Volume 2 Chapter 29 Product exchange
It should be said that Count Sean was completely right.
As long as the Frestech Chamber of Commerce became stronger, so strong that people would have scruples about messing with them, then Xu Yi would not have to worry about a large noble family swallowing them up one day.
But for the Frestech Chamber of Commerce that couldn’t even “stand at the top of a small city like Banta City”, it was without a doubt a very long path.
Of course, a meal had to be eaten mouthful by mouthful and a road had to be taken step by step, one can’t rush things at all.
If was a good thing that the Frestech Chamber of Commerce was developing at a high speed. Compared to when they were established last year, the Frestech Chamber of Commerce had become several times stronger in comparison.
The simplest method of comparing was to compare numbers.
When the Frestech Chamber of Commerce was formed last year, they sold a total of less than a thousand Magic Fans in their first month and received less than two thousand gold coins.
Back then Xu Yi had used the large blacksmiths in the city to create the outer cover, which had a high cost. So calculating everything, the final net profit was less than five hundred gold coins.
Although this was a large amount to Xu Yi and Heinz at the time, compared to the current Frestech Chamber of Commerce, it wasn’t even equal to the amount needed to buy materials for the research facility each month.
According to Sebas’ April finance report, the Frestech Chamber of Commerce had quite a bit of profit now.
Among them was the household magic machines, which had stable sales from the Automatic Magic Rice Cooker and the Magic Lamp.
Other than the explosive sale from when they were just released, there were six thousand seven hundred and forty eight Automatic Magic Rice Cookers sold in April, for a total of close to thirteen thousand gold coins in profit. The Magic Lamps sold eight thousand two hundred and eleven units, which had a net profit of just over five thousand gold coins.
Moreover, as the Frestech Chamber of Commerce’s fame spread to other places in the Lampuri Kingdom, even merchants from cities that were over four hundred kilometers away from Banta City came to place orders. Right now, the sales for these two magic machines still kept growing!
Other than this, the sales for the Magic Bread Maker released in April was simply shocking.
The product announcement was in the middle of April and according to the data, in the latter half of April, the Magic Bread Maker actually sold over a hundred and fifty thousand units.
Other than the fact that the Lampuri Kingdom’s main source of grain was in bread, the more important thing was the effect of the explosive news of Agnes the elf appearing in front of everyone.
The Magic Bread Maker had a price of four gold coins, but it cost less than one and a half gold coins. Therefore the net profit of the Magic Bread Maker reached a terrifying three hundred and seventy thousand gold coins!
Although because the household magic machine workshop couldn’t keep up with this terrifying amount in a short period of time, so this profit was thinned out in the end, such a terrifying figure had even shocked Xu Yi.
Calculating all of this, the net profit of the household magic machine workshop in just April was close to four hundred thousand gold coins!
Compared to the household magic machine workshop, the magic machine workshop had even more explosive net profits.
For example, in the contract the Frestech Chamber of Commerce signed with the agricultural department for thirty thousand agricultural magic machines, the price of that order reached a terrifying one million and seven hundred thousand gold coins.
Taking away the cost, the net profit of the Frestech Chamber of Commerce had already exceeded one million gold coins.
This was just from a single order.
Other than the order from the agricultural department, the magic machine workshop also took other orders. The largest was with the Falcao Chamber of Commerce for ten thousand Magic Drills. The price was set at a high seven hundred and eighty thousand gold coins and the net profit was calculated at close to five hundred thousand gold coins.
Next was the Magic Concrete Mixers, Magic Concrete Sprayers, and other concrete related magic machines that the Amrit Chamber of Commerce had ordered. It reached a high price of six hundred and thirty thousand gold coins. Since the Frestech Chamber of Commerce hadn’t finished researching these magic machines, they couldn’t calculate the total net profit, but it was estimated to be at least over three hundred thousand gold coins.
Other than these two large customers, there were many other small companies that wanted to enter the magic machine industry, so they bought production magic machines from the Frestech Chamber of Commerce. Xu Yi agreed to them all and sold a total of three thousand six hundred and forty one production magic machines, earning a profit of close to two hundred thousand.
Adding it up together, the magic machine workshop had earned a profit of over two million gold coins!
Of course, because of the limits of the magic machine workshop, the time for these orders were very long. For example, the order for the agricultural department was for summer of next year. So if it was divided into months, the magic machine workshop’s net profit couldn’t compare to the household magic machine workshop.
Camby was usually a bit depressed over this.
“Chairman, me and the brothers work ourselves to death each day, why can’t we earn as much money as Heinz’s side?” Camby complained to Xu Yi.
Even though the manager of the household magic machine workshop was now Ankhto, Camby was used to calling Heinz the representative of the household magic machine workshop side.
“This is something that you can’t do anything about since the concept of magic machines hasn’t been accepted by everyone. Compared to the specialized magic machines of the magic machine workshop, the household magic machines that are designed for most people are more easily accepted and also easier to sell.” Xu Yi comforted him.
“Then based on what you said, if these things were easier to accept and more normal people used them, when everyone on the Sines Continent knows about them and accepts them, wouldn’t our magic machine workshop be unable to compare?” Camby said in a dejected voice.
“Of course not.” Xu Yi patted Camby’s shoulder and said in a certain voice, “Household and industrial magic machines are two different aspects, one can’t discuss which one is stronger. Right now it’s because everyone has easily accepted the household magic machines that it’s selling easier. But when the other large companies realize the strength of magic machines, the field of industrial magic machines will become larger. Look, the Falcao Chamber of Commerce spent seven hundred thousand gold coins on those Magic Drills. If we were to research large scale mining magic machines, I dare to promise that it wouldn’t be strange for them to spend over seven million gold coins.
Camby looked at Xu Yi in surprise, “Seven million gold coins? That much? I say, chairman, you don’t need to boast to comfort me, right?”
Xu Yi rolled his eyes at him, “Am I interested in boasting to a dwarf like you? Alright, believe me, this will definitely happen, but there is something missing right now.”
Xu Yi called out Agnes’ name out of habit, but he found that Agnes appeared behind him which scared him.
“So you weren’t hiding yourself.” Agnes walked out without a sound and it really shocked Xu Yi.
Agnes had an innocent expression, “Sir chairman, wasn’t it you who wanted me to stop hiding myself and show myself to everyone?”
Xu Yi nodded, “Un, I did say it and it’s very right for you to do this. Only I’m used to you hiding by my side, so I’m not used to you suddenly appearing behind me. Hei, Agnes, you don’t make any sounds at all when you move, I think that it would go really well if you became an assassin.”
“Assassin? What is that?” Agnes tilted her head in curiosity as she looked at Xu Yi.
The expression of Camby on the side changed slightly and he cut off Xu Yi from explaining. He asked Xu Yi, “Chairman, the thing that you said was missing just now, what is it?”
“Un? Oh……It is an essential thing that is missing and that is material. Have you noticed that chairman Farsak has been coming to our place more frequently?”
Camby nodded, “Un, it’s because their production magic machines have had problems lately. I was considering sending some brothers over to specially maintain and repair them.”
Xu Yi waved his hand and said, “This is not a good method. Next time chairman Farsak comes, if I’m not here, you can just tell him that our Frestech Chamber of Commerce can provide him a new batch of production magic machines. Moreover, these are the newest models and they are stronger than the old ones.”
Camby knit his brows, “He probably won’t agree. When we sold him those production magic machines, we promised him three years of free repairs. If we sell him another batch, he won’t be willing to pay that much gold coins.”
“Who said I’m selling them to him? It’s an exchange. Of course, it’s not completely free. Tell him that it’s just the difference between the old and new magic machines, which isn’t much. Their Farsak Chamber of Commerce has a total of fifty production magic machines, so even if it is ten gold coins per machine, it’s no more than five hundred gold coins. He will definitely agree to this.”
Camby was stunned, “Then wouldn’t we be losing too much? If we sold fifty production magic machines, we can earn over three thousand gold coins. You want to let him exchange them for just five hundred gold coins, isn’t that too cheap for him?”
“You need to set your eyes further.” Xu Yi said in a sincere voice, “If those old production magic machines stay in the Farsak Chamber of Commerce and problems keep occurring, our product name of our company will suffer a large blow, making people think that our company’s products aren’t reliable. In the long term, we will lose more than several thousand gold coins.”
Camby considered it before slowly nodding, “That is right. Humans don’t care about credibility, that’s why they have such a bad reputation among us other races…..Oh chairman, I’m not talking about you. My meaning is that a company is the same as a person, credibility is very important.”
Xu Yi shook his head not knowing whether to laugh or cry before he said, “So, don’t worry about these short term losses. I have already made an initial plan and for the next period, for the products that we have already sold, I will recycle the old products and exchange them for new products.”
Camby tightly knit his brows, “Taking back bad production magic machines already is quite a loss, but if we do this for all products, we’ll lose hundreds of thousands of gold coins. Sebas definitely won’t agree to this idea of yours.”
“Relax, although Sebas is a miser, he is also a smart person and will understand my meaning.” Xu Yi revealed a smile before continuing, “Coming back to the question you had earlier, we’re lacking useful materials, so the products we make aren’t useful or durable, so we have to use this product recall and exchange. If our materials were a bit better and the production magic machines were more durable, our products wouldn’t break for years, so no one will have a problem, right?”
“Certainly. Look, a normal shovel that wouldn’t break after being used for three years is already enough for people to praise the craftsmanship. Our production magic machines are also made of iron and if they can be used for several years without breaking, people will praise it to the heavens.” Camby said in a certain voice.
“That is right, so first we need to solve this material problem. And this will mainly depend on the results of your brothers from the Norma Tribe.” Speaking of this, Xu Yi turned to Agnes who was silently listening to them and waved his hand at her as he said, “Come, Agnes, let’s go on some official business together.”
“Official business?” Agnes and Camby both looked at Xu Yi with confused gazes.
“It’s going out on a business trip with me.” Xu Yi explained, “Chief Siluka sent people to days ago to tell me that their material research has yielded new results, so I want to see if they made any breakthroughs. Other than this, I want to go to your Night Song Tribe to greet elder Ilusia and discuss something with her. I can’t go to your Night Song Tribe alone, so I need you to lead the way.”
“Oh.” Agnes understood and nodded before following Xu Yi.
Xu Yi talked to Camby about a few more work matters and picked up his bag that had been packed, before leading Agnes out the factory.
But when he came to the factory doors, there was a horse carriage that came from the direction of Banta City and stopped in front of them.
The horse carriage opened and Butler Brunei was revealed.
He quickly looked over Agnes behind Xu Yi before saying to Xu Yi with the same emotionless face, “Chairman Xu, the Lord Baron extends his invitation.”