Rebirth 1990: The beginning is sweet and cool Bai Yueguang
Chapter 458 Puzzled
Huaning’s service covers many cities. Once the entire distribution network is replaced, the impact will be far more than just three days.
After hanging up the phone, Zhou Qi immediately dialed Qiao Xuying's number: "Adjust the price back to 35%, down 5 points from the original 40%."
In the past few days, the price war between the two companies has become fierce, and each other's prices have been adjusted frequently, from the initial 35% to 40%.
Qiao Xueying was stunned when she heard this instruction. "Mr. Zhou, this is a critical moment. If we lower the price, wouldn't it be equivalent to pushing customers to Huaning? We will lose market share. And if Huaning takes away all the potential customers, we will be even more passive."
"Do as I say." Zhou Qi didn't explain further.
Qiao Xueying was confused and even suspected that there was a problem with the capital chain. "Mr. Zhou, if it's because of tight funds, I can find a way to solve it."
She believes that reducing the price by five points is equivalent to returning to the original price. In such competition, one must never give in easily, otherwise all previous efforts will be wasted.
But Zhou Qi insisted: "The funds are fine, and the market will not be lost. I have my own plans, just do as I say."
Although Qiao Xuying was puzzled, she still felt relieved and decided to trust Zhou Qi's decision.
Although she was not clear about his specific plans, she believed that Mr. Zhou had a deeper meaning.
In fact, Zhou Qi's move was to show weakness to his rival. He expected Huaning to be anxious due to insufficient supply and would mistakenly think that Hualong could not hold on after seeing the price cut.
This will prompt Huaning to further increase its promotional efforts in an attempt to squeeze out Hualong at the last minute.
However, due to supply chain problems, Huaning was unable to provide the same service quality as Hualong and could only attract customers by continuously lowering prices, thereby accelerating the consumption of its own funds.
On that day, the atmosphere inside Huaning’s headquarters was tense.
Du Yangqiu roared at his subordinates in anger: "How could our order be delayed for three days? Do you know what this means to Huaning? Do you still want to continue the cooperation? Do you want to lose us as a big customer?"
Faced with the boss's anger, the subordinates dared not say a word and could only listen with their heads down.
They knew that the delay was beyond their control, but they had no choice but to report the situation.
Du Yangqiu hesitated for a moment and said, "I've asked. The fleet has been doing very well recently and is fully booked with orders. They said that three days is the fastest way to deliver. If that doesn't work, we have to consider changing fleets and looking for other delivery channels."
Change the delivery channel? Du Yangqiu got angry when he heard it.
The price war with Hualong is now in full swing. Changing the channel will only delay the delivery of the appliances. He immediately decided: "I will pay more, but I will get the goods as soon as possible."
The subordinate responded helplessly: "We have already discussed it, and the team said that even if we pay more, it won't work."
Du Yangqiu was shocked. Even adding money couldn't solve the problem, which was really tricky. But it would take three days for the goods to be delivered, which was enough time for Hualong to grab a lot of market share.
Just when Du Yangqiu was upset about this, Du Renliang suddenly broke into the office. He walked in without even knocking on the door. Du Yangqiu angrily asked, "What are you doing? Don't you even know to knock before entering?"
"Dad, I have good news!" Du Renliang said excitedly.
Du Yangqiu's expression changed instantly, and he shouted sternly: "You unfilial son, what did you say? You wish I would die, don't you?"
"No, no, Dad, you misunderstood." Du Renliang explained hurriedly, "Hualong can't hold on any longer!"
Du Yangqiu was stunned for a moment, then he stood up suddenly and asked anxiously: "What's going on? Tell me quickly!"
Du Yangqiu's life has not been easy since Hualong appeared. Hearing the potentially favorable news, he naturally looked forward to it.
"Hualong raised the price by five points, and now the discount has been adjusted to 35 percentage points." Du Renliang said excitedly, "They must have raised the price because they can't hold on any longer!"
However, after hearing this, Du Yangqiu's excitement quickly cooled down. It turned out that the price was only slightly adjusted, not completely collapsed.
This is just Hualong trying to reduce losses and buy more breathing time.
Seeing his father's expression change, Du Renliang tried to comfort him: "Dad, isn't this good news? Hualong's price has increased, and we have also adjusted our strategy accordingly. In the long run, it will be beneficial to us. Hualong will lose sooner or later."
Du Yangqiu frowned and thought to himself: If Huaning needs to delay delivery for three days, then Hualong's situation is probably similar.
Is their inventory also tight? If so, why did they raise the price? This question made him ponder.
Although there is a 5% price difference between the two stores, the adjustment in delivery service seems to make up for it.
After some thought, Du Yangqiu decided: "We will maintain the 40% discount and cancel the instant delivery service in the next three days, and switch to pre-sale mode."
The next morning, a sign was put up outside the Hualong store, which clearly read "35% off all items", which means a % discount.
Although this expression is just a change of wording, it brings a whole new feeling to customers and immediately attracts a lot of attention.
Compared with previous word-of-mouth communication, such a display is more direct and eye-catching.
At the same time, Huaning continues to offer a 40% discount and clearly marks it as a pre-sale product, which means that consumers cannot get the goods immediately, which makes some people hesitant.
However, that morning, sales at the two stores were basically the same, just as Du Yangqiu expected.
After all, the pre-sale model is not as attractive to consumers as instant purchase, and the 5% price difference just reflects this phenomenon.
However, at noon, things changed. Hualong suddenly announced that the discount would be adjusted to 67%.
This move confused Du Yangqiu: Did Hualong raise the price? In fact, doing so increased Huaning's competitive advantage.
Logically, as competitors raised their prices, Huaning should have attracted more customers. However, the actual situation was that Huaning's sales volume began to decline in the afternoon.
Just when Du Yangqiu was puzzled by this, Hualong made another adjustment on the third day, setting the discount to 69%. This means that Hualong has almost reached a state of only 1% profit margin, and is almost operating at zero loss.
In this way, Huaning's price advantage becomes more obvious.
Du Yangqiu realized that it might be time to adjust the price, raising it slightly to reduce Huaning's losses.
However, the actual situation was unexpected.
According to reports, the number of customers at Hualong stores has increased instead of decreased. This puzzled him.
It turned out that Zhou Qi cleverly used the hunger marketing strategy.
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