When the franchisees of the game king received a request from Daqian to reduce the price of the three main products and engage in activities, these franchisees did show a certain degree of dissatisfaction and resistance.
But this resistance and dissatisfaction are not strong. Even many franchisees are very happy about it. They can finally reduce the price!
Of course, franchisees do not have the great sentiment of benefiting the masses. They are just frightened by the changes in the market.
Since Gong tea began to make efforts and wantonly carried out advertising and marketing, the business of game king milk tea has been robbed a lot. After all, although these franchisees have received formal training, they do business for themselves, so they can save in many places.
But tribute tea is different. Although tribute tea is an employee working for the boss, the place with bright style is absolutely bright. So if you put the stores of both sides together, you will immediately feel that the tribute tea stores are more exquisite and advanced.
Because of this difference, coupled with Gong tea's advertising and marketing on TV, Gong tea's business is very fierce.
In addition, the number of franchisees is increasing, so the franchisees of game king don't have the huge profits a few months ago. Now the life of these franchisees is generally beginning to be difficult.
There are even a small number of franchisees of the game king, whose daily profits can not cover the fixed costs, and they are about to go bankrupt.
Therefore, the franchisees of game king generally hope that the head office can find ways to change the market environment. Now the company has finally stood up and engaged in sales promotion. Although it seems to be the most common means of reducing prices, some are better than none!
After all, according to the agreement signed between them and the head office, without the approval of the head office, any franchisee is not allowed to make any change in the price privately, otherwise it will be fined tens of millions of yen.
In fact, many franchisees have hoped to reduce prices to win over customers, but their suggestions have not been approved by the head office.
Now the head office has finally announced a comprehensive price reduction, which gives some franchisees a long sigh of relief.
Therefore, when the price reduction order was conveyed, the franchisees basically had no fierce opposition and carried it out very smoothly.
At the same time, facts have proved that boss Jia is right. The most common way is the most effective way.
Just like before the price reduction of aido VCD immediately obtained the market, when the price reduction of the three main milk teas of the game king, the whole market was immediately attracted to the hands of the game king milk tea store.
After all, for many customers, 30 yen is not a small amount. More importantly, many of them are heavy milk tea lovers who drink several cups of milk tea every day.
If you drink three cups of milk tea a day, you can save 90 yen a day and 2700 yen a month. You can buy half a box of game cards.
In addition, people familiar with the game king and tribute tea know that the two milk teas actually have the same taste, especially the three popular ones. The taste is basically engraved in the same mold without much change. Naturally, everyone votes with their feet to buy cheaper milk teas.
As a result, the consequences of the price reduction are quite obvious. The previous day was overcrowded. The tribute tea lined up from time to time became a little empty the next day, while the door of the game king milk tea shop began to line up.
Therefore, although the price was reduced, the total profits of many franchisees rose every day, and all franchisees began to be happy.
When the game king is happy, Honda Ichiro of tribute tea is naturally unhappy. At the beginning, Ichiro Honda also plans to take this opportunity to open the brand gap. Tribute tea does not reduce prices and improves its grade through prices.
So for nearly 10 days, tribute tea has been carried without price reduction.
But soon Ichiro Honda found that it couldn't work because the market was robbed too much. Even if each gongcha store didn't produce any milk tea every day, the costs of employee employment, rent and maintenance were fixed.
The total number of 7000 stores in Fusang is an extremely terrible number every day. Once the sales volume decreases, the tribute tea as a whole will have almost no profit and loss.
So after holding on for ten days, the tribute tea couldn't bear it, and they began to reduce the price.
At this time, some executives suggested that Ichiro Honda, there is no need to reduce the price to the same level as the game king, to 125 yen, so that the price can still reflect the grades of both sides.
However, Ichiro Honda did not accept this proposal. He felt that since he wanted to reduce the price, he would play a big breath and reduce the price to 110 yen, which is 10 yen cheaper than playing the game. In this way, he could directly grab all the customers of the game king.
Ichiro Honda also believes that he has more room for price reduction than Daqian, because the profits of tribute tea are his own, but the profits of the game king need to be shared equally between franchisees and Daqian.
According to Jia Yapeng's treacherous merchant nature, he will never let Daqian bear the loss of profits. These lost profits will certainly be all on the franchisees. Therefore, once Daqian exploits the franchisees too hard and makes the franchisees unable to make money, it is time for the game king to fall apart.
Ichiro Honda thought very beautiful, but he forgot that his theory must have a premise, that is, the costs of both sides are indeed the same. Only in this way, as a member of the franchise system, his ability to bear profit loss is really lower than that of Direct stores such as gongcha.
As a result, Gong tea finally responded and announced that it would also reduce all its original milk tea to 110 yen a cup.
In an instant, the whole market began to reverse. The customers who originally went to the game king to drink milk tea every day all went to tribute tea to drink milk tea. For a moment, there were few customers and became the game king milk tea shop.
However, Daqian's response was much faster than tribute tea. The game king soon announced the next day that he would continue to subsidize. The price of each bottle of milk tea fell to 105 yen a cup, no more or less, which was only 5 yen cheaper than tribute tea.
Then the students voted with their feet again and the game king milk tea was started again.
Angry Ichiro Honda, after hesitating for three days, reduced all products to 100 yen a cup.
This time, the game king seemed to be a little counselled. After hesitating for a day, the game king also pressed the price to 100 yen a cup. Then the price war between the two sides was stopped, which made the audience quite sad. How good it would be if the two sides kept reducing the price!
"Daqian won't last long. His franchisees can't afford such a low price. They will resist Daqian!" Ichiro Honda predicted so loudly at the company's meeting.