Reborn since 2005
Chapter 652 Summation
No one's money comes from strong winds. Today's Internet bullies have not yet reached the size they will be in the future. They have strong financing capabilities, but they are not invincible.
They were preparing to squeeze Shiyu Company out of the market with their capital advantage from the beginning, and finally let the company choose one of two - either be acquired by them at a low price, or get out of the market.
But I didn't expect that they found a large consortium as an investor, and they were able to fight with them back and forth. Now they even have a price war with them.
Their service quality is already better, their reputation is better, and they are starting a price war. It is difficult for them to resist.
Continuing to increase discounts and provide more food delivery subsidies will only make them burn money faster. Over time, they will not be able to afford it.
If the level of subsidies is still the same, then they will not have any advantage and will only be squeezed out of the market by the other party.
After much deliberation, I finally made a difficult decision - to seek peace.
If you continue to fight like this, you will be unable to fight anymore. The pit behind is too big to be filled easily.
But if you give up this market, your previous losses will be in vain.
Moreover, they can already see the potential of this market. As long as the business is stabilized and the unit price is adjusted upward, the profits will be considerable.
It's really hard to give up.
Therefore, competition is still necessary, but we should not continue to engage in price wars.
This time they came to find Yan Xin, and what they wanted to express was this - everyone must have a constraint on meal delivery subsidies.
Before engaging in any promotions, it is best for everyone to discuss it and not lower the unit price too low.
They also conveyed the idea that this market is too big for one company to swallow, and new competitors will appear in the future.
They are killing you to death, burning huge amounts of money to expand the market, and letting others behind you take advantage of it. It is better for both parties to reach a gentleman's agreement, compete healthily, and then block new competitors in the future.
The competitor took the initiative to seek peace, which made both Yan Xin and Xiao Shiyu breathe a sigh of relief.
Competition between two companies is of course a good thing for consumers, but it is really a heavy burden for capital.
No one’s money comes from strong winds, so where do you get so much money to provide subsidies?
Do you really think all capitalists are philanthropists?
There is no other competitor in this market now. The only competitor has a very strong background and has brought them great losses. Now they are willing to make peace and stop the price war. Of course they willing.
Even if price wars are inevitable in the future, at least we can take a breather and use these hundreds of millions of funds to develop new markets instead of giving away profits in already developed markets.
On another point, he also knew that once this market was developed, it would definitely not be something that one company could capture, and it was impossible for the country to allow one company to monopolize such an industry that was closely related to people's livelihood.
To accommodate two companies, there must be two or more companies.
The proposal put forward by the other party to join forces to block the emergence of new competitors suits him very well.
Therefore, he also accepted the other party's request for peace.
There is no price war, just quality. He really has nothing to be afraid of.
After a long discussion, the two parties made a verbal agreement that the existing price mechanism remains unchanged and can be adjusted upwards, but cannot continue to be adjusted downwards.
It is acceptable to adjust the price once a year, but both parties must negotiate and reach an agreement on the adjusted price.
If the two sides start to compete in a new city, they cannot engage in a price war.
We cannot poach each other's corners and maliciously increase labor costs.
We should not use dirty tricks to discredit our competitors.
Such an agreement is actually beneficial to both parties.
Now it seems that Shiyu Company certainly has an advantage. Their service quality is better and at the same price, it is naturally easier to attract consumers.
However, things like service quality can be solved through training.
It includes solutions to some complaints, which can also be copied and pasted, making it not that difficult to learn.
The problem of service quality itself needs to be solved. With external pressure, there will be more motivation to solve it.
If this problem is not solved, the market gained will be given away sooner or later.
It is also a better choice for them to take a temporary truce and spend their energy on improving service quality.
This is how business wars usually go. If you can crush your competitors to death, you must first crush your competitors to death.
If we cannot crush them, we can only accept coexistence, reach a mutually acceptable consensus, and then curb the emergence of new competitors, so as to maximize benefits.
After the two parties reached this agreement, Xiao Shiyu could finally breathe a sigh of relief.
The preferential mechanism that has been given now cannot of course be canceled and will continue.
This is also something recognized by both parties.
It's just that they are offering discounts under the slogan of celebrating the Double Festival. After the Double Festival is over, the prices can be restored to normal.
Fortunately, the largest subsidy is only in the Beijing economic circle, and it has not spread to all parts of the country. The extra money spent every day is not particularly large.
And burning money also has the advantage of burning money, that is, it can regain the lost market share.
This is also recognized by competitors.
Competitors recognize their prices in the Beijing economic circle, but they also have to recognize their competitors' prices in other cities.
In other cities, competitors' prices are more favorable than theirs.
The agreement between the two parties is that no matter in any market, the price cannot be lower than the current price.
In the markets that have been developed outside the Beijing economic circle, competitors have more advantages in price, but the service quality is slightly worse, so they are basically tied.
If in two or three months, competitors improve their service quality to a level where they are evenly matched, their market share will exceed theirs.
From this perspective, this agreement is not only beneficial to Shiyu Company.
If Shiyu Company wants to maintain its current market share in other markets, it must ensure that its service quality continues to be ahead of its competitors.
Otherwise, we can only wait for the one-year price guarantee period to pass before both parties readjust the unit price.
Another one is the development of new markets.
When developing new markets, they have to agree on the same unit price. This is fair competition. In this regard, Shiyu companies with higher service quality obviously have an advantage.
It's just that in the last wave of competition, those cities with the best economic conditions have already been captured by them.
The currently untapped markets obviously have no more potential than the existing markets.
In the next period of time, Xiao Shiyu's focus will be on the development of new markets.
There is no need to fight a price war. The newly arrived loan of 5 million is a huge sum of money that can be invested leisurely to allow them to expand more markets.
During Yan Xin's more than half a month in the capital, Xiao Shiyu was busy most of the time and didn't have much time to see him. He basically didn't get home until eleven or twelve in the evening.
Sometimes I sleep with Yan Xin, and more often I sleep alone in the same room - only in this way can I get better rest.
Feng Xi is not that busy. He goes to class when it is time to go to class and rests when it is time to rest. On weekends, he and Yan Xin will go to their industrial park to take a look.
Life was much easier than Xiao Shiyu's.
The main reason is because the foundation of her Jinxi e-commerce company has been laid and the team has been brought out. There are not so many things that she, the boss, needs to worry about.
It will take time for Xiao Shiyu to reach this level.
On the second weekend after school started, Yan Xin and Feng Xi attended a dinner party arranged by Zeng Yan and had a meal with two female celebrities.
Among them is Yang Mi, the star of the series invested by Starlight Film and Television Company.
Seeing such a big star, Yan Xin was still a little excited, but he didn't show it.
Nowadays, Yang Mi is really not a big star, he is just a little famous. If he shows excitement, people will look down upon him if word spreads about it.
There is also a female star whose name Yan Xin has heard of, but is not too impressed with. She belongs to the third-tier or lower tier.
She's pretty, but he doesn't even know her name, which means she won't be very popular in the future.
Feng Xi acted quite reserved, but she still took photos with the two female celebrities. There were several photos of them together and some alone.
These two female celebrities had heard from Zeng Yan about the wealth owned by Yan Xin and his wife, and knew that they were willing to invest in film and television works. Of course, they could not offend such people.
Not only must we not offend, but we must also make good friends.
I don't know if it was because of Feng Xi's presence, but neither of them made any flattering advances toward Yan Xin. Instead, they chatted animatedly with Feng Xi, and even added each other's mobile phone numbers and QQ numbers.
During the dinner, Yan Xin also talked about his future investment plan in film and television, and planned to invest in several large-scale film and television works every year, and did not even rule out sole proprietorship in the future.
Feng Xi also said that his company has some products that need spokespersons, and they can also be considered.
This made them extremely happy - neither of them are very famous people now, and they can't make much money.
If you can receive endorsements, even if the endorsement fee is not high, you will still make more money than filming a TV series.
I am naturally very happy to have such an opportunity.
His attitude towards Feng Xi is also better.
On the way home after dinner, Feng Xi asked Yan Xin with a smile:
"Are these two female stars pretty? Are they attracted to each other?"
Yan Xin looked like a gentleman: "No, I am very determined now, so I am not so easily tempted."
"Bullshit!" Feng Xi said disdainfully, "When I went to the United States, Sister Ru knocked on your door, and you didn't refuse. Sister Yi knocked on your door, and you didn't refuse either. Your so-called determination is nothing more than that you won't take the initiative. To seduce others is not a matter of determination. I think it's more of a coward. If someone knocks on the door, you just obey."
Yan Xin didn't agree with her statement, but couldn't find a reason to refute it for a while, so he could only say:
"That's your prejudice against me. In fact, I have no interest in these two today."
"I think Yang Mi is pretty," Feng Xi said with admiration, "She's so big! I don't know what she feels like to me. I wish I had a figure like that!"
Yan Xin rolled his eyes.
I really can't understand why some women also like the feeling of being eaten by women?
It's a sick feeling to think about men doing the same thing to men.
"I want to ask her to be the spokesperson for our company's products," Feng Xi said. "We have a cosmetic product in production at Bangzi. I think she can be the spokesperson. You can ask Zeng Yan to ask her if she is interested and sign it. An endorsement contract for two to three years.”
Signing for one year will definitely be a loss. If there is no problem with the development trajectory, Yang Mi will become popular in a year. If you go to her for an endorsement, the endorsement price will be much higher.
If you sign an endorsement deal for four to five years, people may not be willing to do it.
It would be more suitable if he could sign for two or three years.
"No problem," Yan Xin said, "I'll ask Zeng Yan to ask. If she is interested, we can also let her endorse the Shiyu platform."
A celebrity can not only endorse one product, but can also endorse multiple products. Before she becomes famous, her advertising value will be squeezed to the extreme.
Feng Xi glanced at him and tutted: "I am really affectionate and loyal to your old classmate. I never forget to do her good."
Yan Xin said: "Now that the Shiyu platform has emerged, I attach great importance to this investment."
Feng Xi asked: "Then do you want to invite them to your live broadcast platform and bring you popularity?"
Yan Xin smiled and said: "This is possible. Let Zeng Yan ask if there are any celebrities who are willing to join. Then the platform can promote them and recommend them first when investing in film and television works in the future."
"Make the pie bigger and tell them that this is an emerging platform. If it is successfully operated on this platform, it can also increase their exposure. It should attract a few people to come over." Feng Xi said.
In order to gain traffic, some platforms will sign contracts with top celebrities to allow them to settle in.
Starlight Live does not have the money now, and there are very few people watching the live broadcast. The market is too small, and it is not worth investing that money.
All they want now is to get a few celebrities to settle in for free.
If someone is willing, it is naturally good. If no one is willing, nothing will be lost.
For a long time to come, Starlight Live will not invest too much money in operations, as long as they can ensure that they are now the number one brother in the live broadcast industry.
After returning home, Yan Xin told Zeng Yan these thoughts on QQ, giving her a chance to mention them.
Not long after, Zeng Yan replied to him:
"Yang Mi is interested in the endorsement matter. We can talk about it if we have the opportunity." (End of Chapter)
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