Chapter 179 Counterattack 1
"Huh?" Judging from the man's tone, he must have made a lot of money this time.
"Have you sold all the clocks you sold this time?" Su Tao looked up at the man's sexy chin and asked.
"Well, I sold them all and made 10,000 yuan this time." He Chuan grinned brightly with his teeth.
"So many?" Su Tao exclaimed, his little mouth opened in surprise for a long time.
"Well, I took stock of my current funds and found 25,000 yuan. The clock manufacturer was charging 25 yuan each, so I placed an order for 1,000 clocks, spending all my money on them. Over the past two days, I've been selling them in surrounding cities for 35 yuan each. I've sold them all," He Chuan said calmly. He was actually too bothered by the hassle and basically found a few merchants to sell them in bulk. Retailing them individually would have yielded a higher price, but it would have been more time-consuming.
He felt that he was more suitable for the wholesale business. With the time he spent on retail, he could use the money he earned to order more products and resell them.
Su Tao knew that while it sounded simple, not everyone could pull it off. He Chuan had the perfect combination of timing, location, and people. He knew about favorable policies ahead of time, had his own transportation company, and now had access to the factory's business resources. Each of these links was interconnected and essential.
Imagine if the average person has the funds to buy 1,000 clocks at once. If they only buy a few dozen, the profit they can make is limited. He Chuan's ability to make so much money is largely due to volume; with large volumes, he can still make money by selling at a low profit margin and in large quantities.
Even if someone has the capital to buy hundreds of clocks, they still need to ship them. Shipping costs, too, and these fees will reduce the profit from selling the clocks, making it impossible to make a huge profit all at once. He Chuan, on the other hand, has his own transportation company and drives his own trucks for transportation and sales, saving him money.
"It seems that the bank loan can be paid off in a month or so." Su Tao said with a smile.
He Chuan nodded. "Of course I can, but I don't plan to pay it back right away. I'll borrow money if I don't need it, and the interest rate isn't high. If I pay it back so quickly, it won't be easy to borrow next time."
Su Tao nodded in agreement. It was true that extra capital could only be put to good use if it was put to good use. The benefits this money could generate in He Chuan's hands far outweighed the interest rate on the repayment, so why bother paying it off early?
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Su Tao did not have classes until 9 a.m. on Monday, so he came to Taochuanfang early to review today's affairs. Today was the first battle of their counterattack.
The opening event of Shikefang also ended today, and the prices of dishes have returned to normal, but even the normal prices are lower than the original normal prices of Taochuanfang.
At this time, the boss Liu Hui was sitting with his legs crossed in front of the cashier waiting to collect money. The profits of the past three days had made him taste the sweetness. Every day he counted the small changes happily, fantasizing about the day when he would become rich.
"Huh? It's already 11 o'clock today, why hasn't anyone come yet?" Liu Hui said in surprise. Usually the place would be crowded at this time.
"How about? Let me take a look around?" The waiter said hesitantly. In fact, what he meant by around was to take a look around Taochuanfang, because he just saw several diners who had come to eat in the past few days heading towards Taochuanfang.
"Okay, what do you want to find out?" Liu Hui frowned and said, although there is no discount today, there shouldn't be so few people, right?
Not long after, the young man came running over, panting. Before he could even catch his breath, he said anxiously, "Oh no! Taochuanfang has reopened!"
Liu Hui said disdainfully: "Why rush? Just open it, what is there to worry about?" Their vegetable prices are cheaper than Taochuanfang's and more competitive than theirs.
"No, they've also lowered their prices. They've reduced the prices of all their dishes to their base price as a way to feed back their regular customers. Now all the customers are flocking to their place." The young man took a breath, swallowed his saliva and said.
"What? They lowered the price? Don't they want to make money anymore?" Liu Hui was so shocked that he slammed the table and stood up.
Lin Jie in the kitchen also heard the noise and came out, "What happened?"
The waiter told the whole story again.
Lin Jie's brows furrowed. He was just a chef, he only knew how to cook. He knew nothing about other aspects of the business. His previous business philosophy of hospitality and promotions were all learned from Su Tao.
"What should we do then?" Lin Jie asked.
"How about we surrender too? And become a regular customer?" The waiter tilted his head and looked at the boss Liu Hui and suggested.
Liu Hui slapped the waiter on the head and cursed, "What the hell are you talking about, old customers? We just opened, do we have any regular customers?"
"Then we can lower the price even lower than Taochuanfang and continue the promotion." Lin Jie said after a moment of hesitation.
Lower the price, lower the price! Didn't Liu Hui know about this? It seemed like they weren't the bosses, so they were talking so lightly. Taochuanfang had already lowered the price of their dishes to base price. If he lowered it even further, wouldn't he lose money? And then there were the rent and labor costs.
Liu Hui was silent for a long time, and finally, as if he had made a decision, he said loudly: "Surrender! We will surrender too, and our surrender will be even lower than theirs." Liu Hui continued in a low voice.
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Taochuanfang
When Su Tao came back from get out of class, he saw the restaurant was packed with customers again. The chef was worried because one person was missing, and Chen Gu and the two waiters were so busy that they didn't even have time to talk to them.
After closing the stalls in the evening, everyone in Taochuanfang gathered together.
"Sister Su, we did as you said, and the customers really came." Xu Lele was smiling.
"But... this is not a long-term solution. If we sell it at the original price and don't make money, how can we open a new business? Boss Su, didn't you say that we can't engage in price wars?" Chen Gu said worriedly.
When they originally proposed to lower the price, they just wanted to lower it a little bit to be similar to that of Shikefang. They didn't ask Su Tao to directly lower the price to the original price.
Su Tao smiled and said, "Are you wondering why I lowered the price so much, directly lowering the original price?"
Upon hearing this, everyone nodded vigorously like chicks pecking at rice, and everyone opened their big eyes waiting for Su Tao's answer.
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