Rebirth of the Industrial Tycoon

Korea Hao is worthy of being a leader of a state-owned enterprise. In the face of sudden competitors, the first thing that comes to mind is to cut prices!

I just listened to Han Guohao and said: "I have specially researched the product prices of Shenfutun Chemical Factory. The softeners, detergents and printing agents they produce are about the same as our prices, and the platen glue is 500 more expensive per ton than ours. more bucks.

As far as product quality is concerned, the textile preparations we produce are indeed inferior to Shenfutun Chemical Factory. Under the same price, customers will of course choose Shenfutun Chemical Factory's products.

So if we want to grab back the market, we must cut prices! We sell our products at a lower price, and even if the quality is inferior, those customers who think are cheaper will come to buy our products. "

"Director, how much should we reduce the price?" asked the deputy director's cousin.

"The profit margin of softeners is relatively large, so let's reduce the price by 20%. Other detergents and printing agents should also be reduced by 10%. As for the platen glue, our products are already cheap..." Han Hao hesitated for a few seconds. , said; "Then let's drop it by 10%!"

The deputy director's cousin quickly calculated and said, "Factory director, in this case, our profits will be greatly reduced, and we will hardly make much money."

"In order to grab the market back, why not earn a little less!" Han Hao pouted and continued: "There are only so many textile enterprises in Qinghe City, and the demand is so great. Those textile enterprises bought our goods, naturally I won't go to Shenfutun to buy goods. After a long time, the Shenfutun chemical factory can't hold back and close down, so let's raise the price again!"

...

Li Weidong stayed in the garment factory all morning. After dealing with various chores, he rode a motorcycle to the Shenfutun Chemical Factory.

"Weidong, you came just in time, my dad is looking for you!" Shen Yuanchao shouted at Li Weidong from afar.

Li Weidong stopped his motorcycle, walked into the office, and saw that Shen Zheng was already waiting there.

"Second uncle, do you have anything to do with me?" Li Weidong asked.

"Yeah, there is something I want to discuss with you." Shen Zheng paused, and then said: "At the Second Chemical Factory, the prices of softeners, platen glues, detergents and printing agents have all been reduced!"

As Shen Zheng said, he reported the price of the second chemical plant to Li Weidong.

"This Korean Hao is going to have a price war with us!" Li Weidong said calmly.

"Since the second chemical plant has already cut prices, I'm thinking, let's cut prices as well, otherwise the products produced will not be sold, what do you think?" Shen Zheng asked.

Li Weidong thought for a moment, then nodded: "I think it's ok. Softeners are more profitable. Even if we cut prices, we can make money. Detergents and printing agents have low profits. If you cut prices like this, It's close to the cost. As for the platen glue, we still maintain the original price and do not drop it!"

"Why?" Shen Zheng asked.

"This platen glue is different from the previous products. Our platen glue is considered to be at the middle and upper level in the world, and it is far ahead of the second chemical factory. It is precisely because our platen glue is of good quality, so It can only sell for more than five hundred yuan per ton.”

Li Weidong went on to explain: "Those who come to us to buy platen glue should be manufacturers who need high-end printing. For them, the platen glue we produce is irreplaceable, and they will come to buy it no matter whether the price is reduced or not.

Since only we can produce this high-quality product, we must bite the price and never cut the price, at least before similar products appear on the market, we cannot cut the price! This ensures profits. "

"Okay, you are well-informed, this matter is up to you." Shen Zheng nodded.

The benefits of family businesses are once again reflected. For family businesses in rural areas, their managers are farmers, who have never seen the world and do not know how to run a business.

In the eyes of rural people, Li Weidong, a city person who has seen the world, must have a reason to speak.

Therefore, it is easy for them to follow Li Weidong blindly.

...

The Second Chemical Plant is also always paying attention to the movements of Shen Futun. After the price reduction of Shen Futun Chemical Plant, Korea Hao knew the news immediately.

Han Dong's habit of not knocking on the door can't be changed. He rushed into Han Guo Hao's office recklessly. Fortunately, Han Dong did not engage in any improper relationship between men and women. Otherwise, he would be caught by his own son and have to cause a family dispute.

"Dad, Shen Futun has also lowered the price. This is their price list!" Han Dong handed a price list to Han Dong.

Han Guohao glanced at the price list and said, "This is the price that is closely watching us!"

"If the prices are the same, customers will definitely go back to Shenfutun to buy goods. After all, their quality is better." Han Dong then asked: "Dad, what should we do next?"

"What else can I do, continue to reduce the price!" Han Hao said, picked up the pen, and wrote a few prices on it.

"Sell at this price!" Han Hao handed the price list to Han Dong.

Han Dong looked at the numbers on the price list, and frowned immediately, then he said, "Dad, if we sell like this, we will lose money!"

"I don't know how to lose money!" Han Hao glared at Han Dong, and then said, "You have to sell it at a loss!"

"Dad, I know you want to grab the market back, but we shouldn't be doing a loss-making business!" Han Dong said.

"What do you know, do you think I'm just trying to grab the market back? I'm going to kill the Shenfutun Chemical Factory, or at least force them to change production!"

Han Guohao said, "Although the Shenfutun Chemical Factory is a village-run enterprise, its production technology is more advanced than ours. If they are allowed to grow and develop, they will inevitably become our strong enemies in the future, so we must take advantage of the Shenfutun Chemical Factory's return. If they don't develop, kill them first!

We are a large state-owned enterprise, we have capital, and in addition to producing textile preparations, we also produce other chemical preparations. Even if we sell textile preparations at a loss, we can use the money earned from other chemical preparations to make up for the losses in textile products. So even if we sell at a loss, we can still survive.

But Shenfutun Chemical Factory is different. They do not have such a large capital, and they can only produce textile preparations. If Shenfutun follows us to cut prices, it will definitely lose money within a few days. But if they don't drop the price, customers won't buy their product, so they're dead anyway! "

"I understand, we are hurting people with our own intentions!" Han Dong said.

Han Guohao nodded: "This trick, after all, kills one thousand enemies and damages eight hundred, that is, it can only be used by bullying a small factory like Shen Futun. But as long as we can kill this Shen Futun chemical factory in its cradle, we can use it. Even if you lose a little money, it's worth it!"

...

Shen Zheng handed the latest quotation from the Second Chemical Plant to Li Weidong.

"Weidong, the Second Chemical Factory has cut prices again!" Shen Zheng said.

Li Weidong took over the quotation from the Second Chemical Plant, looked closely, and frowned. Then he took out a pen and began to calculate on paper.

After a while, Li Weidong raised his head and asked, "Second Uncle, should this price be lower than the cost price?"

"Who said no! If we sell at this price, we will definitely lose money." Shen Zheng nodded.

"You can't do a loss-making business. Let Han Hao play by himself this time. We can't follow up." Li Weidong said with a smile.

Shen Zhengze asked worriedly: "Wei Dong, do you think Han Guohao sells products so cheaply, can he make money?"

"We are all going to lose money. The second chemical plant will only lose more. Our production cost is lower than the second chemical plant!" Li Weidong said.

In general, the cost of large-scale production is definitely lower than that of small-scale production. Therefore, the production cost of the second chemical plant should also be lower than that of the Shenfutun chemical plant.

But this is not the case. The production cost of Shenfutun Chemical Plant is lower than that of the Second Chemical Plant.

The reason is because the second chemical plant is a state-owned enterprise.

The personnel system of state-owned enterprises is bloated. In addition to front-line workers, there are also a large number of administrative and logistics personnel. The longer the operating time and the larger the state-owned enterprise, the more administrative and logistics personnel. These administrative and logistics personnel do not undertake front-line production tasks, but they are paid a little bit.

In addition to paying employees' wages, medical expenses and pensions, state-owned enterprises also provide employees with various benefits, such as canteens, kindergartens, etc. These are additional expenses and increase additional costs.

A village-run enterprise such as Shenfutun Chemical Factory does not have a bloated personnel system. When the production task comes, Shen Zheng, the director of the factory, has to go to the workshop to carry the raw materials. It can be said that in village-run enterprises, many people hold multiple jobs, and everyone is a front-line worker.

Moreover, village-run enterprises do not have to bear the medical expenses and pensions of their employees, and naturally they do not need to set up canteens and kindergartens welfare departments, which saves a lot of extra expenses.

The workers in the Shenfutun Chemical Plant are all farmers. They have land in their families. As long as the farmers can move, they will work in the fields. The old-age care depends entirely on their children, and there is no such thing as a pension.

As for kindergartens and canteens, there is no need for them to exist in rural areas. Children in rural areas all have fun in the fields, so they can use kindergartens wherever they can;

It can be said that the little money saved by large-scale production is nothing at all in the face of huge human expenditure.

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Li Weidong roughly explained to Shen Zheng why the production cost of the second chemical plant would be higher, and Shen Zheng asked with a puzzled face: "Isn't this second chemical plant selling at a loss now? Why are they? To do this?"

"Korean Hao is hurting people with his own heart!" Li Weidong sighed and continued; "The second chemical plant is large in scale, they have capital and can afford to lose money. We have less capital, but we can't afford to lose money! So We definitely can't cut prices like the second chemical plant."

"Then if we don't cut prices, the second chemical plant will sell it cheaper, and customers will all go to the second chemical plant?" Shen Zheng asked.

"That's why it hurts people." Li Weidong smiled indifferently, and then said: "Second uncle, you don't have to worry, there is no Harvest Factory! The Harvest Factory has signed a contract with a Hong Kong businessman. The equipment from the Hong Kong company is about to be delivered, and the harvest factory will definitely buy from us."