Chapter 319 The Opponent is Too Strong
On the weekend, Su Jiaojiao didn't bother to participate in the social activities organized by the class, and went to Wudaokou with her bag.
She has never participated in such an activity.
It’s not that I don’t like it, but I don’t have the time.
As soon as Su Jiaojiao arrived, Yang Chunhua told her about Changyuan: "I've seen for sure, it's also from Yangcheng. I even found a delivery note from them on the ground."
Yang Chunhua mysteriously took out the shipping order and showed it to Su Jiaojiao: "Look, there's the shipping address on it."
"Yangcheng Wanzhuo Clothing Company?" Su Jiaojiao's heart sank.
This time we encountered a tough problem, and it was not as simple as the end of an order.
She is well aware of the strength of Wanzhuo Clothing Company.
Their fabric supplier is Dahua Cotton Mill No. 3. Last time, she met Yu Baolai, the sales manager of Dahua Cotton Mill No. 3 at the Qingyuan Clothing Fair. She knew that the two companies had been cooperating for many years, so there was no need to guess the price of the fabrics; it must be the most favorable.
Moreover, Wanzhuo Garment Company has its own processing plant with large production volume, low cost and low ex-factory price, which is enough to crush these people with absolute advantage.
Su Jiaojiao felt terrible when she thought about the 130,000 pairs of jeans she still had being processed in Mocheng. In other words, the price at Wudaokou had dropped from 12 yuan to 10 yuan, and she could only make 2 yuan per pair of jeans, a loss of over 200,000 yuan in one fell swoop...
Yang Chunhua didn't notice Su Jiaojiao's abnormality. She complained and went back to the shop cursing. In fact, her shop mainly sold mid-range jeans, and mass-market goods were only a part of it, so it was not affected much.
In comparison, she and Ji Zhiqiang from Shop No. 17 are both merchants who mainly sell this kind of low-end jeans. It cannot be said that they are losing money, but they are making less money than before.
The three of them were relatively close to Changyuan, so they learned about the price reduction on the same day.
The wholesalers on the second and third floors only gradually learned about Changyuan’s price reduction through feedback from old customers. Most people had no choice but to follow the price reduction.
A small number of merchants headed by Ji Zhiqiang were particularly angry. They were mainly wholesalers of this kind of common jeans and suffered heavy losses like Su Jiaojiao.
Perhaps Ji Zhiqiang knew that Su Jiaojiao was losing money wholesale jeans, so in his spare time, he came to Su Jiaojiao to complain about Changyuan denim wholesale: "I've asked around. The owner of Changyuan is Yu Mingjie, the cousin of the owner of Yangcheng Wanzhuo Clothing Company. They ship directly from the factory, and we can't compete with them. He, like you, also bought the shop from someone else at the end of last year."
"Then admit defeat!" Su Jiaojiao had met Yu Minghuai and Yu Mingyuan, but didn't know Yu Mingjie. Even if she knew him, it would be useless. Business is business, and they can sell it for as much as they are willing to sell.
You can't raise prices just because others are not making money.
"I'm not convinced." Ji Zhiqiang knew the little girl didn't want to cause trouble, so he lowered his voice and said, "Just wait and see, I'm going to teach him a lesson!"
"Brother, we can't do anything illegal." Su Jiaojiao said calmly, "All we can do is adjust our purchasing plans or styles. This kind of price fluctuation is normal."
Even if he wanted to teach Yu Mingjie a lesson, he shouldn't tell her!
If I know too much, will I be silenced?
"Haha, I was just kidding you, you took it seriously." Ji Zhiqiang knew he had said something wrong and laughed dryly. "What else can I do to him?"
Ji Zhiqiang's wife stood at the door and peeked out. Seeing Ji Zhiqiang chatting happily with the pretty girl, she became unhappy and called out to him with a sullen face, "Old Ji, hurry back. Aren't you going to sell goods anymore?"
"I'm coming." Ji Zhiqiang returned to the shop happily.
Su Jiaojiao asked Cai Ting to look after the store and called Ding Linyu to go shopping with her. The two first went to Yang Chunhua's shop to look at her mid-range jeans.
Generally, merchants would not check each other's goods, but they knew that Su Jiaojiao had lost money, so they felt a little sympathetic towards her and did not mind her coming to their store to check out the goods.
In addition, Yang Chunhua didn't like Su Jiaojiao either. She had already tricked Cai Ting into believing that Su Jiaojiao was just a college student and her family was in the clothing business, so she sublet a shop to wholesale jeans.
In Yang Chunhua's eyes, Su Jiaojiao is a colleague, but not to be feared.
What she was afraid of was Changyuan Jeans Wholesale. If Yu Mingjie dared to come to her shop to look at the goods, she would have kicked him out long ago.
Yang Chunhua also gets her goods from Guangzhou. She has all kinds of styles, even retro ripped jeans.
After all, they were in the same industry, so Su Jiaojiao was too embarrassed to ask about the purchase price. She only knew that the shipping price of these mid-range jeans was 19.
Yang Chunhua told Su Jiaojiao that these jeans, which had a shipping price of 12 yuan, were generally sold at retailers for 19 yuan. Her jeans, which had a shipping price of 19 yuan, were sold at retailers for 29 yuan, and so on.
With the rise and popularity of jeans, retailers also changed their strategies. They divided the prices of jeans into different categories according to their quality, namely 19, 29, 39, 49, and even 59 and 69.
This selling method does not involve bargaining, has limited profit margins, but sells goods quickly.
The two of them visited all the jeans wholesale stores in Wudaokou and learned about the wholesale situation of mid-to-high-end jeans. They found that everyone was in similar situations, and the styles and fabrics were almost the same as those of Yang Chunhua's.
Su Jiaojiao decided to ask Qifa Garment Factory to immediately stop producing jeans made of low-end fabrics and switch to jeans made of mid-range fabrics. If Changyuan had leftover stock from his order, she could wait a while, but once he sold them all, they would be out of stock.
But Changyuan is backed by Wanzhuo Clothing Company, so she can't wait any longer.
In fact, the shipping price of ten yuan is not bad, and I can make money, but it is less than before.
The current situation is that Changyuan has the initiative in the market. She is worried that Changyuan will lower the price again. If it lowers the price by another dollar, she will also curse.
"Jiaojiao, if the jeans cost 29 as Yang Chunhua said, and the shipping price is 19, then what should the factory price be?" Ding Linyu understood what Su Jiaojiao meant. Since they couldn't compete with Changyuan's low-end jeans, they should change track and develop in the direction of mid-to-high-end jeans.
"I'm not sure. I'll call and ask first." Su Jiaojiao asked Cai Ting to close the shop early and return to Jinyuan.
She called Yu Baolai from Dahua Textile Factory No. 3 and asked him about the price of jeans fabric.
Yu Baolai was still as enthusiastic as ever, explaining in detail the prices of mid- and low-end fabrics. He had always assumed that Su Jiaojiao and Wanzhuo Garment Company were friends, and he repeatedly emphasized, "Don't worry, Miss Su. We're both regular customers. The price I'll give you is the same as Wanzhuo Garment Company's."
Su Jiaojiao thanked him and wrote down the details. "I'm still thinking about it and will call you to place an order. But this time, I want it shipped to Mocheng."
"No problem, it will take me four days at most to get to Mo City." Yu Baolai was very happy.
After knowing the price of the fabric, Su Jiaojiao and Ding Linyu carefully calculated the approximate factory price of each grade of jeans. They were really shocked when they did the calculation.
The factory price of Wanzhuo Clothing Company's low-end jeans should be around seven yuan. In other words, Wanzhuo is the same as Qifa, and even if it is sold for eight yuan, it will still make money.
Changyuan still has room for price reduction, but Su Jiaojiao does not.
Su Jiaojiao called Xue Yuzhen from Qifa Garment Factory and told her about the situation. Xue Yuzhen expressed her understanding and said, "Then just send the fabric over. As long as the style remains the same, the processing fee will be 2.5 yuan. As for the rest, we can discuss it in detail with someone from your side."
"Okay, anyway, you guys should continue production as usual before my goods arrive. I still want all these finished products." Su Jiaojiao had learned about the prices of Xue Yuzhen's mid-to-high-end fabrics before. After much deliberation, she decided that Dahua's prices were cheaper, so she changed to processing with supplied materials.
When doing processing on supplied materials, someone has to follow up on the order.
Su Jiaojiao had no choice but to arrange for Cai Ting to go back and leave Ding Linyu here to ship the goods. There was no other way. Once an order was placed, the personnel had to change accordingly.
The three of them were chatting about the jeans when Li Nuo called and said her sister, Li Mo, wanted to treat her to a meal and meet her at The Wizard of Oz. "My sister has been wanting to see you for a long time, but things have kept her away. Today is the weekend, so we can get together."
Su Jiaojiao readily agreed.
Li Mo goes to Guangzhou all year round, maybe he can learn about the situation there from her.
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