"Director Wang and Zhong Wei Technology have transferred all the five million pieces of our orders to Fei Yang Optics. At the same time, orders for other projects are also gradually being cancelled!"
King Material is stationed at the domestic headquarters. Sales Manager ran into Wang Yanfeng's office with a worried look on his face and reported the latest news.
Bang!
Wang Yanfeng, who had just picked up the porcelain tea cup to drink tea, was startled and stood up suddenly. The porcelain tea cup in his hand suddenly fell to the ground with a crisp cracking sound, and then the whole porcelain tea cup shattered on the ground.
Then, Wang Yanfeng seemed to have been drained of all his strength, and slumped down on the chair with a gloomy look on his face, muttering to himself, "It's over! It's over!"
This is over, which means both the domestic King Material Company is over and his own future is over.
The latter is undoubtedly more important!
"Director Wang, should we apply to the head office to sell at a reduced price?"
Sales Manager said hurriedly, "The price of Fei Yang Optics's FY-01 material is actually not much cheaper than ours. If our price is the same as theirs or cheaper, I believe we can still keep a part of the market."
Wang Yanfeng didn't reply for a long time.
Indeed, this is a way to start a price war.
Just like other industries, I sell at a high price when you don't have it at the beginning. When you have it, I will immediately lower the price and start a price war with you to see who can't bear it first.
There are examples of failure, but of course there are also cases of success. It is impossible for all industries to be priced at cabbage prices in China.
Labor, materials, taxes, etc. are all rising, and the advantages of domestic products are actually not as obvious as they were at the beginning. The most important thing is that many companies have passed the weak entrepreneurial stage and began to pursue higher profits and high value-added products. In fact, such products are gradually becoming in line with foreign countries, so their advantages are gradually disappearing.
And this is also the reason why the country has long called for industrial upgrading.
"It's not that simple."
After a long time, Wang Yanfeng gathered some energy and said slowly, "Fei Yang Optics is holding back its energy. If we lower the price, they will definitely lower their prices and they will definitely respond tit for tat. More importantly, these domestic companies will gradually abandon us and switch to Fei Yang Optics, fearing that we will also limit supply at some point, although we have never done this in the decades since our establishment."
Sales Manager said dejectedly, "I didn't expect Fei Yang Optics to find a replacement for Electronic Grade PI Material so quickly. This is too fast. Could it be that they had a backup plan a long time ago?"
Wang Yanfeng nodded. "It should be, otherwise it won't make sense."
They also discovered that Fei Yang New Material Company purchased the raw materials and equipment for making Electronic Grade PI Material, but they did not think it was used to develop Electronic Grade PI Material, but thought it was used to develop a material that could replace Electronic Grade PI Material. After all, the patents of Electronic Grade PI Material are in the hands of King Material and Tian Feng Chemical, and they cannot be bypassed.
The most important thing is that the time is too short. In less than a month, alternative materials have come out. Even if they do not export Electronic Grade PI Material, Fei Yang Optics can still produce FY-01 and supply it in large quantities.
Only if you have a backup plan in advance can you quickly mount an emergency response.
They also did not think that Electronic Grade PI Material was a smoke bomb released by Fei Yang Optics. Firstly, Fei Yang Optics had not yet been sanctioned at that time; secondly, they also reversed the FY-01 material. Although they did not get the real formula, the use of Electronic Grade PI Material was confirmed.
They were also wondering how they could use Electronic Grade PI Material to create a "perfect grade" optical material like FY-01?
Wang Yanfeng immediately called the Eagle Country headquarters and directly called the CEO Michael Roman, reporting the serious situation to him and proposing a price war plan.
"Okay, Mr. King, you can lower the price appropriately. We can use other businesses to support this war!"
Michael Roman is a decisive person. After hearing this situation, he immediately made this decision that should have been made after the board of directors resolution.
He also compared this price war to a war, and apparently decided to spare no effort to kill Fei Yang Optics.
"OK!"
Wang Yanfeng also heard what Michael Roman meant, and couldn't help but take a long breath and thought, "Let me see, who will have the last laugh!"
After hanging up the phone, he immediately sent an email to Michael Roman. After getting a reply to the email, he convened a meeting of senior executives to announce the price reduction.
"From now on, the price is reduced by 30%!"
"This is a war. Either Fei Yang Optics will fall, or our King Material and High Polymer Optical Film will withdraw from the domestic market."
"I hope everyone will be in high spirits!"
At the same time, Michael Roman, who was far away at the Eagle Country headquarters, after replying an email to Wang Yanfeng, dialed the phone number of Tian Feng Chemical Chairman Tian Feng Zhangnan He called King Material and informed High Polymer Optical Film that he was preparing to cut prices. There was no bottom line for price cuts, so he had to defeat Fei Yang Optics first. Of course, he also bluntly stated that the price cuts were only for the domestic market, excluding foreign markets.
After receiving the news, Tian Feng Zhangnan was startled at first, and then cursed in his heart, "Baga! I asked you to lower the price before but you didn't lower it. Now you have to lower the price without any bottom line. Do you want us to accompany you?"
With the advent of Fei Yang Optics's FY-01 material, the first one to bear the brunt is High Polymer Optical Film of King Material. Their Tian Feng Chemical, and Tian Le Material of Stick Country are actually just being affected.
The price of Tian Feng Chemical material is much cheaper than King Material, and it is also cheaper than FY-01. Although it has suffered disasters, it can still have a part of the market, and there is no need to worry about being completely eliminated.
But now that King Material has announced a price cut, it is still a price cut without a bottom line. It is conceivable that Fei Yang Optics will definitely follow suit.
With the support of Zhong Wei Technology, Hua Long Technology, Di Guang Optics, Qian Jia Technology, and even the support of the entire Nanjiang County, Fei Yang Optics can also spend money and engage in price wars for a long time.
As a result, his Tian Feng Chemical suffered.
By then, the prices of King Material and Fei Yang Optics will be comparable to the price of their Tian Feng Chemical material. So isn't their Tian Feng Chemical material dead?
Tian Feng Chemical can indeed accompany the price war, but their profit range is not set high to begin with. Once a price war occurs, the price cannot be reduced too much, so you can't give it away for free, right?
"Mr. Roman, I firmly disagree with your bottom-line price reduction. You can only reduce it to 50% of the original price at most."
Tian Feng Zhangnan immediately retorted, with a hint of threat in his words: "Otherwise, I will withdraw from the sanctions against Fei Yang Optics!"
Michael Roman said, "Mr. Tian Feng, I think you misunderstood. I only called you because we are in the same camp. I did not come to ask for your opinion. I hope you can understand this."
After saying that, he hung up the phone.
"Baga!"
Tian Feng Zhangnan was almost furious, and slammed the landline phone onto the table in front of him.