Chapter 1918 The Biggest Loss?
The annual profit of the publishing house has exceeded 100 million. There is no way. This is the golden age of paper books, and they sell the most popular teaching aids, cash cows.
It makes money like this every year, and as more and more wealthy people invest more and more in education, it will become more and more profitable.
But as there are fewer and fewer newborns, the market will inevitably shrink.
Hua Zhao is not that cruel to ask one child to buy ten children's tutoring books and go back to do it...
In fact, she strictly controls the types of tutoring books. There is only one for each subject, and the others are all papers...
I am afraid of leaving a shadow of childhood on the children.
In short, this market will continue to be popular for at least another 10 years. As the post-80s generation graduates, the number of post-90s generation decreases, and electronic equipment rises, it will cool down.
It's a bit early to get cold now.
"There are many reasons. The biggest one is that the market has been robbed. It's not just one group of people, but several groups of people. They acted at the same time as if they had discussed it. I was caught off guard. The inventory is now overloaded with a lot of goods. Can’t sell it!”
Tang Fanghe said.
"Tell me the specific situation." Hua Zhao said.
"About 20 publishing houses specializing in education appeared on the market at the same time. They also published after-school tutoring books similar to ours. We can't say that they plagiarized. Their titles were modified, and Xiaohong was changed to Little Green, change 100 to 50 or something.
"If I change a few details of the question, we won't win anyway. I've tried everything."
Aren’t all exam questions like this? There are only a few knowledge points, and there are only a few types of questions. Students feel that there are too many questions and are too difficult, and they always fail. In fact, the people who set the questions are tired of them.
Everything remains the same, just those things.
If someone's work is similar to yours, you can't accuse them of plagiarism.
"Some of these companies, like us, invite famous teachers from famous schools to write questions, some ask ordinary teachers to change the questions, and some just pirate their books and papers, and those companies don't care," Tang Fanghe said.
Then they can't control it, and people don't pirate their products.
"They also make small profits but quick sales. There are so many schools in the world, and they have contacted many, and this is the result." Tang Fanghe said.
Huazhao's original route was to cooperate with schools and then lower the price so that piracy would have no room to survive.
Others have also learned this trick.
"Also, the teachers and students below said that although the book we published is good, only one book is not enough. This also gives others room to grab the market." Tang Fanghe said: "How about we publish a few more books? Bar!"
She also felt that just one copy was too few. If there were eight out of ten copies published before, and the price dropped again, there would be no room for others to survive!
"There is no extra-curricular space for the children." Hua Zhao sighed.
She has not forgotten that it is not yet time to propose reducing the burden, and primary school students can finish their homework until 12 o'clock.
One book is really not enough for them to write.
"It's better not to blindly expand the market." Hua Zhao said.
Because the market will shrink sooner or later. The bigger it expands, the worse it will be in the future.
"First grab the original market and stabilize it." Hua Zhao said.
"How to rob?" Tang Fanghe asked.
Hua Zhao said nothing and became thoughtful.
To be honest, it is not easy to grab. Since the other party is also a famous teacher, it is not much different. If the price is not expensive, or only a little expensive, students will not be able to afford it.
You might even think the more expensive one is better.
Our ancestors told us that cheap goods are not good...
"Forget about those that have been printed. In the future, the price of all teaching aids that have not been printed will be increased." Hua Zhao said.
"Since we can't take the low-profit-quick-turnover route, we should take the mid-to-high-end route." Hua Zhaodao: "Send someone out to investigate. Our price is more expensive than most materials on the market. Just a little more expensive. Of course, it shouldn't be too high." It’s so high that people can’t afford it.”
Nowadays, most parents have limited money. They only have about 100 yuan a year to buy learning materials.
Their books are too cheap, so they give space to others.
If 100 yuan is just enough to buy all their books...no one else has anything to worry about!
"Start advertising in newspapers and on television to create an image of us being number one in the industry. We are the best, and everyone else is our younger brother!" Hua Zhaodao said.
"Yeah." Tang Fanghe started taking notes.
She is smart and has already thought that if these two methods are used together, at least half of the market in the next quarter can be captured.
"Did you just say that there was a lot of backlog of inventory?" Hua Zhao asked.
"A lot!" Tang Fanghe said distressedly: "We originally prepared for the next quarter early and printed twice as much. As a result, sales have shrunk compared to previous years, and now we have tens of millions in inventory left."
This kind of books and papers are all printed, including the 1990 midterm exam questions, final exam questions, 1990 selected exam questions, etc.
These prints cannot be altered.
After time, like expired products, they are worthless.
Can only be sold at a discount.
It’s hard to say whether the capital can be preserved or not.
Also, if they want to raise prices, all the books that were previously priced cheaply should be sold immediately. Keeping them will only affect the sales of high-priced books and damage their image.
Hua Zhao also feels a little distressed. Tens of millions...is it her biggest loss?
But it doesn't matter, she can afford it!
"If you don't sell it, give it all away!" Hua Zhao said.
"What?" Tang Fanghe asked in surprise.
Although the tens of millions she mentioned is the sales price, they make small profits but quick turnover, so the cost is also tens of millions, okay?
"Take two days to investigate and find out which other companies sell the best products? Wherever they are better, we will give them to them for free. If we give more, we will have several sets!" Hua Zhaodao said.
She doesn't publish many books, but she has a lot of papers. Anyway, if she doesn't produce papers, students usually have to do papers...
Parents' budgets won't be tied up until next quarter.
But students' after-school time is limited.
While the advertisements are gaining popularity, many questions are given away for free, which takes up students' time. Parents will not waste money on buying books for them that they have no time to do or read.
"We can afford to turn our inventory into theirs, but they can't afford it. They probably won't be able to survive this time and will go bankrupt," Hua Zhaodao said.
A price war is shameful.
Huazhao does not lower the price or destroy the market price, she gives it away for free...
What a hooligan!
But if the operation is done well, it is estimated that 19 of these 20 newly opened companies will die.
By the next quarter, their reputation has been established and their prices have been adjusted, and they will be able to gain a foothold in the market again.
It will be more difficult for others to rob it than before.
Tang Fanghe thought for a while, figured it out, and nodded: "It has to be you! I'll call Sun Qing over, and we'll discuss how to act."
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