Volume 2 Chapter 71 Making your own patent law
“Hey, Xu Yi, I’ve only been away for a month, but you actually made such a family ruining decision. Are you planning to anger me to death?” Heinz’s face was red, as he angrily complained to Xu Yi, “You don’t sell anything else, but you choose to sell our technology? Could it be that our Frestech Chamber of Commerce is really lacking money?”
Xu Yi looked at Heinz with a smile. Not only did he seem not angry from being scolded by him, rather he felt some inexplicable warm feelings.
It was like Heinz said, Ria took the initiative to bring their child to Karma City, so he stayed there for a month without coming back.
But he came back ahead of time just to find Xu Yi, complaining about the decision he made at the press conference.
“Who says we’re lacking money?” Xu Yi shook his head with a smile, “According to Sebas’ data, the profit of our company last month was even a bit higher than July, reaching a shocking four hundred and eighty thousand gold coins. Adding in the fact that we hadn’t spent much money last month, how could we be lacking money?”
“Then tell me, why are you selling the technology?” Seeing Xu Yi’s uncaring expression, Heinz felt the flames of rage in his heart surge, “Even if you sell technology, why are selling all the technology related to the Magic Kettle?”
“Could it be that you thought a foolish company would buy a part of the technology and wouldn’t be able to make the Magic Kettle even after buying the technology?” Xu Yi asked.
“There’s no one that foolish, but I feel you are the fool this time!” Heinz loudly said, “Didn’t you tell me before that a company is supported by its technology, especially a company that relies on that technology to feed themselves like ours? Now you’re selling the technology for the Magic Kettle, are you planning on not having us make the Magic Kettle?”
“Un, I’m indeed planning on that.”
Heinz thought that Xu Yi would explain himself, but he never thought that he would directly admit. He was immediately choked up by his anger.
After panting a few times, Heinz calmed down his agitated heart and honestly asked Xu Yi, “Honestly tell me, why? I know that no matter what decision you make, you always have your own ideas. But I really can’t think it through, what benefits is there in selling our Frestech Chamber of Commerce’s technology?”
“If I told you that selling our technology isn’t thinking for the best of our Frestech Chamber of Commerce this time, what would you think?” Xu Yi asked back.
“You!” Heinz’s eyes popped out before immediately forcing himself to calm down. He took a deep breath and glared at Xu Yi, “I will be angered to death by you sooner or later. Alright, even if your decision this time wasn’t for the good of our Frestech Chamber of Commerce, then tell what was it for?”
Xu Yi revealed a faint smile, “Actually I was joking. This decision doesn’t have any benefits to our Frestech Chamber of Commerce now, but in the long term, it is very useful.”
“Where is it useful?”
“To be a bit more straightforward, I am trying to popularize magic machines faster, so I sold all the technology for the Magic Kettle. Like this, all the companies that buy the technology can make their own Magic Kettles. I also promised that our Frestech Chamber of Commerce wouldn’t produce Magic Kettles this time, so they don’t need to worry about our Frestech Brand Magic Kettles being better and they will invest without worry.” Xu Yi said.
“If it’s like this, we can do the same if we just make the Magic Kettle ourselves. So why are you just giving all the profits from the Magic Kettles to other people?” Heinz wasn’t worried at this time, he calmly gave Xu Yi his analysis, “According to my estimates, because of how cheap the Magic Kettle is and how efficient it is, almost every family will use it. Once it is released, the sales would definitely be very high. I don’t believe that I can calculate this, but I’m sure you can.”
“Of course I can.” Xu Yi nodded, “But Heinz, have you calculated how much profit we would receive from each Magic Kettle?”
Heinz thought about it before saying with knit brows, “Although it can’t compare to the Magic Air Conditioner or the Magic Refrigerator, not even being able to compare to the Automatic Magic Rice Cooker, I feel that it should be around the same as the Magic Fan. Even if we can’t earn one gold coin per unit, I feel it shouldn’t be a problem to earn seventy or eighty gold coins. Adding in the high sales, the profit should be quite good.”
Xu Yi slowly shook his head, “No, you’re too optimistic. Actually according to my estimates, it would be hard for the price of Magic Kettle’s price to be more than one gold coin, so no matter how high the profit margins are, it won’t reach seventy to eight gold coins.”
Heinz was a bit confused, “Why can’t you set the price a bit higher? As long as you don’t sell the technology, only our company can produce this Magic Kettle. Even if the price is a bit high, I feel that people who would buy it would still buy it.”
“No, it is different this time. We could set the price before because indeed only our company could produce it, but the Magic Kettle was released ahead of time by the Gelert Chamber of Commerce, so everyone already knows about this thing. Without innovation and curiosity, the price will definitely be affected. Moreover, you should be clear that the technological content of the Magic Kettle isn’t high and as long as a company is willing to invest in studying magic machines, they will be able to develop it.”
“But their Magic Kettle can’t compare to our Frestech Brand, what is there to fear?” Heinz said in an unwilling to submit voice.
Xu Yi shook his head, “Our Frestech Brand magic machines are better than the magic machines of other companies because of our outstanding designs. This time the design of the Magic Kettle has already been revealed to everyone, so we don’t have the same unique advantage as before. So the Magic Kettle of our company won’t be much better than the other companies’.
Hearing Xu Yi’s response, Heinz couldn’t help angrily looking at Xu Yi, “If you didn’t reveal all the secrets at that product release, how could other people learn our unique design?”
Xu Yi gave a grin, “What if I told you that I did it on purpose?”
Heinz was stunned, “Could it be that you were already prepared to sell the Magic Kettle technology?”
“Of course, otherwise why do you think that I allowed Evita to let that fellow Rem steal part of the Magic Kettle technology?”
Heinz couldn’t help looking over Xu Yi before saying with a sigh, “Xu Yi, I’ve suddenly found that you’re quite the sinister fellow.”
“Many thanks for your praise.” Xu Yi smiled as he continued, “So, even if I didn’t sell the Magic Kettle technology, it wouldn’t have much meaning to our Frestech Chamber of Commerce anyway. We wouldn’t profit that much from keeping it, so we might as well sell it.”
Heinz looked over Xu Yi, “Isn’t this something you brought on yourself? If you had taken care of the problem as soon as you found the problem with Rem, how could all these things have happened?”
Xu Yi shook his head with a smile, thinking that Heinz’s petty nature would never change.
In his eyes, the Frestech Chamber of Commerce had suffered a loss, so he was very dissatisfied.
But turning his thoughts, he was just thinking based on what he knew.
Xu Yi thought about it before saying to Heinz, “Actually this matter does have benefits to our Frestech Chamber of Commerce and it’s not all long term. Very soon, there will be great benefits.”
Heinz revealed an interested expression, “Really? There are benefits? Tell me.”
“First, we’re not just selling the Magic Kettle technology to a single company and we’re selling it to any company that is willing to buy it at a fixed price with conditions. So in less than a week, there have been over twenty companies that have asked me about buying this technology.”
Heinz was stunned, “How is it? How many are willing to buy? How much are they willing to spend?”
“It’s not clear right now, but based on how enthusiastic they seemed, I estimate that there are fifteen companies that are very interested in buying. The price I’ve given them is ten thousand for the technology and they also have to pay our Frestech Chamber of Commerce one silver coin every time they produce a Magic Kettle.”
“This seems like the cooperation model we had before with the Farsak Chamber of Commerce.” Heinz cut in.
“Un, it’s a bit similar. But this time, I’m planning to use this model for a long time.” Xu Yi said with a smile, “I was hoping that the Royal Parliament would release the patent law, but this has never happened. Since the Royal Parliament doesn’t care, then we have to do it ourselves. As long as there are enough companies buying the technology from us and they sign a contract, that would be equal to buying a patent from our Frestech Chamber of Commerce. If this model was gradually accepted by everyone, then this would mean that we’ve made a patent law.”
Heinz thought about it before nodding, “Un, this is indeed quite a good method. But we are only earning a trivial one silver coin from each Magic Kettle, this is a bit too little……”
Seeing Heinz sigh, Xu Yi patted his shoulder and said with a smile, “You might consider this little now, but believe me, you’ll find in the future that being able to get one silver coin from each Magic Kettle without doing a thing is actually quite a lot. This is because not long after, the era of explosive profits for household magic machines will end soon.”
Heinz looked at Xu Yi in a daze.
No matter how unwilling he was to admit it, he had to admit that Xu Yi was completely right.
Although competition would bring progress, this competition would also dilute profits.
This was a logic that was followed in every industry of the Sines Continent. Although the magic machine industry was a new industry, it definitely couldn’t avoid this ironclad rule.
The only thing Heinz could do was pray that this came later than sooner.