Chapter 147: Strategic Response
Fragrance and Skin Care Boutique.
Inside the room, Xu Mo saw Ning Yaxin.
Having not seen Xu Mo for many days, Ning Yaxin appeared a bit uneasy but still respectfully greeted him with a slight bow, “Young Master Xu, it’s been a while. I hope you’ve been well.”
Xu Mo suddenly sensed a certain distance between them. Since collaborating with Ning Yaxin, she had never been so formal, yet now she had reverted to her original courteous demeanor.
Xu Mo understood perfectly why this change had occurred; deep down, he sympathized with Ning Yaxin.
“Miss Ning,” Xu Mo said, returning her bow.
Ning Yaxin turned to Ling’er and said, “Ling’er, please wait outside and don’t let anyone disturb us.”
Ling’er nodded in acknowledgment and quietly left the room, gently closing the door behind her.
In the next moment, only Xu Mo and Ning Yaxin remained in the room.
After inviting Xu Mo to sit, Ning Yaxin took a seat opposite him.
Without delay, Ning Yaxin asked directly, “Young Master Xu, what are your thoughts on the Pearl Brand soap?”
On the way here, Ning Yongqiang had already briefed Xu Mo on the general situation regarding Pearl Brand soap.
Pearl Brand soap had just been launched in recent days, first appearing in Heyang County, followed by Kaixian and Fuchun Counties, with Xinzhou County being the last.
The current market price for Pearl Brand soap was five guan per bar, three guan cheaper than the Peony Brand.
With similar quality and weight, Pearl Brand soap immediately showed strong market competitiveness.
This gave Ning Yaxin a sense of crisis, compelling her to seek Xu Mo’s counsel.
After a moment’s thought, Xu Mo replied earnestly, “Miss Ning, to be frank, in order to counter Pearl Brand, there is no other way but to lower our prices.”
Since learning about Pearl Brand, Ning Yaxin had been contemplating countermeasures, and Xu Mo’s view aligned exactly with her own.
“So, Young Master Xu, how much should we reduce the price? Should we match Pearl Brand’s price?” Ning Yaxin asked.
Xu Mo shook his head. “No, our price must be lower than Pearl Brand’s.”
“How much lower?” Ning Yaxin pressed.
Xu Mo considered for a moment and said, “How about this... no matter what price Pearl Brand sets, our Peony Brand will always be one hundred wen cheaper, until there’s no room left to reduce.”
Hearing this, Ning Yaxin was somewhat surprised.
Xu Mo quickly added, “Not only that, we must also launch various promotional activities, such as buy-more-get-more, or special value gift packages—things like that…”
Ning Yaxin understood the buy-more-get-more concept but was unsure about the special value gift packages.
Xu Mo explained, “A special value gift package is essentially a set that includes not only soap and scented soap but also soap dishes, bath towels, scented sachets, and other small items. Simply put, it emphasizes exceptional value…”
He continued with an example, “For instance, we could bundle three bars of soap, one scented soap, plus a soap dish, bath towel, and scented sachet together as a package, selling it for just twelve guan. Do you think people wouldn’t be eager to buy it?”
Ning Yaxin exclaimed, “Young Master Xu, with so many items for only twelve guan, will we even make a profit?”
Xu Mo thought to himself that she had no idea how low the cost of soap really was. Even selling at twelve guan would still bring in a good profit.
But he didn’t want to reveal the true costs just yet, so he wore a helpless expression and said, “Miss Ning, even if we don’t make a profit or even take a slight loss, we have to sell it this way!”
“We can’t allow Pearl Brand to quickly seize the market. Peony Brand is the true leader in the soap industry!” Xu Mo declared.
Ning Yaxin nodded slowly, finding his reasoning convincing.
“But, Young Master Xu, as far as I know, Pearl Brand currently only offers soap, not scented soap. Is it really necessary to include scented soap in the gift package?” Ning Yaxin asked.
Xu Mo replied, “Miss Ning, I understand what you’re thinking. You believe that since there is no competitor for scented soap yet, we don’t need to lower its price, right?”
Ning Yaxin nodded slightly.
Xu Mo continued, “In my judgment, Pearl Brand will probably launch scented soap soon. They haven’t done so yet because I suspect they’re not satisfied with its fragrance.”
He believed this because the formula for the fragrance used in scented soap had always been tightly guarded by their family; outsiders had never accessed it.
Moreover, crafting a fragrance that is both pleasant and long-lasting requires considerable time.
Xu Mo went on, “Therefore, Miss Ning, before Pearl Brand launches their scented soap, we must include scented soap in our gift package, leveraging our existing advantages to rapidly increase sales and capture a larger market share!”
Truth be told, Ning Yaxin was not fully convinced by Xu Mo’s suggestion of such a drastic price cut, but who could argue when the advice came from Xu Mo?
After some thought, Ning Yaxin finally agreed to proceed as Xu Mo proposed.
Seeing a flicker of concern in Ning Yaxin’s eyes, Xu Mo comforted her, “Miss Ning, even if soap and scented soap stop being so profitable in the future, I can still come up with other ways to make money. All you need to do is trust me unconditionally!”
Upon hearing this, Ning Yaxin couldn’t help but glance at Xu Mo, a sense of security swelling within her heart.
Xu Mo was also watching Ning Yaxin, nodding firmly to instill more confidence in her.
But the next moment, Ning Yaxin quickly turned away from Xu Mo’s gaze, her cheeks slightly flushed.
Xu Mo felt a little awkward and promptly stood up. “Miss Ning, if there’s nothing else, I’ll take my leave.”
With that, Xu Mo prepared to leave.
Seeing Xu Mo about to go, Ning Yaxin also rose immediately, feeling a touch anxious.
Strangely, during all these days without seeing Xu Mo, Ning Yaxin hadn’t felt anything in particular.
Yet now, upon seeing him again, an inexplicable reluctance welled up inside her.
“Young Master Xu…”
Just as Xu Mo reached the door, he suddenly heard Ning Yaxin’s voice.
He turned to look at her.
Ning Yaxin avoided his eyes, nervously lowering her head and asking, “Your… your injury, is it alright?”
Xu Mo shook his head. “Thank you for your concern, Miss Ning. It’s nothing serious, just a superficial wound that’s already scabbing over.”
Ning Yaxin’s cheeks tinged with red as she nodded and replied, “I’m… glad it’s nothing serious…”
Xu Mo bowed once more in farewell, then opened the door and left the room.
Ning Yaxin had intended to see him off but hesitated repeatedly and ultimately did not step forward.
…
After leaving the fragrance and skin care boutique, Xu Mo did not immediately have the Ning family’s carriage take him back to the village. Instead, he turned towards the market.
At the market, Xu Mo purchased several bags of sulfur and charcoal, along with two large baskets of small clay pots.
These pots were slightly smaller than the ones used for making “earthen bombs,” about a fist larger than an adult man’s.
Xu Mo planned to use these pots as container mines, secret weapons that could come in handy in future emergencies.