Erpi has a good vision for development and has already begun to consider establishing branch factories in various regions.
Establishing branch factories in various locations is a very good way to reduce costs, and it is an inevitable trend.
Now that Coca-Cola is selling well, we should seize the market as quickly as possible.
It seems that Erpi is truly determined to turn over a new leaf and make something of himself.
After a pause, he added, "I also plan to set up several of our own beverage bottle and packaging production lines. This would be more cost-effective and less likely to be subject to supply chain bottlenecks."
Su Wu had no objection to this, which was to be expected.
The two discussed for a while longer, and Su Wu then expressed his opinion.
"You can decide how to develop it, but my point is that we should use all the funds to expand the scale now, without considering advertising investment."
"Are you planning to keep piggybacking on Coca-Cola's advertising? Our Coca-Cola's name has been criticized quite a bit."
"Let them criticize it, it won't affect sales. We can just replace it later. Development is the most important thing now."
“Okay, we’re making over 30 million in profit every month anyway. You can use it to buy equipment for us, and I’ll find a place to build a factory.”
"No need for that. I'll purchase 20 million US dollars worth of filling equipment first, and we can settle the bill later."
"If you have this connection, that would be even better, and the factory could be built much faster."
Erpi was extremely excited upon hearing this.
He didn't dwell on where Su Wu's relationship came from; trust was all that mattered.
Su Wu understood his nature; once someone was recognized as a brother, he would never ask a question.
After thinking for a moment, he suggested, "Brother Erpi, with your extensive network, you could consider taking out a loan, the more the better..."
Erpi laughed and said, "You don't need to tell me that. I'm in the process right now. I know all about these things."
Su Wu knew that he simply did not understand the deeper principles behind it.
A company without loans is definitely not a good company, nor is it stable.
At their current level, they don't need loans at all; Su Wu himself can even cover all the development costs.
A mere tens of millions of US dollars is nothing to him now.
However, loans are necessary; otherwise, a business is like a rootless duckweed, unable to withstand storms.
He was certain that the United States would definitely cause trouble in the future, and they had to prepare in advance.
Loans are also one of their protective shields.
If you have enough loans, then some things become much easier.
Profit sharing is always the optimal business development model.
However, Su Wu did not give Erpi any advice on this matter, since knowing too early might not be a good thing.
After finalizing the future expansion plan, Erpi hesitated before speaking up again.
"Hey bro, what do you think about us lowering the price? Wouldn't that make us more competitive?"
Upon hearing this, Su Wu immediately denied it, "No way. Lowering prices wouldn't be a good thing for us; it would only lower our prestige."
Lowering prices is often not the optimal solution for business competition, but rather a self-destructive act.
There are elements of consumer psychology involved, which Su Wu couldn't quite explain, but he knew that such a thing existed.
After giving a brief explanation, he instructed Erpi, "We absolutely cannot lower the price, but we can do something like a buy-two-get-one-free promotion, or a lucky draw, like 'buy one get one free'..."
Su Wuxuan then recounted some beverage promotion techniques that he knew.
Erpi was a smart man and understood immediately.
We're both selling Coke, but others sell it for 3 yuan, while you sell it for 2.5 yuan. What does that tell you?
This means you are inherently inferior to others and are considered second-class.
This kind of self-degrading behavior is unacceptable; otherwise, how can we compete with imported goods?
Although I hate to admit it, foreign things are sometimes just popular.
If the price drops further, then their Coca-Cola will truly become counterfeit junk.
The promotional ideas that Ren Jian provided him also gave him a sudden insight.
Especially the "buy one get one free" offer, that was a stroke of genius.
He couldn't help but ask, "What is the winning rate?"
"30%, maybe. Only with a high school lottery success rate is there any chance of winning," Su Wu said with a smile.
This is roughly equivalent to buy three get one free. With a profit of over 4 yuan, giving away a few cents is just right.
"Alright, you're the smartest guy, no wonder you're a college student. I'll do it that way then." Erpi laughed.
Upon hearing this, Su Wu couldn't help but smile bitterly to himself.
These days, college students are really synonymous with talent, but only those who have been through it all know that they are actually nothing special.
However, this is a characteristic of our times; college students are still highly regarded.
Next, Su Wu told Erpi to go and find some beverage recipes to expand the beverage category.
Coca-Cola is great, but we can't just produce this one product category.
As for those random, modified Coca-Cola flavors, Su Wu never even considered them; he simply couldn't accept them.
He naturally still has the formula, but there's no need to bring it out now.
Moreover, there are many excellent local beverages in China, but they lack development.
Since Erpi is planning to make a big splash, we should give him proper guidance to prevent him from taking detours in the future.
Afterwards, Su Wu contacted Meikuzi again and directly purchased 20 million US dollars worth of filling equipment on credit.
Just kidding, he's a major client of Yamaguchi-kai now, and he doesn't need to make up the difference in tens of millions of dollars in business deals anymore.
However, what he didn't know was the terrifying fighting power that Erpi would unleash under his guidance.
It wasn't until they met again that he realized just how capable Erpi was.
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