Chapter 318 The Best Way to Fight a Price War



Of course, it is even more impossible to say that the other party was greedy for the preferential treatment provided by Fu Song.

If Wang Weidong wanted to make money, he could just hang out at the four major steel mills for a year or two and earn more than this discount.

Gao Qiang chuckled: "It's simple, he's guarding against you."

Fu Song was puzzled: "Are you guarding against me?"

"That's right, do you know why he would rather be a security guard picking up bottles at Morning Star than work at one of the Big Four steel mills?

He is not Tao Yuanming, and he does not have the so-called hermit complex."

Fu Song was also a little surprised: "Why?"

“Because of the disabled people in the factory!

The reason why Uncle Wang came to Morning Star was because he knew that I had recruited many disabled people in the factory.

He stayed to help me develop pen nib steel because he wanted to use his knowledge to improve the lives of these disabled people.

Although I didn't succeed in the end and he didn't express his opinion, I knew that he would not leave as long as I didn't drive away those disabled employees.

Later you came and not only changed the Morning Star Factory, but also promised to build houses for them.

Uncle Wang will naturally keep a close eye on you.

For example, he bought a house here to tell you not to let it go unfinished, otherwise...

Hey, you know his power."

Fu Song couldn't help but laugh after hearing this: "Uncle Wang is too cautious, isn't he?

Besides, whether the house here can be completed successfully depends on the capital injection from Morning Star Stationery Factory, and my words don’t count.

As long as the Morning Star doesn't fall, the house will be completed successfully."

Fu Song is still very confident about this, now Morningstar's brand has been established.

As long as we maintain quality and don't do anything reckless, the future will definitely get better and better.

By then, let alone building one building, even building ten would be a drizzle.

Unexpectedly, Gao Qiang's expression suddenly darkened: "That's not necessarily true."

Fu Song was stunned and immediately realized that something was wrong: "What's wrong? Is there something wrong with Morning Star?"

Gao Qiang nodded.

“Oh my god, no way?

You've ruined such a good start. Honestly, are you greedy for money from the factory?"

Gao Qiang said helplessly: "Don't talk nonsense, Morning Star Stationery's accounts are clear. If I take a penny privately, I will definitely die a miserable death."

Fu Song waved his hand: "I was just joking with you, why are you so angry?

What’s going on?

Gao Qiang: "Japan's Peregrine has been aggressively acquiring pen factories in the country recently.

Now the second-ranked Qicai Pen Factory, the fourth-ranked Zhenhao Pen Industry, the fifth-ranked Tianjiao Pen Factory, and the ninth-ranked Wenjiao Pen Factory are all under the absolute control of the other party.

Although the remaining companies are not controlled by the company, Belegold is also the second largest shareholder.

Three days ago, Belle Gold and these pen factories joined forces and started large-scale dumping.

Originally a pen sold for three yuan, but now it is only one yuan, and a refill is included.

So our Morning Star pens suddenly stopped selling.”

Fu Song was stunned: "You mean that Baili Le Jin wants to kill us?"

Gao Qiang nodded and said, "In the past, the pen market has always been led by Peregrine.

Now Morningstar has come from behind and taken away the other party's leading position, so of course they are unwilling to accept this.

I have been investigating this matter for the past two days, and only today did I find out the details.”

Fu Song looked at him: "Then what do you think we should do?"

In business competition, the most troublesome thing is price war.

Because consumers, especially student consumers, are quite sensitive to prices.

If you sell the same product for even a dime more, you may lose a large number of users.

Not to mention this drastic discount that cuts the price from three yuan to one yuan.

Fu Song wanted to use this opportunity to test Gao Qiang's ability to respond.

Gao Qiang had obviously thought about this problem over and over again: "I have two options.

First, lower prices.

If the other party reduces the price to one yuan, we will also reduce it to one yuan. With the brand effect, we can still defeat them.

Second, acquisition.

I asked the store owner, and the price those pens factories wholesale to stationery stores is 40 cents per pen.

I've calculated that if a pen costs 40 cents, the pen factory will lose money.

We secretly buy back all their goods. The more we buy, the more they lose.

Once we buy them out, we'll win."

Fu Song looked at Gao Qiang helplessly: "Don't tell me this was your idea."

Gao Qiang was stunned: "Is it not possible? I think it's fine.

At most, we'll have to endure two years of hardship, but as long as we can get through it, we'll have won."

Fu Song shook his head: "I'm afraid we will be the first to give up.

The first step is to lower the price. This seems simple, but once we lower the price, it will be difficult to raise it back.

Because if we lower the price, it will give consumers the impression that our pens are cheap products.

Just like the common old popsicles on the market, each one costs fifty cents.

If one day the price of an old popsicle suddenly becomes thirty yuan, the same price as Haagen-Dazs, would you buy it?

Gao Qiang said quickly: "Of course I won't buy it. I'm not stupid."

"What if I tell you that the raw materials used to produce this old popsicle have been changed, with cream, dried fruits and chocolate added, and the taste is similar to Haagen-Dazs, and it still sells for thirty.

So would you buy a Haagen-Dazs or a regular popsicle?"

“Häagen-Dazs!”

"Why?"

"Why? This thing costs thirty yuan a stick, so of course I have to buy good quality ones.

I've tried Haagen-Dazs ice cream before, and it tastes pretty good."

Fu Song spread his hands and said, "You see, this is why Morning Star cannot lower its prices.

Because as long as you create a cheap impression in consumers’ minds, even if you upgrade the quality to the extreme, consumers will not buy it.”

My dear, there is more to this chapter. Please click on the next page to continue reading. It will be even more exciting later!

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