The past couple of days had been consumed by production. What was initially considered a sure win had turned out to be surprisingly troublesome thanks to Chen Li Shu.
However, it didn't matter. She could guarantee that her lingerie’s production cost was significantly lower than Chen Li Shu's.
Walking all the way to Director Zhou’s office, Liu Xiao Ting briefly recounted what she had overheard, then asked, "Director, if this is true, what should we do? Should we continue to lower prices or offer discounts like her?"
Director Zhou pondered for a long time with a frown before saying, "I think offering discounts is more cost-effective than lowering prices."
After all, it was difficult to define how much to lower the price. If the reduction was too small to be attractive, people would still choose the "three items for 15% off" deal. If they truly lowered the price significantly, after deducting the commission for the supply and marketing cooperative, the remaining profit would be greatly reduced. He was still somewhat unwilling.
"Why don't we offer discounts like them? If she offers 15% off, we offer 15% off too. Anyway, Section Chief Li has already said that as long as our factory continuously buys his fabrics, we can ask for any other materials we need."
The original price was two yuan and eight jiao. A 15% discount brought it down to just over two yuan and three jiao, a difference of several jiao. Director Zhou was somewhat reluctant.
Liu Xiao Ting, eager to bring down Chen Li Shu, grew anxious when she saw Director Zhou disagreeing. "Director, the gains and losses of the moment are insignificant. Think about it, if we can bankrupt that Chen woman, then everyone will only buy our lingerie. Whether we sell them for three yuan or five yuan, we will be the ones dictating the price."
Director Zhou nodded upon hearing her words. "That's right. Then, we'll do as you say."
Having received Director Zhou's approval, Liu Xiao Ting eagerly went to the supply and marketing cooperative.
...
"Besides making deliveries today, let's also conduct a market survey," Lin Qi arrived early in the morning. Chen Li Shu shared her plan with him.
"Market survey?"
Not only Lin Qi, but Gu Xing Ping, who was nearby, also leaned in curiously. "Third Sister-in-law, what is a market survey?"
Chen Li Shu couldn't provide a precise definition in technical terms, so she explained it to them in her own words.
"It means that by asking questions or observing, we can gain a deeper understanding and knowledge of our product's quality, brand, appearance, price, promotional methods, and sales channels, thereby grasping market trends more quickly and effectively."
Seeing that they still seemed a bit unclear, Chen Li Shu thought for a moment and added, "For example, with our lingerie, we initially priced them at three yuan. Because the fabric was scarce and the styles were quite unique, people still bought them at three yuan. However, due to various limitations, our production volume was also small, so we maintained a state of supply-demand balance."
Lin Qi thought for a moment and said, "Sister Chen, are you saying that if we increase production to a certain point, our products might become unsalable?"
Chen Li Shu nodded. "Exactly. At that time, without any other competition, we ourselves would have to find ways to lower prices. Therefore, we need to understand the market. A piece of lingerie for over two yuan is still a luxury item for most people. And due to limited conditions, they will carefully wear it for a long time after buying it. Once everyone who can afford it has bought one, discounts might not be appealing anymore, unless we lower the price to the next tier to stimulate their consumption."
Chen Li Shu smiled as she spoke, "After all, we have to consider the costs and not abandon the fundamentals for the superficial."
After her explanation, Lin Qi and Gu Xing Ping suddenly understood. Lin Qi, in particular, who was already sharp-minded, gained some insight after hearing Chen Li Shu's words and thinking it over.
They had been selling lingerie for over half a year. The county town was small, and there were only so many people who could afford lingerie. The price reductions and discounts in recent days had merely accelerated the consumption of these people.
It was like a cake. It might take a day to eat slowly, but now it was being finished in an hour by eating faster.
"Sister Chen, what should we do next?"
"Later, I'll write down a few simple questions regarding our lingerie. After finishing the deliveries, you take our lingerie and cycle to the surrounding townships. There's no need to go to the villages, to avoid wasting time. Record your findings using sampling methods. Xing Ping and I will conduct targeted investigations at several supply and marketing cooperatives."
"What are you talking about, investigating?" Ding Chen suddenly walked in as the three of them were talking.
At a time when they were short-handed, Chen Li Shu pulled him in to help. She briefly explained what needed to be done and then said, "Why don't you and Lin Qi go down to the townships together?"
Ding Chen happened to have nothing to do, and he readily agreed when he heard Chen Li Shu's words.
After Chen Li Shu finished writing the survey questions, the four of them locked the courtyard gate and set off.
By evening, Chen Li Yuan had finished her exams and even prepared dinner. The four of them returned one after another.
"Don't rush back. Have a simple meal here," Chen Li Shu said.
Lin Qi and Ding Chen were too tired to move, so the five of them ate dinner together.
After dinner, Chen Li Yuan cleaned the kitchen, while the four of them returned to the room to share their survey results.
"The situation isn't great. I visited three townships. According to Sister Chen's instructions, I asked young women. Some were unwilling to cooperate. Among those who were willing, only about thirty people cooperated. I also showed them the quality of the lingerie. Everyone expressed a desire to buy, but over twenty people said it was too expensive," Lin Qi spoke first.
The countryside was not like the city, where people received grain rations and salaries every month.
Ding Chen nodded. "My situation is similar to yours. Everyone wants to buy, but they find the price too high. They said if it was around one yuan and five jiao, they might be able to accept it."
"One yuan and five jiao?" Gu Xing Ping scoffed. "Even a simple bandeau made of plain cloth costs that much."
Chen Li Shu said, "When we went there today, we noticed that Liu Xiao Ting was also learning to offer discounts. Although it's also three items for 15% off, her original pricing was two yuan and eight jiao, so after the discount, it was still more than two jiao cheaper than ours."
Chen Li Shu paused. "However, the effect wasn't very significant. Xing Ping and I spent almost an hour at various supply and marketing cooperatives and found that sales were not as fast as they were in the first two days."
After all, people nowadays didn't pay much attention to lingerie hygiene. Even if a piece of lingerie wasn't worn out, they would at least wear it for two to three years.
"Sister Chen, they've lowered their prices again. What should we do?" Lin Qi asked.
Chen Li Shu smiled. "Let's wait and see for now."
Through this survey, she had a rough idea in her mind. If her guess was correct, even if Liu Xiao Ting and the others followed suit with discounts, sales wouldn't be too good.
As dusk gradually fell, Lin Qi and Ding Chen left together and went out of the courtyard gate.
The next afternoon, after Chen Li Yuan finished her exams, the three of them locked the courtyard gate, took the fabric, and returned to Qingshan Village together.