Chapter 488: Price war

Zhou Zhiyuan looked at the company's report, and the expression on his face was very satisfied. Although the profit margin is not high, it is easy to make hundreds of thousands every month.
At the beginning, he invested only a few million yuan in Jin Yuanyuan, and he has already made a profit. Now there are still several million profits a year, which can make him comfortable and comfortable.
He also hopes he can earn more and become a multi-millionaire or even a billionaire, but it is difficult.
Don’t look at Jin Yuanjian as a well-known brand in China’s electronics brand, but he didn’t get a fist product. All products are slower than others. What he earns is the leakage of others’ fingers.
If it were not for his decisive cooperation with Yuxing, Xiaobawang, etc., I am afraid that the profit of several million a year now cannot be guaranteed.
Yuxing also put forward an idea for them to merge the three into a large company, and may have the ability to break their wrists with Zhiduoxing.
Zhou Zhiyuan also considered it, but Yuxing's request was to abandon their brand and develop with Yuxing's one brand, because among the three companies, Jinyuanjian had the worst brand effect.
This makes Zhou Zhiyuan very unhappy. Our brand awareness is a bit low, but it is also a brand that I created first-hand. Why do you say that I will give up when I give up?
Everyone knows Yuxing in the future, who remembers the Jin Yuanyuan I founded, and who knows Zhou Zhiyuan?
Although the three have not merged, they still maintain a cooperative relationship. They all know that once they are separated, no one will be an opponent of the Zhiduoxing Group.
The products of Jinyuanyuan Company are one characteristic and cheap. No matter how much money other companies sell for the same product, we are 20% off, or even lower.
Compress profit margins in exchange for sales. Dealers are given greater authority, and even some dealers have higher profit margins than them, but that's how he can make money.
When Zhiduoxing first emerged in the domestic game console industry, did it also rely on low prices? Now that the Zhiduoxing brand is large, many costs are increasing, and the selling price is no longer so close to the people. This is the opportunity for companies such as Jin Yuanyuan.
They just want to tell consumers that our cheap does not mean that our products are bad, but that Zhiduoxing has earned too much.
Get off work early today and relax.
Zhou Zhiyuan was planning to put on his jacket and go out. The secretary slammed the door open: "Mr. Zhou, it's not good!"
"What's the matter, the factory has an accident?" Zhou Zhiyuan frowned. The secretary's hair was rough, and it was replaced in a few days.
"It's not a factory, it's a product. Zhiduoxing's products are reduced in price across the board!"
"What do you say? Zhiduoxing's products have been reduced in price?!" Zhou Zhiyuan's clothes fell on the ground. "How much has been reduced, show me."
Looking at the handwritten price list in the secretary's hand, Zhou Zhiyuan felt that his blood pressure came up at once.
What's going on, why did Zhiduoxing suddenly cut prices by so much?
Although the prices of domestic electronic components have fallen in the past two years, have they not decreased so much? Does R&D cost of Zhiduoxing count? What about advertising costs? What about agency commissions and retailer profits? Should labor costs rise?
This price is cheaper than theirs, what can Jin Yuan do?
Zhou Zhiyuan immediately thought that he had to tell the two allies that they would discuss the solution together.
But before waiting for him to call, the phone on the table rang. After it was connected, there was a rapid voice from the phone, which was Yu Wei's boss Zhu Weisha.
"Lao Zhou, the price of Zhiduoxing's products has been greatly reduced in China. Do you know this?"
"I just knew that I was just about to call you. There was no sign of this before. We have to think of a way, otherwise our products will definitely not be sold."
Brands are inferior to others, sales channels are inferior to others, reputation is inferior to others, and prices are not comparable to others, not to mention the quality, how can they sell?
Soon the three parties got together again. The three people smoked together, and the room became smoky for a while.
"We have to merge, otherwise we can't bear the price war of Zhiduoxing. How can such a big company only have such a measure!" Zhu Weisha said angrily.
Everyone has similar strengths. It is normal for you to use price wars to the market. But you have accounted for more than 80% of the market share in the mainland. What price war are you fighting?
To lower our profits, just to crush us? Isn't this a thousand damage to the enemy and 800 damage to yourself?
Zhou Zhiyuan said with a sneer: "How to merge, let us foresee the abandonment of the brand and merge it into your Yuxing subsidiary? Who is in charge of the management of the company, are you or me, or is he?"
Who wants to listen to someone else's command when they are used to the boss? If you can help me make more money, can you guarantee it?
Since no one can guarantee that, whoever has the management power will have greater initiative. At the very least, his initial investment has not been lost, and it has already paid for itself. It is no big deal to sell the company. It can always be sold at a cheaper price.
Why did Zhiduoxing do this, in fact, everyone knows it well, not because they have followed the trend and infringed on the other party's patent rights? To switch to him is Zhiduoxing, and he is not willing to endure.
Zhou Zhiyuan had thought about this possibility before, but Zhu Weisha said eloquently that it would not happen, and Zhi Duoxing couldn't look down on this little money.
Now, when things happen, Zhu Weisha still wants to annex his company.
Although Yuxing is indeed superior to Jin Yuanyuan in terms of assets, why should I merge with you and listen to you?
"We do not participate in Xiaobawang, electronic products can not sell, we can sell electrical appliances. At least in Nanyue, we are not afraid of Xiaobawang!
Tripartite Alliance~EbookFREE.me~Missing one party instantly, Zhu Weisha and Zhou Zhiyuan were dumbfounded.
Originally, both of them wanted to win the support of a third party, which overwhelmed each other, and now they just quit. If they don't do it, they can't do it. They can't do this kind of determination for a strong man to break his wrist.
Just because Xiaobawang started making household appliances a few years ago, especially small appliances in the kitchen, it sold very well. And Yuxing and Jin Yuanjian do not have home appliances, only these electronic products.
"Lao Zhou, you really don't want to merge? Now that the situation is seen, others have a way out, we don't. Zhiduoxing has a large purchase volume, low electronic component costs, low production costs, and better channels."
"I heard that the agents of Zhiduoxing Group are willing to not pay agency fees this time, just for greater market share. Within half a year, our two companies will definitely go bankrupt."
Zhou Zhiyuan was silent for a while: "The factories can be merged, but the brand is not. We can reduce the production cost and the selling price by merging the factories, so as to ensure low profits."
"If I still can't compete, I will transform into a translation machine. Lao Zhu, this is my bottom line."