Chapter 192: Cannot lower prices, must raise them

"Liu Jie, your plan can indeed increase clothing sales, but this method is not advisable."

Chen Mo took a sip of coffee and looked at Liu Jie with a calm expression.

"General Manager Chen, is there a problem?"

Liu Jie looked at Chen Mo in confusion; this method had basically become the default strategy for e-commerce, so how could there be a problem?

"Of course there is a problem, and a big one at that."

Chen Mo wore a serious expression.

"First, your operation of raising prices and then lowering them is a form of disguised fraud. While this practice can increase sales, it harms the reputation and credibility of the clothing brand. What is most important for a merchant? It is reputation and credibility. If you cannot achieve these two things, how can you make the business big and strong?"

"Second, regarding the issue of price reduction, I think not only should we not lower prices, but we should also increase the price of the clothing."

When Liu Jie heard Chen Mo's first point, he nodded secretly; wanting to establish the reputation of the clothing brand made some sense.

However, regarding the second point—not lowering prices, but actually raising them—he couldn't quite understand this operation.

"Perhaps you don't quite understand this approach."

Chen Mo noticed Liu Jie's expression and smiled slightly.

"It is true that major e-commerce platforms are currently engaged in price wars, and it has indeed attracted many people to scramble for purchases, but have you noticed how many famous clothing brands that are accepted and recognized by the public have made a name for themselves through livestreaming?"

"Basically, those famous clothing brands all have their own physical stores, and they are spread across the country."

"Therefore, if we want to become such a well-known brand, we must take the physical store route."

"But once you lower the price online, how will those physical franchisees sell their clothes? If it's cheaper online, who would go to a physical store to buy? If physical stores can't sell clothes, who would still want to franchise the clothing brand?"

"Lowering prices seems to increase sales, but in the long run, it destroys the possibility of the clothing brand's development."

"So, you must look at the long term and not destroy the entire clothing brand for the sake of temporary gains."

Liu Jie felt a bit dizzy; what Chen Mo said seemed to make some sense, but it was different from what he had encountered before.

"Then, General Manager Chen, how much should we raise the price?"

"Just make each item 20 yuan higher than the physical store price."

Chen Mo thought for a moment and gave a price.

If it were too high, it would be outside the scope allowed by the system; otherwise, Chen Mo would have loved to raise the price to an astronomical figure, and then absolutely no one would buy it.

20 yuan was roughly the average travel cost for a customer to get from home to the shop.

Therefore, when customers go to the physical store to buy clothes, including the travel cost, it is basically about the same as the online price.

"However, considering that the price increase might affect your livestream sales, all members of your livestreaming team will have their base salary increased by 1,000, and the performance commission will also be increased by one percentage point."

Price increases, sales decrease.

Added with the increase in base salary and commission, combining the two, the profit from the livestreaming could basically be reduced to the minimum.

"Thank you, General Manager Chen."

Liu Jie looked at Chen Mo with an expression of admiration.

He did not expect that while Chen Mo was considering raising prices, he was also considering them.

No wonder the employees at the Garment factory held Chen Mo in such high regard; how could such a boss who considers the employees not be loved by them?

Listening to Liu Jie's thanks, Chen Mo muttered to himself, if you really want to thank me, I beg you to sell fewer goods, okay?

"Alright, that's all for these matters. Go back and change the price."

"Okay, General Manager Chen."

Liu Jie nodded and was about to get up and leave.

"Wait a moment."

"General Manager Chen, is there anything else?"

Liu Jie looked at Chen Mo, who had suddenly raised a hand to stop him.

"After you change the price, make the title in the Livestream room more conspicuous. The content of the title should be roughly that the physical store price will be 20 yuan cheaper than the Livestream room price."

Now the number of customers purchasing should be even fewer, right?

If the Livestream room is expensive, who would still buy?

If they want to go to a physical store to buy, sorry, there are currently only four agents, and they are still under renovation.

Perfect!

Liu Jie: …

He always felt that Chen Mo had a grudge against those customers. Although he hadn't been at the company for long, he knew that the Garment factory currently only had four agents, and they were all under renovation.

This approach is like going to a noodle shop, and someone tells you the noodles next door are better.

When you want to go eat next door, that person says they haven't started business yet.

Isn't that disgusting?

However, this was Chen Mo's arrangement, so he couldn't say much and could only follow orders.

Watching Liu Jie leave, Chen Mo drank the remaining coffee in one gulp.

After bluffing for a long time, his mouth was a bit dry.

Catching his breath, he took out his phone and called Song Xia.

He wanted to ask what the situation was with that storefront; it clearly had a larger area than the previous coffee shop, so why was the rent tens of thousands lower?

Why didn't any of these employees make things easy for him?

"Hello, General Manager Chen, are you back?"

Listening to Song Xia's voice on the phone, Chen Mo spoke calmly.

"Yes, I'm back. I looked at the reports submitted by your coffee shop. What's going on with the new storefront? Why is the area so large, yet the rent is so cheap?"

"General Manager Chen, are you talking about this? Actually, this is all thanks to Wu Yu. If it weren't for Wu Yu, it would have been impossible to rent it so cheaply."

Hearing that Chen Mo was asking about this, Song Xia hurriedly spoke.

To be honest, this time Wu Yu had indeed helped their coffee shop a lot. Since bringing those wealthy ladies to the coffee shop to discuss the agency, the coffee shop had inexplicably gained some customers who came for its reputation, all drinking that 188 Blue Mountain coffee.

After asking around, they found out they were all recommended by those wealthy ladies.

Although there weren't many of these people, and it wasn't enough to make the coffee shop profitable, it was still a good sign, wasn't it?

Hearing Song Xia's words, Chen Mo was stunned. He didn't expect that even this matter had something to do with Wu Yu.

"What exactly is the situation? What did Wu Yu do?"

"It's like this, General Manager Chen. Didn't Wu Yu recruit a few agents? The meeting place was our coffee shop. And among those agents, one is a landlady who has many storefronts in her hands, and then she rented it to us at a low price."

"And those agents seem to have very wide connections. In the past few days, there have been quite a few customers who came for their reputation, all recommended by those agents…"

Chen Mo gripped his phone tightly, his face livid.

In total, during the seven days he was away from the company, all the changes in the company were caused by Wu Yu.

Good… Good…