I tried different ways to tank my stock price. Creating retail stores with many ads at full. I was even nice to pay to each competitor so they both go home happy. But eventually, I resorted back to the “Selling dirt cheap” tactic. Previously, competitors would give up on a market quickly, but now it seems like they are holding on to it for long.
Lessons learned when selling dirt cheap:
1. It’s a guaranteed way to kill your stock price
Making a loss is a very sure way of doing things.
2. Make your competitors suffer
If you own the market, you will make it so bad for the competitors that they will have a factory with nothing being sold.
3. Keep an eye on firms after merge
The firms that I merged with were now using my high tech. As the internal sale was not on, my competitors were slowly carving a market share in some of my products using my own raw materials. Make sure to consider this aspect, remember the final product has the highest margin.
If the supply chain is in your hands completely and you have a margin in each firm. Chances are, even when selling at a loss at the retail side, you will make a profit but with lower margins. Remember, warehouses already add a margin that you can use to sell cheap.
What do you think? Leave a comment below 🙂