Shengjing Company's sudden price cuts across the board are considered major news both inside and outside the industry.
However, this failed to please consumers:
"What's going on? I just placed the order yesterday, and now that I've calculated it, I've lost over a hundred yuan!"
"This is a major earthquake in the industry. Has something terrible happened at Shengjing? Otherwise, it's incomprehensible."
"What's so hard to understand? Just look at their financial statements. If they don't come to the rescue soon, Shengjing will lose its leading position."
"What?! Where did this gossip come from? Be careful, or they might sue you for defamation."
“My cousin works in operations at their company, it’s absolutely true. I heard they’re being overshadowed by the Lu family brand.”
"Lu's? This brand is still around. Weren't there rumors that the additives were carcinogenic and toxic? There are still people buying it."
"You upstairs shouldn't talk nonsense. How many big shots have been sent in recently? I heard that Shengjing Company hired them behind the scenes. Tsk tsk, they tried to steal a chicken but lost the rice instead."
"It's gotten to this point, Shengjing Company has really lost face." "Exactly! I work at this company, and this isn't the first time they've messed with their competitors. In the end, they didn't destroy their competitors, but they're the ones who are going to die first! Ugh, I'm not going to say anything more, I'm still working on my resume and looking for a new job."
"Rumor has it that this is only the first round of price reduction notices, and there will be more to come. Shengjing is going all out this time; it's all or nothing."
"Then I'll return it quickly. Maybe it'll be cheaper if I wait..." This instruction was personally given by Huo Ruan, the chairman of Shengjing Company, in order to promote the product. However, the promotion failed to materialize. Instead, the news of the price reduction released outside caused the usual customer base to wait and see, fearing that it would be a waste to buy it now.
I never even considered that the current price is already about 70% of what it used to be.
It's not just the target customer group that's taking a wait-and-see approach.
Even Shengjing Company's former partners hesitated.
They even preferred to pay penalties for breach of contract rather than buy at a higher price for previous orders:
"Your Shengjing Company's sudden price reduction has put us distributors in a very passive position."
"We definitely can't sell the stock we have at the original price. If we lower the price along with you, we'll go bankrupt along with you!"
There's no reason to buy high and sell low, so Shengjing Company has to bear this loss itself.
As a result, before Shengjing Company's sales could even take off, it was hit by a wave of returns.
With Lu's quality setting an example, followed by Shengjing Company's low-price promotions, the already dwindling market share became even more difficult for competitors to survive.
Immediately afterwards.
Food companies Meizida and Qianwei, unable to withstand the sales pressure, also began to join Shengjing Company's low-price promotion strategy.
Such major industry news is nothing short of an earthquake. Lu's Food Factory followed suit, facing market pressure. The first to be affected were the distributors who had just signed contracts with Lu's.
Although the payment had already been made and the contract signed.
But everyone was clearly amazed by the boldness of Shengjing, Qianwei, and Meizida:
"Even a leading company like Shengjing has taken the lead in lowering prices. Why doesn't Lu's Group cooperate and lower prices as well?"
"If the price stays the same, other brands will probably undercut our prices."
"The original price is definitely not an option."
"Yes, can you offer a discount on the wholesale price?"
Wang Wei is usually very busy, and now she has to deal with these distributors, which is making her quite impatient.
Although having distributors is a good thing, this "good thing" always seems to go wrong, and Wang Wei wonders if she and they are incompatible.
However, Lu's Food Factory also has a response to Shengjing Company's price reduction notice; this matter is not something that Wang Wei can decide alone.
She gestured for everyone to quiet down:
"Yes, that's right. Our group's General Manager Lu is already aware of this matter and has given final notification."
"Our CEO Lu is already aware of Shengjing Company's price reduction announcement, but as everyone knows, we have no intention of colluding with the market to lower prices across all our brands."
"President Lu understands everyone's situation. No one wants to see such an unexpected situation, so those who have signed contracts can cancel them within seven working days."
"After all, the goods haven't left the warehouse yet, so let's all be understanding. As for the penalty for breach of contract, let's just let it go this time."
Wang Wei's words caused an uproar in the audience.
Lu's Food Factory not only failed to cooperate with the current market and implement a unified price reduction policy, but also...
They even considered all aspects, preventing dealers from being unhappy and trying to breach the contract without paying the penalty.
Now they're not even asking for the penalty for breach of contract, clearly indicating they want to terminate their cooperation with these fickle people.
The fact that Lu's Food Factory agreed so readily caught some of the people who had been itching to make a move off guard.
Everyone looked at each other in bewilderment.
I was already somewhat interested, and now that the Lu family has given their approval, there's no reason not to terminate the contract, right?
It remains to be seen who will be the first to lose their composure and jump out.
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