The four shareholders of Ge Lü Shi Company departed at 4:30 PM and arrived in the ancient city around 8 PM. They went straight to Ding Yuanying's apartment in Jiahe Garden for a meeting, skipping dinner.
Ding Yuanying began, "The exhibition opens tomorrow. I've called this meeting to announce a decision. I chose this time because the setup is complete, so there's no disruption. This biennial exhibition is crucial, with exhibitors showcasing their products over three key days. Whether Ge Lü Shi achieves its exhibition goals depends on these three days. I've drafted an announcement, already printed. Take a look."
Ding Yuanying brought out a roll of wide white paper, unfolding five large printed announcements akin to court notices. The announcement read:
Beijing Ge Lü Shi Audio Co., Ltd.
Announcement on Ge Lü Shi No. 1 Dual-Component Speaker Discount Sale
In light of the convergence of audio dealers and enthusiasts at the Beijing International Audio Exhibition, our company has decided to offer a discounted sale on Ge Lü Shi No. 1 dual-component speakers. The wholesale price is reduced from 7,600 yuan to 3,400 yuan, a 55.26% decrease. The nationwide suggested retail price drops from 11,600 yuan to 3,900 yuan, a 66.37% decrease. Each city is limited to one audio store, with a maximum of 25 pairs per store, for a total of 500 pairs.
This price adjustment applies only to mainland China and excludes Western Europe.
Ge Lü Shi speaker quality guarantee: 1. Ge Lü Shi Company only produces this single model of speakers, with no second design or version. 2. The discounted Ge Lü Shi speakers are identical in quality to those sold in Western Europe. Any differences will result in a punitive compensation of ten times the retail price of 3,900 yuan.
Beijing Ge Lü Shi Audio Co., Ltd.
May 16, 1998
Feng Shijie glanced at Ye Xiaoming, indicating: "Just as you predicted."
Ding Yuanying calmly stated, "We've had disputes before about whether to participate in the exhibition. I reiterate: bring up any objections now. We can argue, even shout. But if there are no sound counterarguments, we must execute the decision after this meeting."
Feng Shijie asked, "Brother Ding, what profit do we have left?"
Ding Yuanying replied, "We earn 110 yuan per pair, a 3.2% profit margin."
Feng Shijie questioned, "3.2%? That's less than bank interest. How can we sustain the business?"
Ding Yuanying explained, "Banks offer annual interest, but a company's capital efficiency depends on both profit margin and turnover frequency. Even if we make zero profit on speakers now, as long as Wangmiao Village farmers earn their processing fees, it's meaningful. Our audio racks sustain the company; we need to break into the speaker market for future profitability."
Ye Xiaoming asked, "Why do this? What's the goal?"
Ding Yuanying responded, "Without this, the speakers won't sell, failing to demonstrate Ge Lü Shi's low cost and high quality."
Ye Xiaoming said, "I agree with a price cut but not to the extent that it causes conflict."
Ding Yuanying insisted, "Without such a significant cut, we won't sell out. Not selling out means failing to build momentum."
Ye Xiaoming said, "Brother Ding, Lesheng has treated us well. They've met all our requests and offered discounts. Isn't this like betraying them, causing industry backlash?"
Ding Yuanying replied, "Lesheng and Ge Lü Shi have a business relationship, not a debt of gratitude. This is a transaction. Even if there were a debt of gratitude, needing to repay it nullifies the gratitude, turning it into a transaction. Ge Lü Shi is a company, not a place for sentimental transactions."
Liu Bing asked, "Then what about poverty alleviation?"
Ding Yuanying said, "It's not about being grateful; it's just something you want to do. If you expect gratitude, you're in the wrong place. This isn't a public welfare project."
Ye Xiaoming thought and said, "In Beijing, we're outsiders. I know a bit about Lesheng's background. Our speakers rely on their flagship kits. Picking a fight with Lesheng is like an egg hitting a stone. We'll face repercussions. Who's responsible if things go south?"
Ding Yuanying replied, "The company will take responsibility for its actions."
Ye Xiaoming's lips twitched, suppressing a sneer. "This is the action of a few, more bluntly, your personal decision. It doesn't represent the majority of the company."
Ding Yuanying patiently explained, "This is a shareholder decision based on majority vote, supported by company law and articles of association. Joining the company means accepting and following these rules."
Ye Xiaoming asked, "Can we choose to seek your help or not?"
Ding Yuanying said, "Yes. If you don't need me, I won't represent you. If Ouyang Xue agrees to modify the investment terms, I can step aside immediately."
Ouyang Xue promptly stated, "I don't agree."
Ye Xiaoming said, "Chairman, you should have your stance. Without one, we're puppets."
Ouyang Xue said, "You have the right not to need Brother Ding's help. But I entrusted him to represent my shares, which is also my right. If he steps down, will I understand the audio market? Will I stop being a puppet? Without Brother Ding's help, I wouldn't have invested even a penny. Trust was essential."
Ye Xiaoming sighed, "Alright, I'll follow the board's decision but still reserve my opinion."
Ding Yuanying said, "The announcement is dated the 16th, avoiding the first day's warm-up. Considering the potential need for more staff during sales, Ouyang and Shijie can temporarily transfer a few people from their stores to assist. Their wages and accommodations will be covered by the company."
Ouyang Xue said, "Shijie's store has fewer staff; I can provide more people."
Feng Shijie said, "It's fine, I can spare three people. You provide three, I'll provide three."
Liu Bing added, "Shijie doesn't need to pull people. I'll find two friends to help. They know audio and will be excited to see the exhibition. It'll be a favor to them."
Ding Yuanying said, "Coordinate the details. Let's not waste time. Meeting adjourned."