The rise of a small town in shoe country

Chapter 169

As for other reasons, Jin Yunfei also found three points from the company's own internal analysis.

One is that the management is not perfect, and some measures have not been really implemented.The second is to be self-sufficient, wrongly positioned, and not keep pace with the times.The third is that the "single customer rule" is not strictly implemented.

This "single-account rule" was "created" by Jin Yunfei, but he actually didn't take it seriously. Now it seems that it hurt the company's sales the most.

Yue Xiuqing and Jin Xiaoling mentioned it many times, but they didn't attract Jin Yunfei's attention. Now that the business situation is not good, Jin Yunfei has to go back and reflect.

One of the advantages of Yunfei Company is the design and launch of shoe samples, which are both novel and fast, and are sought after by peers.

This is no problem at all, sometimes it is a free advertisement of Yunfei Company.

But the problem is that if a customer purchases the same style of shoes at the same time, the high price of Yunfei brand shoes has become a fatal flaw.

Many of Jin Yunfei's customers buy both his shoes and the same style of shoes from other stores. The price difference between the two shoes is often more than one yuan, and some even more than two yuan. Yunfei brand shoes are at a disadvantage in price competition.

Jin Yunfei used the "single customer rule" to require customers, but it was just lip service. Of course, customers didn't take it seriously, and not many customers could abide by it.

To a certain extent, this is also Jin Yunfei's own fault.

He is not afraid of those self-employed "cottages", their products are too low-grade, and the price often varies by two or three yuan or more, so consumers can make the right choice.

What I’m afraid of is that a company of the same scale as the three neighbors and the second brother, whose grade is close to that of Yunfei Company, if their “cottage” products are bought by customers and placed in the same booth, it will squeeze the popularity of Yunfei brand shoes Sales space.

After analysis and discussion, everyone agreed with Jin Yunfei's judgment.

Facing the immediate predicament, Jin Yunfei decided to take decisive measures to liberate himself with a "price war".

As for the upcoming autumn shoe season, Jin Yunfei announced two measures, one is to strictly enforce the "customer single rule", and the other is to no longer actively provide free shoe samples to peers, especially those large-scale enterprises.

Regarding the decision to end the sandal season with a "price war", Jin Yunfei called the next day and made a "notification" to the boss Cao Dinggui in Fujian.

Since they met, Jin Yunfei and Cao Dinggui have formed a tacit understanding.

Cao Dinggui is the leader in the industry, and his injection-molded shoes are unique, not to mention that he responds to everyone, but a few coughs are enough to attract the attention of his peers.

Jin Yunfei is the "shoe king" in Tianzhou, and his influence in the industry is not as powerful as Cao Dinggui, but on his three-acre land, he can call the wind and the rain.

Cao Dingguiqiang is well-known for his seniority and experience, while Jin Yunfei's strengths are innovation and pioneering spirit. In recent years, his works have dominated the new shoe models on the market.

One thing they all have in common is that they have been producing the same shoes for the past two years, which is the shoes designed by Jin Yunfei.

In this case, if Jin Yunfei wants to fight a price war, he must communicate with Cao Dinggui.

After listening to Jin Yunfei's "announcement", Cao Dinggui on the other end of the phone laughed heartily.

Haha... Brother, we want to go together.If you don't call, I will call you too, and the content is also a price war.

Oh, so, Lao Cao, do you agree with me?

Heroes see the same thing, heroes see the same thing.Yunfei, tell me what you think.

Lao Cao, I want to toss and toss.

Okay, very good, it's boring if people don't make trouble.Yunfei, with your current accumulation, you are qualified to make a fuss.Just like when I was back then, it was only after tossing that I got my current status and fame.

Yeah?Can you share it with me and let me hear about your glorious deeds?
Back then, our factory had a backlog of more than 3 pairs of shoes, and the working capital was negative 20, which seemed to be the end of it.At this time, an expert pointed out that I should bargain and sell.I reluctantly gave up my love, fought a price war, died first and then lived, and was able to make a comeback.At that time, the market price of each pair of my shoes was 15 yuan, but I dropped the price by [-] yuan, a total loss of [-] yuan, equivalent to [-]% of my total assets.But I rose from the ashes, and I became famous and established my position in the industry.

Admiration, old Cao, you can do it.

Yunfei, let's fight, with the funds you have now, a price war will not affect you in the slightest.

Well, I was also cornered.The daily output is more than 1 pairs, the daily sales are only 5 pairs, and there are more than [-] pairs in the warehouse.As far as the predicament in front of me is concerned, I also have to toss about it.

Yunfei, I will not hide from you.I now produce 1 pairs a day and sell [-] pairs a day. The backlog in my warehouse is [-] more than yours.

Lao Cao, let's set a price, how much will it be lowered?

I want to hear your thoughts first.Three styles for boys and girls, one yuan each, what do you think?

Insufficient strength, tossing can not make much noise.

Lao Cao, I would like to hear the details.

I suggest dropping two yuan each, and inserting one rod to the bottom.Because the threat to you and me is those large-scale enterprises that are a little lower than ours, but can catch up with us at any time.At present, the average price of their shoes of the same style is only one yuan to one yuan five yuan lower than ours.If you drop one yuan, they only need to reduce the price by half a yuan, and they can stabilize their position without hurting their muscles or bones.

It makes sense, I just want to beat them, so that they will not dare to copy our shoes easily in the future.

Then you have to be ruthless, and it is best to let them remember it once.

Lao Cao, after reducing the price by two yuan, our profit is less than one yuan. Do we have follow-up measures?
Yunfei, we need to have a plan.The sandal season can last until the beginning of September, that is, there are still three months, and if you want to make a fuss, you can do it until the beginning of September.I want to lower them by two yuan first, after they have been stunned, and then at the right time, another yuan will be lowered to completely crush them to death.

Let me think about it...Old Cao, I agree.

Well, that's it.Yunfei, let's do it at the same time, starting from tomorrow.

It's a deal, starting tomorrow.

Okay, let's keep in touch, once a day.

Lao Cao, don't worry.

After hanging up the phone, Jin Yunfei thought about it first.

With Cao Dinggui's support, Jin Yunfei has more courage to toss around, but price wars are, after all, a tactic to kill one thousand and hurt one's own self. One must think twice before acting, have a last move, and be mentally prepared to bear the consequences.

It is certain that the loss can be afforded. With the accumulation of tens of millions, the loss of hundreds of thousands is simply a drizzle.

The advantages are also obvious. The raw materials are purchased directly from the manufacturer, and the soles are also produced by ourselves. With these two items alone, the cost of each pair of shoes can be more than half yuan lower than that of peers.

Jin Yunfei didn't discuss it with his family, but just told his wife Yue Xiuqing about his decision before going to bed at night.

Yue Xiuqing didn't object either, because she seldom objected to her husband's decision-making, which was a tacit understanding between the couple.

Yunfei, your decision will hit the second brother and our neighbors the hardest, they will be caught off guard.Because their shoes are exactly the same as ours, and more than one-third of their customers are our common customers.

Wife, there is no way, peers are eternal rivals.

There is no way, let's wait to be scolded.

On the second day, starting from the first customer who came to the door, a brutal price war kicked off.

(End of this chapter)