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Rebuilding a Kingdom - Chapter 17
🕑 Added 2024-05-05 07:00:19 +0000 UTCBusiness Meetings with the Three Major Trading Companies
Two days after my discussion with Brother Roland, negotiations with the Elfast Magic Kingdom regarding the magic vehicle were terminated. Then, two days later, the presidents of the three major trading companies appointed by the Royal castle within the Kingdom of Critonia were summoned to the palace.
Regarding negotiations with the major trading companies, Prime Minister Sylberg personally handled them. For the sake of learning, I was allowed to observe the negotiations.
The negotiations took place using the training ground of the Royal Knights. The presidents of the major trading companies were astonished when they saw the magic vehicles being driven by the Royal Knights. Among them, President Cassel of the Cassel Trading Company exclaimed in excitement.
"This is amazing! With this, we can transport cargo much faster than with a carriage!”
“We could transport even larger quantities of cargo with these magic vehicles, too!"
President Melton of the Melton Trading Company, who was beside President Cassel, also exclaimed enthusiastically, clenching his fists.
"Haha... indeed, the presidents of the major trading companies have a keen eye. We've already completed the magic freight vehicles and trailers that connect to them. I hope you like them and purchase a lot of magic vehicles."
After the major trading company presidents finished observing the magic vehicle operation, we, along with Prime Minister Sylberg, moved from the training ground to the castle’s conference room.
In front of the three presidents, Prime Minister Sylberg cleared his throat.
"Now let's proceed with the negotiations regarding the magic vehicles. The wholesale price of a magic vehicle from the crown will be one golden coin. Each trading company will then sell it as one golden coin and one platinum coin. The platinum coin will be the trading company's profit."
"Excuse me, but could you wait a moment? Selling a product involves various expenses such as labor costs, store expenses, and so on. The amount of expenses varies for each trading company. Therefore, if the profit per magic vehicle is included in the contract, the trading company's flexibility will be limited. We would like to decide the selling price of the magic vehicle within each trading company."
Reacting to Prime Minister Sylberg's words was President Rankle of the Rankle Trading Company. The Rankle Trading Company conducts business centered around the Capital of the Kingdom of Critonia, and President Rankle is known for his greed.
One golden coin is worth about ten million yen, and one platinum coin is approximately one million yen. Selling a product for ten million yen and making a profit of one million yen should be sufficient for the trading company, but President Rankle seemed dissatisfied.
Next to President Rankle, President Melton of the Melton Trading Company also chimed in.
"Exactly. Our trading company has stores not only in the Capital but also throughout the kingdom and in other countries. It's common for merchants to adjust prices depending on the location. If everything is uniform, we won't be able to adapt to the situation. Please consider this point."
The Melton Trading Company, led by President Melton, has strong ties with the Bardhain Empire. They likely intend to sell most of their stock there.
President Cassel of the Cassel Trading Company remained silent and listened to everyone's remarks.
Prime Minister Sylberg surveyed the three presidents and nodded emphatically.
"I understand both of your points. Let's do this, then. The profit proposal from the crown will remain at one platinum coin. However, regarding the business methods, we understand that expenses can vary. Therefore, each trading company is allowed to adjust the price as needed in the contract."
Upon hearing these words, Presidents Rankle, Melton, and Cassel deeply nodded in agreement. Observing their expressions, I smirked to myself.
Before Prime Minister Sylberg and I negotiated with the trading company presidents, we had a discussion together the day before. In that discussion, I anticipated that the presidents would express dissatisfaction regarding profits.
From the crown’s perspective, the crucial aspect is the profit gained from wholesaling the magic vehicles, so the actual selling price of the magic vehicles isn't much of an issue.
However, if trading companies arbitrarily set prices, it would imply that the crown isn't providing guidance. If any issues arise from inflated prices set by the trading companies, having a clause in the contract about price constraints would absolve the crown of responsibility.
Perhaps the trading companies intend to sell magic cars in the Bardhain Empire or the Elfast Magic Kingdom as well. In the event of complaints from other countries, the crown can claim that it restrained the trading companies. It's just a precaution, though.
After the contract was exchanged between Prime Minister Sylberg and the three trading company presidents, the negotiations in the meeting concluded. President Rankle and President Melton swiftly left the room.
However, President Cassel remained seated.
Curious, I watched as President Cassel stood up from his chair with a stern expression.
"The magic vehicle is a groundbreaking product, but the price is too high. Many merchants won’t be able to afford it. How will this be addressed?"
The price of a magic vehicle is set to one golden coin, which is intended for purchase by nobles. It's not a price that's completely out of reach, but it is indeed a high-priced item.
In response to President Cassel's inquiry, Prime Minister Sylberg looked troubled and glanced at me.
I waved my hand lightly.
"The magic vehicle will likely become a popular item among nobles and trading companies. However, it may not spread widely among smaller-scale traders or the general public. The crown doesn't see that as a problem."
"I see. So?"
"As the magic vehicles gain popularity within the kingdom, and a certain number of wealthy individuals switch from carriages to magic vehicles, carriages will become unsellable. The prices of carriages, which have been high so far, will become more affordable. When that happens, even merchants who couldn't afford carriages before will be able to purchase them. I don't want carriage makers to go out of business."
"I see. In that case, individual traders will also benefit."
President Cassel nodded in understanding, smiled politely, and then left the conference room.
The Cassel Trading Company has many individual traders under its umbrella. President Cassel must have been concerned about those individuals who couldn't afford the expensive magic vehicles.
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