readytorunbook Chapter 539: No more subsidies!
Chapter 539: No more subsidies!
Before Yu Hao finished speaking, Guan Xiong understood that the reason behind this matter was that the market in Chuncheng City was only so big, and with a population of nine million, it had already reached the upper limit of the market size.
Today, Dexin Logistics has become the undisputed first logistics company in Chuncheng City.
But now, he is in a dilemma. Once the price goes up, customers will surely flock to Jitu Express, but if he does not lower the price and keeps it that way, Dexin Logistics will not be able to afford the loss even if he can print money!
In just one month, two hundred million yuan was spent, and now the loss is still at a rate of seven or eight million yuan per day!
"Boss Guan, we really can't provide subsidies anymore. If we continue to provide subsidies, Dexin Logistics will be on the verge of bankruptcy!"
"While the number of users has reached its peak, we should immediately and gradually restore the original price, leaving a buffer period to ensure that customers will not leave quickly. This will count as a victory for us!"
"We are losing money. Jitu Express has so many stations, and if there is no business, we will also lose money!"
“There’s no way they’re going to lower the price any further!”
Yu Hao clenched his teeth.
Guan Xiong took a deep breath. He knew that he couldn’t keep burning money like this. If he continued to burn money like this, Dexin Logistics would be gone. He had to recover the funds as soon as possible.
It’s a pity that he no longer has the money bag of Jiangcheng Ghost Market, otherwise, he would not be short of money at all.
"Are you sure that Jitu Express has been losing money and can't maintain a 40% discount and continue to offer discounts?"
Yu Hao was somewhat helpless. Now the analysis was not whether Jitu Express could maintain its 40% discount, but that there was no point in continuing the promotion for Dexin Logistics.
If the situation continues like this, Dexin Logistics will only suffer more and more losses.
"In this month, the number of Jitu Express stations in Chuncheng has exceeded 150!"
"They have no business at all. All the customers are concentrated in our hands!"
"It is meaningless for them to continue this price war. Now, our two companies are deadlocked. Listen to me. As long as you take a step back, Jitu Express will take a step back immediately!"
"We can't bear the loss any more, so how can they bear it?"
Guan Xiong also felt that what Yu Hao said made sense. They lost 200 million yuan in a month. Although there was no business on Su Yang's side, they had at least lost 50 or 60 million yuan. Plus, with so many stores that had to be maintained, the loss would probably be close to 100 million yuan.
The loss is not much less than that of Dexin Logistics.
"Okay, let's notify them. Starting tomorrow, we will first restore the 30% discount, and then gradually restore the original price to give these old customers of Dexin Logistics some buffer space!"
"It saves all these people from running to Jitu Express."
Yu Hao finally breathed a sigh of relief. Every day he saw the money in the account disappear in the blink of an eye. If this continued, Dexin Logistics would soon go bankrupt, so he tried his best to persuade Guan Xiong.
Now Guan Xiong agrees to raise the price to 30% off. Although he won't make much money, at least he won't lose money. It's a good thing that there is working capital coming into the account.
"No problem, I'll let them know right away!"
Guan Xiong nodded, waved his hand, and motioned him to go out.
After Yu Hao walked out of the office, Guan Xiong sneered and slapped the report in front of him. He took a step back to let Su Yang take a breath. He would wait for the funds to be recovered. It would take less than three months. If this happened again, Su Yang would go bankrupt!
He had already lost one hundred million yuan. He wanted to see what Su Yang could use to pay him back.
By then, Jitu Express and Susutong Logistics will go bankrupt together. He will directly spend money to acquire them, reorganize and list them. Then, China-Hong Kong Logistics will be trampled under his feet!
A young boy in his twenties dares to fight with him?
It is true that when there is no tiger in the mountain, the monkey becomes king. A newborn calf is not afraid of a tiger!
……
Chuncheng City, Jitu Express Branch.
Su Yang had just walked into the office. Behind him, He Rongfa and Kang Ning walked in one after another. He Rongfa glanced at Kang Ning, and Kang Ning also glanced at He Rongfa.
He Rong said with a smile: "Boss Kang, do you have something to report? Then you go first."
As he said this, he was about to walk out, but after only a few steps, Su Yang stopped him: "Okay, don't leave, you two can go together."
"Boss Kang, if you have something to say, just tell me."
Kang Ning smiled and said, "This is the promotional poster for tomorrow's city-wide advertisement. You also asked us to shoot the prime-time advertisement for Dongjiang Satellite TV. It was also done according to your requirements. We specially found Director Sun who you introduced, and he gave us a discount."
Su Yang nodded. Director Sun is Jiang Xiaozhen’s biological mother. The old lady is going to retire in the next few years, but at least she is still in the TV station and still has a say.
I have advertised for SuSuTong Logistics before, but that time it was given for free and no money was charged.
"Okay, this discount is very big. I must publicize it and let everyone in Chuncheng know that we, Jitu Express, will deliver to more than 4 million people in the urban area of Chuncheng, and each person will have the opportunity to receive a free express delivery!"
“We will try to win back customers directly from Dexin Logistics!”
"We have advantages over Dexin Logistics. They started out as a logistics company, and they usually handle large items, but we are a courier company, and we can handle small items as well, so we cover a wider range of users!"
"This time, we are not only going to snatch customers from Dexin Logistics, but also from Huagang Logistics, Huatong Express, and even Yiwangtong Logistics. We will snatch as many as we can from them!"
He Rongfa and Kang Ning also nodded repeatedly.
If a 40% discount is a discount, then free gifting is a killer deal!
As long as Dexin Logistics dares to follow, it will have to suffer a loss of more than 10 million yuan per day. If Dexin Logistics does not follow, it will have to wait for the customers that it has worked so hard to gather to be snatched away by Jitu Express.
After Su Yang finished speaking, he looked at He Rongfa and asked, "What happened on your side?"
He Rongfa smiled bitterly, "I have good news. Previously, Jitu Express, like Dexin Logistics, offered a 40% discount, and indeed many customers came to send express. Although we don't have as many customers as Dexin Logistics, our daily loss is at least more than 3 million yuan."
"According to this situation, after 15 days, the loss will be at least more than 40 million."
"But ever since you, Mr. Su, told me to set up a membership system to collect the names, phone numbers, home addresses, and other things of customers who come to enjoy discounts, strangely enough, the number of people coming to us to send express has greatly decreased."
"Some customers, who had already paid, turned around and went to Dexin Logistics next door when they heard that they had to register this information and become members before they could get their packages delivered."
Su Yang smiled slightly. If there is no choice under normal circumstances, customers will have no choice but to fill in the membership information.
But knowing that there is a company next door called Dexin Logistics that charges the same price and will ship the goods just by paying money and filling in the address and phone number, who would go through the trouble? Naturally, they would not choose Jitu Express for delivery.
He Rongfa said: "It was President Su's method that helped us recover at least 30 million in losses. Now we still have more than 70 million left in our company's account, which is enough to cover this discount!"