"Do you support price reduction?"
Inside Tian Le Material, someone made this suggestion.
The cancellation of orders is a major blow to most companies, especially the cancellation of large-volume orders, which can lead to orders for millions of pieces of products.
Only companies with a certain monopoly nature that never have to worry about selling will not be afraid or care about the cancellation of orders by some customers.
But Tian Le Material is obviously not.
Tian Le Material is in the second echelon, the same level as the optical materials of Tian Feng Chemical, but its scale is far from being able to compete with Tian Feng Chemical.
Tian Feng Chemical has already decided internally, and even Big Boss Tian Feng Zhangnan has acquiesced. Once it cannot bear the losses, Tian Feng Chemical will directly enter China's domestic optical materials market.
Tian Le Material is no longer so capable. Once it loses the Chinese domestic market, Tian Le Material's revenue will be cut by more than half, and the development of these years will be in vain. It will be difficult to turn around in the future. It can even be concluded that the only outcome in the future will be eliminated in the optical materials industry.
Companies like Da Rong Technology and He Sheng Technology are general customers of Tian Le Material. If they lose, they will lose. After a while, there will be many more customers of these companies.
Qian Yin Technology's cancellation of the order in transit was a severe pain for Tian Le Material, equivalent to having a large piece of meat taken out of his thigh.
Whether the optical materials used in Qian Yin Technology are sold to Zhong Zheng Company, Oupai Company, or some other mid-range mobile phone brands, including some foreign customers, most of them are purchased from Tian Le Material. The two have a strategic cooperative relationship, which was decided by the top management of the two companies.
But now, the senior management of Qian Yin Technology has obviously not been able to withstand the temptation of King Material and Fei Yang Optics's price reduction promotions for optical materials, and has begun to attack Tian Le Material, its former "close friend".
"I don't want to either, but their prices have been reduced too much."
Tian Le Material had nothing to do. Apart from sending an email stating that the materials for the order in transit have been prepared and cannot be canceled, there was nothing else to say.
Behind closed doors, we immediately discussed what to do.
They knew things were coming to a head. When an industry boss fights with a powerful rookie challenger, the boss will be fine, and the rookie challenger is also particularly brave. Then it will be the turn of bystanders in the same industry to suffer, especially since this bystander is still in the third position.
"In this current situation, we can only sell at a reduced price."
Tian Le Material The domestic general manager thought about it, but in the end he just sighed.
If you participate in a price war, you will definitely suffer huge losses or even go bankrupt in the end.
But if you don't participate in the price war now, you will die immediately.
After so many years of operation, it is so intricate that until the last moment, no one is willing to give up what they have now. Even if they know clearly that it is drinking poison to quench their thirst, they still have to bite the bullet and drink.
In Stick Country, the heads of the Tian Le Material company headquarters quickly learned the news. After intense discussions, the result was the same. Just follow it first, and wait until you can't stand it any longer.
"Tian Le Material wants to reduce the price by 15%?"
Peng City, Qian Yin Technology.
After purchasing director Lin Panpan received an email from Tian Le Material saying that he could not cancel the order, his mood suddenly became much worse. Although I received a call from the general manager of Tian Le Material later, saying that Tian Le Material could reduce the price by 15% in conjunction with the cost reduction and efficiency increase of their mass production project, my mood still did not feel much better.
It is necessary to reduce costs and increase efficiency of mass production projects. When can it become a bargaining chip in negotiations and forcefully reject the customer's decision to cancel orders?
This is the hard part of doing business. The price of a product from the beginning will drop all the way as mass production continues. When the product is no longer sold on the market, the price reduction will even exceed half. The same is true for raw materials. You may sell them to customers for 10 yuan per piece at the beginning, but the more you mass-produce, the price can reach 5 yuan or even 4 yuan, which is simply outrageous.
Among them, of course, raw material prices have shot up a lot. The second reason is that as mass production continues and production yields increase, the actual cost of the product is decreasing.
Qian Yin Technology is the third-ranked mobile phone ODM manufacturer. Although it does not have many projects for the four major mobile phone brands, Oupai, Wheat, and Weiwo, it makes many off-brand phones and copycat phones, and the volume is also very large.
The orders placed in a year are usually in the tens of millions or hundreds of millions.
King Material's price reduction, Qian Yin Technology's senior management immediately started cost reduction and efficiency improvement. In addition, Lin Panpan had previously approached Tian Le Material for price reduction, but the target price reduction was not achieved, so Lin Panpan made the decision to cancel subsequent orders after reporting its ideas to the leadership.
Now, the price of Tian Le Material is going to be reduced?
It's too late!
Lin Panpan sneered. In fact, the project and research and development have already prepared several mass production plans, including the King Material plan and the Fei Yang Optics material plan. It's just that the prices of the two previous companies have remained high, resulting in the cost being unable to be verified. Now that the price reduction is so large, the cost has come down immediately, and it is even more cost-effective than the Tian Le Material solution.
Well, whether it's R&D, production, or even quality, we all want to make King Material's solution.
There is a very simple reason: High Polymer Optical Film of King Material has excellent performance, there are basically no defects in the production process, and the reliability and other experiments are also 100% fine.
Unlike Tian Le Material, there will still be a certain proportion of defects in the production process, which is extremely annoying to production and quality, and also annoying to R&D, because if such bad production quality occurs, R&D will be in trouble.
As for reliability experiments, let alone that. Qian Yin Technology Customers will not conduct experiments on every mobile phone released, but random testing is still required for each batch. Many times, spot tests will reveal defects, which will immediately lead to customer complaints. This is something that production and quality absolutely don't want to see.
Taken together, everyone definitely wants to use the King Material solution.
Fei Yang Optics has not yet been mass-produced in Qian Yin Technology, but it has been sanctioned by Eagle Country and targeted in this way by King Material. Obviously, it does not lose at all in terms of performance.
Immediately, Lin Panpan added an email, writing down the time of placing the order and the time required for production and delivery, etc., and strongly requested to cancel the order.
Here, there is an unspoken rule, that is, there is no actual order for your goods. If the customer wants to cancel, you generally have to cooperate with the cancellation, otherwise you will not want the order in the future.
Lin Panpan calculated it very clearly. She placed a lot of orders for Tian Le Material, but so far she hasn't delivered even one-fifth of it. What's wrong with canceling three million pieces?
After sending the email, Lin Panpan took a breath, then called one of his purchasing managers and asked, "What did Tian Feng Chemical say? Are you willing to cooperate with the price reduction?"
The purchasing manager shook his head and replied, "Tian Feng Chemical stated that the current price is their bottom line, and if it goes down any further, they will lose money, so they refused."
Lin Panpan was not unhappy, but asked in confusion, "Don't they know that both King Material and Fei Yang Optics are reducing their prices?"
It's time, the boss has already lowered the price, but you, Tian Feng Chemical, the thousand-year-old second-in-command, still haven't lowered the price, you don't want to be around anymore? For a moment, she didn't understand what those people who were doing well in Little Country thought. Could it be that Little Country was really doing well?
"I said it, but they said it was the rule of the headquarters. They also said that if the price must be reduced to accept the order, then they would rather not make the order."
Lin Panpan was speechless. He thought for a while but couldn't figure it out. Finally, he said angrily, "Forget it. Ignore them. If you don't want to lower the price, don't lower the price. Arrange the transfer order immediately!"