Rebirth 1990: The beginning is sweet and cool Bai Yueguang

Huaning started pre-sales, while Hualong raised its prices, a move that led consumers to mistakenly believe that product supply was tight.

Hunger marketing can stimulate consumers' desire to buy, increase sales, and even strengthen the brand image.

In short, scarcity increases the value of a product.

At the same time, Zhou Qi also launched an attractive policy: customers can get a full refund before shipment.

This made Du Yangqiu very anxious.

Even though Huaning has already cut its price by 40%, it still cannot compete with Hualong, which has only cut its price by 31%. This is simply unbelievable!

Is Huaning's brand influence really declining? This thought terrified him.

In order to compete for market share, as many electrical appliances as possible must be sold even at the expense of profits, because every product sold is a promotional point for the brand in the home, which can bring about a chain effect. This is the key to competition in the home appliance industry.

Now, Du Yangqiu feels unprecedented pressure.

Although Huaning has a nine percentage point price advantage, it is not enough to make up for the negative impact of the shortage. In just three days, Huaning's good reputation may suffer a serious blow.

He paced back and forth in the office, fidgeting.

Worse still, if Hualong pulls back the price to within 30% and starts to make a profit, it will give opponents a chance to breathe.

This must never be allowed to happen.

After careful consideration, Du Yangqiu decided: "Let's reduce the discount by another five percentage points, bringing it to 45%, and see if we can turn the situation around."

When the news that Huaning announced a further price reduction of 45% came out, the entire southern market was boiling. Although Hualong has the advantage of spot supply, what will consumers choose in the face of such a large discount?

The price difference is as high as 14%, which is not a small amount.

Taking a color TV that costs 3000 yuan as an example, the difference is 420 yuan, which is equivalent to one month's living expenses for an average family.

If the price difference is not big, customers may consider buying spot goods, but such a big difference...

As a result, long queues formed in front of the Hualong Electric Appliance Store, and people held their shopping tickets to ask for refunds, and then turned and ran to Huaning Electric Appliances.

In just one day, Huaning's sales soared to an all-time high.

However, this also brought unexpected problems:

The loss in a single day reached a staggering 4200 million yuan! Despite the pre-sale, all employees were still very busy, and the scene was even busier than the Spring Festival travel rush.

When Du Yangqiu saw these data, he was stunned.

"Why are there so many?" he asked three times, obviously frightened by this sudden change.

Although the total sales volume far exceeded this figure, the goods ordered from the manufacturers were not enough to meet such demand, which meant that in order to complete these orders, Huaning had to spend extra money to purchase goods.

"Boss Du," an assistant explained, "customers who had purchased home appliances from Hualong all chose to get a full refund and switch to us after learning that we had reduced prices by 45%. Even potential customers have joined the rush to buy, saying they would wait for our products no matter what, and praising us for being very conscientious..."

Hearing this, Du Yangqiu felt mixed emotions: "Conscience?"

He almost exploded.

"When did Hualong start offering a full refund service? Why haven't I heard of it before? How do you do your job?"

He realized that he had fallen into a carefully laid trap.

We gave our competitors a 5% price advantage, which resulted in us losing all our money.

Just at this moment, there was a hurried knock on the door.

"Mr. Du, the latest sales report is out, and sales are still growing..." the person who came in reported.

Du Yangqiu felt a pang of pain in his heart. "Stop pre-sales immediately, right now," he ordered hastily.

"Are you going to adjust the price, Mr. Du? Or are you going to stop selling it completely?" the assistant asked.

Du Yangqiu took a deep breath and made a decision.

Is Huaning going to close? Du Yangqiu's order was confusing.

He slammed the table and shouted angrily, "Notify everyone immediately and suspend business immediately!"

The subordinate was stunned and said cautiously: "Boss Du, if we really close the business, the customers will definitely be upset. We have already collected the pre-sale payment, and now suddenly they say they are closing the business."

Thinking of this, the subordinate did not dare to continue speaking.

He knew that if he did this, the mall would probably be smashed to pieces by angry customers.

Du Yangqiu was as anxious as an ant on a hot pot. He didn't expect his opponent Hualong to be so cruel.

This time I really fell into a trap, and was trapped tightly.

After hearing his subordinates' concerns, Du Yangqiu tried to calm himself down and said, "Then lower the price to match Hualong's price."

But the subordinate hesitated for a moment and replied: "Mr. Du, if we do this, we will lose the market. There are still many customers queuing up to make reservations in the store. Once the price is reduced, not only will the market share decrease, but the reputation will also be damaged, and it may even cause negative emotions."

"There are only two hours left before the store closes," the subordinate suggested, "at least hold on until today."

Make it through the day?

The latest data shows that the national loss has reached as high as 46 million a day.

Just an hour later, that number had increased by nearly four million.

If they had held out for another two hours, the losses might have increased to 54 million.

This means that each of Huaning's 94 stores across the country suffered a single-day loss of more than five million, which is much more severe than ever before.

What’s worse is that Huaning adopts a pre-sale model.

If the pre-sale amount exceeds the company's cash flow, then purchasing goods from manufacturers will become a problem. This is not just a matter of breaking the capital chain, but may also involve commercial fraud.

Thinking of this, Du Yangqiu's face turned pale instantly. This problem was too serious and he couldn't solve it alone.

Even if they decide to lower their prices to match Hualong, there is no guarantee that Hualong will not adjust its prices again, catching Huaning off guard. What should they do then? Will they follow suit and lower their prices?

Customers will then feel that the company is teasing them, especially in the case of pre-sales, and such behavior will undoubtedly make the situation worse.

At this moment, Du Yangqiu suddenly realized that Hua Long had taken the initiative, while Hua Ning was in a passive position.

There are only two options: either hold on to the end and risk losing everything, or adjust prices, but this means losing market share and customer trust.

No matter which path he chooses, it is not the result Du Yangqiu wants to see.

Hua Long did give Du Yangqiu a big problem.

Standing at a crossroads, each path comes with huge losses.

Just then, the subordinate's phone suddenly rang.

At Du Yangqiu's nod, he answered the phone and then his face became serious.

After hanging up the phone, he said to Du Yangqiu: "Mr. Du, Hualong has just announced that the existing preferential policies will continue tomorrow, and new preferential measures will be introduced the day after tomorrow. The specific details have not yet been announced."