Returning to the mountain village, starting with mushroom picking to get rich

I heard that Xianglong Company has drastically reduced prices in Zixu City and Xuanwu City in an attempt to seize the market.

The group's board of directors quickly gave its approval.

Overall, the board of directors approved Wang Fuye's proposal.

Resources will be allocated to Fengshou Biology.

A large amount of promotion and publicity funds were provided to Fengshou Biotechnology, which was used to subsidize the price of the strains.

The price of mushroom sticks in these two cities was set at 99 cents each, under the guise of an event.

It's even cheaper than Xianglong Company's price by one cent.

As for the company's sales channels in other cities, although some benefits were offered and prices were slightly reduced.

However, the price of its mushroom substrate is still above two yuan, approaching three yuan.

Although this might cause customers and mushroom farmers in other places to complain, wondering why the price of the mushroom spawn they purchase remains the same while it's so much cheaper in those two cities.

However, this is the only option available.

Fengshou Bio has a very large presence.

At a price of 99 cents, the company loses about two dollars for every one it sells.

As the industry leader in the province, Fengshou Bio has multiple production bases.

The main sales channels for the strains cover dozens of cities.

The annual production of mushroom substrate is approximately 2 million to 3 million substrates.

If a comprehensive price reduction is implemented, the company will lose 400 million yuan annually.

Even if the group has plenty of money, it can't afford to burn through four small goals a year.

According to the board's plan, Yang Lin's production capacity can only cover two cities, so they only need to lower prices in those two cities.

In this way, they can easily spend three to five years writing their own articles.

Sooner or later, they will drag Yang Lin's company down.

To bankrupt Yang Lin.

By then, there would be no other competitors in the mushroom spawn market in both regions, and local mushroom farmers and customers would become dependent on their products.

It became the sole winner in both markets.

The price of future strains will be determined by the group.

Discard first, then acquire later, and gradually recover costs.

……

"Mr. Yang, breaking news."

In the office, Su Rong knocked on the door to report.

"Fengshou Biotechnology, a subsidiary of Duzhuan Commerce Group, is holding a limited-time event in our Zixu City and Xuanwu City, where mushroom spawn is priced at 9 cents..."

In the internet age, there are almost no secrets in business activities.

Just as Wang Fuye and others from the Duzhuan Trade Group came up with a countermeasure, Yang Lin, who was far away in Wuyou County, quickly received the news.

"Only one cent less, and they even impose time and location restrictions. Such a large corporation, yet they're so petty."

After listening to Su Rong's report, Yang Lin couldn't help but chuckle.

It seems that even the top-ranked commercial groups in the province are not as wealthy and powerful as he had imagined.

They're so hesitant and timid even when it comes to a price war.

"Manager Su, if we only lower prices in two cities, how much capital would Duzhuan Group need to invest?"

"I can't say for sure," Su Rong analyzed seriously.

"However, based on the market size of the two places, if they have not yet developed a disease-resistant strain and are still using traditional disinfection processes, their annual losses may exceed 30 to 40 million."

"Three or four thousand is not a small amount." Yang Lin nodded with some satisfaction.

According to his understanding over this period of time, the market value of Duzhuan Trading Group is approximately 25 billion.

The annual profit is only five to six hundred million.

Leaving aside other sections, let's just look at the agricultural section that Wang Fuye was in charge of.

The annual profit of Duzhuan Commerce in the agricultural sector is estimated to be only one hundred million.

If Harvest Company suddenly turns from profit to loss, it will lose tens of millions every year.

I'm sure Wang Fuye is also feeling bad.

"Every point they lose, we lose too."

"Pass down the word that the company's mushroom spawn price will be adjusted to 0.98 yuan. Keep a close eye on Fengshou Bio's movements. As long as the final price is above 0.7 yuan, the company can still make a profit, and we will fight them to the end."

Yang Lin gave the instructions.

"Okay, Mr. Yang, I'll go and notify all departments right away."

……

"Mr. Wang, this is bad news! Xianglong Company's score has dropped by two points again."

"This is outrageous!"

"Since we've already lost two dollars, we're not worried about getting bitten by more lice. Losing a little more doesn't matter."

"Keep lowering the price, and be one cent cheaper than them again."

"Understood, I'll go and make the arrangements right away..."

……

Thus, Xianglong Biotechnology and Fengshou Biotechnology, two microbial companies, launched a price war without bloodshed in the city.

Finally, Wang Fuye discovered that Yang Lin's company stopped lowering the price of mushroom spawn after it had dropped to 70 cents, and he couldn't help but smile smugly.

In his view, Yang Lin had backed down.

This shows that the capital behind Yang Lin, and the sponsorships he receives, are not unlimited.

Just like their group's board of directors, they couldn't allow Harvest Company to burn money and lower prices indefinitely.

The capital behind Yang Lin also prevented him from squandering it without restraint.

With the idea of ​​saving money for the group, Wang Fuye quickly set the price of Fengshou Bio at seven cents.

At first, the mushroom farmers in both cities were very wary and suspicious when they heard about Xianglong Company's mushroom spawn.

I'm worried this is a scam.

The company's mushroom substrate is fake, or they're playing the long game.

There's some kind of trick they haven't figured out.

However, with the demise of Fengshou Bio, the two companies are now locked in a fierce battle, competing head-on.

The mushroom farmers' doubts vanished instantly.

When placing an order with Xianglong Company to purchase bacterial strains, I was no longer so worried. I only dared to buy a portion as samples to see how it went.

Instead, they directly purchase complete sets based on their own production scale.

The price of the bacteria, which was only 70 cents, drove entrepreneurs in both cities almost to madness.

Many people who were not originally mushroom farmers and had never been involved in edible fungi production also keenly sensed business opportunities from the battle between the two companies.

Low investment, short cycle, and quick results.

With an investment of just tens of thousands of yuan, you have the opportunity to earn hundreds of thousands of yuan in just a few months.

Such efficient and quick projects quickly attracted many small and medium-sized entrepreneurs.

They looked at some information and videos online, invited a few people, and couldn't wait to enter.

Although many people ultimately choose to use strains from Fengshou Biotechnology instead of those from Xianglong Company.

However, Xianglong Company's sales volume in Xuanwu City also saw a significant increase.

Yang Lin didn't care about this.

The more Harvest Biotechnology sells, the more it loses.

But he was making money, just less.

As for the issue of varying levels of skill among entrepreneurs, he is not worried at all.

After buying his spawn, as long as you don't deliberately sabotage it, the mushrooms will grow normally.

Although Harvest Biotechnology is wary, worried that these people may not have the necessary production capacity and experience, and might damage the bacterial strains.

Damaging the company's reputation and causing economic disputes.

Unable to resist the entrepreneurs' burning enthusiasm and the help of online answers to embellish their credentials, the company couldn't immediately assess their competence and ultimately released the seedlings to these opportunistic entrepreneurs.

Mushroom farmers in other cities were also envious of the 70-cent price of the mushroom spawn.

They flocked to Zixu City and Xuanwu City to purchase goods.

Yang Lin's company's current production capacity is not very high because the new factory is still under construction. Once it reaches its full order book, it will be unable to take on subsequent customers.

Harvest Bio seized the opportunity to compete for customers and captured most of the market.

Forced by circumstances, microbial producers in other cities either closed down or followed suit in terms of price.

As the saying goes, when gods fight, mortals suffer.

Countless small factories are complaining bitterly.