The news from the three parties shocked the business community; this was a desperate gamble.
Some people were already making phone calls everywhere, spreading the news and telling their friends to get ready to watch the excitement. Others started to think that with such low prices, as long as the brand didn't collapse, they could resell these products a year later and make a profit of 30% or 40%!
It's just that the initial investment is relatively large, and some people have already started calling on friends and relatives to pool their money to stock up on a batch of Motorola and Toshiba pagers and mobile phones.
The next day, before dawn, people were already lined up in front of both stores. Compared to the other two, Guangming Electronics was not as attractive.
As the roller shutter door opened and the store officially opened for business, an unprecedented scene unfolded before everyone's eyes. Every customer in front of the retail store placed a large order, with the smallest order requiring 500 pagers. In less than an hour after opening, sales had already exceeded one billion.
In comparison, Guangming Electronics did not have such a large sales volume per customer. However, the prices were not high to begin with, and now with a 60% discount, the prices are even lower. Long queues formed at all 70 stores, and even the 30 stores that had just opened the day before were packed with people.
This incident caused such a huge uproar that many business owners came to watch the spectacle. After all, Guangming Electronics deserved its fate for pushing Motorola and Toshiba to this point.
"They are now trying to grab potential users by lowering the threshold to bring in more customers. But there will come a day when people have bought all these things, and that will be the time for a life-or-death struggle."
"In my opinion, Guangming Electronics will die before that day comes."
"You don't really think Tumpara is just a returned engineer, do you? He has capital behind him and can afford to burn money, just not as aggressively as these two companies."
"I really can't understand this market right now, but one thing is certain: once a promotional event lasts more than a week, people will lose interest, and this kind of buying frenzy will not happen again."
"Which of the two can afford to pay? Toshiba and Motorola have been spending money like water in the news media lately, and Guangming Electronics has also spent a lot on street patrol cars and various billboards. It won't end until they fight to the death."
"I think that in a few days, since these are both branch offices, the 30 million US dollars will probably be almost gone. Zate and Vera will have to take some kickbacks, won't they?"
The group laughed; it was an open secret.
By the end of the morning, Motorola had sold out at 30 stores, while Toshiba had sold out at 50 stores. Sales had exceeded 3 billion baht in just one morning, a truly staggering figure. No other company could achieve such a large sales volume in the Thai market in just half a day.
This also reflects Motorola's brand appeal in the local market.
Zhatai and Vera were stunned when they saw the sales figures. The sales revenue for this morning was equivalent to nearly 100 million US dollars. If they sold at a 30% discount, they would lose 30 million US dollars.
"Who can afford to keep losing money like this?" Zha Tai was starting to feel the strain. He was beginning to regret his decision. He wished he had just let Mu Zha shoot Lu Feng, and nothing would have happened. He had been too indecisive, which had led to the current situation.
It's too late to say anything now; who knows if even a speck of dust is left of the scum!
The primary task is to report this matter to the higher-ups. If this continues to result in losses, Zha Tai simply cannot afford it. Even if he kills Lu Feng, he would probably have been fired long ago.
On the phone, Vera and Zate sounded anxious!
"Why don't we announce it's sold out this afternoon? I'm just wondering, where did all these people come from? They sold out half a year's worth of stock." Zha Tai was particularly puzzled on the phone.
“If scalpers hoard the goods and we announce that we’re sold out now, a huge amount of products will immediately appear on the market, making next year’s sales targets difficult.” Vera sighed and said, “But don’t back down. We’ll have a limited-time price reduction. We’ll sell 100 million this afternoon, and each person can only sell the same product once. Let’s crack down on the scalpers.”
"Okay, we've already raised 3 billion, so another 100 million won't make a difference."
Around noon, both stores announced new regulations again. While others change their rules frequently, they changed them at noon.
Around 2 PM, in the conference room, Lu Feng sat there looking at some summarized data from the morning and said, "Not bad, we've made a small profit!"
“Mr. Lu, our profits here can’t be calculated like in China. We also have to pay taxes, and the shipping costs are quite high. I had them do a rough calculation today. Adding in personnel, venue, transportation costs, expenses, and all sorts of miscellaneous costs, we are currently losing about 20%,” Kevin said in a deep voice.
"Wasn't it supposed to be a 100% profit? How come you're losing so much?" Lu Feng asked in surprise.
“It’s true that we make a profit of 100%, but our expenses have been too high lately. A hundred stores, staff salaries, advertising and marketing—these are all real money being deducted from the accounts, not just product profits. We’re looking at the company’s financial account; that’s the money that goes to the head office,” Kevin said. “Overseas companies all do this because nobody knows what might happen in this country tomorrow. So we treat all the costs as one-time expenses. Even if this country kicks us out tomorrow, we can leave with our capital and still not lose money.”
"If you calculate it this way, it's a huge loss," Lu Feng said, sitting up straight and pondering. "No wonder they were in pain this afternoon when there was a limit!"
“Of course they’re in pain. We’re our own company, and they’re just employees. They have sales targets every year, and their performance is assessed based on the head office’s net profit. If they do well, they get a lot of bonuses; if they don’t, they’re fired. They can’t afford to lose such a huge amount.” Kevin knew all too well the nature of these overseas branch managers.
This chapter is not finished yet. Please click on the next page to continue reading the exciting content!
Continue read on readnovelmtl.com
