consumption in all aspects of production, and the production cost of each bag of laundry detergent has been reduced to an unprecedented nine cents, and it initially has the capital and confidence to fight a low-price price war.