Extraordinary Genius

At this point, various VCD brands, already flooded the world, the market for traditional video recorders shrank further, all manufacturers are losing money, while some major brands stopped producing traditional video recorders after processing the final finished goods, because they were also licensed to patent VCDs.

As for the small companies, they were declared bankrupt one by one, because even if they sold at a loss, few people were now willing to buy them. Just like cell phones are getting popular, who would buy another pager?

And while these big companies were still negotiating with each other, flat ~ retail prices to guarantee their profits, I didn't expect that Storm Electronics had made a decision that, in their view, was heartbreaking!

Windstorm VCD Price Offer!

The VCD was invented by Windstorm Electronics, and the original price was also made by Windstorm Electronics. Other VCD manufacturers, too, are patented licensees from Feng Yu Electronics, but when other brands of VCDs were sold at reduced prices, Feng Yu Electronics' VCDs maintained a selling price of more than 3,000 RMB.

At the time, Sony and other companies were still watching jokes. What brand did you think Feng Yu Electronics was? Your brand value, do we have Sony Gao? To use the added value of a brand to increase profitability is doomed to failure.

And it turns out that storm VCD sales have fallen. Daga Noriyu was happy to die when he found out about it.

What Windstorm, Edward or AIWA, you think the VCD is from your husband and you can sell it at the highest price? Do you regret it now? Your high prices are doomed to fail you.

But now, Windstorm VCD suddenly announced it was going to make a huge sale, and it was so powerful! Each VCD was reduced from over $3,000 retail to $1999! That's a couple hundred bucks cheaper than the other companies.

Meanwhile, the AEWA VCD, AIWA VCD, all announced big price reductions, the promotion is just like the storm card!

Now that other brands are stupid, consumers will definitely not buy their VCDs anymore. After all, those three brands are the oldest qualified brands of VCDs!

This year, RMB suddenly depreciated, leading to a straight-line decline in exchange rates against various foreign currencies. Last year RMB was still hovering around 5.8: 1 against the US dollar, and now it's 8.2: 1, which means that the $50 patent fee is equivalent to over 400 RMB!

The difference between the price of Rain VCDs and other brands of VCDs is around $50, which makes the roots of teeth that other companies hate itch.

Windstorm Electronics is so damaging, if we keep going with this price reduction, then our actual sales price is only about $200, minus the cost of over $100, what else do we make? Didn't they all get paid by Rain Electronics?

And the most hateful thing is, if Windstorm Electronics licensed them for patents, they wouldn't be so passive, but they saw good sales, and they all scaled up.

But the profit per unit dropped by $50 all at once, which is a huge loss for them. It doesn't matter if you don't scale it up before, but how can you play it when you scale it up and your profits drop?

The reason why Feng Yu had to wait was that the price had not been reduced, and so on, even if those brands had expanded in size, so as to drag them down.

The cost of this VCD is clear to Feng Yu. The cost of windstorm electronics was more than 1,000 RMB, but with the increase in size, more skilled workers and more efficient equipment, the cost has been reduced to more than 600 RMB, that is, Feng Yu's profit, or Yao Yao leading other companies, because the cost of other companies is more than 1,000 RMB.

Those companies had just expanded, workers were not proficient, and some core technologies, storm electronics, had not been sold to them, making their costs temporarily impossible to reduce.

It was nothing, it cost more than a thousand dollars, they sold more than two thousand dollars, and they made a profit. But after cutting tariffs, transportation, sales and other costs, their profits are not high, at least in the Huaxia market, and their one profit is about $50.

Feng Yu's price reduction made it impossible for foreign brands to operate at all. Now there are two ways, the first is to produce in the interior of Huaxia, free of some tariffs and transportation costs, but the cost of investing in a new factory is not insignificant. The second option is to exit the Huaxia market and consolidate their base camp.

Most foreign brands have opted out of the Huaxia market, and some AIWAs have factories overseas, and they are starting to do so. Who wants those factories to also produce three brands of VCDs, such as storm cards?

But did they not find that, in this way, part of the markets in Asia, part of Europe and most of the markets in the Americas were simply ceded?

That won't work! They've just developed the market, and they're looking at the harvest season, and now they're giving in, and they're all busy.

So they decided to just quit the Huaxia market, and the rest of the market, and continue to compete. In those markets, their factories are bigger than AIWA, and they're afraid to compete?

Most importantly, they can't quit either, and once they do, they will completely lose the opportunity to share the profits in the VCD industry and even the future DVD industry.

What to do, they also cut prices to the same standard as Windstorm VCDs, etc. Even so, they still have a profit, just a little less. But if they quit, they lose no profit!

……

Price reduction promotion, the easiest and most direct means of seizing the market, has been used by many brands in previous generations, quickly seizing the market. And when the market is theirs, they will raise the selling price again to make a profit.

Feng Yu, the killer, storm VCD and other market shares in Huaxia, rose again to 50%, and continued to rise, and sales volume was higher every day than every day.

Foreign sales, too, began to rise rapidly, took the initiative and regained control in Feng Yu's hands.

Jiang Wan Feng suddenly found out that after the price reduction, their profits were also significant and sales volume had increased. And in the past few months, the sales volume of VCD discs has far exceeded his imagination, and the profits of Rain Electronics have not diminished!

Coupled with the cost of patent licensing, the profitability of Windstorm Electronics has actually improved a lot.

At this time, Feng Yu launched the second phase of the promotion again, buying VCDs, sending more movies and music CDs, not just a New Year's Eve party CD-ROM.

Buy one for two and the promotion is very strong.

Most people buy VCD back for what it is, to watch movies, listen to songs or sing, and buy VCD players, CD-ROM consumption, it's not a small amount, it makes sense to buy a car to refuel, it seems like it doesn't cost much each time, but by the end of the month, it's not a small amount.

The cost of a CD-ROM, including copyright costs, transportation costs, etc. does not exceed ten dollars. But this is the 20 dollar concession, but the sales of the wind and rain VCD have been boosted again.

“President Feng, our sales are growing rapidly again, you are a great promotional method!” Jiang Wan said excitedly.

“It's nothing, keep rolling out the follow-up activities. Anyone who buys our products can participate in the raffle. The prize is a full refund of the purchase amount, the second prize is half the refund, the third prize is a leafless fan... the last prize is a movie disc or music disc, everyone can win! ”

Feng Yu moved out some of the promotional methods of previous generations. Those big brands, they don't know the real way to promote, then they are doomed to fail!