Chapter 628 Breaking the Defense
When Bic Lighter gritted its teeth and announced an offer of one dollar per unit to the dealer, preparing to fight with Black Label Lighter, Black Label took one breath and The supply price is as low as US$0.5!
When this supply price came out, be it BAK or other old European lighter brands such as Clifford, Dunhill, and Grasshopper, they were silenced for a while.
However, for lighter dealers, scalpers, and gangs who resell lighters, although the retail prices of lighters on the shelves of convenience stores, tobacco shops, and supermarkets have continued to decrease.
But even if the retail price of the black label lighter on the counter is only one dollar, they still make a profit. The supply price is 0.5 US dollars. They sell one and share it equally with tobacco shops, convenience stores, etc. You can also earn 0.2 or 0.3 US dollars from a lighter!
It may seem inconspicuous, but in old Europe, the daily consumption of lighters is also four to five million, which is equivalent to a profit of 1.2 million US dollars. Those who resell black label lighters can benefit from this pool. Get a piece of the pie.
And it is quite stable. Even if you only earn tens of thousands of dollars a day, in a month or a year, that is tens of millions of dollars in income, and it is a net profit, let alone any precarious gang. It’s just ordinary old European companies, and they’re all jealous of it!
But after seeing the supply price given by Global Trading Company, it is not good news for BAK!
“Are they crazy?”
“With a supply price of US$0.5, what are the Global Trading Company and the Torch Group trying to do?”
In the office of Bick Group, Brenno Bick was furious and had been squirting at Antoine standing in front of him for more than half an hour.
In this price war, BAK has been crushed. When the price was set at one dollar a piece, BAK was already producing one at a loss, gritting its teeth and fighting the price war again.
But when Global Trading Company offered a price of US$0.5, Antoine was a little afraid to follow. This could really cost Bic a price that would lead to bankruptcy!
“The other party is dumping!”
Antoine said bitterly, “If I guessed correctly, the other party is likely to lower the price again, or even multiple times!”
Brenno Bick looked at Antoine and was stunned for a long time, "How low do you think the other party will cut the price?"
"0.3 US dollars, even 0.1 US dollars, maybe even lower than 0.1 US dollars. It’s possible that the production cost of the Hanxi Torch Group in mainland China has been estimated.
Using a large-scale integrated lighter industry chain and a centralized production model, the cost of producing a lighter by the Torch Group may be low. To 0.06 US dollars, that is, as long as the black label supply price is higher than 0.1 US dollars, Torch Group can maintain its capital and even make a profit!”
“0.1 US dollars?”
Brenno Bee This time, Gram was not angry, but fearful. Now Piccolo used all his strength to reduce the production cost of Piccolo lighter to about two dollars.
But when faced with the production cost of Black Label, which was only $0.06, and a cost gap of 33 times, Brenno Piccolo didn't know what kind of industrial Cthulhu he was facing!
"What are they going to do?" Brenno Bick said in a daze.
“Dumping!”
“A complete dumping!”
Antoine smiled bitterly. Now, he vaguely understood that the black label vest supported by the Torch Group , what do you want to do?
Seeing Brenno Bicker, he was still a little confused. Antoine said, "We also have American, Japanese, and stick lighter manufacturers. Haven't we been accusing mainland lighter manufacturers of dumping?
This time, the other party may be showing us what dumping is!”
“The other party probably doesn’t care about the price war at all, or even whether they make a profit or lose. They just want to watch us and still There are other old European lighter manufacturers that have been killed by Black Label!”
“Madman!”
Brenno Bick muttered to himself, how could this be done? According to the previous script, Shouldn't it be the case that the other party comes to your door and begs for a bite of food?
If Piccolo and the others don't agree, then they'll have to accept a fine, or rely on Piccolo and the others to give them orders, so that the OEM can survive, and they won't even dare to file a lawsuit.
But now, the Torch Group directly showed its knife. If they disagreed, it stabbed into Piccolo's heart and gave Piccolo a wave of bloodletting.
"If you want to drive the Black Label out of France and old Europe, you must drive them out!"
Brenno Bick said with fear, staring at Antoine, "I don't care What method do you use to get the Black Label lighter out?"
"I'm going to see Congressman Lucas now!"
Watching Brenno Bick leave, Antoine covered his face, with a helpless and depressed look under his palms. For the first time, he felt powerless.
How to get rid of black label lighters?
Relying on a price war or relying on judicial agencies such as the French Customs Service to confiscate all black label lighters?
When Black Label lighters continue to lower the supply price and give up profits, 50% of the profits are enough to make people who resell Black Label lighters take risks, and 100% of the profits are enough to make people crazy!
Antoine has a feeling that it is no longer possible to drive away Black Label. If Piccolo wants to solve this war, he may have to change his way, although that method will cause Piccolo to lose money. It's a huge loss of face, but it's better than death!
…
“The French Customs Service, the Paris Police Department and other departments jointly launched a joint operation and uncovered a lighter smuggling case. More than 300,000 lighters were seized at a time. This is the largest lighter smuggling case in the history of France!”
France, as well as Germany, Italy and other regions of the old European Union, have begun to hear news about cracking down on smuggling of black label lighters.
But can this kind of blow stop Black Label lighters from being sold like crazy in old Europe? Rossi, who is now the largest Black Label lighter dealer in Italy, no, he is a Black Label dealer, said, it’s useless!
In Naples, Italy, I stood on a street corner and watched a team of police officers come out of a supermarket with a confiscated lighter, get in the car and leave.
Rosie took a long puff of cigarette and shook his head. There were several boys behind him, carrying several large boxes, and walked into the convenience store together.
“Still the same old rules!”
After Rossi entered, he said to the supermarket manager familiarly.
The latter was also very familiar with it, asking his employees to receive these large boxes, and then placed the Black Label lighters inside on the counter in a familiar manner, and put the Black Label lighters that were taken away by the police station just now. The space left vacant by the lighter was filled.
Looking around, the lighter counter area is all filled with black label lighters. Bic and other brands are nowhere to be seen. The label under the black label lighters reads 1,500 liras, which is the retail price of one dollar.
“In the past few days, the inspection has been too strict, and several batches of black label lighters have been confiscated from us!” The supermarket supervisor complained to Rossi.
After Rossi heard this, he didn't take it seriously. He knew that the supermarket supervisor was not complaining about him, but the Naples Police Department who were meddling in other people's business.
"You don't need to compensate for the goods that were taken away. You just need to pay us the cost of the sold machines!"
Rossi said, "Those police station matters , let us solve it!”
As for the machine that was seized and taken away, did Rossi feel distressed? Of course he felt distressed, but he had no time to feel distressed and had to continue selling goods.
This is not because Rossi is magnanimous, but because he is making so much money, almost 70% of the profits. Who is not positive?
Now Global Trading Company, the price of a single Black Label lighter for Rossi has dropped to US$0.15.
Rossi and his gang took these lighters and resold them to local supermarkets, tobacco shops, bars, etc. Even if the retail price was US$1, as long as they were sold, they would not give them to these sales venues. With a share of US$0.2, Rossi can earn US$0.65 for every black label!
Just like the one Rossi saw today, the Paris police station confiscated 300,000 black label lighters.
The purchase cost of 300,000 black label lighters was US$45,000. But if they were not taken away, the income from the sale would be US$300,000, and the net profit would be around US$200,000!
You ask the Paris gang that bought these black label machines if they still dare to sell black label lighters. Its answer is that the goods were seized in the morning, and they went through their own channels in the afternoon. Another 500,000 new Black Label lighters were shipped from Hungary. Not only did they dare to sell them, they also wanted to make back their losses with profits!
As for what Rossi said, the solution to the Naples Police Department's seizure of black label lighters is of course to give those people a share of the pie. In fact, the Naples Police Department has been so active in checking black label lighters in the past few days. On top, I was also a little greedy.
Although Rossi was also in pain, compared with the benefits brought by Black Label lighters, it was tolerable.
The company registered by Rossi’s gang is already the largest lighter supplier in Italy, supplying black label lighters to Naples, Milan and other cities.
Not only Rossi’s gang, but also a group of scalpers and gangs in Italy are also reselling Black Label lighters. Now in Italy, Black Label lighters have completely taken away the market share of other lighters, because relying on them, everyone is rich. Profit, who is willing to sell Bic's product at a loss!
……
“Clang!”
The second largest city in France and the largest commercial port, there are also various overt and covert conditions, various compliance and non-compliance The gateway channel for regulated items to enter France.
A container was pried open, and boxes of boxes with black label lighter labels were piled inside.
"At least 60,000 to 70,000!"
The police station officer scanned it with a flashlight and said in a tired voice, this is already them. I don't know how many containers they have demolished today, but The investigation cannot be completed, it cannot be completed at all.
With all the time they spent dismantling this container, it is estimated that countless containers full of black label lighters have been circulated throughout France.
Rousseau, the legal manager of BAK Group who came with the team, felt a little numb when he saw the scene in front of him.
“Merde!”
A young police officer who was following the team uttered a Chinese quintessence that the French people always talk about. After a tiring day, he moved his stiff thighs and came outside, took out a lighter and lit a cigarette.
Then the police station officer saw Rousseau and stared at him with cannibalistic eyes.
This left the young member of the Paris Police Department at a loss, until he saw Rousseau's eyes fixed on the lighter in his hand.
Then, this young member of the police station put away the black label lighter in his hand.
As for throwing away or joking, he is a rookie police officer who has just joined the police department, and his starting salary is only about 1,800 US dollars.
This is Paris, one of the places with the highest consumption level in the world. What does this rookie police station use if he doesn't use a black label lighter? As for throwing it away, that's impossible. He bought it with money, so why should he throw it away?
Rousseau looked at the scene in front of him and immediately broke his guard. When the police officers who seized black label lighters all used black label lighters, how could they investigate? They were investigating themselves?
(End of this chapter)