Reborn Industrial Tycoon

Chapter 428 Earning foreigners’ money (please subscribe)

The promotional activities of Puppy Electric have been going on for two months, and finally some colleagues who produce microwave ovens realized that Puppy Electric is engaging in a price war!

There are many ways to deal with price wars, such as product differentiation strategies, product replacement pricing, multi-brand sniping, etc. In reality, there are also many textbook-like success cases.

However, for Chinese companies in the 1990s, they would not use any of the above methods. Their only way to deal with price wars was to simply cut prices!

If you drop 100 yuan, I will drop 200 yuan. Then if you drop another 300 yuan, I will drop 400 yuan. There are not so many tricks, it is simple and direct. It is like a vicious circle. The product will be sold quickly.

It will cost as much as cabbage.

Sometimes when price wars become so intense that they may even sell at a loss, then whoever can't hold on will naturally be eliminated from the market.

This kind of cruel price war is very similar to the money-burning subsidies implemented by the Internet industry in later generations. Hundreds of millions of funds were thrown at it, and it was burned out in a few days.

However, the bosses of Internet companies can quickly expand in a short period of time by spending a lot of money, and then trick wealthy bosses into investing, and finally go public to make money from investors.

If any technology company brags that it has hundreds of millions of users, makes tens of millions of profits in its accounts, and then goes public on Nasdaq, it will have a market value of tens of billions of dollars in minutes, and early investors can cash out and run away.

On the way.

Those in the manufacturing industry cannot play like this. The core of manufacturing is products. If you want to get financing, you not only need a good product, but also need to be recognized by the market, not so-called services and concepts.

Therefore, the purpose of the price war in the manufacturing industry is not to make money through financing and listing. It is really burning money, and the fight is a matter of life and death!

…

At the Jufeng Microwave Oven Factory, Zhang Zhijie convened a meeting with the factory leaders.

"In the past two months, the sales of our microwave ovens have dropped significantly. Now the reason has been found. They thought that the price of Puppy Electric's microwave ovens had been reduced. They used the promotion as a guise and held a lottery, but in fact it was a disguised form.

The price of the product has been reduced by 500 yuan, which is completely a price war!"

Zhang Zhijie told everyone about the puppy electrical lottery draw.

Then Zhang Zhijie continued: "Since Puppy Electric has started a price war, we can't sit still and wait for the price of our microwave ovens to drop!"

"Director, do we also want to hold a lottery to get coupons?" someone asked.

"Why waste all that effort? Just lower the price. A microwave oven is 500 yuan off!" Zhang Zhijie said.

"Director, if the price is reduced by this much, our profits will be greatly reduced." Someone else said.

Zhang Zhijie snorted coldly: "A reduction in profits is better than the collapse of the factory! Even if the price is reduced by 500 yuan, we will still make a profit, it's just a little less, but if we don't reduce the price, we will be dead.

!”

…

Those small microwave oven assembly factories don't have any marketing directors, and they don't use methods such as drawing coupons. Their price wars are unpretentious, and they just reduce prices.

At that time, the profits from producing microwave ovens were still very considerable. Even if the price was reduced by 500 yuan, these microwave oven assembly factories could already maintain a certain profit.

However, the counterattack of Puppy Electric is also straightforward. Zhong Yemao no longer engages in lottery tricks. The price of all Puppy microwave products has been reduced by another 300 yuan on top of the original price reduction of 500 yuan.

This is equivalent to a price reduction of 800 yuan for a microwave oven, which basically reaches the 30% price reduction target set by Li Weidong.

Many microwave oven companies immediately followed up without thinking.

However, for those assembly plants without core technology, if the price of each microwave oven is reduced by 800 yuan, there is no profit margin.

The assembly plant relies on purchasing all its components from other manufacturers, and core components also need to be imported. Just a magnetron is three to five times more expensive than domestically produced ones.

However, at that time, there were no domestic companies specializing in the production of magnetrons. Those who mastered the production technology of magnetrons were also companies that produced microwave ovens. They all used the magnetrons for themselves, so how could they sell them to other manufacturers!

When the price war begins, these assembly plants have two options: one is to hold on, and the other is to transform and produce other products as soon as possible.

…

At the wine table, there were several boss-like people sitting in front of Zhang Zhijie. Like Zhang Zhijie, they were all the heads of microwave oven manufacturers.

In the past, these people were competitors to each other and would definitely not be able to get together, but it is different today. They have a common enemy, which is Puppy Electric, which allows them to sit together.

Facing the price war launched by Puppy Electric, these companies have begun to be unable to bear it. Now they are not making any money selling microwave ovens, and may even lose money.

So Zhang Zhijie gathered colleagues together to discuss countermeasures.

"I can't hold on any longer. It seems that the microwave oven business is hard to continue. I'm already planning to switch production to produce small tape recorders. I heard that the market for that thing is quite good. If middle school students learn foreign languages,

, everyone needs one!" one of them said in frustration.

Another person started to persuade: "Old Zhao, don't say any depressing words! We are all together today just to discuss countermeasures. Maybe after we discuss it for a while, we can find a solution, and you won't have to change production by then.

!”

The third person next to him said with some schadenfreude: "Old Huang, I advise you to switch production as soon as possible, so as to find a way out! Don't stick to the microwave oven. The quality of your microwave oven is not very good, even if you are allowed to continue

You can’t make any money from production!”

"You Baldy Wang, what do you mean by that? Even if you don't make microwave ovens, it's not your turn to eat meat in this market. There are many better products than you!" Lao Huang immediately retorted.

As competitors, these two people have obviously had a long-standing grudge. Even if they get together to discuss countermeasures, they still can't help but quarrel.

Zhang Zhijie hurriedly acted as a peacemaker and persuaded: "Both of you, it's now time. Let's stop fighting among ourselves. Otherwise, the entire microwave oven market will really have no place for us!"

After the quarrel between the two was stopped, everyone finally began to discuss countermeasures calmly.

"At the current price, we are losing money on each microwave we sell! Big businessmen are rich and can afford to lose a little, but a small factory like ours has so much capital to spend on big companies!" Lao Zhao said.

said.

"Yes, the retail price of microwave ovens is about to drop to 1,500 yuan now. At this price, everyone is making a profit at a loss. That puppy appliance is just hurting people with its money!"

"If you ask me, let Xiaopiao Electric continue to make losses and make money. Anyway, I will lose money on each unit sold. Let's see how long Xiaopiao Electric can last! There are one billion people in China, and the market is so big. If he has the ability, he can

If you continue to sell like this, you won't lose him to death!" Wang Tuzi said bullishly.

Next to him, Lao Huang curled his lips disdainfully: "Bald Wang, what do you know! The magnetrons for Puppy Electric's microwave ovens are made by them themselves, and they are much cheaper than the ones we import from Japan! Their production costs must be higher than

Let’s be low! If you buy one and lose one, they might still make a profit!”

"According to what you said, what are we talking about? We just surrendered. We can't win the price war anyway!" Wang Tuzi said.

The promised peace was gone in an instant, and the two of them were about to quarrel again. Zhang Zhijie had no choice but to change the subject:

"It's definitely not possible to continue to fight a price war. We don't have as strong capital as others, and our production costs are still higher than others. If we fight a price war, we will definitely lose. So we have to find other ways!"

"Is there any other way? Puppy Electric has made it clear that it will start a price war and seize the market at all costs. How can we prevent him from lowering the price?" someone said.

"What you said really reminded me. Otherwise, if we go to the price department in Qinghe to report Douchi Electric, we will say that he cut prices without authorization and disrupted the microwave oven market!"

"Does this trick work? Puppy Electric is a big company, so it must pay a lot of taxes to Qinghe every year! Qinghe City has to carefully maintain this kind of God of Wealth, and the local price department may not take care of it, right?"

Zhang Zhijie's eyes lit up, and he said: "Puppy Electric is a big taxpayer in Qinghe, and the local government will indeed maintain it. But in our own place, who doesn't pay taxes in accordance with the law?

Our local price department has to protect us, right? So I think we can seek help from our local price department! I don’t think any place wants to see companies within its jurisdiction go bankrupt, right?"

"But my price department can only manage one-third of an acre of land, but it can't control Qinghe!" Lao Huang said.

"Have you ever heard of the saying that more people lead to greater strength!" Zhang Zhijie paused for a moment before continuing, "After we went back, we reported to the price departments in our respective places that Puppy Electric Appliances were disrupting the market and causing the price department to

Report to superiors.

Then we contact other colleagues and report it to their price departments. As the saying goes, three people make a tiger. If microwave oven companies across the country say that puppy appliances are disrupting the market, this will definitely attract the attention of the leaders above, and then there will be

It worked”

"What a great idea! When I go back, I will immediately contact my colleagues in the next few cities!"

"That's right, let's all act together. As long as we unite, we won't be afraid that Puppy Electric will hurt others!"

…

In this era, the State Planning Commission was responsible for national economic planning and market macro-management.

This "Planning Commission" is not the "Discipline Inspection Commission" or the Family Planning Commission, but the National Development Planning Commission, which will be the future predecessor of the Development and Reform Commission.

Reports about Puppy Electrical Appliances disrupting the market were quickly reported to the State Planning Commission by local authorities.

At the beginning, the Planning Commission didn't pay much attention to it. After all, lowering the price of goods was purely a commercial act.

Moreover, microwave ovens are not important strategic materials such as food and oil. Even if the price is reduced, it will not affect national security and future development strategies, and there is no need for the State Planning Commission to intervene.

However, as more and more similar reports came out, leaders of the Planning Commission also began to pay attention to this matter.

As Zhang Zhijie said, three people make a tiger. If you report too much on one thing, it will always attract the attention of the leader.

So the Planning Commission immediately sent people to the market to investigate the sales of microwave ovens.

The middle-aged clerk walked to the door. Seeing that the door was open, he knocked on the door and walked in directly.

"Director Lin, I have gone to the market to investigate, and the price reduction of microwave ovens is true. In the past three months or so, the overall price of domestic microwave ovens has indeed dropped by 800 yuan, while the price of imported microwave ovens has not changed much! Be the first to do so.

The price reduction is indeed for the puppy microwave oven." The middle-aged clerk said.

"800 yuan, such a big reduction? There is such a huge room for price reduction. It seems that the profits from the previous production of microwave ovens were very large!" Director Lin nodded.

The middle-aged clerk continued: "Director Lin, I have also researched the sales of microwave ovens. The best-selling one now is the microwave oven for puppies. The puppy appliances have indeed benefited the most from this price reduction.

Moreover, some agents revealed that this microwave oven price war is not over. Next year, Puppy Electric will continue to cut prices! It is inevitable that the price of microwave ovens will drop to less than 1,500 yuan."

Director Lin did not nod, but frowned and thought.

The middle-aged clerk asked tentatively: "Boss, since there are so many voices in the local area saying that the price reduction of puppy appliances is disrupting the microwave oven market, should we take care of it?"

"I'm afraid it's hard to manage!" Director Lin sighed, and then said: "The factory director of Puppy Electric is named Li Weidong. He is a relatively well-known young entrepreneur in China, but he also has another identity. He is the leader of a think tank.

Member, you gave me a lecture before!"

"I've heard of that Li Weidong. He's younger than me, right? He can actually get into a think tank?" the middle-aged clerk asked with an incredulous look on his face.

"If nothing goes wrong, how can you build such a big company from scratch!" Director Lin continued; "Li Weidong has a special status, so we should be more cautious about this matter! So, contact me and I will go there in person.

Go to Li Weidong's place and find out the specific situation."

…

Li Weidong is also collecting first-hand market conditions.

Since the start of the price war, foreign brands such as Panasonic have not been affected, and there has been no new news about LG's factory construction. On the contrary, a large number of domestic microwave oven manufacturers are the first to be unable to hold on.

This is completely within Li Weidong's expectation. Whether it is a price war or industrial upgrading, the first to fall must be those small manufacturers that lack core technologies.

In Li Weidong's memory, the historical microwave oven price war was also a reshuffle in the microwave oven industry. When the price of microwave ovens dropped below 1,000 yuan, 90% of domestic microwave oven companies were wiped out.

For China at that time, the more than 1,300 microwave oven companies were indeed too many.

The phone rang, interrupting Li Weidong's thoughts. Li Weidong answered the phone, said "OK", immediately stood up and walked out the door.

Leaders from the State Planning Commission have come to inspect. They have already set off from the Municipal Party Committee and will arrive at the Puppy Electric Factory in twenty minutes. Li Weidong is going to greet them at the door.

A welcome banner has been posted at the gate of the Puppy Electric Factory.

After a while, a row of cars drove over, two of them were Audis, and the rest were Santanas.

Li Weidong recognized that one of the Audis with license plate 00001 was the special car of Zhang Jiagang, the leader.

When he saw Zhang Jiagang accompanying a man out of the car, Li Weidong thought to himself that this man should be the leader of the Planning Commission.

"Director Li, let me introduce to you, this is Director Lin from the State Planning Commission." Zhang Jiagang introduced.

"Hello, Director Lin. Welcome to come and guide us." Li Weidong hurriedly stepped forward.

"Director Li, we meet again!" Director Lin said with a smile.

Li Weidong was stunned for a moment, and then began to think quickly about where he had seen Director Lin.

Zhang Jiagang, who was standing next to him, asked curiously: "Are Director Lin Yuanyuan and Director Li an old acquaintance?"

Director Lin replied: "Director Li may not remember it, but I was deeply impressed by the lectures given by Director Li!"

Li Weidong instantly understood that when he went to the capital to give lectures to the leaders of various ministries and commissions, Director Lin must have been present, so he would know him.

Zhang Jiagang was a little confused. He thought that with Li Weidong's junior high school education, could it be possible that he had also been a teacher?

Li Weidong felt much more at ease when he learned that Director Lin knew him. After all, the identity of a think tank itself was a protective umbrella.

Li Weidong invited several leaders into the reception room, first exchanged a few words, and then briefly reported on the situation of the Puppy Electric Factory.

These are normal procedures. After completing the procedures, Director Lin explained his purpose.

"Director Li, I am here this time because the price of puppy microwave ovens has been significantly reduced recently!"

Director Lin paused for a moment and then continued: "Our Planning Committee has received some feedback recently, saying that the price reduction of puppy appliances has disrupted the microwave oven market!"

Before Li Weidong could respond, Zhang Jiagang spoke first: "Director Lin, lowering commodity prices is entirely a commercial act. How can it be regarded as disrupting the market?"

Puppy Electric is a large company in Qinghe City, so Zhang Jiagang must first maintain it mindlessly. At the very least, he must show his attitude.

After Zhang Jiagang expressed his attitude, Li Weidong said, "Director Lin, this time our puppy electrical appliances are indeed fighting a price war! I will not hide it. In this price war, we are indeed targeting our peers in the industry, including

Domestic microwave oven companies also include foreign microwave oven brands.

The purpose of our puppy appliances is to capture more than 70% of the domestic microwave oven market! If we say it is disrupting the market, it may be a relatively minor accusation. What I want is to monopolize the domestic microwave oven market to a certain extent!"

The responsibility of the State Planning Commission is to plan the national economy and market macro-management, and anti-monopoly is also within the jurisdiction of the throne. Director Lin did not expect that Li Weidong was so straightforward. In front of himself, the leader of the State Planning Commission, he bluntly said that he wanted to monopolize the market!

This was tantamount to recruiting people directly without a trial. For a moment, Director Lin didn't know how to answer.

Li Weidong said: "Director Lin, in fact, there are some benefits to price wars. Especially at this time, I think launching a price war will be beneficial to the entire microwave oven industry."

If someone else said the same thing, Director Lin might sneer at it, but as a member of a think tank, Director Lin would definitely listen carefully when Li Weidong said this.

So Director Lin said, "I'd like to hear the details!"

"Director Lin, speaking of price wars, you should still remember the color TV price war in our country in the late 1980s!"

Li Weidong paused and then said, "The color TV price war in the late 1980s caused a major reshuffle in the entire color TV industry, but it was also that price war that made our country's home appliance industry begin to establish norms.

management system.

In the following years, the domestic home appliance industry began to develop rapidly, and now well-known brands such as Haier, Little Swan, and Gree have emerged, which have been successfully exported to other countries, creating foreign exchange for the country.

This year our country's home appliance exports should exceed US$1.6 billion! This would have been something that would have been unimaginable five years ago!"

"Director Li, your puppy appliance is one of them! You are also responsible for the US$1.6 billion." Director Lin praised.

"Compared with those big brands, our puppy appliances are still far behind. But what I did in this microwave oven price war is the same as the TV price war in the late 1980s!"

Li Weidong paused and then said, "I hope that through this price war, the domestic microwave oven industry will be completely reshuffled. After the big wave is over, our microwave ovens will also be exported to foreign countries to seize the foreign market."

, Earn foreigners’ money!”

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