Do you sell chopsticks online?

Do you sell chopsticks online?

“I think so, too! These manufacturers’ factories are taking turns to catch fire. On top of that, there would be floods and power shortages. Why don’t they just tell us directly that they would be reducing supply and increasing prices?!”

“The fire seemed quite serious this time. Wafer production was probably gravely affected as well. That means that RAM aside, the prices of flash drives would likely rise, too…”

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As he read the netizens’ discussion, Zhang Yuan first felt confused and then pleasantly surprised.

He quickly accessed a shopping website to check the prices of the RAM sticks he had purchased before. They were now over thirty yuan more expensive!

What’s more, this was only the beginning. Zhang Yuan guessed that the prices would only continue to go up over the week.

After all, Zhang Yuan had been keeping up to date with Tieba for a long time. He knew very well how such things would develop. Each time prices of RAM sticks dropped to new lows, a factory would catch fire or experience a power shortage. Then, there would be news reports about manufacturers losing thousands of millions of yuan. After that, unscrupulous merchants would increase the prices of RAM sticks at once.

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Even so, nobody knew when the ‘accidents’ would occur.

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If they did, they would have bought a huge batch of RAM sticks for storage so that they could generate profits during that period. To Zhang Yuan, the news would have been bad.

This was because ROF’s computer-installation business had a similar pricing strategy as those other brands. Based on Boss Pei’s guidance, the original prices had already accounted for ROF’s brand premium and the value of their after-sales services. They were not to be adjusted frequently

If they wanted to increase the prices, they had to upgrade the hardware; if they wanted to reduce the prices, they had to run promotional events but not too many.

The main aim of this strategy was to get rid of customers’ worries and create the impression that ROF was a good-hearted and reliable brand with products that retained their value well.

The rising RAM prices would have caused the entire system to become more expensive. People might take ROF for an unscrupulous merchant; that would be bad for its reputation.

Thus, an increase in RAM prices would have been bad news to Zhang Yuan. If their costs increased but they kept their selling price the same, they would have generated much less profit.

Yet, the situation was different.

Zhang Yuan had already ordered a batch of hardware. He had placed more orders for RAM sticks especially because he had considered the standard of four RAM sticks for each high-end system worth over ten thousand yuan. Thus, he had hoarded a huge load of them!

To customers, that meant that the price-quality ratio of ROF’s high-end system units would go through the roof. Buying ROF’s system units would cost less than buying individual parts to assemble their own!

At the same time—even if Zhang Yuan sold the systems at their original prices, ROF would still be able to generate huge profits.