Reinventing the Millennium.

Chapter 182 Burning Money (Two in One)

Chen Xing was originally in a very happy mood recently.

According to his description at the company meeting, Internet medical care is like a sharp knife piercing into the opponent's chest, making registered network painful.

In order to open up the market this time, Chen Xing went back and forth between Beijing and Shanghai several times to get through the relationship. The main registration network has an honorary title given by the ministry, which is indeed a bit strenuous.

Chen Xing thinks that the field of online medical pre-diagnosis is not developing very healthy. If the administrative relationship is in place, the market in one city will immediately belong to another party. Is this fair?

Obviously unfair.

In order to break this unfairness, Chen Xing spent a lot of favors to allow Internet medical services to share Shencheng equally with the registration network in principle.

When he first ran out of this matter, he spent two days shopping in the hospital in Shencheng before returning to Beijing, and then he paid attention to the data growth brought about by the subsidy name every day.

The online registration business must rely on computers and the Internet. The surrounding urban agglomeration centered on Shanghai is almost the region with the best infrastructure in China. As long as Internet medical care can open up this central city, it can spread to the surrounding areas in the next step.

Shanghai is the key point, and the entire East China region is the ultimate goal.

In particular, Guahao.com has done a lot of publicity and training of users in advance.

It can weaken the opponent and strengthen oneself, why not do it?
Chen Xing paid close attention to it for a week, and found that there was no movement at Guahao.com, so he couldn't help but look down on the method of the young CEO of the other party - if it was him, he would definitely fight back decisively.

Could it be that Fang always just sneaks into other people's homes to sell insurance, which is such a boring operation?

Or, the opinions within Guahao.com could not reach a consensus?
Chen Xing thought so, and after another week, he finally waited for the other party's belated response.

First of all, all hospitals in Shencheng that have Internet medical access will be subsidized by the other party.

Secondly, the subsidy process is accelerated, which means an increase in money expenditure.

In addition, the hospital is urged to increase the number of sources.

Chen Xing didn't know what kind of relationship Fang Zhuo was looking for, and he didn't know how he got the name of an expert to make troubles in it, but the most intuitive reaction was that the mechanism of the hospital's new account source was set as two companies comparison of subsidies.

Whichever subsidizes more, the source of new numbers will be tilted regularly.

If the previous ones didn't exceed Chen Xing's expectations, he was extremely shocked by using subsidies to allocate number sources.

What does Guahao.com want to do?
Does it think it is not burning enough now?
Chen Xing hesitated and chose to follow up the subsidy process and increase the subsidy. This time, in order to win the hard bone of Shanghai, the Internet medical self-raised + borrowed funds exceeded [-] million, and he would never be afraid of the other party's competition.

In the first week, the subsidy amount for Shencheng to connect to the hospital + the expenditure on machinery and materials was 80.

In the second week, the cost of the advanced machine decreased rapidly, and the subsidy amount was 50.

In the third week, the subsidy figure steadily increased to 70.

It took less than a month to spend 20% of the funds raised just to deal with the subsidy from Guahao.com.

Chen Xing held a company meeting to discuss data and competition.

"There are too many people seeing a doctor in Shencheng. As long as the number source of the third-level hospital is released, it will be linked."

"Other popular departments in second-tier and third-tier hospitals will almost be used up, and non-popular departments can also have about 70% of their daily usage."

"Even if the proportion of online account sources is increased, this kind of usage has not changed. Everyone has a strong ability to adapt to Internet registration."

Lu Feng, the manager of the marketing department, spoke with some emotion.

Chen Xing frowned and asked, "As long as you dare to subsidize, you will be able to make up for it?"

Lu Feng smiled and said: "Can the money be spent? But the effect of spending money is very good, and our increment is quite strong."

"What if we stop subsidizing now? Will patients choose us or Guahao.com?" Chen Xing asked again.

Lu Feng hesitated and said: "Guahao.com has been in for a longer time than ours. Even if both companies have subsidies, they still have more. If there is no subsidy, it should be about the same as now. They are 6 and we are 4."

Chen Xing thought about it.

“That means they have a larger subsidy than us, and the burden of spending every month is heavy,” said another executive.

He hesitated for a while and continued: "Our monthly subsidy may be close to 300 million yuan, and the necessary machine purchase is removed. This figure is also quite astonishing. The main increase lies in the hospital's increase in the number source ratio."

"As soon as the proportion of number sources increases, the amount of subsidies will exceed our estimate."

Chen Xing was dissatisfied and said, "What are you all doing for food? Why don't you consider the ratio of account sources?"

Several senior executives were quite aggrieved. They were not familiar with the places where they lived. Who would have thought that the hospital could be persuaded? Moreover, it is not just a hospital, but almost all the hospitals in Shanghai.

I heard that this is the credit of Mr. Fang, who directly organized a symposium, was impassioned, presented certificates, and cited data from other cities, and finally persuaded the Health Bureau to agree to slightly improve the hospital proportion of online account sources.

The most important thing is that the original 3% stock ratio has not moved, and the additional 3% increment has become a subsidy decision tilt ratio in market competition.

This makes Internet medical care have to follow, otherwise, the subsidy will not be comparable, and the other party will directly take most of the increase, which will be more than before!
Chen Xing expressed his dissatisfaction with this practice on behalf of the Internet medical service. As a result, the other party said strangely, "Didn't you start subsidizing it first?"...

He suspected that Fang Zhuo had ordered such words.

But if Chen Xing was to follow Fang Zhuo's example and go to the Health Bureau to "make trouble", he would not be able to save face, so this month he half-pushed and followed Bibi to watch, after all, the other party was really burning money.

"Next month's subsidy should be maintained at about 200 million. This is the case that Guahao.com no longer increases the upper limit of single-person subsidy. They have raised it from 50 to 60, and from 60 to 70, almost every week. 10 bucks..."

"If it comes to 80, 90, 100 next month ... the spending will still increase substantially."

"Also, the cost of our publicity is increasing."

Chen Xing listened to the report at the meeting, looked at the data and capital expenditures, and frowned deeply. The situation was different from what he had imagined.

If this continues, 1000 million will only take three or four months.

That is September in the second half of the year.

Can the first round of financing be secured?
Chen Xing made a silent estimate, and felt that there was no major problem. The first round of financing would not be less than [-] million yuan.

"Continue to follow, the cash flow of Guahao.com will not be better than ours. If it is dragged down, the entire East China will be ours."

Chen Xing unanimously decided to continue to increase the price.

However, within two days, he suddenly heard a new move from his competitor—Guahao.com was launched in Yangcheng, and it also used the subsidy routine.

Shencheng didn't finish the fight here, but ran to the south to pull an opponent?

Chen Xing couldn't understand Fang Zhuo's thoughts. At the same time, he began to doubt whether he had made a mistake in judging the funds of Guahao.com. Such an action meant that the other party had a lot of confidence.

Two days later, Chen Xing inquired about the competition in Yangcheng, and found that some media had already begun to report on the business competition for online registration.

——Online registration starts a subsidy war. Is this conducive to the order of emerging markets?

——Jing, Shen, Peng, which one do you prefer to develop?

——Guahao.com fought on two fronts. The founder was interviewed and said that financial subsidies are the cultivation of user habits.

Chen Xing felt that Fang Zhuo must have pumped money into the media, not because of the tendency of the content of the reports, but because of the high frequency of publication and interviews.

He was very puzzled and raised a doubt to the people in the company: "It is obvious that we created the subsidy competition, why does Fang Zhuo feel so excited?"

No one could answer Chen Xing's doubts. He tried to substitute it himself, thinking that Fang Zhuo's confidence might still come from the second round of contact with venture capital. Otherwise, why would he act like he doesn't care about money?
From mid-June to mid-July, the online registration business gradually broke through. Especially in late July, many financial newspapers reported on the fierce competition in this emerging vertical field.

How fierce is the competition?
A reporter actually experienced it. Online websites, bus rental advertisements, the entrance of the hospital, and the lobby on the first floor can be seen everywhere. The two websites are facing each other. Internet Medical and Guahao.com seem to want to kill each other.

In comparison, the second battlefield was much milder.

Yangcheng's medical online is almost killed by the registration network.

The registration network is aggressive, full of personnel, abundant funds, good connections, and honors. Once the administrative level of Yangcheng is opened up, it will immediately show why it is the industry leader.

The initial subsidy of 50 yuan allowed Medical Online to follow suit, but when the price was raised to 100 yuan every week, Medical Online’s funds immediately couldn’t keep up.

Is this what people do?

It is obvious that the capital is going to mess with you, why do you come across half of China to mess with us here?
Liang Min, who came to Pengcheng from Luzhou to start a business, was very worried. At the beginning, he enjoyed the news of Shencheng with the mood of watching the excitement. He never expected that the important place of Yangcheng was stolen.

Seeing that the company with his fortune was running out of funds, Liang Min was different from the one in Beijing who cared about face, so he called Fang Zhuo directly.

"Xiao Fang, what do you mean?" Liang Min's tone was very gentle.

Fang Zhuo didn't expect that Liang Min would have the nerve to call him. Medical Online was completely imitated registered network. Old Liang clearly knew him, but he didn't even say hello.

"Mr. Liang, it's just a business competition."

Liang Min's tone was serious: "Do you think it's normal for your business to compete?"

Fang Zhuo asked back, "Why is it abnormal?"

Liang Min reprimanded: "Your people have pasted the posters next door to our office!"

Fang Zhuo: "..."

After a little silence, he said: "Mr. Liang, the person in charge of the Yangcheng affairs is a university student. How about I give you the phone number and you talk to her yourself. This is indeed a bit deceptive."

Liang Min felt that Fang Zhuo was more talkative than he imagined, so he said directly: "Xiao Fang, how long can you pay for this subsidy completely regardless of the normal market order?"

"Isn't it good that you have the money to occupy a blank market? What kind of valuable construction can a subsidy be?"

"Teacher Liang is right." Fang Zhuo said flatly, "Then we should reduce the subsidy and cultivate more long-term users. I would still like to see everyone contribute to this industry together."

The call ends.

Liang Min was a little confused.

But soon, he discovered that the subsidy price in Yangcheng had dropped back, directly from 100 to the original 50.

Change your mind?Misunderstanding?
Liang Min was pleasantly surprised and confused, and then he called Fang Zhuo for the second time, trying to persuade the other party to give up the subsidy war in Yangcheng, but he was hung up this time, and there was no other movement on the subsidy in Yangcheng.

The subsidy amount of Yangcheng has been reduced, and the action process is not as fierce as that of Shencheng.

After contacting investors urgently, Liang Min got a follow-up investment. He gritted his teeth and felt that he could barely follow.

The goal of Medical Online is not high. We need to do a solid foundation for the development of Pengcheng, the survival of Yangcheng, and Guangdong Province.

Life can go on.

Liang Min considered whether to withdraw from the Yangcheng market and let the other party burn their money, but the opinions of investors prevailed. The heavyweight cities in the territory are beneficial to attracting investment in the future. Even if they coexist, it is better than withdrawing.

Shencheng beat his brains out, and Yangcheng was slightly mild with slanting wind and drizzle.

For a time, the price subsidy war between the two places stalemate in this way.

200 million, 300 million, 500 million, 1000 million, 1500 million.

In less than four months, Guahao.com's expenditures approached 2000 million, and the company's books were less than [-] million.

Yu Hong, who was in charge of the work in Yangcheng, felt rather majestic at the beginning, and once beat her opponent to the brink of death. However, as time passed, she gradually began to feel a little uneasy. The money was spent so lightly...

Different from the discussion at the meeting, she is sitting in Yangcheng and can really see how the money is spent...

Although it's not as intense as Shencheng, it still costs a lot...

"Xiao Fang, Mr. Fang, Brother Fang, when is this going to happen?" Yu Hong called Fang Zhuo.

"I don't know, I heard that the first round of Internet medical treatment is about to be integrated." Fang Zhuo's voice on the phone seemed quite hoarse.

Yu Hong was shocked: "They still want to continue burning money in Shanghai?"

"The scene is a bit beyond judgment, and I don't know how far Chen Xing will go. I have already started to talk to Sequoia and them about the second round of financing." Fang Zhuo said, "But in this case, directly financing the second round will reduce the cost of funding. Valuation, if we don’t melt, our money will probably last for two months.”

Yu Hong swallowed nervously: "Two months?"

"It looks like this on the books. With some support from the bank, it may last two months, and four months is the limit." Fang Zhuo sighed, "Under this situation, getting money from the bank is not as easy as imagined, but, There is also good news."

"You said."

"The financing party contacted by Internet medical care is IDG. IDG took 5% of our Yike shares from CCTV and invested 500 million." Fang Zhuo paused, "VCs are not fools, especially newcomers may not be willing to watch I don’t know when it will stop burning money like this, I guess there will be changes.”

"What do you think?" Yu Hong asked, "Why don't you just ask someone from IDG?"

"No, I'm not familiar with IDG. If I ask, it will be troublesome if I miss the word. I have already disclosed the news of contacting Sequoia. I am here on my own, and I am willing to cooperate with the pressure of public opinion. IDG can't do it." Fang Fang Zhuo said in detail.

"Well... Take care, I hear your voice is hoarse." Yu Hong said after being silent for a while.

Fang Zhuo agreed: "Yes, I will inform you of the latest news. Don't worry, we haven't reached the limit yet. The medical online service has already arrived. Chen Xing's place is similar, and we have the upper hand."

The phone hangs up.

Fang Zhuo didn't know if Yu Hong was relieved. He sat in the smoky office, thinking about whether he should take the initiative to make some changes, such as... looking for the supervision department?

Let both sides have a step to go down?
Fang Zhuo thought for a while when his hand was burned by the cigarette butt, and he shook his arm. He still felt that he would not take the risk. The string was already stretched so tightly that it was easy to be torn off by external force.

(End of this chapter)