America 1919-Chapter 716 - : 246, Bloated Super Company_2

Chapter 716: 246, Bloated Super Company_2

But the problem now, as everyone knows, is that Donnie’s warehouse center isn’t just for his own retail company—it was built for bootlegging operations. In such a case, United States Logistics’ warehouse center has ironically become Apollo Chain’s secret weapon!

“Moreover, the zero-dollar purchase promotion that Apollo Chain has launched, though it’s still based on discounts, has enough gimmick to attract people. It’s like the current Gambler’s Contest taking place in Atlantic City, where each participant believes they are the God of Gamblers, and consumers think the same. They all regard themselves as the lucky ones!”

“In addition, Donnie Block has not only mobilized United States Logistics to support Apollo Chain, but he has also started ABC. ABC has already announced that they will broadcast live the shopping activities of the lucky winners in New York three days from now!”

“The intensity of Apollo Chain’s zero-dollar purchase is actually not as big as imagined. Although they chose 2,000 people in their first lottery event for a zero-dollar purchase, throughout this process, a multitude of consumers have already given out their profits. Plus, they have set a time and space for the zero-dollar purchase. But it’s this name that’s really too attractive.”

“Yes, the person who thought of this promotional strategy is absolutely a genius!”

John Hartford sat at the head of the conference room, listening to the discussion among senior executives and couldn’t help but knock on the table, saying coldly.

...

“Ladies and gentlemen, I have convened you today to come up with a plan to counter Apollo Chain’s promotion, not to hear you gush about Apollo Chain’s might.

Do you really think we should sit back and do nothing, just watching as Apollo Chain gradually brings us down with their promotional tactics, and then expands their stores one by one?”

At this point, someone spoke up.

“Sir, based on my previous calculations, considering the extent of Apollo Chain’s discounts and their zero-dollar purchase strategy, they are actually in a loss-making state. That is to say, the more they sell, the more they lose. In such a case, I believe we don’t need to take them too seriously.

Because when they can no longer sustain it, they will definitely revert to the original prices.

Apollo Chain may have a warehousing advantage, but I’ve already learned from the producers that the agreement Apollo Chain has signed with them includes no shelf fees.

Therefore, their product profits are not as high as ours. Since that’s the case, why not just wait for our competitors to fail? Once Apollo Chain reinstates their prices, we can then slightly increase our discount rates, and those customers will surely come back to us!”

This proposal received support from many people.

A&P has been sitting at the head of the US retail industry for too long, to the point where these senior executives of A&P have long lost their initial drive. They prefer to maintain the status quo and dislike change because any change can potentially touch and damage their personal interests.

This person’s proposal was exactly aligned with their mindset.

John Hartford, seeing the faces of these people, grew even more dissatisfied. “Ladies and gentlemen, have you forgotten that every bottle of beer and every glass of whiskey you drink comes from Donnie’s establishment? It’s no exaggeration to say that Donnie presently has the most liquid assets in the whole United States. You seem eager to watch Donnie’s cash flow dwindle. I’m even more skeptical that we will face a liquidity shortage due to inventory retention!”

The retail industry has two characteristics: abundant cash flow but at the same time, it’s a very cash-intensive industry.

The retail business is all about inventory turnover. Only by selling goods as quickly as possible can they maintain a large pool of cash.

If they can’t sell their stock, cash flow will quickly come to a halt.

This was John Hartford’s greatest concern.

But now, whether it’s A&P’s senior executives or the board of directors behind them, they have become complacent, resting on A&P’s past achievements and losing their ambition!

Even after John Hartford finished speaking, although the volume of discussions among the executives decreased, no one echoed John Hartford’s words.

Someone even whispered, “Sir, while there is some truth to your words, Donnie Block after all has just started venturing into retail business and is not so familiar with the industry.

Moreover, even though Donnie Block has an ample supply of liquid cash, he also has many expenses. Let’s not even talk about the investment in Apollo Chain; just the Block Building, the stadium in Atlantic City, the racetrack—these are all multimillion-dollar investments. I believe that if these haven’t already drained Donnie Block’s cash flow, they must have nearly done so.

And surely, a person must keep some liquid assets on hand, so his Apollo Chain cannot hold out for long!”

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“Exactly, exactly!”

After this person finished speaking, those who previously did not echo John Hartford’s sentiments now started echoing this executive’s remarks.

“Sir, we know you hold Donnie Block in high regard, but this man is no genius, and it’s not possible for him to succeed in every industry. Moreover, the situation of A&P is different from that of Donnie Block’s Apollo Chain. He is just starting out, and there are bound to be many problems. In my opinion, even if we do nothing, the other party may not be able to hold out.”