Chapter 64
Some referred to integrated trading companies like this:
A modernized East India Company.
In fact, Japan's massive integrated trading companies created economic development zones (essentially colonies) openly in countries like the Philippines, just like the East India Company that actually managed colonies.
Like the governments of European powers during the mercantilist era, they handle intermediary trades, selling products cheaply produced locally to advanced countries, or selling high-tech products with advanced technology from developed countries at high prices to other countries.
Besides that, they're the crystallization of greed that does anything that makes money.
"It's a word I've never heard before, how is this integrated trading company management method operated?"
"We leave production to other guilds or regions, and we just sell the products they make to others."
Although the Tuscan Empire is a fantasy empire with various aspects of medieval, Renaissance, and early modern periods mixed, it's not that there's no concept of entrusting production to others and selling.
However, most trading companies above a certain size handle both production and sales themselves.
Because in this era's method, that's the way to maximize profits.
'Even if guilds in big cities like Florence are impossible, great merchants can buy guilds in small cities and use them like their own factories.'
They let guild masters and executives elect themselves, but it's enough to put on irrefusable shackles by making huge investments.
Seeing this concept appear, the life of guilds in this era doesn't have much time left.
Chris nodded hearing my words.
"Even if we invest all the capital we currently have, we can't create blacksmiths and factories that can meet the volume consumed in military supplies within 2 months. So now it's right to choose to fill the volume even if we give up some profits."
The more middlemen are involved, the more the seller's profit inevitably decreases, and consumers have no choice but to buy at higher prices.
So when buying crops, machines, or any other items, it's always cheaper to buy directly from the producer.
This rule is a truth that applies regardless of the era.
'In Korea, sometimes buying from large corporations is cheaper than buying directly from farmers.'
Even thinking in simple logic, it's like that.
When eating a pie, if three people have to share instead of two, the amount each person can eat decreases.
"Still, later it would be good to gather money, build facilities that can produce items for military supplies, and then increase profits."
That's exactly the general thinking of merchants in this era.
I don't disagree with Chris's statement, but.
Wielding weapons that only integrated trading companies can use would be most profitable for me now.
"Chris, why are you obsessed with the idea that we have to create factories?"
Hearing those words, Chris tilted her head.
"Because handling everything from manufacturing and production to distribution and sales ourselves is the way to make the most profit."
"That's right. But let's change our way of thinking here."
I raised my index finger with my fist clenched.
"Let's say the scale of our transactions is 100, is it more profitable to increase the profit ratio from 30% to 40%?"
Because transportation costs are expensive and there are many risks, it was common for the price of a pig from a rural village to jump 50% when it reached a big city.
Nevertheless, it's often the case that the profit margin isn't as high as expected.
'It's not easy unless you're selling things like seaweed or steel by deceiving people who don't know.'
"Or is it more profitable to increase the transaction amount to 1,000 or 10,000, and maintain the profit ratio at 30%? Which do you think would be more profitable, Chris?"
"Of course, increasing the scale of transactions."
"And now we have many places where we can stretch our legs. I mean the military supplies that trading companies supervised by His Majesty will eat."
There are a total of 35 divisions in our empire.
Of these, I've taken 2, the Emperor has taken 10 of what the Pereira bastards ate, and other great merchants have divided about 23.
In terms of size, I'm only a tuna and can't touch the rice bowls of great merchants who are like blue whales.
If I did, even if I don't disappear without a sound or trace, I'd burst and die crushed under irresistible pressure.
'No, the Emperor would save me as I'm dying and make me a slave (nobility of the robe).'
"You're going to co-opt guilds to match production volume, and take the form of supplying in between, right?"
I'm not sure what expression I'm making now.
A smile formed on my lips involuntarily.
I'm probably making an evil smile, but I don't intend to do anything bad.
I'm trying to build a system where everyone is satisfied and I can see the biggest profit.
"Currently, the industry in the Tuscan Empire is controlled by guilds. More deeply, guilds based in small cities can only do business within small cities, even if they have excellent technology and sufficient capabilities. Unless they sell through trading companies."
To put it badly, guild guys are market gangster groups led by craftsmen.
If someone invades their territory, they even bring their lords or nobles to put the opponent on trial and execute them.
It's very common to dunk people who cross territories in the river bottom.
That's why I didn't even think of fighting when I fought with the Florence Blacksmith Guild without Duke Visconti's backing.
"But how grateful would they be if I played the role of middleman and gave them the opportunity to supply in bulk to the army."
"Even small guild craftsmen wouldn't dislike making money."
Unless you're General Choi Young who treated gold like stones, or Admiral Yi Sun-sin, the incarnation of incorruptibility who was treated as a madman at the time.
Anyone would be tempted if told they could make money.
To put it bluntly, the reason humans live hard is to make money.
'You need money to feed your family, buy a house, and prepare for the future.'
"It would be nice to politely ask them to lower the price a bit in exchange for giving them the opportunity to supply in bulk."
One of the biggest reasons for high prices in 21st century Korea is said to be that middlemen take too large margins.
In our Tuscan Empire, no, anywhere on the Albania continent, half the price of goods is because guilds prevent free market economic price competition between regions and cities.
We should be able to lower the supply price by 40% compared to market price.
"But if we lower our selling price just because we buy things cheaply, other great merchants including the Benaldi Trading Company will be dissatisfied. So let's maintain exactly the current selling level."
How nice to keep the basic formula for making money, and not stimulate great merchants.
"Since I want to save on transportation costs as much as possible, it seems like we can persuade small city guilds near military units one by one, what do you think, Chris?"
Chris's eyes lit up hearing my words.
"You're really amazing, Viscount. Certainly, increasing the profit rate is important, but if there's an opportunity to expand the market, it's better to expand first. If we just organize the details, it seems we could adopt it as the trading company's policy right away."
"Chloe told me to rest today, so I'm planning to rest all afternoon after lunch. Do you think it will affect work if I'm absent?"
"The remaining work is just practical adjustments, persuading small city guild masters and finding business partners. Except for meetings with guild masters, there's no work you need to do directly, so it seems you could rest for a few days. The rest is work for the head butler and administrative staff."
Since Chris isn't someone who would say empty words, I can really rest well now.
"Thank you."
"Not at all, and Viscount..."
She hesitated for a moment before speaking.
"Actually, Director Antonio of Cafe Medici has released a new menu item, and it's a menu for couples to eat together. If you have time, could you go together?"
...... Although Antonio has been given the authority to develop new menus, I never thought he would create a couple's menu in our empire.
'But business will be damn good.'
Young nobles will come once to pretend to eat intimately with their official wives, and twice to flirt with their favorite maids.
Many people will come repeatedly, so it will sell like hotcakes.
"I like the parfait there. And besides you, Viscount, there are no men around me that I have private friendships with."
There's no reason we can't go together.
"I'll go with you after work is sorted out a bit after negotiations with guild masters are completed."
A smile bloomed on Chris's face at those words.
"Yes, Viscount."
And I promised to rest continuously with Chloe this afternoon and tomorrow, and headed to my room.
Chloe looked at me and said in a slightly sulky voice:
"It seems Chris is now openly aiming for you too, young master. But I'm still the one you love the most."
"Today, no, tomorrow I've cleared all schedules. I'll love you until you're sick of it."
Chloe is no longer a virgin, but hearing my words, she bowed her head deeply, probably embarrassed.
With her face red like a bright red apple, she answered in a small voice as if whispering:
"Love me as much as you want, young master..."
After finishing my vacation, my weight decreased by 1kg.
In that state, I got on a carriage and moved towards the city that would become the production consignment base.