OBS Chapter 557 and
Chapter 557 and
Upon hearing Ma Qingfu's words, Li Xiangyang showed no sign of panic; instead, he revealed a cold smile.
"Qingfu, how long do you think they can keep this up?"
Ma Qingfu was taken aback: "What do you mean?"
“Let’s do a simple calculation,” Li Xiangyang said, picking up a pen and paper. “At their current purchase price, each pound of pears is 30 cents more expensive than the market price. If they want to buy the same amount of raw materials as us, this alone will cost them several hundred yuan more per day.”
Wang Ergou nodded in agreement: "Brother Xiangyang is right. If they continue like this, and their funds become tight, they'll lose all their capital in less than a month."
"But..." Ma Qingfu was still a little worried, "What if they really have money?"
Li Xiangyang stood up, walked to the window, and looked at the factory buildings of Jinyuan Industrial next door: "Qingfu, do you think a truly wealthy boss would resort to such underhanded tactics?"
These words made Ma Qingfu fall into deep thought. Indeed, if the other party had ample funds, they could have focused on improving technology, equipment, and distribution channels; there was no need to resort to such vicious competitive tactics.
"Then what do we do?"
"Follow suit!" Li Xiangyang said decisively. "If they raise prices, we'll raise them too. Let's see who can't hold out first."
That afternoon, Li Xiangyang instructed Ma Qingfu to adjust the purchase price, setting it one cent higher than that of Jinyuan Industry. When the news spread, farmers in various villages were overjoyed and rushed to send their raw materials to Li Xiangyang.
The next day, Jinyuan Industrial raised prices again.
Li Xiangyang was equally determined and continued to follow up.
And so, the two factories began a price war that was fought without visible smoke.
A week later, Wang Ergou brought new news.
"Brother Xiangyang, I heard that some employees at Jinyuan Industrial have started complaining about the delayed pay."
Li Xiangyang's heart skipped a beat: "Anything else?"
"Also, their Vice President Zhao has been running around the county these past few days, supposedly trying to borrow money," Wang Ergou said in a low voice. "My friend said that the other party might really be on the verge of collapse."
Just then, the sound of a car came from outside. Li Xiangyang walked to the window and saw that it was Zhao Mingyuan's black sedan.
"He's here." Li Xiangyang straightened his clothes. "Ergou, Qingfu, you two go out and do your work first. I'll go and meet him."
Ten minutes later, Zhao Mingyuan walked into Li Xiangyang's office looking exhausted. Compared to his previous high spirits, he was clearly somewhat haggard this time.
"Mr. Li, I apologize for disturbing you." After sitting down, Zhao Mingyuan exchanged a few polite words before changing the subject, "I'm sure everyone has been suffering during this price war."
Li Xiangyang brewed a pot of tea and said unhurriedly, "It's alright. We're well-off; we can manage."
These words clearly touched a nerve with Zhao Mingyuan, whose expression changed slightly, but he quickly returned to normal.
"Mr. Li is very straightforward. However, I feel that this kind of cutthroat competition is not good for anyone. Why don't we sit down and talk about cooperation?"
"Oh?" Li Xiangyang feigned interest. "How would we cooperate?"
"It's very simple, we can divide the market. For example, you specialize in canned goods, and we specialize in dried fruit. Or, you take care of the local market, and we take care of the out-of-town market."
Li Xiangyang slowly took a sip of tea: "Sounds good. But why are you in charge of the out-of-town market? That's the lion's share."
A hint of impatience flashed in Zhao Mingyuan's eyes: "President Li, to be honest, markets outside of Beijing require a lot of capital investment. You're just starting out, so it's possible..."
“Maybe what?” Li Xiangyang interrupted him. “President Zhao, are you mistaken? You’re the ones who came to me to discuss cooperation, not the other way around.”
Zhao Mingyuan's face darkened completely: "Li Xiangyang, don't push your luck. You should know the strength of Jinyuan Industry. If we really get serious, your little factory..."
"What's wrong?" Li Xiangyang stood up, looking directly at Zhao Mingyuan. "Threatening me?"
The smell of gunpowder in the air grew stronger.
Just then, Ma Qingfu's voice came from outside: "Xiangyang, Director Liu from the county is here."
Liu Jianjun's arrival eased the tense atmosphere considerably. Seeing this, Zhao Mingyuan forced a smile: "President Li, let's talk another day."
After Zhao Mingyuan left, Liu Jianjun closed the door, his expression somewhat serious.
"Xiangyang, I heard you're engaged in a price war with Golden Resources Industry?"
Li Xiangyang nodded: "That's true."
“This can’t go on,” Liu Jianjun sighed. “The county is under a lot of pressure; the higher-ups want harmonious development and not cutthroat competition.”
"Director Liu, what do you suggest we do?" Li Xiangyang knew in his heart that the county had come to mediate.
"My suggestion is that you two sit down and have a proper talk. After all, you're both here to invest; there's no need to end up with both sides suffering losses."
Li Xiangyang pondered for a moment: "Director Liu, if the other party is genuinely interested in negotiating, I have no objection. But the prerequisite is sincerity; they can't just come up with the idea of taking away our market share right away."
Liu Jianjun nodded: "I understand. I'll go back and talk to them to see if we can find a solution that both sides can accept."
After seeing Liu Jianjun off, Li Xiangyang called Ma Qingfu and Wang Ergou over.
"It seems the county is getting impatient," Li Xiangyang said, leaning back in his chair. "But this also proves our strategy was correct."
"Brother Xiangyang, what do we do next?" Wang Ergou asked.
“Keep going.” Li Xiangyang’s eyes gleamed. “But we also need to be prepared for both possibilities. Er Gou, go and find out just how tight Jinyuan Industry’s cash flow really is.”
"Qingfu, contact your old clients and see if you can sign a few long-term supply contracts. Raw material costs are high right now, but if we have stable sales channels, we can still weather the storm."
Ma Qingfu nodded: "I'll go to the provincial capital tomorrow to further solidify my relationships with those clients in the south."
That evening, Li Xiangyang returned home.
Seeing Li Xiangyang return, Li Xiaoyun came over and helped him take off his coat. "Are you tired? I heard you guys are having a showdown with that Jinyuan Industry company?"
"It is a bit troublesome," Li Xiangyang said truthfully, "but it's not a big problem and should be resolved quickly."
Li Xiaoyun said with some worry, "Xiangyang, we've worked so hard to get this kind of life now, please don't take any risks."
Li Xiangyang gently stroked his wife's hand, his voice soft yet firm: "Xiaoyun, don't worry, this isn't risky. Think about it, either they want to sell the factory to us at a high price, or they genuinely want to enter the same market as us. Either way, I'm confident I can handle it."
Li Xiaoyun leaned on Li Xiangyang's shoulder, her voice filled with worry: "But what if they really are rich and powerful?"
“That would be even better.” A glint of shrewdness flashed in Li Xiangyang’s eyes. “Truly capable entrepreneurs wouldn’t resort to such underhanded tactics. The more they do this, the more it shows their insecurity. I’m hoping they’ll end up losing more than they gain and have to sell the factory to us at a low price.”