walk into unscientific

Chapter 370 Pricing and price wars!
The great man has a good saying.

Hit a punch to avoid a hundred punches.

In addition to the diplomatic field, this sentence also applies to shopping malls.

What Huadun Institute of Biotechnology is about to face right now is a fierce punch from many foreign companies united together.

be honest.

It's not that Xu Yun and the others cannot retreat.

But if one is discouraged at this time, the situation facing "One Mantis" will be even more difficult in the future.

Because the product of cockroach medicine has an upper limit of audience, every time a customer is robbed by other brands, it means that there is one less "passer-by" left for Huadun Biotechnology.

And if you can win.
Then Huadun Biotech will consume more than half of the sales of up to 4000 million in this cycle-this is not a one-time sales. In terms of the effect of "killing one beetle", at least 90% of consumers will choose repurchase!

This means that 'One Mantis' will completely gain a firm foothold, and the offensive and defensive momentum will also change accordingly.

At that time, Xu Yun and the others will be able to leave the keyboard with both hands as long as they press F2A.

conference room.

Zheng Zu's eyes communicated with several people around him, then turned his head to look at Gu Qunqing, and asked:

"Manager Gu, I don't know if the operation department has estimated or discussed the situation of the price war?"

Gu Qunqing nodded, affirming:

"Of course, according to our pre-discussion, if we want to fight a price war, we must first make preparations in two aspects."

"Which two aspects of preparation?"

"The first is the reserve link of supply."

Gu Qunqing raised a finger, and at the same time changed the slide to another page:
"According to our previous analysis and simulation, before the start of the price war, the finished product reserves of 'One Mantis' should be at least 80 pieces, which means a total price of 1600 million."

"Director Qian, you are fully responsible for this matter, is it okay?"

When it comes to his own job, Qian Guanglin is no longer so cautious, only to see him sticking out his chest confidently:

"No problem, Manager Gu. There is still about a month before the Chinese New Year. Calculated based on the fact that the price war started fifteen days before the festival, we still have more than ten days for production."

"When the equipment is fully used, it is not a big problem to produce 80 products-our raw materials are mainly from Henan, and now the order can be shipped to Luzhou in about two days, and our existing material reserves are enough to support until then gone."

But soon, Qian Guanglin's expression hesitated again:
"It's just Manager Gu. In this way, we have a financial problem."

Qian Guanglin didn't finish the second half of his sentence, but everyone present could understand what he meant:
At present, the factory can produce 15 units of products by working overtime all day. Based on the price war from the first 70 days, the factory can produce [-] units of finished products.

But
Right now, the production cost of 'One Mantis' is still very high. Calculated at 6.5/piece, the production investment alone needs to be close to 500 million Huaxia coins.

Huadun Biotechnology can take out the money, but what about other publicity and distribution links?
It's impossible not to advertise, right?
To know.

Internet sales are not just a matter of the production side, the rankings of online shopping platforms and big data promotion are also big.

For example, the charge for the carousel section of a certain treasure big picture is 250000 yuan per day, that is, 25 yuan.

Another example is the diamond booth of a treasure.

Diamond booths are charged per thousand impressions, and the unit is CPM, that is, 1CPM=1000 impressions.

There are many kinds of diamond booths of a certain treasure, but the principle is that the higher the click-through rate, the more expensive the price.

比如点击率是2%的位置成交价一般是5块钱1000次，1000块钱的预算成本能展示200000次。

Multiplied by 2% of the clicks, the total number of clicks that can eventually be generated is 4000.

So, each click will cost you $0.25.

More importantly.
This position requires bidding.

That is to say, the platform gives an initial price—for example, 0.1/click, and then others start to increase the price, and the one with the highest price wins.

Ordinary time is better.

Generally, except for Lengtouqing, veterans will have a psychological price ceiling, because it will be difficult to pay back if the price exceeds the ceiling.

But now that there is a price war going on, those foreign companies will inevitably raise the cost of these booths through bidding, even if they lose money.

If Huadun Biotech did not follow, the booth would fall into their hands.

However, if the price is raised, the cost of publicity and distribution will be greatly increased, which will put a lot of pressure on the company's funds.

conference room.

Hearing Qian Guanglin's words, Gu Qunqing sighed, nodded, and readily admitted the current financial dilemma:
"Yes, according to the estimates of the operation department, once this price war starts, our promotion costs may reach 150-200 million a day - after all, we need to take into account the malicious bidding of multiple platforms and competitors."

"The average input cost for each location is estimated to be 50% or more higher than normal."

"That is to say. Within seven days, I am afraid that about 1300 million will be burned."

"hiss"

Hearing the number that came out of Gu Qunqing's mouth, Rao was prepared in his heart, and the hearts of everyone present were still heavy.

Burn 300 million in seven days, plus product discounts.
In other words, in this price war, the company basically does not need to consider the issue of profitability, and will inevitably lose money.

But this is normal.

After all, this is a life-and-death struggle involving the future pattern of cockroach medicine, which is far different from ordinary commercial competition in nature.

The magnitude of profit is far from the forefront of the target.

Throughout the history of Internet business, there are many more exciting price wars than this one.

For example, the Meituan Ele.me subsidy war in 14 should be one of the most representative Internet price wars in the history of Chinese business.

从2014年5月8日至2015年4月30日，饿了么累计烧钱4.55亿美元，足足28亿元人民币。

On average, more than 2 million yuan will be burned in a month, 300 million yuan per day.

In this case, the competition is who has the best ability to continue blood.

If you "boil" other people to death and survive, you will be able to become king and hegemony.

thought here.

Gu Qunqing couldn't help taking a deep breath, and said to everyone:
"Everyone, as I said just now, since we are going to fight a price war right now, we must first make preparations in two aspects."

"The first preparation is the source of goods that Director Qian is responsible for, and the second preparation is..."

"I hope everyone will work together to solve the financial problem."

After Gu Qunqing finished speaking, the expressions of everyone in the conference room did not change much.

Those who can sit here are all smart people. As early as when Gu Qunqing assigned the task to Qian Guanglin just now, they had already seen some clues:
Gu Qunqing was about to ask for money.

No wonder it was Gu Qunqing and not Xu Yun who presided over the meeting today. From the face of it, Gu Qunqing is obviously much thicker than Xu Yun
Then Zheng Zu pondered for a moment, then turned to look at a middle-aged man on Gu Qunqing's left, and asked him:

"Accountant Ma, how much money is still on the company's books?"

The Accountant Ma that Zheng Zu was talking about was a bald man with a bitter face and a deep hatred. After hearing this, he clicked the mouse a few times and quickly replied:

"Chairman Zheng, since Hanhua Heavy Industry has just settled the final payment for equipment, there are still about 400 million funds in the company's account."

"In addition, there are two other payments totaling more than 300 million yuan that have not been settled during the deposit cycle, and they will probably arrive next Thursday."

"400 million plus 300 million"

Zheng Zu's eyes flickered a few times, and he calculated:

"That's more than 700 million cash reserves, after deducting 500 million product costs, there are still more than 200 million."

"And if we count the promotion expenses and some other expenses, as well as the 'small treasury' to prevent special circumstances, the cash we have prepared this time must be at least around 1500 million."

The 1300 million operating expenses that Gu Qunqing mentioned earlier are just the promotion expenses of multiple online business platforms. In the price war, the proportion of social platforms cannot be ignored.

Toutiao, Station B, Official Account, Douyin.
The money in these places is thrown into a terrible bottomless pit.

Then Zheng Zu hesitated for a moment, then raised his hand again:
"Manager Gu, what do you think of this? The Xinchuang Fund will borrow another 800, let's say 1000 million. I will lend 1000 million to the company, but the interest will be 3.5 million per day, and the money must be paid back within a month."

When Xu Yun in the audience heard the words, he couldn't help showing a hint of joy in his eyes.

When the company introduced the FOERDA-T632 production line, Zheng Zu once borrowed a flexible loan of 2000 million yuan, and the interest was [-] yuan.

Just after the FOERDA-T632 production line entered into the Wassenaar agreement, Xu Yun purchased several production lines from Hanhua Group, which reduced the cost by a large amount, so the money was not actually spent.

Not long ago, Xu Yun returned the 2000 million together with the interest to the Xinchuang Fund as the new batch of product payments came into the account.

Now that the company is facing a crisis, Zheng Zu really thought of this fund again.

This is also one of Xu Yun's and Gu Qunqing's main goals today.

Again.

Zheng Zu is a very typical businessman thinking, but this does not mean that he is mercenary or does not know how to adapt, he is still a good person.

To know.

Although the money is called a flexible loan, the approval process is actually quite troublesome. Zheng Zu actually has to bear certain risks if he wants the money to arrive quickly.

As for the interest of [-] ten thousandths.
Although it is a bit higher than [-]/[-], in the current situation, no one will care about these details.

The new venture fund is not Zheng Zu's one-word hall or private small treasury, and some rules must be followed.

Then Zheng Zu thought about it, and said:
"In addition, I will ask the people on the e-commerce platform to see if they can temporarily open a back door for us, such as returning the payment immediately after the logistics information is released-this should also squeeze out about two or three million."

As soon as Zheng Zu's words came out, the atmosphere in the meeting room suddenly became more active with the naked eye.

Well known.

For most merchants, the settlement method of Xbao is generally to pay after receiving the goods, which is about 7 to 15 days before and after.

At the same time, a certain treasure also issued a loan with instant settlement, that is, it will be settled immediately after entering the logistics information in the background, and the interest is about [-]/[-].

However, for large manufacturers, the settlement of certain treasure and other platforms will not be so casual.

Those large enterprises generally have a settlement and payment collection cycle, such as once a month or even three months.

That is to say, the manufacturer will always have a sum of money on the online shopping platform, instead of settling every seven to fifteen days.

Predictably.

Once the price war starts, the amount of the pledge will definitely not be too small—at least not less than the 300 million that has not been paid yet.

If Zheng Zu can release this part of the funds, then the help to the price war will obviously be very considerable.

Seeing Zheng Zu's effort, Tian Liangwei at the side hesitated for a moment, and then said:

"Manager Gu, on behalf of the School of Life Sciences of the University of Science and Technology, I will also borrow 200 million, but the process may be more complicated, and it will take about a week to arrive at the account."

200 million.

Although this amount is not as high as Zheng Zu's 1000 million, for Tian Liangwei, this is already the limit he can afford.

And it is different from Zheng Zu.

Tian Liangwei's doing so may also cause some criticism, and it is easy to be distorted to adjust the rhythm.

For example, some people deliberately did not say that this was a loan, and refused to discuss the issue of repayment. They smeared this matter as a personal "capital injection" behavior, and a draft of black material came out.

This is not Xu Yun's imagination. A certain academician of Nantah University was hacked in this way.

thought here.

Xu Yun couldn't help sighing.

no way.

Who keeps less money in their pockets?
Huadun Biological Sciences is currently in a stage of rapid development, basically repeating the routine of selling-paying back-buying materials-increasing production-paying back.

Due to the continuous increase in investment, the profit is actually not much.

At present, counting dividends, Xu Yun, the chairman, only has about 48 yuan in his bank card—of which more than 20 yuan is from his original savings.

Those who saw it were sad, and those who heard it wept.
So in this case.

It is obviously impossible for Xu Yun to wave the check like a rich father.

Of course.

If nothing else happens, by this time next year, Xu Yun should have more money in his card.
The line of sight returns to reality.

After Tian Liangwei borrowed a sum of money, the agent of the School of Physics who attended the meeting on behalf of Academician Pan also borrowed 200 million in cash.

Including Zheng Zu, everyone had a tacit understanding and did not propose the idea of ​​using it as equity.

After all, Xu Yun doesn't have much money in his hands right now. If financing is carried out now, Xu Yun's shares will inevitably be diluted.

This kind of approach is a bit too unethical-although the word "eating phase" is a bit pretentious in the shopping malls, but Huadun Biotechnology is a company of the University of Science and Technology after all, so we should pay more attention to this aspect.

If you switch to other venture capital institutions, at this time 100% will ask to start the B round of financing to dilute the founder's shares, otherwise no penny will be invested.

This is the cruelty of the shopping mall, and it is also the reason why many newly hatched companies want to gain an XX identity.

all in all.

With the arrival of 1000+200+200, and Zheng Zu's promise to contact the platform to ensure real-time payment.

The funding problem of this price war has been somewhat resolved.

after an hour.

The meeting adjourned.

Xu Yun accompanied Tian Liangwei and Zhou Shan down the stairs, and bid farewell to the two big men in the parking lot.

Looking at the passing vehicles, Xu Yun's brows were slightly frowned.

Do not know why.

He always feels that the price war this time seems to be far more simple than it seems.
(End of this chapter)