YM778.TV Chapter 1113 - The Meaning Of A Super Low Pricing!
Chapter 1113: The Meaning Of A Super Low Pricing!
Liang Qingfan smiled. “Don’t worry.”
“When working in Tengda, you just have to use your intelligence to do things. As long as Boss Pei chooses you as the person-in-charge and hands the project to you, it means that Boss Pei has already predicted that you would be able to complete it smoothly.”
“What’s there to worry about with Boss Pei around?”
Zhang Yahui immediately nodded. “Yes, yes. With Boss Pei as the backer, the project will not fail.”
The two of them walked back to the entrance of the snack market as they spoke.
It was about to be officially opened for business. There was still much follow-up work to be done.
For example, modify the price list of all the snack stalls according to Boss Pei’s requirements and give a 60% discount.
Zhang Yahui was just about to continue working when he heard someone call out to him from behind. “Yahui!”
He turned around and saw the person-in-charge of the Cold-Faced Lady, Qi Yan. There was a young man he did not know beside her.
Zhang Yahui was a little surprised. “Eh, Boss Qi, aren’t you in Beijing? Why are you in Jingzhou?”
Qi Yan smiled. “I heard that the snack market is about to open, so I came to take a look and learn.”
“That’s right, let me introduce you. This is the person-in-charge of Fish-Catching Take-Out, Rui Yuchen.”
Zhang Yahui shook hands with Rui Yuchen. “Hello, hello. I saw your name in the group of people in charge previously, but I haven’t met you face to face.”
Rui Yuchen had also responded to Boss Pei’s call to ‘enter a first-tier city’. He had driven Fish-Catching Take-Out to Beijing and watched over it for a period of time.
Now that Fish-Catching Take-Out’s business in Beijing had basically stabilized, Rui Yuchen stole some time from his busy schedule and went back to Beijing to take a look. At the same time, he came to visit the snack market that Boss Pei had personally selected.
Liang Qingfan said, “The two of you came at a bad time. Boss Pei just left. If you had come half an hour earlier, you would have met Boss Pei.”
Qi Yan was a little frustrated. “Huh? That’s a pity! I haven’t seen Boss Pei for a long time. The cold-faced lady happened to have a few questions to ask him.”
Rui Yuchen did not pay much attention to these. Instead, he asked, “Boss Pei, just came? Did he make any suggestions or requests for the snack market?”
Zhang Yahui thought for a moment. “Er... I don’t think there are any special requirements.”
“The only requirement is for the snack market to set a lower price. All the snacks were not profitable to begin with. Now, they are sold at a 60% discount.”
“I originally planned to sell one serving of cold noodles for ten yuan. Now, I’m only selling it for six yuan. It’s the same price as the cold noodles on the streets.”
“Oh?” Rui Yuchen rubbed his chin. “It’s exactly as I expected.”
Qi Yan smiled knowingly. “Indeed.”
Zhang Yahui was stunned. “Huh? Do you know the deeper meaning behind Boss Pei’s actions?”
Rui Yuchen could not help but smile.
Obviously, Zhang Yahui had just become the person-in-charge not long ago and could not see Boss Pei’s deep meaning and outstanding foresight.
As for Liang Qingfan... he was a professional in terms of architecture, but he was still far from being good at food and beverage. It was normal that he could not tell.
In fact, Rui Yuchen had already guessed Boss Pei’s intentions and analyzed it in detail with Qi Yan when Boss Pei confirmed that this personnel transfer and selected Zhang Yahui as the person-in-charge and asked him to prepare the snack market.
That was why Qi Yan worked hard to send the vendors over.
Today, Rui Yuchen was even more certain of his guess when he heard that Boss Pei’s only guidance on the snack market was to reduce the price.
Next, he naturally had to give Zhang Yahui some pointers.
“Actually, Boss Pei had created a very grand blueprint when he arranged for you to be the person-in-charge of the snack market.” Rui Yuchen explained.
“Just like what Cold-Faced Lady’s original founder, Meng Chang, planned. Cold-Faced Lady and Fish-Catching Take-Out are actually on two different racing lanes: one is daily food, and the other is snacks.”
“The positioning of these two are different. Fish-Catching Take-Out pursues nutritional equilibrium and health, while snacks pursue characteristics and are delicious enough.”
“The combination of Fish-Catching Take-Out and the nameless restaurant might have achieved success in the regular food and beverage industry, but it has not yet touched on the food industry.”
“It’s a pity that Meng Chang only bragged and did not do anything. This theory was only to bluff the investors, so the cold-faced lady did not achieve this effect at all.”
“Boss Pei obviously wanted to continue along this line of thought when he bought the Cold-Faced Lady. Boss Pei doesn’t mind helping Meng Chang realize the awesomeness he boasted.”
“The relationship between the Cold-Faced Lady and the snack market is equivalent to the relationship between Fish-Catching Take-Out and the nameless restaurant.”
“One focuses on the taste of mass-produced, fast-food, and the other focuses on the original high-end taste. Both of them complements each other perfectly. Coupled with the influence of the documentary ‘Stalls’... this is a complete snack ecology!”
“In addition, gather the vendors in the snack market so that they can interact with customers from all over the world every day. It would be easier to improve the taste than to lock them in the laboratory...”
Rui Yuchen explained the theory that he had analyzed for Qi Yan to Zhang Yahui and Liang Qingfan.
Especially when combined with the case of Fish-Catching Take-Out and the nameless restaurant and the experience of Fish-Catching Take-Out turning its losses into profits under Boss Pei’s wise guidance, these words were especially convincing.
Zhang Yahui nodded repeatedly.
So that was it?
Indeed, the people in charge of Tengda were all talented. They had learned a lot from their interactions!
Not only were they outstanding in their individual abilities, but they had also joined Tengda earlier. One could say that they had grown up with various industries. Thus, they had spent a long time with Boss Pei and had a deeper understanding of him.
These precious experiences that they had with Boss Pei allowed them to better understand Boss Pei’s business wisdom and guide their business.
Take this matter for example. If he did not communicate with Rui Yuchen, why would Zhang Yahui guide Fish-Catching Take-Out to develop and develop? Why would Boss Pei’s business wisdom play such a huge role?
It was probably very difficult to imagine that while the snack market seemed to be poaching people from the cold-faced lady, it was actually a perfect cooperation and complementary relationship!
Rui Yuchen continued, “It’s not difficult to understand why he was lowering the price now that we know about this.”
“Everyone, think about the positioning of the snack market and the cold-faced lady.”
“The position of the Cold-Faced Lady is a chain and fast food brand. It can open shops all over the country. Every shop can earn a lot of money as long as there are enough.”
“The positioning of the snack market is the original high-end taste. Its existence is a display of samples. It makes customers understand that the delicious snacks recorded in the documentary ‘Stalls’ are real. It can also give the cold-faced lady more high-end value.”
“To put it bluntly, Cold-Faced Lady is a mass product, and the snack market is a concentrated display of samples.”
“Since that’s the case, does it matter whether the snack market makes money or not? It’s not important at all!”
“Even if it’s purely losing money, the money that they put in can be earned back ten or a hundred times when the Cold-Faced Lady’s chain stores open more in the future.”
“There are at least three benefits to setting a low price.”
“First of all, such an exaggerated low price would stimulate customers to discuss it. It would become extremely popular online. Naturally, it would save publicity funds.”
“Secondly, this low price might not affect customers in other cities much. After all, their main expenses for coming here are air tickets and hotels. The few yuan that is cheaper for snacks would not affect them much.”
“However, the locals in Jingzhou would eat more frequently if the snacks are cheap. That would ensure that the traffic in the entire snack market would remain high, making it more lively.”
“Lastly, this ultra-low pricing strategy is a form of care for the new vendors.”
“If the snacks are very expensive, most customers would be more sensitive to the price. They would choose carefully when shopping at the food street because there are too many delicacies. They would choose those snacks with an especially good reputation to taste.”
“However, if the snacks are especially cheap, their perception of the price would decrease. They would buy various types of snacks more frequently. That would increase the sales volume of the entire snack street...”
Even though there was a limit to a person’s stomach, not all tourists would feel bloated after shopping at the snack street.
Some people would choose to stop eating after they were 70% full. They would rather go to a restaurant to eat proper food when they were hungry.
In fact, there were only two reasons. One was that the quality of the snacks in the snack street was unbalanced, and there were good and bad flavors. The other was that the food in the snack street was generally more expensive.
Customers were afraid of buying expensive and unpalatable snacks, so they would screen the snacks carefully.
However, there were very few snacks in the snack street that tasted particularly bad. Thus, at the end of the day, they would feel that the price-quality ratio was not high and the taste was not enough to support its price.
Reducing the price was the most direct way to increase the price-quality ratio.
As long as the price was low enough, customers would feel that they had made a huge profit when they were particularly delicious snacks. They would also feel that it was so cheap when they ate ordinary snacks. It was not a loss at all.
This could completely improve customers’ overall experience of the snack street, improve their mentality of shopping in the snack street, and make them lower their guard.
The experience would affect the reputation of the Cold-Faced Lady.
Rui Yuchen concluded. “Therefore, this pricing strategy completely fits Boss Pei’s entire plan!”
“It’s a pity that you did not realize this earlier.”
“If you had thought of it earlier, you would have set the price to this level before Boss Pei arrived. That way, Boss Pei would definitely appreciate you!”
Zhang Yahui could not help but feel regretful when he heard this.
“Sigh, it looks like I’ve given it too little thought!”
“If only you had come two days earlier!”
Rui Yuchen smiled. “It’s alright, it’s not a big problem.”
“As the person-in-charge of your first project, it is already very outstanding for Boss Pei to only give one opinion.”
“Boss Pei will definitely take notice as long as we continue to work hard!”
Qi Yan nodded. “You’ve completed the task at the snack market. The next step will be on the Cold-Faced Lady!”
“Don’t worry, I’ll make sure that both Boss Pei and you won’t be disappointed.”