"To put it unpleasantly, when he cut prices, my restaurant lost all its customers, so I had to cut prices too. There's a fixed number of customers out there, why hurt each other?" Chen Jianxin said frustratedly, "I explained it to him clearly, but he spilled his woes to me, saying he needed money, that reducing prices was a necessity to attract more customers, to make thin profits on higher volumes.
He even dragged me into lowering prices, saying we'd take business away from other restaurants.
I thought to myself, the other restaurants aren't stupid either. If you cut prices, won't they follow suit? If everyone cuts prices, can we even do business in the future, where will the money come from?
Later, I realized this guy just wanted to exploit a timing gap to attract customers. His restaurant lowered prices first, so all the customers went to him, and he gained recognition. Even if other restaurants followed with price cuts, he'd benefit the most."
