Reborn Industrial Tycoon

Han Guohao is worthy of being a leader of a state-owned enterprise. When faced with sudden competitors, the first thing that comes to his mind is to cut prices!

Only Han Guohao said: "I have specifically researched the product prices of Shenfutun Chemical Factory. The softeners, detergents and printing agents they produce are about the same price as ours. The table glue is more expensive per ton than ours." More than five hundred dollars.

In terms of product quality, the textile preparations we produce are indeed not as good as Shenfutun Chemical Factory. At the same price, customers will of course choose products from Shenfutun Chemical Factory.

So if we want to regain the market, we have to lower our prices! We sell our products cheaper, and even if the quality is inferior, those customers who want a bargain 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 table glue, our products are already cheap..." Han Guohao hesitated for a few seconds. , said; "Then let's reduce it by 10%!"

The cousin of the deputy factory director made a quick calculation and said: "Director, if this happens, our profits will be greatly reduced, and we will hardly make much money."

"In order to regain the market, it doesn't matter if we make less money!" Han Guohao curled his lips and continued: "There are only so many textile companies in Qinghe City, and the demand is only so big. Those textile companies bought our goods, and naturally Then we won’t go to Shenfutun to buy goods. As time goes by, the Shenfutun Chemical Factory will be unable to survive and close down. Let’s just raise the price back up!”

…

Li Weidong stayed in the garment factory all morning. After handling various chores, he rode his motorcycle to the Shenfutun Chemical Plant.

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

Li Weidong stopped his motorcycle and walked into the office, and sure enough he saw Shen Zheng already waiting there.

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

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

As Shen Zheng spoke, he reported the product prices of the Second Chemical Plant to Li Weidong.

"This Han Guohao wants to start a price war with us!" Li Weidong said calmly.

"Since the Second Chemical Factory has already lowered its prices, I'm thinking that we should also lower the prices, otherwise the products we produce will not be sold. What do you think?" Shen Zheng asked.

Li Weidong thought for a moment and nodded: "I think it's okay. The profit of softener is relatively large. Even if we lower the price, we can still make money. For detergents and printing agents, the profit is already low. If the price is reduced like this, It’s close to the cost. As for the deck glue, we will maintain the original price and will not reduce it!”

"Why?" Shen Zheng asked.

"This deck glue is different from the previous products. Our deck glue is considered to be at the upper-middle level internationally, far ahead of the Second Chemical Factory. It is precisely because the quality of our deck glue is good enough, so It can be sold for more than 500 yuan per ton."

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

Since only we can produce such high-quality products, we must keep the price low and never lower the price. At least we cannot lower the price until similar products appear on the market! Only in this way can profits be guaranteed."

"Okay, you are well-informed, so 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 not seen much of the world and do not understand business management.

In the eyes of rural people, urbanites like Li Weidong who have seen the world must be reasonable in what they say, so it is easy for them to blindly follow Li Weidong.

…

The Second Chemical Factory is also always paying attention to the trends in Shenfutun. After the Shenfutun Chemical Factory lowered its prices, Han Guohao learned the news immediately.

Han Dong couldn't change his habit of not knocking on the door, so he rashly broke into Guo Hao's office. Fortunately, Guo Hao didn't engage in any improper relationship between men and women. Otherwise, if he was caught by his own son, he would have to cause trouble in the family. dispute.

"Dad, the prices at Shenfutun have also been reduced. This is their price list!" Han Dong handed a price list to Guo Guodong.

Han Guohao glanced at the price list and said, "These are the prices we are paying close attention to!"

"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 we do? Keep lowering the price!" Han Guohao said, picking up the pen and writing down a few prices.

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

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

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"How can I not know that I am losing money!" Han Guohao glared at Han Dong, and then said: "You have to sell like this even if you are losing money!"

"Dad, I know you want to win back the market, but we can't do business at a loss, right?" Han Dong said.

"What do you know? Do you think I'm just trying to win back the market? I want to kill that Shenfutun Chemical Plant, or at least force them to change production!"

Han Guohao said; "Although the Shen Futun Chemical Factory is a village-run enterprise, its production technology is more advanced than ours. If they are allowed to develop and grow, they will definitely become a strong enemy of our factory in the future, so we must take advantage of Shen Futun's The Tun Chemical Factory has not developed yet, so kill them first!

We are a large state-owned enterprise and we have plenty of capital. 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 Shen Futun Chemical Factory is different. They don’t have such deep capital, and they can only produce textile preparations. If Shen Futun follows us in lowering prices, they will definitely lose money within a few days. But if they don’t lower prices. , customers will not buy their products, so they are dead ends no matter what!”

"I understand, we are hurting others at our own risk!" Han Dong said.

Han Guohao nodded: "This move, after all, kills one thousand enemies and damages oneself eight hundred. It can only be used if it bullies a small factory like Shen Futun. But as long as it can kill the Shen Futun Chemical Factory, In the cradle, even if we lose some money, it’s still worth it!”

…

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

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

Li Weidong took the quotation from the Second Chemical Plant, looked at it carefully, and frowned. Then he took out his pen and started calculating on the paper.

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

"Who says it's not the case! If we sell it at this price, we will definitely lose money." Shen Zheng nodded.

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

Shen Zhengze asked with a worried look on his face: "Weidong, do you think Han Guohao can make money by selling his products so cheaply?"

"We all lose money, and the Second Chemical Plant will only lose more. Our production costs are lower than those of the Second Chemical Plant!" Li Weidong said.

Under normal circumstances, the cost of large-scale production must be lower than that of small-scale production. Therefore, the production cost of the Second Chemical Plant should also be lower than that of 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 logistical staff. The longer the business operation time is, the more administrative and logistical staff will be in a large-scale state-owned enterprise. These administrative and logistical staff are not responsible for the front-line duties. Production tasks, but the wages are not good at all.

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

However, village-run enterprises like Shen Futun Chemical Plant do not have a bloated personnel system. When production tasks come, Shen Zheng, the factory director, has to go to the workshop to carry raw materials. It can be said that in village-run enterprises, many people They all wear multiple hats, and everyone is a front-line worker.

Moreover, village-run enterprises do not need to bear the medical expenses and pensions of their employees. Naturally, they do not need to operate canteens or kindergarten welfare departments, thus saving a lot of additional expenses.

The employees in the Shenfutun Chemical Plant are all farmers, and their families all have land. As long as farmers can still move, they will work in the fields. They rely entirely on their children to support themselves in old age. There is no such thing as a pension.

As for kindergartens and canteens, there is no need to exist in rural areas. Children in rural areas have fun in the fields, so there is no need for kindergartens. When eating, they are brought from home, and they eat food grown by themselves, so there is no need for canteens.

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

Li Weidong briefly explained to Shen Zheng why the production cost of the second chemical plant would be higher. Shen Zhengze asked with a puzzled face: "Isn't this second chemical plant selling goods at a loss now? Why are they selling goods at a loss? Do you want to do this?”

"Korea Hao is hurting people with capital!" Li Weidong sighed lightly and continued; "The Second Chemical Plant is large in scale, they have capital and can afford to lose money. We have small capital, but we can't afford to lose money! So!

We definitely cannot lower prices like the Second Chemical Plant did."

"Then if we don't lower the price, the price of the Second Chemical Factory will be cheaper, and won't all customers go to the Second Chemical Factory?" Shen Zheng asked.

"This is the power of hurting people with your own money." Li Weidong smiled indifferently, and then said: "Second uncle, you don't have to worry, there is still a harvest factory! The harvest factory has already signed a contract with a Hong Kong businessman.

The equipment from Hong Kong will be shipped soon, and the Harvest Factory will definitely purchase it from us."