The prices dropped!
Following Fang Yuan's price reduction, Xie Baoshu and the other two major sellers held out for a few days before they had no choice but to cut their prices as well.
However, the reductions they made were modest, and they moved in perfect lockstep — matching Fang Yuan's prices exactly.
"In the Year Gu trade, I'm just a newcomer — identity unknown, origins mysterious. Compared to me, Xie Baoshu, Rong Xin, and Wang Mingyue all have sterling reputations, years of established business, and the deep trust of their customers. So as long as the three of them drop their prices to mine, anyone looking to buy Year Gu will still choose them first."
Fang Yuan understood the three sellers' calculations perfectly well.
This was the advantage Xie Baoshu and the others held over Fang Yuan — years of accumulated goodwill had long since taken root in people's minds. That was no empty boast.
"But… what of it?" Fang Yuan smiled faintly.
On the very day Xie Baoshu and the others lowered their prices, Fang Yuan cut his selling price yet again.
The Gu Immortals in Treasure Yellow Heaven had long been watching this rare commercial war. The moment Fang Yuan reduced his price, the news spread with startling speed, and before long, nearly every Gu Immortal and faction with an interest had gotten word.
"I heard Xie Baoshu dropped his prices. I was planning to buy from him — that's how it's always been in past years."
"True enough, but I'm more inclined toward Rong Xin's goods."
"But that fourth seller just cut prices again. It really does seem like he has deep pockets and wants to challenge the big three."
The buyers were all smiles — relaxed and delighted. In a price war, the buyers always came out ahead.
And simply sitting back to watch the titans duke it out was entertainment enough.
At the same price, Fang Yuan naturally couldn't compete with the other three — he had no advantage. But once he undercut them, his position became vastly stronger.
After all, Fang Yuan's goods were already superior, and now they were cheaper too. Would any Gu Immortal be so foolish as to deliberately pay more?
So for the rest of that day, Fang Yuan's business continued to boom while the other three sellers saw not a single customer.
Upon learning this, the Central Continent Gu Immortal Rong Xin gave a cold laugh.
He communicated with the other two: "How interesting. This person truly wants to wage a price war with us."
Wang Mingyue smiled. "In all these years, no one has been able to shake the position of us three. This time, let's see what this man is really made of."
Xie Baoshu was the last to weigh in: "Then let's match his cut."
There was nothing more to say. Since Fang Yuan had lowered his price again, the three major sellers swiftly followed suit, once again bringing their Year Gu prices in line with his.
Their earlier hesitation had been deliberated enough. Now that Fang Yuan had openly "declared war," the three Gu Immortals — confident in their strength — followed without the slightest hesitation.
The second price drop sent ripples of discussion through Treasure Yellow Heaven.
The observing Gu Immortals grew gradually more excited, because they knew this was only the second reduction — merely the opening act of the trade war. A third and certainly a fourth price cut were sure to follow.
"The question is when that mysterious fourth party will choose to drop his prices again."
"Any price cut is like the seller slicing off their own flesh. That fourth person started this war, and the big three aren't backing down — 'you want to play? We'll play with you.' What spirit!"
"Indeed. There will likely be a third price cut. Just a matter of when."
The Gu Immortals observing the spectacle exchanged their thoughts.
Generally speaking, in a trade war like this, price cuts were common enough, but there were always intervals between each round of reductions.
The sellers needed to observe the market, needed time to think carefully and reach decisions.
A price cut was a double-edged sword — it could wound competitors, but it also wounded one's own profits.
If your own sales were still holding up, you probably wouldn't cut further. After all, you had to protect your bottom line. Another cut might boost volume, but that didn't necessarily translate to more profit — because your competitors would cut too.
If none of the sellers yielded and they raced to the bottom, they would likely all destroy each other.
But among Gu Immortals, such a scenario — sellers fighting to mutual annihilation — was virtually unheard of.
Sellers weren't fools. The entire purpose of selling was to earn a profit. What would be the point if they just obliterated each other's margins?
The sellers were shrewd, and the buyers were shrewd too.
Once the three major sellers matched Fang Yuan's price, the buyers wouldn't rush to stock up — Year Gu transactions became very "sluggish." Because the linchpin of this trade war was Fang Yuan.
And when Fang Yuan voluntarily cut his price, they would buy a little.
Why?
First, his price was lower, making his goods the better deal. Second, buying from him served to encourage Fang Yuan and pressure the big three into cutting further. And third, Fang Yuan would eventually be unable to keep it up — because the party who initiated the cuts naturally bore the greater disadvantage. But once prices hit rock bottom, the buyers would undoubtedly come out on top.
If all four sellers ended up at the same price, most buyers would still choose not to purchase Year Gu from Fang Yuan.
That was the psychology of a trade war.
The second price drop brought all four back to the same level. Fang Yuan's move was once again unexpected — he had been closely monitoring Treasure Yellow Heaven, and the moment the three major sellers cut their prices, he responded immediately with yet another reduction.
"Oh?!" Many were taken aback. Fang Yuan's reaction was simply too fast.