Chapter 84 Market Force
“Is the price reduction supported?”
Someone made this suggestion inside Tianle Materials.
Cancellation of orders is a major blow to most companies, especially when canceling large-scale orders, which can cause orders of millions of products.
Only companies with a certain monopoly nature that never worry about selling can be fearless and care about the behavior of some customers canceling orders.
But Tianle Materials are obviously not.
Tianle Materials is in the second echelon, and Hotanfeng Chemical's optical materials are of the same level, but their own scale is far from comparable to that of Hotanfeng Chemical.
Tianfeng Chemical has already decided on the decision, and even the big boss Tian Feng Zhangnan agreed that once he could not bear the losses, Tianfeng Chemical would directly directly enter the domestic optical materials market in China.
Tianle Materials is not that powerful. Once it loses the domestic market in China, Tianle Materials' revenue will be cut by more than half, and its development over the years will be in vain. It will be difficult to turn around in the future. It can even be concluded that the optical materials industry will be eliminated in the future.
Companies such as Darong Technology and Hesheng Technology are ordinary customers of Tianle Materials. If they lose, they will lose. In a while, there will be many more customers of such companies.
Qianyin Technology's cancellation of on-the-go orders can be called a severe pain for Tianle Materials, which is equivalent to a large piece of meat being poached from its thigh.
Whether it is recommended to Zhongzheng, Oppein, or other mid-range mobile phone brands, including some foreign customers, most of them are purchased from Tianle Materials. The two have strategic cooperative relationships, which are decided by the two senior management companies.
But now, the senior executives of Qianyin Technology have obviously not withstand the temptation of the price reduction and promotion of Kings Materials. Feiyang Optics, the two optical materials companies, have begun to attack Tianle Materials, a former "close friend".
"I don't want to, but they have cut prices too much."
Tianle Materials can only be helpless. Apart from sending an email to indicate that the order on the way has been prepared and cannot be cancelled, it is hard to say anything else.
Close the door and immediately discuss what to do.
They knew that things were at a critical moment. The industry boss fought with a powerful rookie challenger. The boss was naturally fine, and the rookie challenger was also particularly brave. Then it was their turn to be onlookers in the same industry, especially the bystanders in the third place.
"At present, we can only sell at a lower price."
The domestic general manager of Tianle Materials thought about it, but in the end he just sighed.
If you participate in a price war, you will definitely lose a huge amount and may 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 business, it has been complicated and not at the last moment. No one is willing to give up what he has now. Even if he knows that it is a poison to quench his thirst, he has to bite the bullet and drink it.
In China, the heads of Tianle Materials Company’s headquarters quickly learned about the news. After fierce negotiations, the result was the same. Let’s follow first and can’t stand it anymore.
"Tianle Materials will be reduced by 15%?"
Pengcheng, Qianyin Technology.
After receiving the email reply from Tianle Materials that could not cancel the order, Lin Panpan's mood suddenly became much worse. Although he received a call from the general manager of Tianle Materials, saying that Tianle Materials can reduce the price by 15% in conjunction with the cost reduction and efficiency of their mass production projects, he 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 for negotiations and forcefully reject customers' decision to cancel orders?
The hardship of doing industry is here. From the initial price of a product, as mass production continues, the price will fall all the way. When the offline price is not sold on the market, the price reduction will even exceed half. The same is true for raw materials. You may be able to sell 10 yuan to one piece at the beginning, but the more mass production, the price can be 5 yuan or even 4 yuan, which is simply outrageous.
Among them, of course, the price of raw materials has been sold a lot higher. The second is that as mass production continues and production yields increase, the actual cost of the product is decreasing.
Qianyin Technology is the third largest mobile phone ODM manufacturer. Although there are not many projects in the four major mobile phone brands, including Zhongzheng, Oppein, Xiaomai, and I, it makes many miscellaneous machines and counterfeit machines, and the amount is also very large.
Orders placed in a year are usually placed in tens of millions or hundreds of millions of dollars.
With the price reduction of Kings Materials, Qianyin Technology's senior management immediately launched cost reduction and efficiency improvement. In addition, Lin Panpan had asked Tianle Materials to reduce the price before, but did not meet the target price reduction. Therefore, after Lin Panpan reported his ideas to the leader, he placed a decision to cancel the subsequent order.
Now, is Tianle Materials going to reduce its price?
It's too late!
Lin Panpan sneered. In fact, the project and R&D have actually made several mass production plans, including the King Materials plan and Feiyang Optical Materials plan. However, the prices of the two companies have been high before, resulting in the cost being unable to be reduced. Now the price reduction is so large that the cost has dropped immediately, and it is even more cost-effective than the Tianle Materials plan.
Well, whether it is R&D, production, or even quality, I want to make a solution for King of Materials.
It is very simple. King of Materials' polymer optical films have excellent performance, basically no defects during the production process, and there are 100% no problems in the experiments such as reliability.
Unlike Tianle Materials, there will still be a certain proportion of bad products during the production process. This is extremely disgusting for production and quality, and it is also annoying for R&D, because if this bad production quality occurs, you will have to find trouble with R&D.
As for reliability experiments, let alone. For every mobile phone that Qianyin Technology has gone out, customers will not do every experiment, but every batch of random tests is still necessary. Many times, random tests will be drawn out, and customers will immediately complain that this is something that they do not want to see in production and quality.
After all, everyone will definitely want to use the King of Materials solution.
Feiyang Optics has not yet been mass-produced by Qianyin Technology, but has been sanctioned by Yingshang and targeted by King of Materials, which is obviously not inferior in performance.
Immediately, Lin Panpan added an email and wrote down all the time to place an order and the time required to produce goods, and strongly requested the cancellation of the order.
Here, there is a hidden rule, that is, if your goods are not actually made, the customer wants to cancel, you usually have to cooperate with the cancellation, otherwise you will not want the order in the future.
Lin Panpan calculated very clearly. She placed a lot of orders for Tianle’s materials, but she has not handed over one-fifth so far. What’s wrong with canceling three million pieces?
After the email was sent, Lin Panpan took a breath, then found a purchasing manager under his command and asked, "What did Tianfeng Chemical say? Are you willing to cooperate with the price reduction?"
The purchasing manager shook his head and replied: "Tianfeng Chemical stated that the current price is their bottom line. If it drops, it will lose money, so he refused."
Lin Panpan was not unhappy, but just asked in confusion: "Don't they know that both King of Materials and Feiyang Optics are lowering prices?"
It's time for the boss to cut the price. Tian Feng Chemical, the thousand-year-old second child, has not cut the price yet. Don't you want to make a living? She didn't understand what those people who live a good life think. Could it be that they are really living a good life?
"I said it, but they said it was the headquarters' rule, and they also said that if they had to lower the price to take the order, they would rather not make this order."
Lin Panpan was speechless. After thinking for a while, he couldn't figure it out. Finally, he said angrily: "Forget it, don't worry about them. If you don't reduce the price, don't reduce the price. Arrange the order immediately!"
Chapter completed!