Super Tycoon
Chapter 488 Price War
Zhou Zhiyuan looked at the company's report with a very satisfied expression on his face. Although the profit margin is not high, it is easy to earn hundreds of thousands a month.
At the beginning, he only spent a few million on his investment in Gold Vision, and he earned it back long ago. Now he still has a few million profits a year, which allows him to live comfortably.
He also hopes that he can earn more and become a multi-millionaire, or even a billionaire, but it is difficult.
Even though Jin Yuanjian is considered well-known among China's electronic brands, but there are no blockbuster products that can be sold. All products are a step behind, and what they earn is leaked through the fingers of others.
If he hadn't decisively cooperated with Yuxing, Xiaobawang, etc., I am afraid that the profit of several million a year would not be guaranteed.
Yuxing also put forward an idea to merge the three of them into a big company, and maybe have the ability to wrestle with Zhiduoxing a little bit.
Zhou Zhiyuan also considered it, but Yuxing's request was to give up their brand and develop with Yuxing as a brand, because among the three companies, Jinyuanjian has the worst brand effect.
This made Zhou Zhiyuan very unhappy. Our brand awareness is a bit low, but it is also a brand created by me. Why do you say that if you give up, I will give up?
From now on, everyone will know Yuxing. Who still remembers Jinyuanjian, who I founded, and who knows me, Zhou Zhiyuan?
Although the three companies have not merged, they still maintain a cooperative relationship. They all know that once separated, no one will be the opponent of Zhiduoxing Group.
Jinyuanjian's products have only one feature, they are cheap. No matter how much other companies sell for the same product, our price is 20% off, or even lower.
Compress profit margins in exchange for sales. Dealers are given greater authority, and some dealers even have higher profit margins than them, but so what, as long as he can make money.
Didn't Zhiduoxing rely on low prices when it rose in the domestic game console industry? Now that the brand of Zhiduoxing has become bigger, many costs have increased, and the price is no longer so affordable. This is the opportunity for companies such as Jinyuanjian.
They just want to tell consumers that our cheapness does not mean that our products are not good, but that Zhiduoxing earns too much.
Get off work early today and go relax.
Zhou Zhiyuan was about to change into his coat and go out when the secretary opened the door suddenly: "Mr. Zhou, it's not good!"
"What's the fuss,
Had an accident at the factory? "Zhou Zhiyuan frowned, this secretary is rough and rough, he will replace it in a few days.
"It's not a factory, it's a product. The prices of Zhiduoxing's products have been reduced across the board!"
"What did you say? The price of Zhiduoxing's products has been reduced?!" The clothes in Zhou Zhiyuan's hand fell to the ground, "How much has been reduced, show me."
Looking at the handwritten price list in the secretary's hand, Zhou Zhiyuan felt his blood pressure go up all of a sudden.
What's going on, why did Zhiduoxing suddenly lower the price by such a large margin?
Although the prices of domestic electronic components have dropped in the past two years, they haven't dropped so much, have they? Is the research and development cost of Zhiduoxing included? What about publicity costs? What about the agent's commission and the retailer's profit? Labor costs should have risen, right?
This price is cheaper than theirs, so what can Jin Yuanjian do?
Zhou Zhiyuan immediately thought that he had to tell the two allies, and they discussed the solution together.
But before he could make a call, the phone on the desk rang. After the call was connected, a hurried voice came out from the phone. It was Yuxing's boss Zhu Weisha.
"Old Zhou, the price of Zhiduoxing's products has been greatly reduced in China, do you know about this?"
"I just found out, and I was about to call you. There was no sign of this incident before. We have to find a way, otherwise our products will definitely not be able to sell."
The brand is not as good as others, the sales channels are not as good as others, the popularity is not as good as others, the price is not as good as others, let alone the quality, how can it be sold?
Soon the three parties got together again, and the three of them smoked together, and the room became smoky after a while.
"We have to merge, otherwise we won't be able to withstand the price war of Zhiduoxing. How can such a large company only have such a small measure!" Zhu Weisha said angrily.
Everyone has similar strengths. It is normal for you to use price wars to grab the market. But you have occupied more than 80% of the market share in the mainland, so why are you still fighting a price war?
Lower your own profits just to crush us? Isn't this hurting one thousand enemies and eight hundred?
Zhou Zhiyuan sneered and said: "How to merge, let Jin Yuanjian give up the brand and merge into your Yuxing's banner? Who is in charge of the company's management, is it you or me, or him?"
Who is willing to listen to other people's orders when they are used to the boss? It's fine if you can help me earn more money, but can you guarantee it?
Since no one can guarantee it, whoever holds the management power will have a greater initiative. At least he didn't lose money on his original investment, and he has already returned his capital. At worst, he could sell the company, and he could always sell it at a cheaper price.
Why did Zhi Duoxing do this? In fact, everyone knows it well. Isn’t it because they have been following the trend and infringing on the other party’s patent rights? If he was a wise man, he would not be willing to bear it.
Zhou Zhiyuan had thought about this possibility before, but Zhu Weisha said with certainty that it would not happen, and Zhi Duoxing didn't like such a small amount of money.
Now, things have happened, and Zhu Weisha still wants to annex his company.
Although it is true that Yuxing is superior to Jin Yuanjian in terms of assets, why should I merge with you and listen to you?
"We Xiaobawang won't participate anymore. Electronic products can't be sold, but we can sell electrical appliances. At least in Nanyue, our Xiaobawang is not afraid of anyone!"
The tripartite alliance lost one party in an instant, Zhu Weisha and Zhou Zhiyuan were dumbfounded.
Originally, both of them wanted to win the support of a third party to overwhelm each other, but now they have directly withdrawn. They can't do it if they say they can't do it, and they can't do it.
It is because Xiaobawang started making home appliances a few years ago, especially small kitchen appliances, and they are selling very well. But Yuxing and Jin Yuanjian have no home appliances, only these electronic products.
"Old Zhou, you really don't want to merge? Now that we have seen the situation, others have a way out, but we don't. Zhiduoxing purchases a lot, the cost of electronic components is low, the production cost is also low, and the channels are better."
"I heard that the agents of Zhiduoxing Group are willing not to pay agency fees this time, just for a larger market share. Within half a year, our two companies will definitely go bankrupt."
Zhou Zhiyuan was silent for a while: "Factories can be merged, but brands can't. We can reduce production costs and selling prices by merging factories to ensure small profits."
"If I still can't compete, I will switch to a translation machine. Lao Zhu, this is my bottom line."
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