Chapter 152: Ammunition for Seizing the Market

Upon arriving at Gushan Village, Ning Yaxin hurried to find Xu Mo.

The moment they met, Ning Yaxin said anxiously, "Master Xu, something terrible has happened!"

Xu Mo was slightly taken aback and asked, "What has happened, Miss Ning?"

Ning Yaxin said eagerly, "The Pearl brand has suddenly slashed its prices! Right now, their ordinary soap is selling for just one guan per bar, and their scented soap is only two guan per bar. Many customers have been coming back to the shop demanding refunds!"

Hearing this, Xu Mo did not react much. He simply nodded gently and asked, "Miss Ning, did you agree to issue them refunds?"

"How could I not? If I hadn't, those people might have torn my shop apart!" Ning Yaxin said with distress.

Xu Mo was immediately relieved and smiled, "Then it's fine. I was actually a little worried that you hadn't given the customers their refunds."

Ning Yaxin failed to understand Xu Mo's reaction. She frowned and asked anxiously, "Master Xu, how can you not be worried at all? The Pearl brand is going too far with this stunt. Because of this, our profits are going to drop by more than eighty percent!"

"Stay calm, Miss Ning, calm down first..."

Xu Mo quickly soothed Ning Yaxin and then said, "Miss Ning, our soap workshop has just been expanded recently. How about I take you inside for a tour to look around?"

Ning Yaxin was not in the mood for that. She said urgently, "Master Xu, I came here to ask if you have any countermeasures. I am in no mood for a tour right now."

Xu Mo smiled and said, "Miss Ning, why did you forget so quickly? Didn't I tell you last time? No matter what price the Pearl brand sells for, we must price ours one hundred wen lower than theirs."

"Still a hundred wen lower?" Ning Yaxin asked in surprise. "Nine hundred wen for a bar of soap, and one guan and nine hundred wen for a bar of scented soap—with prices that low, how can we possibly make any money?"

Xu Mo smiled and said, "Whether we can make money at such a low price is something Miss Ning will know as soon as you come with me to tour the workshop."

Ning Yaxin paused suddenly and asked, "Master Xu, what did you just say? Tour your workshop?"

When Ning Yaxin was staying here previously, she had once expressed a desire to visit the workshop, but Xu Mo had politely declined every time.

She had not expected that Xu Mo would now take the initiative to invite her on a tour.

"That's right! I remember Miss Ning wanted to take a look a long time ago," Xu Mo said.

Ning Yaxin asked, "You wouldn't agree when I wanted to go before, so why are you willing now?"

"Before was before, and now is now. They are different," Xu Mo explained.

With that, Xu Mo turned sideways and made a gesture, "Miss Ning, please!"

***

Ning Yaxin said nothing more and, escorted by Xu Mo, headed toward the soap workshop.

Arriving at the entrance of the soap workshop, Ning Yaxin stopped in her tracks, turned to Ling'er, and instructed, "Wait here."

"Yes, Eldest Miss," Ling'er immediately nodded in compliance and did not take another step forward.

Afterward, Ning Yaxin followed Xu Mo into the soap workshop.

Xu Mo led Ning Yaxin first to the workshop where plant ashes were burned, and then to the lye-making workshop...

Along the way, Xu Mo continuously explained the manufacturing procedures and raw materials used for making soap.

In less than half a cup of tea's time, Xu Mo had shown Ning Yaxin around the entire soap workshop.

At this point, Xu Mo looked at Ning Yaxin, whose face was full of astonishment, and asked, "Miss Ning, what are your thoughts after the tour?"

Ning Yaxin slowly shook her head and said, "Master Xu, I never expected the production cost of soap to be so low. No wonder the Pearl brand dared to slash their prices so drastically! Even selling them at one guan per bar, there is still a profit margin."

Suddenly, Ning Yaxin looked at Xu Mo and said with displeasure, "Why didn't you tell me sooner? You made me worry for nothing!"

With that, Ning Yaxin turned away in slight anger, her back facing Xu Mo as she said, "I know it. You were just guarding against me, afraid that I would steal the technique and set up shop on my own."

"It's not like that, Miss Ning..."

Xu Mo hurried around to face Ning Yaxin and explained, "Miss Ning, the reason I didn't let you in before wasn't because I was afraid you would learn how to make soap. I was worried that once you knew how low the production cost was, your mindset toward doing business would change... Do you understand what I mean?"

Having said that, Xu Mo carefully observed the change in Ning Yaxin's expression.

Ning Yaxin frowned slightly, glanced sideways at Xu Mo, and said, "You were afraid I would think you are too greedy? Such cheap things being sold for such a high price!"

Xu Mo smiled somewhat awkwardly and quickly changed the subject, "Miss Ning, you've seen it yourself. Now I have expanded the workshop and increased the workforce. Our output is more than five times what it used to be. Furthermore, as everyone's operational proficiency grows, efficiency can be increased even further!"

After a brief pause, Xu Mo continued, "Therefore, Miss Ning, we have no need to fear the Pearl brand's price cuts. However they drop their prices, we will drop ours. How does that saying go again... Ah, yes! When soldiers come, block them with general tactics; when water comes, earth builds a dam!"

Ning Yaxin was not overly worried anymore at this point. Once the price drops, more ordinary people will be able to afford it; in other words, the market becomes much larger.

"Master Xu, then I shall head back right now and immediately lower the price of soap to nine hundred wen a bar, and the scented soap to one guan and nine hundred wen," Ning Yaxin said as she turned to leave.

Xu Mo immediately stopped her, saying, "Miss Ning, personally speaking, given the consumption level of ordinary households, nine hundred wen for a bar of soap is still a bit too expensive..."

"Wait, what do you mean by that... You want to lower it even further?" Ning Yaxin asked in astonishment.

***

Xu Mo thought for a moment, stepped forward, and said, "Why don't we go all the way in one step... Let's just price it at three hundred wen per bar. What do you think?"

"Thr... Three hundred wen?!"

Ning Yaxin stared at Xu Mo in disbelief, unable to speak for a long time.

Xu Mo quickly said, "Miss Ning, I have calculated it carefully. Including raw materials, labor costs, transportation costs, and so on, selling a bar of soap for three hundred wen allows us to just break even. We cannot go any lower than this price, and neither can the Pearl brand!"

Ning Yaxin was stunned into silence and blurted out, "Xu Mo, what on earth is going on in your head? You went through all this trouble, expanding the workshop and recruiting workers, just to break even in the end?"

Xu Mo immediately shook his head in denial, "Of course not!"

Xu Mo smiled and said, "Miss Ning, let me take you to another place..."

"I'm not going!" Ning Yaxin was quite unhappy by now and made a move to leave.

Seeing her about to leave, Xu Mo reached out, grabbed her wrist, and dragged her toward the other side, saying, "Let's go! Once you get there, you'll understand!"

Being dragged by Xu Mo, Ning Yaxin immediately felt several strange looks directed at them from the surroundings.

Ning Yaxin's face instantly flushed red and hot. She hurriedly broke free and said, "Don't drag me, I can walk by myself!"

Only then did Xu Mo let go.

Soon, Ning Yaxin followed Xu Mo to the warehouse.

What came into view were mountains of stacked soap and scented soap, in astonishing quantities.

"Why is there still so much inventory?" Ning Yaxin asked, looking at Xu Mo in surprise.

Ning Yaxin had no idea that the soap workshop had been operating through the nights during this period, which was why there was such a massive stock.

Xu Mo walked up to the mountain of goods, turned around, and asked, "Miss Ning, do you remember what I told you last time? We need to capture the mid-to-low-end market as quickly as possible."

Ning Yaxin nodded.

At this moment, Xu Mo suddenly spread his arms, raised his voice, and said with absolute confidence, "Everything in front of us is the ammunition we will use to capture the market!"