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.
Bonus:
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 🙂
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