#99 - Pricing (Part 1)

"We, these car companies, have been researching in this automotive field for decades or even hundreds of years to achieve success. However, the predecessor of Audi was just a low-end OEM factory. Later, it was acquired by Huaxing Technology. But Huaxing Technology produces mobile phones. I'm sorry, I don't think they have the ability to manufacture B-class luxury cars."

The executives of these German luxury car brands spoke very tactfully, after all, they still need to pay attention to their image.

However, although the words were very tactful, the underlying message was very direct: they just looked down on Audi's ability to create a brand reputation and user experience for entry-level luxury car models.

Although the remarks of foreign car companies made the people of Daxia Kingdom angry, they had to admit in their hearts that what the other party said made a lot of sense.

A luxury car is not just a car, but more importantly, a symbol of status.

For example, let's say your family used to be poor in the countryside, and the villagers looked down on you in every way, which made you feel very uncomfortable. So you were determined to make a name for yourself and make those who used to look down on you turn around and lick your boots.

Finally, one day you succeeded and made money, but how can you let others know that you are rich?

At this time, you need something that can represent your identity, and the most practical thing is a luxury car.

When you drive a luxury car back home, you don't even need to say anything. Those villagers who used to look down on you will know that you are rich and successful. Then you will find that you have many more friends and relatives.

This is the status of a luxury car in the hearts of the people. It represents not just a car, but also a symbol of status.

"Damn it! Why is the development of our national car companies so late?"

"Although I really want to refute those foreigners, what they said is the truth."

"Audi, keep going! No matter what, I support you in spirit."

"Upstairs, I know you. You said you would wait for the Audi A4 to be launched no matter what."

"Ahem... I already bought a Benma (Mercedes-Benz), (funny)."

"666, it seems I have to go look at other models too."

......

Of course, Lu Haifeng couldn't possibly not know about the remarks of foreign car companies and the online opinions, but he was not in a hurry, because he had already considered this issue in his heart and had already thought of a solution.

His top priority now is the launch of the new Audi A4, but before the launch, there is one most important thing.

That is pricing.

Inside the Audi car factory conference room, basically all managers and supervisors and above came this time to discuss the pricing issue of the Audi A4.

"President Lu, I think our Audi A4 is positioned as a B-class luxury car model that is on par with the German brands, so the price issue should be similar."

"President Lu, we are a brand new brand. I don't think the price should be too high. It is best to be two or three thousand lower than the starting price of the German entry-level luxury car models."

"If the price is set too low, then in the hearts of the people, our Audi A4 will be implicitly lower than them by one level."

Everyone expressed their opinions. Some people believed that the price of the Audi A4 should be the same as that of the same level of B-class luxury car models. Even if the sales volume does not increase in the early stage, then relying on this pricing issue, consumers can slowly have a concept in their minds, that is, Audi cars are also luxury car models.

Some people are considering how to let the Audi A4 gain an advantage with its price and open up sales in the early stage, so the price should be cheaper than other brands of the same level.

Everyone's opinions are different.

"Everyone be quiet."

Finally, Lu Haifeng looked at the chaos where no one could convince anyone, and he frowned to signal everyone to be quiet.

Everyone looked at Lu Haifeng, waiting for his opinion.

Lu Haifeng looked at everyone present with a gloomy face, until everyone felt a little cold behind their backs from his gaze, and did not understand why Lu Haifeng would suddenly change his face. Everyone was very puzzled.

Lu Haifeng said with a sullen face, with some anger in his eyes, pointing at everyone with a disappointed tone: "Why does the pricing of luxury cars have to be based on the standards of foreign car companies? Who do they think they are?"

Seeing everyone looking confused, Lu Haifeng said angrily: "How big is the price difference between these foreign luxury car brands selling in Daxia Kingdom and abroad? I think you all know it."

"Take Benma's (Mercedes-Benz) B-class models as an example. In Daxia Kingdom, their lowest configuration also sells for about 320,000, and various configurations must be forcibly selected. In this case, the price of a new car on the road will be at least more than 400,000."

"I have stayed abroad. I know that a Benma (Mercedes-Benz) C-class model only starts at 380,000, but in China, the on-the-road price of a B-class car is the same as the starting price of a C-class car abroad, and there is no mandatory selection abroad. It's all up to the consumers' wishes. Where is it like in China where mandatory selection is required?"

"I know that this involves the issue of taxes, but even with the current taxes, its cost will only be three to five thousand more."

Everyone present deeply agreed with what Lu Haifeng said. Yes, these luxury car companies sell so expensively in Daxia Kingdom, entirely because there is no company in China that can compete with them.

Therefore, these car companies unscrupulously treat consumers in Daxia Kingdom as fat sheep to be slaughtered.

The production cost of a B-class Benma (Mercedes-Benz) definitely does not exceed 100,000. Even with Daxia Kingdom's taxes, the total cost of a car does not exceed 150,000, or even lower.

They sell a starting price of 320,000 and have to add various mandatory consumption, and the most hateful thing is that you have to add extra money if you want to pick up a car in stock.

Nearly half of the profit from a car, this is still the cheapest model. The C-class, D-class, and those more expensive models make an astonishing amount of money from one car.

Not just Benma (Mercedes-Benz), Baolai (BMW), Aotu (Audi), and even those second-tier luxury brands are all the same routine.

"For so many years, these foreign car companies have regarded Daxia Kingdom as their backyard for making money. They have the final say on what price all the cars sell for. We can only passively accept it with our noses pinched. Why?"

Lu Haifeng had long been ashamed of these car companies' dirty tricks. It's not just the issue of prices in China and abroad. If you say that the price you sell to Daxia Kingdom is high, but the quality is the same, we will accept it, but even the quality is not at the same level at all.

Take the Pretty Country (USA) as an example. Whether it is German, Japanese, or Korean cars sold in the Pretty Country, the quality is absolutely top-notch. All the basic configurations and body materials are produced according to the highest standards.

However, after the same identical models enter the Daxia Kingdom market, these foreign car companies immediately reveal their black-hearted nature, carrying out various kinds of simplified configurations and selling them at high prices.

Replacing anti-collision steel beams with foam, filling the vehicle's interior with inferior black-hearted cotton, and changing the vehicle's suspension from aluminum alloy to iron, leading to various incidents of broken axles, and it is difficult for consumers to protect their rights after the axle breaks.