Chapter 45 There are benefits to building roads
After half a month of training at the Frestech Chamber of Commerce, of the eighty seven small companies that qualified, there were only sixty three companies in the end that signed the support plan agreement with the Frestech Chamber of Commerce.
According to the the contract, they would get some production magic machines from the Frestech Chamber of Commerce by paying for installments and they would use them to make the component the Frestech Chamber of Commerce designates for them. Then they would sell those components back to the Frestech Chamber of Commerce and they had to sell it at the set price of the Frestech Chamber of Commerce.
Although these conditions seemed a bit overbearing, if one thought about it carefully, the conditions the Frestech Chamber of Commerce gave them were very reasonable.
First the price the Frestech Chamber of Commerce set gave the sixty three companies plenty of space for profit. If one roughly calculated it, a small company could earn at least five hundred gold coins just based on the component order from the Frestech Chamber of Commerce.
And if the Frestech Chamber of Commerce ordered even more, the small companies would naturally earn more money.
Not to mention that this contract only lasted for five years. That meant that in five years, these small companies wouldn’t have to follow the set price of the Frestech Chamber of Commerce when selling these components to them, rather they could set their own prices.
So in less than half a month since the small company support plan was announced at the Frestech Chamber of Commerce’s product announcement, there were suddenly sixty three small companies in Banta City that were responsible for making magic machine components.
It was different from the Frestech Chamber of Commerce workshop that took up a hectare of land, these small companies only needed to rent a small work space for their workshops.
Many small companies only needed to rent a small warehouse. They could put the production magic machines they bought from the Frestech Chamber of Commerce in there and hire a few people before starting production.
Because the production magic machines were rather loud and adding in the fact that rent was expensive in the city, most of the small companies rented warehouses outside Banta City.
Moreover, because they components they made were mainly sold to the Frestech Chamber of Commerce, naturally they picked locations that were close to Sandton Manor.
The originally peaceful Sandton Manor that could be considered a resort was completely polluted with noise, as if it had become a large work site. Xu Yi’s heart couldn’t help filling with a bit of regret when he saw this.
He had planned on moving all the factories to the Falling Rain Valley after the roads were finished and turning this Sandton Manor into a research center. They would focus on studying and developing all kinds of magic machines for the Frestech Chamber of Commerce.
With the beautiful environment here, it was very suited for researchers to gather.
But because of the circumstances, the area around Sandton Manor had turned into a small industrial district.
And Xu Yi was certain that as the Frestech Chamber of Commerce developed, this industrial district would expand and it would never return to the same peaceful environment from before.
Thinking of this, Xu Yi couldn’t help complaining a bit about the Amrit Chamber of Commerce.
If they had finished connecting the Falling Rain Valley a bit sooner, Sandton Manor wouldn’t have become like this.
“I say, chairman Xu, doesn’t it seem wrong to blame me for this?” Towards Xu Yi’s complaining, the Amrit Chamber of Commerce’s chairman Moon Cruise couldn’t help feeling aggrieved, “It’s clearly because of the strict quality requirements you have for this road and our Amrit Chamber of Commerce has to follow your orders. In order to maintain the quality, we specially lowered the speed and strived for perfection. Now you’re coming here and complaining that it’s slow, this really isn’t right.”
“I’m just casually speaking, don’t mind it.” Seeing chairman Cruise looking a bit dissatisfied, Xu Yi’s expression changed into a smile as he said, “Quality is first, everything else can come after. This is our Lampuri Kingdom and the Sines Continent’s first public road, if it is built well, the Amrit Chamber of Commerce will leave their mark in the history of the Sines Continent. If it isn’t done well, you will leave behind a mark of infamy. I had a strict requirement for quality all because I was thinking about your Amrit Chamber of Commerce.”
“I’m more clear on this than you.” Chairman Cruise replied before his expression became serious, “That’s right, it’s very important if this road is built well or not. Not mentioning something like leaving a mark in the history of the Sines Continent, just talking about the present, chairman Pompeii of the Fersen Carriage Company has contacted me, asking me about how much it cost to build this road to the Falling Rain Forest. Based on his meaning, he might be wanting to invest in building a public road.”
“Fersen Carriage Company?” Xu Yi was surprised. After thinking about it, he said with a nod, “That’s right, their company’s business is in public transportation, so they want the roads to be better and it isn’t strange for them to care about the roads. But building roads is something the Lampuri Kingdom’s government should care about, it’s not something he should care about.”
“The problem is that everyone knows that the kingdom is lacking in finances. Even if the king wants to fix the roads, he can’t take out that much money.” Chairman Cruise helplessly spread his hands and said, “So chairman Pompeii has asked me this time how much money it takes to build this road and after I told him that your Frestech Chamber of Commerce is investing in this, chairman Pompeii didn’t keep asking me about this topic.” 𝘣𝘦𝘥𝑛𝘰𝘷𝘦𝑙．𝘯𝘦𝘵
“What? Was he scared by the price of building the road?” Xu Yi asked with a smile.
Chairman Cruise rolled his eyes at Xu Yi, “Nonsense, building this road that’s only fifty kilometers long already cost your Frestech Chamber of Commerce several hundred thousand gold coins. If one wanted to connect the cities of the Lampuri Kingdom with roads, it would cost tens of millions of gold coins. Do you think that every company can take out that much?”
“One company can’t take out that much, but it won’t stop ten, one hundred, or even a thousand companies from doing it. With everyone working together, naturally this road network can be established.” Xu Yi said in an uncaring voice.
“You think it’s that easy? Other than your Frestech Chamber of Commerce…...which other company would take out money to do a thankless job like building roads?” Chairman Cruise said.
“That isn’t certain. Didn’t you say a few days ago that chairman Morgan looked for you to build a road from one of the mines under their company to Banta City?”
“That is different. The road connecting the mine to Banta City can help them transport the ores they collect more easily and faster. In short the road would save on their cost. Actually it’s the same as the road you’re building, you’re only building it for the benefits of your company, otherwise why would you build it?”
“So that means that the core of it is whether there are benefits or not. What if I told you that there are no losses in building roads and it can actually earn more money?” Xu Yi mysteriously said.
“Make money?” Chairman Cruise looked at Xu Yi in surprise, “Are you joking? How could this thing earn money?”
“You don’t believe me?” Xu Yi laughed, “In a few days the king will send people to find you to have your company build roads, if you have the skills, reject them.”
Chairman Cruise looked at Xu Yi with wide eyes and his first reaction was that Xu Yi was joking with him.
It was clear that the kingdom’s finances were bad, so how could there be money for building roads?
But his logic told him that Xu Yi wouldn’t kid about something like this.
Could it be true?
Seeing Xu Yi’s mysterious smile, chairman Cruise fell into confusion for a while.
###
As it entered July, the weather began to swelter.
As the temperature rose bit by bit, the desire to buy Magic Fans among the people of Banta City increased.
It was completely different from a month ago. Right now there weren’t any Magic Fans of other brands in Banta City, there were only Frestech Brand Magic Fans.
Of course, even if there were Magic Fans of other brands right now, with the beautiful design of the Frestech Brand Magic Fan, they couldn’t be sold at all.
Because the Frestech Chamber of Commerce was holding their exchange event, many families that bought Magic Fans last year considered it and most of them chose to use this event. They exchanged the old Magic Fan in their homes for a new generation Frestech Brand Magic Fan.
According to Sebas’ report for last month, in June, the Frestech Brand Magic Fan had sold a total of six thousand four hundred and seventy two units. The ones that had sold because of the exchange event made up half the numbers, surpassing three thousand units.
It could be said that the sales numbers were much lower than last year, but this was expected by everyone in the company.
After all, the Magic Fan was not a consumable product and one fan could be used for several years. No one would just exchange it if they were bored.
In a small city like Banta City where the population was barely over fifty thousand and in a situation where the market was saturated, it was naturally impossible to have the same amount of sales as last year when the Magic Fan was just released.
If it wasn’t for the fact that the new Magic Fan looked very beautiful and there was the exchange event, then this year’s sales numbers would be even worse.
The Frestech Chamber of Commerce’s response to this was simple, they would just have to expand their market. They would sell the Frestech Chamber of Commerce’s products to even more cities of the Lampuri Kingdom.
Only expanding the market was something that took time. Although the Frestech Chamber of Commerce had built a strong foundation in Banta City, Karma City, and even Saltan City, easily opening up the markets for these three cities, to sell to the further Canberra City, Norton City, or even the further Cramer City, it would take quite a bit of effort.
Compared to this, the Lampuri Kingdom capital Anvilmar City that was even further than Cramer City was actually a bit easier to open.
The Frestech Chamber of Commerce retail store Victor’s group of three had opened in Anvilmar City had very good business. Every time more household magic machines were shipped over from Banta City, it would be sold in a short period of time.
While making a large amount of money for Victor’s group of three, it also deeply rooted the Frestech Brand into the hearts of Anvilmar City’s people.
Xu Yi had even seriously considered doing the same as Karma City, opening a new factory outside Anvilmar City and producing Frestech Brand household magic machines.
But after hearing Xu Yi’s plan, Seveni who was in Banta City for business looked at Xu Yi before shaking her head with a determined look, “It won’t work.”
Chapter 46 Power of industry
“Why not?” Xu Yi looked at Seveni in surprise and asked with a frown, “Your highness, our Frestech Chamber of Commerce is a proper company, isn’t it normal to go to the capital to open a factory? Why isn’t it good?”
Seveni shook her head slightly, “It isn’t that it isn’t good, it’s more that it isn’t the right time yet.”
“Not the right time yet?” Xu Yi knit his brows even more, “Your highness, I don’t understand what you mean. From my angle, the development of our Frestech Chamber of Commerce’s household magic machines is very limited in Banta City, so we should be focusing on developing, so why is it not the right time?”
“I’m not saying in terms of business, rather it’s another wrong time.” Seveni took a deep look at Xu Yi and honestly said, “Xu Yi, believe me. After personally seeing the changes brought by your agricultural magic machines, I believe more than anyone that your Frestech Chamber of Commerce can become bigger. So I ask you to believe me, the advice or the warnings that I’m giving you, they are all beneficial to your Frestech Chamber of Commerce.”
Seeing Seveni’s honest expression, Xu Yi considered it before giving a slight nod.
“Alright, I’ll believe you.”
Hearing Xu Yi suddenly change his address to “you”, Seveni revealed a smile. She took a deep breath and calmed her mind before saying, “Good, then I’ll discuss serious business. Royal father has already looked through the kingdom public road connection plan you mentioned and he supports this very much. Moreover, Count Sean has already reported the details of the road you built before, which royal father has paid attention to before. Now that he has seen your plan, he is very happy. He said that you not only care about your company, you are also thinking about the Lampuri Kingdom. Only…..”
“Only the kingdom finances can’t take out the money?” Xu Yi asked with a smile.
Seveni couldn’t help revealing a smile, “That’s right. You should be clear on the situation of the kingdom’s finances, so we indeed can’t take out the money needed for your public road plan. As for what you proposed……”
When she said this, Seveni’s smile disappeared and her brows knit deeper.
“This…...toll stations, royal father doesn’t agree to it. He said that since we are making public roads, it is consideration for the kingdom’s citizens,, so why should we set up toll stations and make the people who take these roads pay for it? This method is simply exploiting the people of the kingdom.”
“Exploiting?” Xu Yi laughed, “Your highness, for his majesty’s care about his subjects, I deeply respect and appreciate it. But I have to say that his majesty’s understanding of the public road is very shallow. The toll stations isn’t exploiting the citizens, rather, it is an excellent policy that will increase the level of living for the kingdom’s people.”
“I know that you’re not a merchant that is greedy for money, you must have a reason for proposing this.” Seveni’s expression relaxed and she calmly looked at Xu Yi, “Although I’m also very much against opening these toll stations, I’m willing to listen to your thoughts.”
“Your highness really is quite open.” Xu Yi said with a nod, “If we want to talk about this matter, then it will take a long time. So I will simply ask you a few questions. First, your highness, is it very beneficial to the kingdom to connect the kingdom by building these roads?”
“Yes. Although I can’t understand the situation you described in the plan right now, I am certain that these public roads will bring many benefits to public transport in the kingdom.”
“The second question, the kingdom’s finances can’t take out this much money to build the roads, right?”
“Yes.”
“The third question, can you have companies take out money to fix the roads?”
“This……” Seveni hesitated a bit, “We can, but the roads must be strictly supervised by the kingdom as it’s being constructed and it needs to be turned over to kingdom officials after it is finished.”
“Look, the problem right now is very simple. Since the kingdom needs these public roads to improve the traffic situation and the kingdom’s finances doesn’t have the money, then looking for normal companies to help pay for building the roads is a very normal choice. As for establishing the toll stations and charging a set fee, this is also compensation to the companies. To put it simply, it’s the kingdom’s finances temporarily borrowing from the companies and using future income to repay them. Your highness, why do you and his majesty think that this plan isn’t good?”
Seveni fell silent and considered it for a bit before saying with difficulty, “Royal father and I not approving of this method is mainly because…...to charge a fee to the citizens, this……”
“It’s bad for your reputation?” Xu Yi directly pointed out her thoughts.
Seveni nodded with an awkward expression.
“It’s very simple, it’ll be publicly announced when this road is being built that this road is built by a company. It’s not said now, but after the toll stations are added, you just need to tell everyone that they were added by the companies and unrelated to you all. To put it simply, take his majesty and the royal family out of the discussion and let the company that builds the road to take the infamy. I think like this, it won’t affect the fame of his majesty and the royal family.”
Seveni was stunned. She looked at Xu Yi and asked in a serious voice, “Chairman Xu, are you shaming me and royal father? Our Lampuri Royal Family, how could there be anyone who won’t take responsibility!”
Xu Yi waved his hand with a smile, “Your highness, you don’t need to be this serious. To many companies, it’s fine as long as they make money, they don’t care about their fame at all. Like our Frestech Chamber of Commerce.”
Seveni looked at Xu Yi with a complicated expression on her face. It was praise, guild, admiration, and even a bit of fanaticism, before she finally gave a sigh, “Chairman Xu, when you proposed this plan, did you already think of this?”
“Pretty much.” Xu Yi looked at the expression on Seveni’s face and couldn’t help saying with a smile, “Your highness, you mustn’t think that I’ll suffer a loss from this matter. In the long term, me and the Frestech Chamber of Commerce will benefit far more than you can imagine from this.”
“I hope so.” Seveni said with a sigh, “Chairman Xu, I’ve always looked down on merchants who have their heads filled with gold coins, but I have to admit that you have abilities that I don’t have. And now, not only do I admire your abilities, I also seriously hope that your Frestech Chamber of Commerce can become bigger, or rather you can become more rich.”
“Many thanks for your highness’ blessing, we definitely will.”
For Seveni’s sudden trip this time, the matter of building roads was secondary whereas the main topic was the production magic machine for the weapons and armours that Camby’s dwarves were developing.
After close to two months of research, Camby’s dwarves had finally developed three Magic Punch Presses specially used for making armours.
Seeing the iron sheets being used by the Magic Punch Presses and easily being molded into different shapes before being made into simple armour after some simple cutting, Seveni couldn’t stop her eyes from opening wide.
In Anvilmar City, she had visited a blacksmith to watch a set of armour being made.
Even if it was the most simple form of armour, a blacksmith would start by first refining the iron before finally creating a complete set of armour. In total it would take up to a whole day to finish.
Sometimes there would be problems that occurred and it would take more than a day to finish.
Now in front of Seveni, these Magic Punch Presses used less than an hour to finish casting a set of armour. Then after ten minutes of assembling from Camby, it became a complete set of armour.
And with the introduction from Xu Yi, Seveni understood that these Magic Punch Presses were going slower than normal.
If they went at full speed, with the efficiency of these Magic Punch Presses, they could make fifty sets of armour in just a single hour.
Even if they only worked eight hours a day, they could produce four hundred sets of armour!
“Chairman Xu, what is the cost of this set of armour?” Seveni asked the most important question for her.
“Cost?” Xu Yi looked at the finished set of armour in Camby’s hands and said with a shrug, “Other than the material cost of the armour, there’s also a bit needed for the people who operate the machines. As for the other costs…...right, it’s just a bit of Magic Crystals.”
Seveni’s eyes lit up, “Then doesn’t that mean there is almost no cost?”
Xu Yi revealed a faint smile, “If it is compared to a blacksmith, it can be said like that.” Seeing Seveni’s look of disbelief, Xu Yi added, “Don’t be surprised, your highness, this is the power of industry. Didn’t you experience it with the agricultural magic machines from before?”
“The power of industry?” Seveni looked at the armour in Camby’s hands and couldn’t help sinking into deep thought.
If the Frestech Chamber of Commerce could mass produce these Magic Punch Presses, then the speed of producing armour and weapons would be greatly increased while the cost would be greatly reduced.
Like this, the kingdom’s soldiers wouldn’t need to worry about not having weapons and armours and the battle strength of the royal army would be greatly increased.
As long as the Lampuri Kingdom had enough military might, although they wouldn’t have the guts to compare to the two colossi of the Candra and Marlow Empires, they could at least protect themselves from the surrounding countries.
As long as the Lampuri Kingdom was safe, the kingdom could peacefully develop. It would mean that royal father’s care and dedication wouldn’t be wasted.
Thinking of the kingdom’s development, Seveni’s eyes couldn’t help falling onto the face of Xu Yi who was talking to Camby.
Coming to Banta City this time, Seveni found that another large change had occurred in Banta City.
Everyone in Banta City seemed busy like everyone had many things to do. The entire city was filled with positivity and life, which was different from the depressing aura it normally had from being so remote.
When she went to the Sandton Manor where the Frestech Chamber of Commerce’s factory was, she found that the surrounding area had become a giant work site. Around Sandton Manor, there were many large and small workshops that kept letting out the sounds of machines turning.
Everyone on the roads seemed very busy, but their faces were covered in happy smiles.
What was it that changed the people and the city?
Seveni kept thinking about this question, but hearing what Xu Yi said, she understood.
Yes, it was like Xu Yi had said, it was the power of industry that changed the people of Banta City and Banta City itself.
From the places that Seveni had seen, the power of industry had also changed Karma City, Saltan City, Canberra City, and Norton City.
In the near future, the power of industry will definitely change Cramer City, Anvilmar City, and finally the entire Lampuri Kingdom.
When this power developed in the Lampuri Kingdom, Seveni believe that the Lampuri Kingdom of that time will shock the entire continent!