Reborn Industrial Tycoon

Chapter 126 The price war starts

In a blink of an eye, the opening day of the Canton Fair has arrived.

Before dawn, Li Weidong arrived at the exhibition hall and placed several sets of wool car seat cushions on his counter.

In the seat cushion exhibition area, the most conspicuous positions are linen car seat cushions. These sets of wool car seat cushions by Li Weidong suddenly seemed a little out of place.

But it is precisely this kind of incompatibility, like a husky mixed in among the sheep. It is so conspicuous that it instantly attracts the attention of merchants. When everyone comes to the cushion exhibition area, the first thing they see is bound to be

It's a wool car seat cushion.

Li Weidong sat in the corner, looking very indifferent, watching foreign businessmen of various skin colors walking around.

On the first day of the exhibition, except for the orders negotiated in advance, the vast majority of foreign businessmen came just to browse and were not in a hurry to place orders.

Li Weidong has already received news from Ma Dexing that Wal-Mart buyer Gordon has already checked into the White Swan Hotel and will definitely come to the exhibition today.

Wool car seat cushions are something that most people in the country cannot afford, and only the United States, a wealthy country, can buy them in large quantities, so Li Weidong simply found a place to hide and wait for Gordon to arrive.

As a result, Gordon did not wait, but Mr. Wu from Singapore came.

At the last Canton Fair, Mr. Wu also ordered a thousand sets of linen car seat cushions from Li Weidong. Although the quantity was not large, he was still a repeat customer.

Seeing Mr. Wu approaching, Li Weidong immediately greeted him.

"Mr. Wu, we meet again!" Li Weidong said hello, and then asked: "The sales volume of the last linen car seat cushion in Singapore was not bad, right?"

"The temperature in Singapore is hot and the air is relatively humid. This kind of linen car seat cushion is really suitable for use in Singapore. In addition, some of my Chinese friends in Malaysia are also interested in this kind of car seat cushion, so I plan to order another one this time.

Approval of car seat cushions." Mr. Wu replied.

"That's great! I'm very willing to serve you. How much do you plan to order this time?" Li Weidong asked.

Mr. Wu said: "I wonder if the price has changed this time?"

"Of course not, it's still 29 US dollars for a set. If you buy the front seats separately, it's 8 US dollars a piece. If you buy the rear seats separately, it's 15 US dollars a piece." Li Weidong said.

"Since the price has not changed, I plan to continue to order a thousand sets." Mr. Wu said.

At this moment, someone from another manufacturer nearby came over.

"Sir, our linen car seat cushions are priced at only US$25 per set!" the man said.

Mr. Wu was stunned for a moment, then looked at the man: "You mean, your linen car seat cushions cost 25 US dollars a set? Is it the same product as the one sold by Mr. Li?"

"Of course. Look, this is our product, which is also made of flax fiber and wool." The man hurriedly brought a sample and handed it to Mr. Wu.

Mr. Wu took the sample, looked at it carefully, and then touched it with his hand, as if to confirm whether the materials were consistent.

Then Mr. Wu looked at Li Weidong and said: "Mr. Li, I'm very sorry, I'm afraid I can't purchase products from you. Your colleague's products are the same as yours, and the price is cheaper."

"It doesn't matter, you have the freedom to choose the product." Li Weidong smiled, not at all angry after being robbed of business, as if he was not involved in this order at all.

At this moment, a sales representative from another manufacturer came over and said, "Sir, we can also provide the same product, and the price of a set is only $22!"

"22 US dollars? The same product? Is it true?" Mr. Wu asked in surprise.

"Of course it's true. Please take a look, this is our sample." The sales representative immediately brought over the linen car seat cushion from his factory.

Mr. Wu carefully touched the sample of linen car seat cushion and showed an excited expression.

When the first sales representative saw that his business was being robbed, he immediately said, "Sir, $25 is just our quotation. If you really want to order, our price can be lowered."

"Oh? How much can it be lowered?" Mr. Wu asked with interest.

The sales representative gritted his teeth and replied: "21 dollars a set!"

At this time, the third sales representative also came over: "Sir, our same product only sells for 19 US dollars! Look, this is our sample!"

A fourth person also came over: "Sir, our products are sold for 18 US dollars a set. You should consider our products!"

"Sir, if you place an order today, I can give you a preferential price of $17!"

“Our product is $16!”

"Ours is only 15 US dollars, which is definitely the cheapest. Sir, you should consider our products."

"Sir, theirs is by no means the cheapest, because our set of linen car seat cushions only costs 14 US dollars!"

Sales representatives from various manufacturers surrounded Mr. Wu and started a price war. Seeing this scene, Li Weidong simply stepped aside, regretting that he did not have popcorn and melon seeds in his hands, otherwise he would definitely find a place to sit there now.

Stand up, eat popcorn, crack melon seeds, and watch a good show.

Mr. Wu felt like he was surrounded by happiness. A set of linen car seat cushions that originally cost 29 US dollars dropped to more than 10 US dollars in a few minutes.

In order to earn foreign exchange from exports, these sales representatives also worked hard, bloodletting and reducing prices one by one. The scene was like the Jinmen gangsters in the old society, competing to see who was more cruel to them!

Watching these sales representatives cutting his flesh, Li Weidong smiled slightly and murmured to himself, "I had expected it to be like this!"

At the last Canton Fair, Li Weidong had already anticipated this scene when he sold an order worth four million US dollars.

As a veteran who has worked hard in the shopping mall for many years, Li Weidong has long been accustomed to Chinese companies engaging in price wars. It seems that Chinese companies will never learn the methods used by foreigners to control product pricing.

Facing competitors, what most Chinese companies think of is not to engage in technology research and development or organize price alliances, but to engage in price wars. They act like they are dead friends but not the poor. In the end, they get orders and make huge profits.

reduce.

Today, Li Weidong is facing a group of such companies.

The companies that have the ability to imitate linen car seat cushions in the first place are all state-owned enterprises with deep foundations. These big entrepreneurs have strong foundations and can afford to lose even a little.

What's more, in the eyes of these large state-owned enterprises, earning foreign exchange from exports is more important than making profits.

In 1987, China suffered from trade deficits for many consecutive years, and its foreign exchange reserves were about to bottom out. The country was exporting at all costs to earn foreign exchange.

Therefore, for leaders of state-owned enterprises, being able to earn foreign exchange through exports represents outstanding political achievements.

With political performance, there is hope for promotion. In the future, it is possible to be transferred to a government agency or to be transferred to the leadership of a larger state-owned enterprise. This is all possible.

As for whether the company will suffer losses, it becomes less important compared with one's own career.

Even if they sell one item at a loss, as long as it is sold in U.S. dollars and can achieve the goal of earning foreign exchange through export, the leaders of state-owned enterprises will be very willing to do this loss-making transaction.

For large state-owned enterprises, the performance assessment of leaders must be based on the assessment of profits. If a state-owned enterprise suffers a loss, it is not the leader of the state-owned enterprise who loses his own money, but the country's money.

Even if the state-owned enterprise eventually goes bankrupt, these well-established state-owned enterprise leaders will still be able to enjoy the treatment they deserve according to their level.

Throughout the morning, Li Weidong watched several good shows, all of which were companies engaging in price wars in order to compete for customers.

As Li Weidong expected, the transaction price of linen car seat cushions dropped to less than $10.

However, this kind of price war has boosted the sales of linen car seat cushions. For example, Mr. Wu saw that the price was only one-third of the original price, so he purchased two thousand sets of linen car seat cushions at once.

There are also some not very wealthy countries, such as Argentina, Chile, Venezuela in South America, Malaysia and Thailand in Southeast Asia, and some businessmen in the Middle East also purchased a batch of linen car seat cushions.

A set of seat cushions costing US$10 is still affordable for people in these countries who can afford a car.

This morning, scattered orders from various countries were added up, and the number was 30,000 sets.

However, the total price of these 30,000 sets of orders is less than 300,000 US dollars.

This time for the Canton Fair, the person sent by the Ministry of Foreign Trade and Economic Cooperation was still Sun Xinmin.

At this time, Sun Xinmin was staying in the office, eating a box lunch and listening to a report on the morning's trading situation.

After all, Sun Xinmin was about to be promoted to deputy director. With his identity and status, the local government had already arranged for him to have lunch at a restaurant.

However, Sun Xinmin is a practical official, so he refused the local arrangement and did not go to the guest house for lunch. Instead, he stayed directly on the front line of the Canton Fair and ate boxed lunches.

In this way, if there is any temporary emergency, Sun Xinmin can deal with it immediately.

As a leader, Sun Xinmin still enjoys some special treatment. For example, his lunch box includes a Cantonese-style roast goose leg.

The roasted goose legs were very fragrant, and Sun Xinmin's mouth was full of oil, but his mind was not on the roasted goose legs. At this time, his mind was filled with the data reported by the eye secretary.

Just listen to the bespectacled secretary say in a straight tone: "This morning, a total of 30,000 sets of linen car seat cushions were sold in the cushion exhibition area."

"Thirty thousand sets?" Sun Xinmin raised his head and asked, "Is Gordon from Wal-Mart among these 30,000 sets?"

"No." The secretary looked at his watch and continued: "The news from the White Swan Hotel is that Gordon got up after ten o'clock and ordered breakfast. He should have just finished breakfast now!"

"Wal-Mart hasn't even arrived yet, but it has already sold 30,000 sets. There is really a market for this linen car seat cushion!"

Sun Xinmin continued: "I remember that this set of linen car seat cushions can be sold for 29 US dollars. If it is 30,000 sets, it will be 870,000 US dollars! If Gordon orders another hundreds of thousands of sets, just this linen car seat cushion will cost

You can earn 5 million in foreign exchange through exports!”

"Uh..." The spectacled secretary hesitated for a moment and said, "Director, I'm afraid there aren't that many. The total sales of these 30,000 sets of linen car seat cushions was less than 300,000 US dollars."

"What? How can it be so few?" Sun Xinmin put down the chopsticks in his hand and continued: "Bring the form over here!"

The secretary quickly handed the form to Sun Xinmin.

Sun Xinmin looked at the data on the form and his face turned livid.

Sun Xinmin is also a veteran in foreign trade. He could tell at a glance that these participating companies were engaged in a price war!

"These idiots!" Sun Xinmin couldn't help but say something in the dialect of his hometown.

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