Chapter 36 Price War
July is already halfway through, and the capital is still hot.
As Teng Sheng Fruit invested 11 million in Shijingshan, it naturally spread in the fruit circle.
Actually, the fruit business is very hard.
There are generally only a few types of people working in this industry.
People like Chen Pingsheng and others have been selling fruits on the streets for many years.
The most common ones are mom-and-pop shops, working from dawn to dusk to earn a living to support their families.
The other one is like Nongguoyuan, which has reached a large scale and has begun to develop into a regular army in all aspects.
That is, moving towards a true chain model.
Chen Pingsheng himself is also running on this road.
Five stores opened simultaneously on the 8th.
In addition to causing a great sensation in the fruit circle, it has not been taken seriously by the original fruit leaders in Shijingshan such as Nongguoyuan.
Things turned around three days later when Tengsheng Fruit officially opened.
Let alone other things, the most popular fruit in summer is undoubtedly watermelon.
There are many varieties of watermelon, the two most typical ones are seedless melon and seeded melon.
Before Chen Pingsheng came in, the average price of seedless melons in Shijingshan was about three yuan and a pound.
Everyone sells it at this price, and the cheapest one is not less than three yuan.
After he came in, he directly raised the price of seedless watermelon to one dollar and sixty-eight cents.
The purchase price is one yuan and a half.
The price of seeded melons in Shijingshan is around 2 yuan.
Chen Pingsheng fucked him for nine cents in one blow.
The purchase price is 80 cents.
Other fruits are also sold at the purchase price. His store is already big, and there are five more open at the same time.
Suddenly raising the sales price of fruits to the cost line can be said to have violated the fruit taboo in Shijingshan.
That is to say, now is a legal society. If you did this a few years ago, your store would definitely be smashed.
Nowadays, in order to seize the traditional market, Internet companies often subsidize hundreds of millions.
He is just following the same example.
The effect of low prices is quite obvious. Tengsheng Fruit has seen a surge in traffic after only three days of opening.
The farm next door and a series of mom-and-pop shops are full of complaints.
It stands to reason that since his store is so big, the monthly rent will not be less than 50,000 to 60,000 yuan.
Selling at this price is obviously using losses to make money in the market.
Some shops opened next to him and couldn't hold on within a few days.
For a fruit as obvious as watermelon, the price must be reduced.
Otherwise none of them will be sold.
Then it was durian, and then a series of daily fruits. At the end, I found that the customers still didn’t come.
After a week of silence, Nongguoyuan also decisively began to cut prices.
It not only has stores in Shijingshan, but also stores all over the capital.
The top ten fruit giants in Beijing.
As a result of such a direct price war between the boss and the second child, only the third and fourth children behind will die.
Some stores cannot hold on and are either forced to transfer or do other things.
The fruit business is not like the Internet. It only deals with customers located 500 to 1,000 meters away.
If there is a large fruit supermarket with low prices, high quality and a full range of goods within this range.
For those small shops, it is absolutely a devastating blow.
Like a whale swallowing it.
Especially within this scope, Teng Sheng and Nong Guoyuan are completely at work.
Customers are all good at comparison. Today's price is low, and you will buy it twice at most before going to him.
You will be low tomorrow and he will be back in two days.
In this process, the battle is who can persist longer.
That is, the amount of funds.
Chen Pingsheng naturally doesn't care. He has developed a stable and mature style of play.
Just wait until the customers are well maintained, and then directly launch a wave of recharge activities.
With the current scale of these five stores, if they start recharging at the same time, he estimates that he can top up at least 2,000 to 30 million in a month.
At that time, if we use this money to randomly multiply it, we can open thirty or fifty community stores directly. Even if Nongguoyuan cannot be surrounded, it can be knocked down from the number one position in Shijingshan.
By then he will be regarded as a big and respectable fruit seller in the capital.
The current price war between the two companies is of great benefit to customers.
It’s like Didi and Kuaidi in the current taxi-hailing market.
A big penguin invests, and an ahli supports.
In order to seize the market, the two companies are desperately trying to raise funds. Today, you will provide 100 million to subsidize drivers and users.
Tomorrow I can raise 200 million to provide subsidies. Although this process is a bit cruel, it is still of great benefit to customers and drivers.
Firstly, customers can get a taxi with the least amount of money, and secondly, drivers don’t have to pay too much money from the platform.
On the contrary, there are various subsidies, so the income is high.
The most unfavorable situation is actually to fight until only one family is left.
If one family can set the rules of the game, then users and drivers will not be able to decide at their own discretion.
Many people should have a deep understanding of this.
Chen Pingsheng himself is actually the same, he cannot always sell at cost price.
In the end it’s all about making money.
It’s nothing more than a process.
Five stores in Shijingshan have been successfully opened, and the price war is in full swing.
He has nothing to worry about. After all, Lao Guo and the others will provide sufficient funds.
To put it bluntly, the payment will be settled within three months.
Use wholesalers’ money to fight price wars, and use your own money to earn bank interest.
How wonderful this is.
Anyway, Lao Guo has figured out what he is doing. He will only wait for a wave of repayment in three months, and he can still make money for a year.
Now just work hard and it’s over.
By August, after the average daily customers of the five stores stabilized at more than 500, Chen Pingsheng was still waging a price war frantically.
National Day will be in two months.
He still has five million in his card. This money cannot just be saved, it must be used.
TV drama investment, Yang Jiancheng went to film The Legend of Lu Zhen, there is no news yet.
He wanted to do high-end beauty care, but he couldn't find the right person to do it.
It would be more reliable to invest this money in a fruit shop.
This time it won’t be so big, and we will open a community store of one or two hundred square meters.
A single store investment of around 500,000 is most suitable.
After the recharge activities in these five stores are completed, we can pick them up immediately.
To ensure that he will make a lot of money in the next few months.
Five million was enough to open ten stores, so he opened the store first.
This batch of stores opened in August and attracted traffic in September and October, just in time to make up for the recharge gap on November.
The plan is good, just do it.
As Teng Sheng Fruit continues to expand, more and more people are being recruited at the headquarters.
Not only does it have a marketing department and a finance department, but it also has a dedicated logistics department that is responsible for drivers and various miscellaneous items.
At this point, the headquarters truly reaches scale.
The boss Chen Pingsheng is becoming more and more boss-like.
Overall, his steps are still very steady.
In July, I will be working on the agricultural orchard, and in August, I will open a community store.
In September, he concentrated on the construction of the headquarters.
That is to design a set of headquarters operating standards.
From now on, everyone must act according to the established rules. He will still watch Teacher Ma speak every day as usual.
In his eyes, Teacher Ma is definitely a strategic genius in the true sense.
As for the God of Chinese Business, he felt that the only person worthy of this title was Li Ka-shing from Hong Kong.
This is definitely the richest man in Asia who is seriously underestimated.
Some of his business skills are enough for him to learn for a lifetime.
Currently, he is using these two as his study representatives.
(End of this chapter)