Confessions of a Salesman

Chapter 718 Start the Price War

I went on to say: "There is a simple and crude way to deal with Yingke's price war, which is to be patient. If they drop, we will also drop. They have reached the bottom line of cost now, and we have not yet! I can sell our company's products, all At the lowest point, they have no advantage at all. Compared with Yingke's products, our people have a higher status in the hearts of ordinary people.

Yingke's price reduction is nothing more than to make the sales data look better at the end of the year, raise its own stock price, and raise funds again to fill the gap in its own funds, but these are all false, and its shareholders may not buy it.They just want to play capital operation, we are actual operation.This is fundamentally different. If I block his sales and he can't buy me even if the price is lowered, do you think his stock price can grow?At that time, he will not even have the goods in his hands. What do I think he will use to fill the hole? "

Lu Ping shook her head and said: "Without the profit from home appliances, you still have other industries to support. Daily expenses are not a problem, and you can also get a loan from the bank. We can't do it! Once a small business like ours has no profit point, we The income and expenditure will be seriously unbalanced, and it will be dragged down in two or three months! The market is so big, you and Yingke have filled this market, what should we do?"

I sighed and said: "These years, you really did nothing! The market will be saturated one day? It's just how much. In this era, household appliances are already daily consumables in people's lives, no matter how durable they are Electric appliances can also break down. The household appliances bought ten years ago have basically been used up, and soon there will be another buying craze. Also, our household appliances are not constantly being updated, or consumers The household appliances are not broken, they can be replaced, and with so many new functions, they will still pay for it! Tell me, now every household has a TV, but the sales of TVs are still high, why? ?Because, once people's living standards improve, they will demand more, such as comfortable viewing, improved definition, wide-angle, curved screen, and laser TV, which is a big one, requiring the effect of home theater. It’s just that different times have different demands on products. This market will never be fully occupied. The only possibility is whoever occupies this market and establishes a brand image. Once this is established, it will be very difficult Difficult to change.

When buying an air conditioner, consumers will immediately think of the crowd, and then start to compare the cost performance, preconceived.This is the scariest thing!

So, you don't have to worry at all, if there is no market, you are afraid that you will have no products!Don't you always imitate well?Why not continue to imitate it? "

Lu Ping said helplessly: "I need capital! I want to develop new products and create new technologies, but this requires money! Your R&D center is bigger than our entire factory. How can we compare? what!?"

I shook my head and said: "Dongshi imitates me, you haven't learned the essential things at all. Wanzhong has stood firm for so many years, and it has grown bigger and bigger. What do you rely on? It depends on concentration. Because of concentration, it is professional. You must first do it well. Do your own business, what you are good at, and then do other things. I think if you have been only doing air conditioners, you will not cause such a shortage of funds, and you are still half-hearted."

Lu Ping asked curiously: "How do you know I'm half-hearted!?"

I cut it and said, "Is this hard to know? What new product did you release today, and it will be on my table the next day. I also want to learn how to make small appliances, thinking that the cost is low and the profit is high, right?" How easy is it? It’s too whimsical! How much effort and how many generations of small appliances have I spent before I can have a place in the market! The things I make are not even willing to use, and I plan to sell them to consumers Ah? Let’s just talk about the fans you make? Except for the different brands, what’s the difference between the products produced by you and the Yiwu Trade City? Do you think consumers will pay? I didn’t learn how to walk well, so I thought about running, can I not fall?”

Lu Ping commented: "I've thought about this problem too, and I can't help it! A single product is too risky, and if there is a problem with the product, the entire army will be wiped out. Diversification to avoid risks is the most effective nowadays. way of doing business?"

I curled my lips and said, "A single medicine can cure all kinds of diseases? You should run your own business according to the characteristics of your own business. If China hadn't gone its own way, with socialism with Chinese characteristics, would it be prosperous today? Imitating the economic development model of Europe and the United States will only accelerate the gap between the rich and the poor, cause class divisions, and create another Soviet Union every minute. If we listen to the advice of the big brother of the Soviet Union, we will probably have to eat dry bread and drink potato soup every day. Let’s go The way I should go!"

Lu Ping said dissatisfiedly: "Why are you taking the topic further and further? I'm asking you what to do now?"

I sighed and said, "I'm drooling when I'm talking, you didn't listen to anything, did you?"

Lu Ping asked suspiciously: "What did you say? Give me an analysis of the general environment, and take a business management class. What's the use?"

I sighed and said: "Dead wood can't be carved! Let me ask you, Yingke has lowered the price, will you lower the price?"

Lu Ping shook her head and said, "I don't know, you will die if you lower the price, or you will die if you don't lower the price!"

I hummed and said, "Since you don't want to lower the price, you're going to die! Then go to the bottom of the boat, stick to your reserve price, make your own new products as soon as possible, make differentiated products, and don't care if he lowers the price or not, and don't compete with him." For regular products, no matter how much you compete, you can’t compete with him, so it’s better to let him perform by himself. He just wants to drag us all into trouble!”

Lu Ping hesitated and said, "We have all lowered our prices. What good will it do them to drag us all into trouble? Isn't it another vicious competition, and everyone has no money to make!"

I smiled and said: "Everyone can't do it anymore, what should the industry do? Let's reshuffle the cards, whoever has money will stand up first, merge, acquire, reorganize, big fish eat small fish, and small fish eat shrimp , all small businesses will be annexed. Those who survive will be the bosses of the industry, and then they will be able to achieve the goal of monopoly, and then release some new products, and raise the price again. purchase!"

Lu Ping grew her mouth and said, "Then what you mean is that he wants to kill all of us small businesses, and then he will stand out and dominate the world!"

I hummed and said: "The idea is good, but unfortunately, he forgot that we are the boss of home appliances. We will not allow him to do this, and he will not do it!"

After Lu Ping went back, Zhang Hai from Seagull called me: "Mr. Chen, do you know about Yingke's price reduction?"

I replied angrily: "The whole world knows, do you think I can't know?"

Zhang Hai smiled and said, "Are you still angry with me? Didn't I apologize to you last time?"

I snorted and said, "Then I apologize to you first!"

Zhang Hai asked curiously: "Why are you apologizing to me?"

I replied: "I haven't thought about it yet. I'll tell you when I do something that I'm sorry for you!"

Zhang Hai laughed loudly and said: "Okay! Okay! Tell me, what should we do? We all listen to you,"

I pretended to be stupid and asked, "Do you listen to me?"

Zhang Hai cut out and said: "Why are you pretending to be stupid? I have discussed with several manufacturers, and I want to ask your opinion, we will follow you!"

I smiled and said, "I'm not the chairman of the association, so if I want to listen to you, I have to listen to the opinions of the association, right?"

Zhang Hai sighed and said: "The association has just been established, and you and I are the vice-chairmen of the association. If the association can be effective, it would be a long time ago. I know you have a lot of tricks, so why don't you hurry up and tell us what we should do? Long nights and dreams, If this continues, everyone will have a bad day!"

I thought for a while and said: "Our people are a single product, and the profit of air conditioners is so small. I will definitely not be able to drop to his level! I will not lower the price. As for your diversified product companies, just think about it for yourself. ?”

Zhang Hai stopped laughing, but said seriously: "That's not okay! If our company lowers prices accordingly, how many products will be lowered in price, we won't lose money! You know, the current market environment is so bad, Originally, it was small profits but high sales, but now it’s good, without small profits, I can’t sell more. I just finished the internal affairs, and now I have to fight outside again.”

I asked, "What about the foreign aid you invited? What did she say?"

Zhang Hai said solemnly: "Please call her, our President Yun, she is not our foreign aid, she is now the general manager of our Seagull Group, the power is second only to me, and she is not, now even I have to listen to her! "

I groaned and asked again: "So, what is your opinion, Mr. Yun?"

Zhang Hai said again discouraged: "Our President Yun said, listen to you!"

I cut it and said, "It's still, push it all to me. I'm not your nanny, so why don't you listen to me in everything, and when it's beneficial, you don't see me all thinking about me!"

Zhang Hai complained: "Stop whining, hurry up and find a way to solve it! You are big heads, and the sales volume for this month has been halved at least? I don't believe it, are you not in a hurry?"

I said disdainfully: "What am I afraid of? They will benefit from one more if they buy one more. That's not how business is done. They think that if they don't make money, they don't lose money!?"

Zhang Hai asked rhetorically: "Isn't it? At least they still occupy the market like this!?"

I snorted and said: "Fart! If that's possible, the common people will still think the prices are high, so they can just wait for the price to drop! Which industry doesn't want to occupy the market first? It's not about fighting to the death, they are all like Yingke. It doesn’t make money to enter and exit, just take down the market first!”

Zhang Hai hummed and said, "That's true!"

I continued to analyze: "If you sell, you have to pay taxes. Where does this tax come from? The company does not make money, where does the worker's wages come from? Where does the production cost come from? Does the enterprise not need to develop? Does it not need to produce new products? No need for research and development Where does the money come from? I can understand it if it’s just to go out of stock. Judging by their posture, almost all products are cutting prices. It’s a big sale! Products need to be sold continuously in order to win the market! It is reasonable to buy out of stock in the short term, but once consumers find that they are out of stock, they will have doubts. Is the product they bought defective? Can the things at the bottom of the warehouse be used? When you come out again, No one cares! These days, no matter how expensive things are, people buy them, but if you sell beef for 5 yuan a catty, do you think anyone dares to buy it?

Once consumers lose confidence in the product, it will be difficult for you to restore it. We have suffered a lot in this regard, and they are asking for it! "

Zhang Hai objected: "You are talking about the future, but what about now? The fact is that they are devouring the entire market. Just look at this month's sales report. 7% of the sales are theirs! There are 14 models." Products! It also includes your air conditioners!"

I said indifferently: "Our Wanzhong's products are already more expensive than others'. Their price cuts make our prices even more high! It is normal to lose part of the market in a short period of time, and we will get it back. !"

Zhang Hai asked curiously: "How do you plan to get it back? Aren't you also planning to lower the price? Then are we still alive? You can't be so dishonest! You just said that lowering the price is not good for anyone. !"

I hummed and said: "Yes, even it is not good for consumers! The bottom line price will breed many small manufacturers, take risks, and work hard on manufacturing costs, and the product quality will definitely decline. If consumers blindly choose Low-priced products and habit formation will only hurt themselves!"

Zhang Hai hummed and said: "We all understand the truth, but consumers don't know, they must buy whoever is cheap, and the one that is cheap counts as the other!"

I said confidently: "Then let consumers realize that the cheaper the product, the better!"

Zhang Hai hung up the phone, and several bosses who were more familiar with the company called me, and I taught them the same thing.

Soon, Lotte issued the latest statement, resolutely resist price wars, stick to the quality of your products, and Lotte will not lower prices!
Subsequently, Seagull also issued a statement, resolutely resisting price wars, and protecting consumers' rights and interests! (line of industry).Seagull does not cut prices!

Since then, multiple companies have issued the same statement.

I knew it was time to do it myself.

He Jie issued a statement: "Our Wanzhong Group solemnly declares that Wanzhong has always resisted price wars. A price cut is a disguised form of destroying product quality and consumer interests. The wool comes from the sheep. For the positive and healthy development of the industry, Wanzhong is not We will make concessions and lower prices! At the same time, we call on consumers to keep their eyes open to see the essence of price cuts, and hope that buyers will see the quality of products clearly, so as not to be deceived!"

The final blockbuster is the statement issued by the Home Appliances Industry Association: As the Home Appliances Industry Association, it has the obligation to protect the rights and interests of consumers. It is well aware of the cost of home appliances. It is necessary to control the high price of products, ensure product quality, and restrict It is extremely undesirable to reduce the base price of the product and reduce the finished product to achieve the purpose of reducing the price to attract consumers.

(End of this chapter)