1986: Old Stories in Northeast China

"Brother Chen, those who dare to contract a factory are indeed extraordinary."

Zhou Fengxia said with emotion after getting into the car.

"Did you see that?" Chen Tiezhu asked happily.

"Why can't you see that? He originally wanted to transfer the receivables into the profit. Or the profit during their contract period, they will have to pay it back at that time." Zhou Fengxia said.

"Yes, in fact, for many companies, such a credit sales method is really not advisable." Chen Tiezhu said.

"Especially when they don't have much financial support, they may be dragged down in a short time. The final result is the same as the machinery factory."

"Tiezhu, why did the big feed company dare to do that? Is it because they have money?" Liu Dayou asked curiously.

"It's almost because of this reason. In fact, it's almost the same as a price war." Chen Tiezhu said.

"The purpose of price war is to monopolize the market. Now they can earn back the money they lose after monopolizing the market."

"And such monopoly can be done by one company or several companies jointly. Anyway, the ultimate goal is to gain the pricing power in the market."

"The pricing of a commodity is actually affected by many factors. For example, the price of raw materials, the supply and demand relationship in the market, the influence of human factors, etc. It depends on how it is operated."

"These means will also be one of the main means for these big companies to hunt in the market in the future. They have strong financial support, so they can take more initiative. Because even if they consume, they can consume you to death."

"Our market will be gradually opened to foreign countries. What level are those big foreign companies? How can we small companies deal with them?"

"Brother Chen, do you mean that there will be foreign companies coming to our country in the future? Then the country will not care?" Zhou Fengxia frowned and asked.

"It depends on the situation. After all, we will still be dominated by the market economy in the future. Unless some special products will be controlled by the state." Chen Tiezhu said.

"Let's take the simplest example, such as the feed industry we just came into contact with. If another large company comes in and they want to expand rapidly, what methods do you think they will use?"

"Like what I just said, compete by selling at low prices?" Liu Dayou said.

"This is a means, but it is not the most brilliant means. In fact, it can be achieved by another subtle means." Chen Tiezhu said happily.

"What is that?" Zhou Fengxia was a little confused.

"For example, in our province, the three of us are all in the feed business, and we also occupy a certain market share." Chen Tiezhu said.

"Then Yingzi came to develop, built a factory by herself, and sold it to test the market's reaction, and by the way, increased the market's reputation. Then, she talked to the three of us separately, wanting to buy our feed company."

"Originally, the assets of our three feed companies were only worth one million. That's no problem. I'll give you 1.3 million, a premium of 30%. Do you think this is a good deal? I can also give you a better position."

"Just like our operation of the East China Feed Factory, we can retain a certain degree of their management rights. Is this operation also possible?"

"Uh..., what's the surprise attack? This guy must have lost a lot of money, right?" Liu Dayou asked with a wry smile.

He really didn't understand, because this operation would obviously lose money. It would be better to build another factory directly, and save a lot of money.

"This trick is really bloodless." Zhou Fengxia frowned and said.

"Hehe, it seems that Sister Xia has figured it out." Chen Tiezhu was happy.

"I have a feeling. Brother Liu, just think about it. After the acquisition, even if I still sell the original brand of feed, will I have taken over the entire market?" Zhou Fengxia said.

"Basically, I have established my market position in this area, and I have the final say on what happens next. Even if someone else comes in the future and wants to grab the market from me, it will be difficult."

"It's not about how much money is spent in the acquisition process. Compared with the future market share, the profit that can be generated is really too high."

Listening to Zhou Fengxia's words, Liu Dayou began to sweat on his forehead. I never thought that it could be played like this.

"So, the next test for many of our companies is not in other aspects, but in the competition with these big capitalists." Chen Tiezhu continued.

"Let's talk about the public auction in Myanmar. That's a powerful place, right? In the end, it will be taken over by Hong Kong.Why? Because they have money. "

"This is the cruelty of the market economy, and it is also difficult for the country to control. After all, our domestic market will be very large, and the competition will be very fierce in the future."

"Working hard to run a business is to make money. If someone gives you a large sum of money, can you enjoy the benefits in advance? Why do you still work so hard?"

"Anyway, you have to keep a close eye on our business in the future, and don't dare to let others harm us." Liu Dayou said.

"Brother Liu, don't worry. It's too difficult to harm Brother Chen, who is so smart. He has a sharp eye, and he just needs to not harm others in the future. "Zhou Fengxia said with a smile.

Chen Tiezhu grinned and did not continue speaking.

You know your own business. This is not because he has a bad eye, but because such a situation is a real example in the future.

How fierce the market competition in the future is. How many state-owned and private brands were eventually taken over by foreign capital and disappeared in the dust of history.

With his small body, he does not have the ability to withstand the swallowing of these capital crocodiles.

Because they will have many tricks, it is not that you can do well in the domestic market. In the international market, it also occupies a large proportion.

"Zhou'er, do you plan to get married after Dandan graduates in the future?" Liu Dayou asked with a smile.

I don't want to continue on this heavy topic. For him, the burden is a bit heavy.

Zhou Fengxia scratched his scalp, "It depends on what the family thinks at that time. I want to do this, but I don't have the final say. "

"Hehe, don't think that Dandan is younger than him, she is very opinionated." Chen Tiezhu said happily.

Zhou Fengxia smiled bitterly and nodded.

In fact, he also knew that the decision-making power of this matter was still in Lu Dan's hands.

This girl was a bit lawless to begin with, and now she has Chen Tiezhu as a backer, so she can just endure it slowly.