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97: Price War 3.0 is online

On May 1st, Yang Xun suddenly received a notice from his subordinates that his competitor Jiangcheng Electrical Appliance City launched a large-scale fourth anniversary promotion for one month.

At the beginning, Yang Xun had not taken this seriously. Promotional activities were carried out every year. Since last year, Cheng Yang Electric had been ahead of Jiangcheng Electric from the number of stores to sales, he had no longer taken Lei Dongbao and Jiangcheng Electric seriously.

In Yang Xun's opinion, Lei Dongbao has already passed away. Within two years, his Cheng Yang Electric Appliances has been far away from Jiangcheng Electric Appliances. Because of his own relationship and capital, it is not something that a small-scale Lei Dongbao can compete with. If it weren't for the storm that happened in the past six months, Cheng Yang Electric Appliances would have lost money and eliminated disasters, it would have already exceeded one hundred stores.

Young people are always self-righteous. Yang Xun, in this world, has suffered far less social beatings than the original work. His smooth life in recent years has already lost some of the alert he should have.

On May 2nd, before Yang Xun woke up, he received a call from the managers of several branches under him. He got up in a daze and didn't understand it, until the second manager said on the phone.

"Manager Yang, we have to find a way quickly. Jiangcheng Electric Appliances has invested a lot this time. Many of their promotional prices are half cheaper than ours. And I have seen their flyers. This time their promotion period is one month. After they are promoted for a month, the daylily has cooled down. Yesterday, the sales of our Jinzhou store was only one-tenth of that, and almost all of our customers were snatched up!"

The words of this store manager made Yang Xun wake up instantly. He wiped his eyes and slowly put down the phone. He looked a little cruel in his expression and sneered in his heart. Lei Dongbao wanted to fight back at this time?

Isn’t it just a price reduction promotion?

Come on! Who is afraid of whom?

Yang Xun naively believed that price reduction promotions were just price reductions. Lei Dongbao played the same trick as nothing more than making money or making a low profit.

When I was still selling steamed buns, I already understood that selling three steamed buns is two cents cheaper than two steamed buns. If the customer also wants a flower roll, he can also sell them in an integer number, just to make the customers feel that it is affordable. This child will calculate the business practices.

Yang Xun washed his face and returned to the company headquarters. What is interesting is that his company headquarters is now also learning from Lei Dongbao and is set up in Jiangcheng, because here, you can control everything in the overall situation. Every week, you can also know the real sales of stores in each province and city based on the logistics shipment quantity.

In Yang Xun's opinion, Cheng Yang Electric Appliances has a good development momentum. He originally planned to rectify these 60 stores this year.

Last year, because the opening was too hasty, the staffing was a bit chaotic. Many store managers, who had no sales experience, rushed to work. He planned to pass the performance appraisal, take a batch of managers and recruit a batch of re-recruitment.

There are also some company rules and regulations that he will improve this year. In short, in Yang Xun's opinion, Cheng Yang Electrical Appliances has many minor problems, but there are almost no major problems. He only needs to be given half a year to rectify. Next year, Cheng Yang Electrical Appliances will set sail again and expand to the outside world again.

But obviously, Lei Dongbao would not give him this opportunity.

As soon as he arrived at the company, Yang Xun received the sales of 60 stores in the company yesterday, which shocked him. Almost all of the 60 stores were intercepted by Jiangcheng Electrical Appliances yesterday.

Since the end of April, the other party has arranged a large number of publicity personnel and began to distribute a large number of leaflets in the abortion area near Chengyang Electrical Appliance City.

Yang Xun is holding a leaflet in his hand now, with a few big words on it at the top. Jiangcheng Electric Appliances Fourth Anniversary Promotion Month has been launched. In order to give back to customers who have supported Jiangcheng Electric Appliances City for four years, the one-month reward month event will be officially launched from May 1st to June 1st!

Finally, under the leaflet, there are dense pictures of the product. The original price and promotional price are noted below the picture. Many products are almost half cheaper than the usual sales price, which makes Yang Xun frown!

Yang Xun hurriedly asked the marketing department staff to come to his office and asked them what they thought of the flyer.

The marketing department staff was also in a dilemma, and the last manager mustered up the courage to say.

"Manager Yang, according to the prices of the above products, I think there should be no profit. Some single products are even a few cents cheaper than our purchase price. Are they doing charity? They are losing money to them!"

When Yang Xun heard the other party's teasing tone, a nameless evil fire suddenly emerged. He slapped the desk with a leaflet and slapped it angrily.

"I invite you here to do things, not to have a good meal. This leaflet was sent everywhere a week ago. Why didn't anyone notice it? No one informed me?"

Yang Xun's anger made everyone look at each other, and finally bowed their heads. In the 1980s, they actually did not take this promotion seriously, because this era was a seller's market, and merchants did much less business than later generations. How could there be so many colorful things to do in the promotional business? As long as the location is good and the door is opened to do business, customers will come to the door!

In addition, the previous crazy spending money on marketing and advertising on various channels was surprisingly good, almost instantly killing peers, including Jiangcheng Electrical Appliances. Therefore, everyone did not realize the danger of Jiangcheng Electrical Appliances suddenly coming this year. It was not until yesterday's sales were counted that the store managers and managers realized the danger.

Yang Xun also rubbed his brows, and there were a bunch of people under his command. It seemed that the rectification action was urgent. It was just right to take this opportunity to test those people. Those who are capable should get out of here, and those who are mediocre should get out!

Yang Xun calmed down for a moment and said to everyone.

"Let all the staff at the headquarters gather in the gate square before 10 o'clock, and let all the store managers and deputy store managers outside ask them to rush to Jiangcheng for a meeting before 8 o'clock tomorrow morning. Next, we will have a tough battle to fight and cannot win. You all get out of here. Don't do personnel with a high salary, Cheng Yang Electrical Appliances will not keep a living!"

Yang Xun's style of doing things is indeed very popular and he is very sensitive to commercial events. When he got this leaflet, he already understood that Jiangcheng Electric Appliances was playing real this time, and this time it was far from being as simple as seeing a loss-making promotion on the surface. Lei Dongbao's purpose is his own Cheng Yang Electric Appliances, and Lei Dongbao is fighting back!

Cheng Yang Electrical Appliances responded quickly. On the morning of May 3, in front of each store, there were banners for the anniversary celebrations, and all employees were dispatched and leaflets, and they quickly followed. This was the only one who worked with Jiangcheng.

When Lei Dongbao got their flyers in the office, he couldn't help but nodded, praising Yang Xun as a talent. The promotional products on the flyers were almost the same as Jiangcheng Electrical Appliances, and the prices were lower than Jiangcheng Electrical Appliances.

Almost both sides are engaged in price wars on small home appliances, because both sides know that the most critical winning weapon is to grab traffic.

The prices on the flyer are almost all a few cents lower than Jiangcheng Electric Appliances. The most outrageous thing is that Cheng Yang Electric Appliances, which are already one cent more than one cent, is sold directly for one cent each this time, and each person can buy two in a limited quantity.

The other party discovered the essence of Lei Dongbao's leaflet!

right!

Among the cheapest items in Leidongbao's leaflet, basically the appliances, light bulbs, switches, plugs, etc. required for every family. Leidongbao almost sells the appliances that must be used in these households at a cost price.

Because these products are used by every ordinary person, it is a powerful tool for drainage, so Lei Dongbao is so cheap. Yang Xun is very smart. He grasped the essence of Lei Dongbao's flyer in just one day. He came even harder this time, just a light bulb for one cent. This is preparing to fight to the end!

Lei Dongbao looked at the leaflet in front of him and a smile appeared on the corner of his mouth. Since the other party has already faced the challenge, let’s start the first battle!

On the fifth day, Jiangcheng Electric Appliances' leaflets were replaced again. This time, not only did the light bulbs costing a penny to be launched, but there were more products that were one-third lower than usual or even half the price, including almost all electrical products, from pressure cookers to water heaters, to refrigerators, washing machines, air conditioners, and other high-priced electrical products. Jiangcheng Electric Appliances City began to significantly reduce prices in front of them.

As soon as this leaflet was released, Jiangcheng Electrical City's business rebounded rapidly, the threshold was once again broken, and sales were rising steadily.

After seeing the 2.0 version of Lei Dongbao leaflet, Yang Xun was so angry that he had to keep up with him. At this point, either you die or I die. He was just a promotion at a loss. Who is afraid of whom?

The price war between Jiangcheng Electric Appliances and Cheng Yang Electric Appliances has quickly continued to escalate. The two sides have gone back and forth. The goods in the Electric Appliances City are almost half cheaper than in the market, which makes the people laugh and almost have some spare money to buy them. As the leader of the market, Cheng Yang Electric Appliances, he soon felt all kinds of pressure coming.

In order to suppress Leidongbao, Yang Xun will definitely keep up with the price of the goods in Leidongbao store every time the price of the goods is reduced, and the price is even cheaper than Jiangcheng Electrical Appliances. His plan has indeed succeeded. Chengyang Electrical Appliances City's sales will still stabilize the Jiangcheng Electrical Appliances City in May.

Both parties' sales soared, more than tripled from the sales in May in previous years. However, the performance of such low-priced promotions was basically a loss-making business. Leidongbao calculated the calculations at the end of May. In May, the average monthly loss of 50 stores exceeded 30,000, which is a loss of 1.5 million yuan.

However, Lei Dongbao expects Chengyang Electrical Appliances to lose more, perhaps even more than four million to five million, perhaps more.

There are two reasons why they have lost so much. First, the other party’s price reduction is greater than that of Jiangcheng Electric. Second, the other party’s price war is in a hurry to face it. Whether in a series of issues such as personnel configuration or logistics supply chain, the cost is far greater than that of Jiangcheng Electric.

Take some products for promotion. When Lei Dongbao was selling some products at a loss, the prices of these products were negotiated with the manufacturer two months ago. Because there was quantity, the prices of the other party were so cheap. Cheng Yang Electric Appliances saw that some products on the Jiangcheng Electric leaflet suddenly dropped sharply, and had to keep up with the price reduction the next day, even cheaper than Jiangcheng Electric Appliances, but the price of these products was far higher than that of Jiangcheng Electric Appliances.

So, various reasons combined, Cheng Yang Electrical Appliances suffered a bit of pain this time!

However, the competition between the two sides also has an advantage, that is, the fame and sales of the two stores have increased significantly. Some small state-owned stores became victims in this promotion. Their sales for a whole month were extremely bleak, and some stores of township collective enterprises went bankrupt directly, indirectly clearing up some competitors in the market.

This is one of the benefits of price wars. When the eldest and the second brother compete, the most serious injuries are often the third and fourth brothers, and the fifth brothers are innocently caught in the gun.

When Yang Xun saw the financial report in May, he not only felt a little pain in his chest, but also breathed a sigh of relief. The damn month-old promotion was finally over!

He is holding this report now and has a headache. He doesn't know how to explain to the shareholders above that he has lost more than five million in a month. This figure makes Yang Xun feel pain in his teeth.

The only thing that is somewhat comforting is that Lei Dongbao didn't take much advantage. They also lost money by themselves. Although they didn't know how much they lost, they definitely lost a lot.

Moreover, through this promotion, Cheng Yang Electrical Appliance City's position as the leader in the market has been consolidated again. Now, when people mention buying electrical appliances, everyone is the first to think of Cheng Yang Electrical Appliance City. Everyone knows that Cheng Yang Electrical Appliances is cheap!

But Lei Dongbao obviously would not release the process Yang Electric Appliances so easily. He knew very well that for this promotion, many departments of Cheng Yang Electric Appliances were overloaded, because the products sold each time were very temporary and were often led by Jiangcheng Electric Appliances.

Therefore, in order to cope with the tasks arranged at any time, the logistics department works overtime until late at night every day and is on standby for 24 hours. Many employees have already complained.

Moreover, as far as Lei Dongbao knows, due to the storm in the first half of the year, Cheng Yang Electric Appliances has experienced a shortage of funds. The current promotions have made them owe suppliers the payment for goods astronomical. At this time, they still want to talk about preferential prices, and they don’t have to think about it.

It is estimated that by this time, many suppliers were worried. This is what Lei Dongbao wants. He wanted to give a fatal blow when Cheng Yang Electrical Appliances was the most vulnerable.

From June to August, the peak sales season for electric fans and air conditioners is officially entered, with 1.5 million yuan. Leidongbao is unwilling to listen to the name of the second-in-command market.

On June 6, Yang Xun once again saw the promotional leaflet of Jiangcheng Electrical Appliance City, which clearly stated on it.

"The June promotion season for cool summer has officially started. The electric fan starts at 6:80% off, the air conditioner starts at 8:80% off, and the refrigerator starts at 8:60% off, so you can cool the whole summer!"

Yang Xun had no view of the content behind him. He felt a little cold in his heart at this moment. Lei Dongbao is really ready to compete with him.

Yes, Yang Xun guessed correctly. Jiangcheng Electrical Appliances Price War 3.0 version was officially launched. Summer is the peak sales season for Electrical Appliances City and the peak revenue season. Now Chengyang Electrical Appliances urgently needs to rely on the peak sales season in the past few months to recover. Lei Dongbao is trying to block Chengyang Electrical Appliances' path. He wants to waste Jiangcheng Electrical Appliances in this midsummer!

For this counterattack, Lei Dongbao has prepared since half a year ago, so it is not easy to let Jiangcheng Electrical Appliances go so easily.

All the games have just begun.

Lei Dongbao's move once again hit Yang Xun's heart. Or not?

Cheng Yang Electric Appliances is already weak. In order to stabilize the supplier, he transferred all the funds on the books at the end of the month. Now he still owes a large amount of payment. If he continues to follow the pace of Jiangcheng Electric Appliances, Cheng Yang Electric Appliances' losses will further increase.

But if you don't follow, you will die even worse. Cheng Yang Electric Appliances is taking too big steps now. If you fall behind in the peak sales seasons in June, July and August and are suppressed, Cheng Yang Electric Appliances City will be completely behind Jiangcheng Electric Appliances, and then this hole will expand again, one step behind, one step behind, and one step behind. If Jiangcheng Electric Appliances has another price war next year, Cheng Yang Electric Appliances will be powerless at that time.

Yang Xun sat in the office thinking for an afternoon. In the evening, he left Jiangcheng and returned to Jiangcheng tiredly until the next morning. Finally, he announced an order to officially launch a summer promotion. This time he would not follow Jiangcheng Electrical Appliances anymore. He had to take the initiative.

Yang Xun is indeed a business genius. He knew very well that in May, he was suppressed by Lei Dongbao and followed Lei Dongbao step by step, so Cheng Yang Electrical Appliances was so passive, so he must now take the initiative.

So he quickly found several manufacturers of electric fans and directly quoted orders for 500,000 floor-standing fans, so that they could produce Cheng Yang Electric Appliances at the lowest price and the fastest speed. Whoever has the lowest price and who can produce it within the specified time will give the order for the 500,000 units. And as long as he only needs the floor-standing fans, he will win this promotional battle with the ultimate single product price this summer!

Yang Xun is worthy of being a business genius. He found a way to deal with Lei Dongbao in a very short time. He knew how fragile Cheng Yang Electric is now. If he faced the battle blindly, he would only drag Cheng Yang Electric into the abyss in the end, because the supplier would not be able to pass that level.

Yang Xun was very sure that Lei Dongbao was very clear about the internal situation of Cheng Yan Electric. This was a life-and-death battle about Cheng Yang Electric. He had to take the initiative to fight, rather than being led by Lei Dongbao.

In just four days, Cheng Yang Electric Appliances' flyer was released. You can buy a large floor-standing fan for 59 yuan, a well-known brand, luxurious and atmospheric, and let you cool the whole summer.

On this leaflet, the main promotion of floor-standing fans that cost 59 yuan, and other product promotions are summarized in very vague words, such as words that start at 8.8% off, making it difficult for everyone to tell the difference.

However, the 59 yuan metal floor-standing fan alone is enough to attract the attention of the people. This move directly brought Cheng Yang Electric's passenger flow back to life and sales also instantly rebounded.
Chapter completed!
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