But how did this Xiaomi computer do it? How could it sell the computer at such a low price? Did they not need to give the distributor any profits?
Without a distributor, how could they help Xiaomi sell the computer?
"From what I know, Xiaomi does not have a distributor!" Yang Yuanqing said something that shocked everyone.
"No distributor?"
"How is that possible? Without a distributor, how are they going to sell the computer?" The executives of Lenovo were shocked again. From what they knew, without a distributor, it was impossible to sell the computer.
The computer must be sold through a distributor.
"We sold the computer to ZF, but we did not go through a distributor either." Yang Yuanqing smiled.
"But there are many brokers in between!" A senior conduit said. Yes, this question should not be discussed further.
"There is a difference between brokers and distributors. Xiaomi does not need any distributors or brokers to sell the computer!" Yang Yuanqing took a deep breath and said, "Because Xiaomi is now attacking the internet café market, and the internet café owners are all buying computers in bulk. They will not buy a finished computer from a distributor."
"According to my research, there are two ways for internet café owners to buy computers. The first is to buy all kinds of computer parts online and assemble the computer themselves."
"The second is to buy a complete computer from Xiaomi."
"At first, most of the internet café owners bought the computer parts and assembled it themselves. But soon, they realized that the price of the computer parts from a distributor was only slightly lower than the price of a complete computer with the same specs as a Xiaomi computer."
"But Xiaomi computers can provide a one-year warranty. As long as the computer is not damaged by external forces, it can be replaced with a new one. So, gradually, all the internet café owners chose to buy a computer with a warranty like Xiaomi computers. After all, each computer is less than 100 yuan more expensive!"
"At the same time, it is more convenient to buy a complete computer directly. According to Xiaomi's policy, as long as you buy more than 10 units at once, Xiaomi will send someone to provide service to ensure that all the computers can operate smoothly!"
"I heard that Xiaomi Computers has taken the initiative to provide the internet café's local area network and the internet café's management system. Their employees can also help the internet café owners to connect all the computers to the local area network, saving the owners a lot of trouble."
"In summary, they are more willing to buy a Xiaomi computer. As for buying a Xiaomi computer, you don't even need to look for a distributor. All you need to do is call the official number of Xiaomi computer and transfer a sum of money to a designated account. The Xiaomi computer will be delivered to your doorstep within 5 days. "
"How is it? Isn't it very convenient? If I were the owner of an internet cafe, I would definitely buy a Xiaomi computer. It saves time, money, and worry. Why would I buy a Xiaomi computer?" Yang Yuanqing's words were like a heavy hammer that hit the hearts of these executives.
Indeed, just by hearing about Xiaomi's sales policy, these executives understood why Xiaomi was able to snatch 100,000 units of the internet cafes' PC market in a month. This policy was too tempting, and there were no distributors making a profit. It was perfect.
"Then how should we seize this market?" Liu Chuanzhi, who had been listening quietly, suddenly asked.
"To be honest, Xiaomi has already formed a monopoly in the internet cafes' market. 80% of the internet cafes will directly contact Xiaomi when they open for business. It will be very difficult for us to seize the internet cafes' market at this time." Yang Yuanqing sighed.
"Director Yang, since you've told us so much about the internet cafe market today, I don't think you're speaking without thinking. You must have a plan. Hurry up and tell us so that we can refer to it and discuss it!" An executive said with a cold snort.
If this Yang Yuanqing hadn't thought of a solution to this problem, why would he talk so much in the meeting? He even made it sound so difficult. Wasn't it just to show off his ability?
"Then I will tell you some of my shallow views!" Yang Yuanqing said with a smile. "First, the price is the key. The computers we provide to the internet cafes must be cheap enough. Otherwise, we will not be able to enter this market no matter what!"
"Hmph, I thought you had some brilliant ideas. So it's to reduce the price. Who doesn't know how to reduce the price? I don't need you to say so much! "Immediately, one of the executives said sarcastically.
Indeed, even a dog knows how to reduce the price to change the market. What's there to say?
"Everyone has misunderstood. Although I am suggesting to reduce the price of our computers to the internet cafes' market, I do not suggest to reduce the price to the same level as our competitors. On the contrary, our prices should be about 100 RMB higher than our competitors! "
"This way, the price will not be too high, and it will leave us with more profits. At the same time, we need to invest more in marketing. Focus on promoting our Lenovo computer brand value. We must let those internet cafes' bosses know that it is worth it to spend an extra 100 RMB to buy our Lenovo computers. This is because we are the best domestic PC brand in Hua Xia. This money spent is worth it!" Yang Yuanqing narrowed his eyes and said.
"Wishful thinking!" One of the executives stood up. "Then I would like to ask Director Yang. If we reduce the price of our computers to the same level as Xiaomi computers, what will happen to our ZF and personal users?"
"If they know that Lenovo's internet cafes are selling computers with the same specs a few thousand RMB cheaper than other channels, I guarantee that once this news gets out, the entire market will collapse. Lenovo will be scolded badly, and our sales will plummet!"
The other executives' faces darkened when they heard what this executive said. Indeed, the prices of the internet cafes cannot be lowered. Since ancient times, people do not worry about scarcity but inequality. If the computers in the internet cafes are so much cheaper, the retail market will collapse.
"This is the second thing I want to say. We must also lower the prices of our computers in the ZF and retail markets. But we do not need to lower the prices to the internet cafes. We just need to lower the prices by about 500 RMB more than the computers in the internet cafes. After that, we can announce to the public that these computers are only sold to internet cafes and find some reasons to explain the high prices. I believe the retail market will be suppressed." Yang Yuanqing took a deep breath and said.
"What? Our ZF and retail market prices are going to be lowered by so much?!" All the executives could not sit still.
"No! Absolutely not!"
"That's right. The market is still in our hands. How can we lower the prices?"
"Even if we are going to lower the prices, we must lower it bit by bit. There is no reason to cut the prices by half!"
"I think we should just forget about the internet cafes. If we raise the prices to that level, even if we take over the internet cafes, our annual profits will not be as high as now. Aren't we just asking for trouble? "
The executives all objected loudly. The entire conference room was filled with waves of voices, and Yang Yuanqing was about to be drowned out.
"These idiots. They are all earning money while lying in bed. They are all stupid!" Although he had already guessed that this would happen, Yang Yuanqing was still angry when he saw the executives' objections.
"Everyone, whether we lower the prices or not is not up to us. It is up to the market!" Yang Yuanqing slammed the table and shocked everyone who was discussing. Then, he said loudly, "Xiaomi is only focusing on the internet cafes. That's why they don't care about us. When they have basically taken over the internet cafes, they will sell their 2000 RMB computers in the retail market. Will we still have a way to survive? "
"When that time comes, will we still be able to sell our computers at the current prices?"
"As far as I know, many PC users already know about the existence of Xiaomi computers. Some of them even went to Xiaomi's headquarters to pick up their computers!"
"Once Xiaomi regains its senses and starts attacking our market, with our prices, how are we going to fight this battle? When that time comes, won't we still have to lower our prices? "
"So instead of being forced to lower our prices by Xiaomi, why don't we lower our prices now? Furthermore, we can still slowly reduce the price. Otherwise, if we are forced by Xiaomi to cut the price in half, everyone in the world will know how shocking the profits of Lenovo Computers were! "Yang Yuanqing said loudly. The entire meeting room instantly quieted down.
Actually, the executives present could understand this logic if they thought about it carefully. It was just that they were unwilling to lower their prices and give up on the huge profits. They only wanted to deceive themselves and others.
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