Chapter 36 Price War
July is already halfway through, and the capital is still bustling with activity.
After Tengsheng Fruit invested 11 million yuan and invested heavily in Shijingshan, the news naturally spread in the fruit circle.
Actually, the fruit business is very hard.
There are generally only a few types of people working in this industry.
Like Chen Pingsheng and others, there are people who have been selling fruits on the street for many years.
The majority of stores are run by couples, who work from dawn to dusk to earn a living to support their families.
The other type is like the orchard, which has already grown to a certain scale and is beginning to develop into a regular army in all aspects.
That is to move towards a true chain model.
Chen Pingsheng himself was also rushing towards this path.
Five stores opened simultaneously on the 8th.
In addition to causing a huge sensation in the fruit circle, it was not taken seriously by Nongguoyuan, the original fruit leader in Shijingshan.
The turning point came three days later when Tengsheng Fruit officially opened.
Putting aside other things, the most popular fruit in summer is undoubtedly watermelon.
There are many varieties of watermelon, the two most typical ones are seedless and seeded.
Before Chen Pingsheng came in, the average price of seedless melons in Shijingshan was around RMB 3.5 per pound.
Everyone sells it at this price, and the cheapest one won’t be less than three yuan.
After he came in, he directly lowered the price of seedless watermelon to one yuan and sixty-eight cents.
The purchase price is one dollar and fifty cents.
The price of seeded melon in Shijingshan is about two yuan.
Chen Pingsheng made nine cents in one go.
The purchase price is 80 cents.
All other fruits are also sold at the purchase price. His store is big and there are five other stores open at the same time.
Raising the fruit sales price to the cost line all at once is a violation of the entire Shijingshan fruit taboo.
In other words, we are now living in a society ruled by law. If you had done this a few years ago, your store would have been smashed.
Nowadays, in order to seize the traditional market, Internet companies often provide subsidies of hundreds of millions of yuan.
He is just following suit.
The low-price effect is quite obvious, and Tengsheng Fruit saw a surge in traffic after only three days of opening.
This caused complaints from the neighboring orchards and a series of small family-run shops.
Logically speaking, his store is so big that the rent will not be less than 50,000 or 60,000 yuan per month.
Selling at this price is clearly a way to make a profit in the market at a loss.
Some shops opened next to him and couldn't hold on within a few days.
A fruit as obvious as watermelon is bound to have its price reduced.
Otherwise, none of them can be sold.
Later it was durian, and then a series of everyday fruits, but in the end I found that customers still didn't come.
After a week of silence, Nongguoyuan also decisively began to lower prices.
It has stores not only in Shijingshan, but also all over Beijing.
One of the top ten fruit giants in Beijing.
The result of a direct price war between the top two players will be that the third and fourth players will be the ones who die.
Some stores that couldn't hold on were either forced to transfer or do other things.
The fruit business is not like the Internet, which only serves customers within a radius of 500 to 1,000 meters.
If there is a large fruit supermarket with low prices, high quality and a complete range of products within this range.
It is absolutely a devastating blow to those small shops.
Like swallowing a whale.
Especially within this range, Tengsheng and Nongguoyuan started a complete fight.
Customers will always compare. If his price is low today, you will buy from him twice at most and then he will go back to you.
You are low tomorrow, and he will be back in two days.
In this process, it all comes down to who can persist longer.
That is the amount of funds.
Chen Pingsheng naturally didn't care, as he had already developed a stable and mature playing style.
Just wait until the customers are well maintained, and then we will directly launch a wave of recharge activities.
With the current scale of these five stores, if recharges were enabled at the same time, he estimated that at least 20 to 30 million yuan could be recharged within a month.
When the time comes, we can use this money to randomly multiply it and directly open another thirty or fifty community stores.
Even if they cannot destroy Nongguoyuan, they can still pull it down from the number one position in Shijingshan.
By then, he would be considered a well-known fruit merchant in Beijing.
The current price war between the two companies is still of great benefit to customers.
It’s like Didi and Kuaidi in the current taxi market.
One is the investment from Big Penguin and the other is the support from Ali.
In order to grab the market share, the two companies are desperately raising funds. Today you provide 100 million yuan to subsidize drivers and users.
Tomorrow I will be able to raise 200 million yuan for subsidies. Although this process is a bit cruel, it will still be of great benefit to customers and drivers.
Firstly, customers can get a taxi with the least money, and secondly, drivers don’t have to pay too much from the platform.
On the contrary, there are various subsidies, which makes the income high.
The most unfavorable situation is actually that only one is left at the end.
If one company can set the rules of the game, then it can manipulate users and drivers at will.
Many people should have a deep understanding of this.
The same is true for Chen Pingsheng himself. It is impossible for him to always sell at cost price.
In the end, it’s all about making money.
It's just a process.
Five stores in Shijingshan were successfully opened, and the price war was in full swing.
He has nothing to worry about, after all, Lao Guo and his team will provide sufficient funds.
To put it simply, the payment for the goods will be settled in three months.
Use wholesalers' money to fight price wars and use your own money to earn bank interest.
How nice.
Anyway, Lao Guo has already figured out his plan. Not only will he get his money back in three months, but he can also make a year's worth of money.
Just work hard now and you're done.
By August, when the average daily number of customers in the five stores had stabilized at more than 500, Chen Pingsheng was still frantically engaging in a price war.
National Day is in two months.
He still has five million in his card. He can't just keep this money, he has to use it.
As for TV drama investment, Yang Jiancheng went to shoot Legend of Lu Zhen, and there is no news yet.
He wanted to do high-end beauty, but he couldn't find the right person to do it.
It would be more reliable to invest this money in a fruit shop.
This time we won’t go that big, we’ll just open a community store of one or two hundred square meters.
The most appropriate investment for a single store is around 500,000 yuan.
After the recharge activities of these five stores are completed, we will be able to take over immediately.
To ensure that he has large income in the next few months.
Five million is only enough to open ten stores, so he opened the first one.
These stores opened in August, attracted traffic in September and October, and just made up for the recharge gap in November.
The plan is good, let’s do it.
As Tengsheng Fruit continues to expand, the headquarters is recruiting more and more people.
Not only does it have a marketing department and a finance department, it also has a dedicated logistics department that includes drivers and various miscellaneous items.
Only at this stage can the headquarters truly achieve scale.
The boss Chen Pingsheng is becoming more and more like a boss.
Overall, his footwork is still very steady.
In July, we were fighting with the orchard, and in August, we were opening a community store.
By September, he was concentrating on building the headquarters.
That is to design a set of headquarters operating standards.
From now on, everyone has to follow the established rules, and he will still listen to Teacher Ma's speech every day as usual.
In his eyes, Teacher Ma is definitely a true strategic genius.
As for the God of Chinese Business, he felt that the only person worthy of this title was Li Ka-shing in Hong Kong.
This is definitely the richest man in Asia who is seriously underestimated.
He has enough business skills to learn for a lifetime.
At present, he takes these two as his study representatives.
(End of this chapter)
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