When Yu-Gi-Oh's franchisees received Daqian's request for them to lower the prices of their three main products, these franchisees expressed their dissatisfaction and resistance.
However, the resistance and dissatisfaction weren't that strong. Many of the franchisees were happy because they could finally lower their prices!
Of course, the franchisees did not have the noble sentiment of benefiting the masses. They were just frightened by the changes in the market.
Since Tribute Tea started to promote and advertise, Yu-Gi-Oh's milk tea business was snatched away. After all, although these franchisees had undergone formal training, they were doing business for themselves. Therefore, they were trying to save as much as possible.
However, Tribute Tea was different. Although Tribute Tea was an employee working for the boss, it would definitely be grand and luxurious. Therefore, when both stores were placed next to each other, the Tribute Tea store looked more exquisite and high-end.
Because of this difference and Tribute Tea's advertising on TV, Tribute Tea's business was snatched away.
Moreover, the number of franchisees kept increasing. Therefore, Yu-Gi-Oh's franchisees did not earn as much as they did a few months ago. Now, these franchisees were having a hard time.
There were even a few Yu-Gi-Oh's franchisees whose daily profits could not cover their fixed costs. They were on the verge of bankruptcy.
Therefore, Yu-Gi-Oh's franchisees hoped that the head office could find a way to change the market. Now, the head office finally stood up and started to promote their products. Although it was the most common method of reducing prices, it was better than nothing!
After all, according to the agreement signed with the head office, without the head office's approval, no franchisee was allowed to make any changes to the price. Otherwise, they would be fined tens of millions of yen.
In fact, many franchisees had wanted to lower their prices to attract customers. However, their suggestions were not approved by the head office.
Now that the head office finally announced that they would lower their prices, some franchisees heaved a sigh of relief.
Therefore, when the order to lower their prices was passed down, the franchisees did not have any strong objections and carried it out smoothly.
At the same time, Boss Jia was right. The most ordinary method was the most effective method.
Just like how Aido's VCD players had gained market share when they lowered the price, Yu-Gi-Oh's three main milk teas had lowered their prices. The entire market share had fallen into the hands of Yu-Gi-Oh's Milk Tea Shop.
After all, 30 yuan was not a small amount for many customers. More importantly, many of them were heavy milk tea enthusiasts. They would drink several cups of milk tea every day before they stopped.
If he drank three cups of milk tea a day, he could save 90 yen a day. That would be 2700 yen a month, which was enough to buy half a box of game cards.
In addition, those who were familiar with Yu-Gi-Oh and Tribute Tea knew that the taste of the milk tea from the two brands was almost the same, especially the three popular brands. The taste was basically carved from the same mold, and there wasn't much difference. Naturally, everyone voted with their feet to buy the cheaper milk tea.
Therefore, the consequences of the price reduction were quite obvious. The tribute tea shop that was packed with people the day before became deserted on the second day. On the other hand, there was a long line at the entrance of You Wang Milk Tea Shop.
Therefore, although the prices were lowered, many of the franchisees' daily profits increased. All the franchisees were overjoyed.
Yu-Gi-Oh's Milk Tea Shop was overjoyed, but Honda Ichiro was unhappy. At first, Honda Ichiro wanted to use this opportunity to widen the gap between the two brands. Tribute Tea Shop refused to lower their prices.
That's why for almost ten days, Tribute Tea Shop did not lower their prices.
However, Honda Ichiro soon realized that the market was being snatched too much. Even if the tribute tea shops did not produce any milk tea, the cost of hiring employees, rent, and maintenance were fixed.
The seven thousand shops in Fu Sang added together was an extremely terrifying number every day. Once the sales volume dropped, the tribute tea company as a whole would have almost no profit to speak of. They would even lose money.
So, after ten days, Tribute Tea Shop couldn't hold on any longer, and they started to lower their prices.
At this time, a senior executive suggested to Honda Ichiro that there was no need to lower their prices to the same level as Yu-Gi-Oh's Milk Tea Shop. They should lower their prices to 125 yen.
But Honda Ichiro did not accept this suggestion. He felt that since he had to lower his prices, he should lower his prices to 110 yen. It was 10 yen cheaper than Yu-Gi-Oh's Milk Tea Shop. This way, he could grab all of Yu-Gi-Oh's customers.
At the same time, Honda Ichiro felt that he had more room to lower his prices than the Daqian. That's because Tribute Tea Shop's profits belong to him. But Yu-Gi-Oh's profits must be shared equally between the franchisees and the Daqian.
According to Jia Yapeng's cunning businessman nature, he will never let the Daqian bear the loss of profits. The franchisees will bear the loss of profits. So, if the Daqian exploited the franchisees too much, the franchisees will not be able to make any profits. That's when Yu-Gi-Oh's Milk Tea Shop will collapse.
Honda Ichiro's idea was beautiful, but he forgot that his theory had to be based on the premise that the cost of both parties was the same. Only in this way, as a franchise, Da Qian's ability to bear the loss of profits would be lower than a direct store like the tribute tea.
Therefore, Tribute Tea finally reacted and announced that they would also reduce the price of their original milk tea to 110 yuan per cup.
In an instant, the entire market changed. The customers who went to Yu-Gi-Oh's Milk Tea Shop every day all went to Tribute Tea Shop to drink milk tea. The deserted shop became Yu-Gi-Oh's Milk Tea Shop.
However, the Daqian reacted faster than Tribute Tea Shop. The next day, Yu-Gi-Oh announced that they will continue to subsidize the cost of milk tea. The price of milk tea will be reduced to 105 yen per cup. It's only 5 yen cheaper than Tribute Tea Shop.
Then, the students voted with their feet, and Yu-Gi-Oh's Milk Tea Shop started again.
Honda Ichiro was furious. After hesitating for three days, he lowered the price of all his products to 100 yen per cup.
This time, Yu-Gi-Oh seemed to be a little scared. After hesitating for a day, Yu-Gi-Oh also lowered the price to 100 yen per cup. Then, the price war between the two sides stopped. This made the audience feel a little sad. How good would it be if both sides kept lowering the price like this?
"Da Qian won't be able to hold on for long. His franchisees won't be able to bear such a low price. They will definitely rebel against Da Qian!" Honda Ichiro predicted loudly in a company meeting.
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