Chapter 66
From online games to large-scale transactions, the technique of asking the other party to state their appropriate price was widely used.
On the surface, it seemed like consideration, giving the other party the first chance to propose.
It was often used because it allowed one to put pressure on the other party while pretending to understand their situation.
'If I state the price first, the other party will say it's difficult, but if it's the opposite, the initiative comes to my side.'
After a long deliberation, the blacksmith guild master opened his mouth.
"We will supply at about 30% lower than the price of items we sell in this city."
Even if they lowered it by just 30% of the regular price, we could stably secure about 25% net profit of the transaction amount.
To put it more tangibly, it would be like eating 25% of a small city's economy.
However, the more money the better, and we still had plenty of room for more reasonable dialogue.
I crossed my legs and stared into the blacksmith guild master's eyes.
"Hmm, just 30%? This is quite disappointing."
It's not good to look with eyes that give negative feelings like contempt at times like this.
It's best to just give a look of no interest at all.
Because I needed to give the feeling that I was angry or that it wasn't worth talking with such conditions.
Anyway, it wasn't me who was in a hurry, but them.
Even when fishing, it's common to wait 3-5 hours after spreading bait to catch a big fish.
If you can't even think of waiting leisurely for a deal incomparably bigger than mere fishing, that would be substandard.
A rather long silence continued between me and the guild master.
Even cold sweat began to flow a drop or two on the master's face.
"...... 35%, really! Really, no more than this! If we lower it any more, we won't have anything left!"
You should speak straight, my man.
It's not that you can't leave anything for yourselves, but you don't want to concede more than that because you keep being greedy.
Maybe not in the 21st century, but this era is a world where guild exclusivity and collusion are fully applied to product transactions.
Do you think I don't know that the regular price you sell to citizens leaves over 100% net profit compared to production cost?
Although our trading company isn't affiliated with a guild, we're used to such transactions with things like seaweed, steel, and coffee.
"It's late today, so I should go back to rest now. Let's see each other again when there's another opportunity."
Saying that, I finished the tea in my cup.
As I grabbed the armrest of the chair to stand up, the guild master just stared at me with his mouth open.
As I moved deliberately slowly, his mouth opened wide in sync with my movements.
"Ah, aah."
The blacksmith guild of this city would be producing 70% of the weapons, armor, tools and such in Perugia.
'The remaining 30% would be bought from other great merchants or trading companies. Complete monopoly is impossible from the start.'
Anyway, if they properly collude and supply 70% of this city's goods, they should be able to make some profit.
But that amount wouldn't be large.
The farmers, who make up the majority of the population, only use cheap tools or instruments that don't cost much money, and repairs are done at village forges.
There are quite a number of citizens, but they only buy one or two self-defense longswords in their lifetime.
The ones who buy weapons the most would be the lord's guards and local troops, but they're only about 1,000 people, so the scale wouldn't be that large.
'But to break into a division-scale deal of 8,000 people?'
The scale of the transaction amount could actually increase 5 times, maybe even 6 times.
Even if they reduce profits, it would be several times what they earn annually.
"Wa-wait a moment please! Viscount Medici!"
Hearing those words, I paused my movement for a moment.
"50%! We'll discount 50% of the cost price! At this price, we're really selling with just the minimum profit left! If we lower it any more, we'll really starve to death."
Humans are not a species that communicates only through words when communicating.
Words, expressions, situations, atmosphere, body movements.
Only by comprehensively looking at these can we understand what intentions the other party has in their words.
So I carefully observed the guild master.
His words were dripping with desperation, and his body language clearly showed he wanted to reach out and grab me but couldn't touch me directly because of my status.
Now it seemed he was telling the truth.
'Still, merchants wouldn't give up profits, so even at that rate, they'd be making quite a bit of money from their perspective.'
"50%, can you really lower it that much?"
"I'm a bit hesitant to say this, but since you're someone who knows merchants' nature well, I'll speak honestly. Actually, the price of items we put out in the market from the guild is forcibly raised to just over twice the actual production price through collusion among craftsmen."
When I investigated the Florence Blacksmith Guild, it was 3 times.
You're a rural guild with low transaction volume, so it's probably 3.2 times.
Even if you cut it in half as I demanded, it's 160% of the production cost, so you're still left with 60% in the end.
Still, they need to make a lot from dealing with me to maintain a good relationship in the future.
I could turn a blind eye to this much.
'We need to make deals that both sides can be satisfied with to see profits over a long period.'
Beating down prices to the point where small and medium-sized companies barely avoid bankruptcy, like the evil prime contractors of South Korea, is like drinking salt water when thirsty.
So I'll pretend to be fooled.
"I see, I wasn't a merchant from birth so I didn't know well. You're quite conscientious."
"Thank you. Can you accept this much?"
I immediately nodded to the guild master in agreement.
"I hope contracts with other guilds go well too."
Although contract conditions would differ for products needed for other types of military supplies, they would proceed in a similar vein.
"Our Medici Trading Company will transport the goods directly, so you don't need to worry about transportation costs."
"Thank you!"
"Our trading company values trust above all else. Make sure to maintain at least the minimum standards for delivery dates and product quality."
Mixing in cheap stuff for weapons or armor used by non-commissioned officers and soldiers who have no say in military supplies is done the same everywhere.
Because it leaves more money after giving a little bribe.
But to expand in the integrated trading company style, we need to strictly keep trust.
Quality and delivery dates must be absolutely observed.
"I'm glad we could have a productive conversation. Later, I'll gather the guild masters of this city and buy them a drink."
In Joseon, it would be unimaginable for yangban and merchants to share a table, but in the Tuscan Empire, that much is no problem.
Of course, while eating together is possible, there would be an 'invisible wall' incomparable to Korean company dinners, but isn't the heart what's important?
"I'll be going in now. You should sleep early tonight and start working busily from tomorrow, right?"
**
Immediately after finishing the conversation with Fabio, the blacksmith guild master called all the other craftsmen together.
In the building used as both guild and inn, the craftsmen were all holding a mug of beer each.
Since beer is a drink, not alcohol, it's okay to drink during serious conversations.
The master didn't particularly point this out to them.
"Viscount Medici, who is receiving great attention among other nobles in our city, has come."
The senior craftsmen who were executives of the guild here knew the name Viscount Medici, but.
Most members didn't know high-ranking people who were only famous in the center.
And honestly, there's no need to know unless you rise high.
These people barely know the Emperor's name, let alone which families are ducal families.
"Yesterday, Viscount Medici visited us and entrusted our Perugia Blacksmith Guild with the production of weapons, armor, tools, etc. that go into military supplies for one division."
Hearing those words, everyone put down their beer mugs.
They all realized this was 'good news' that shouldn't be heard with even a little alcohol in their system.
"The selling price of goods is half of our Perugia regular price. However, the sales volume is 5 times the amount of goods we sell annually in this city. This demand will be regularly guaranteed."
At those words, all the craftsmen clenched their fists tightly.
'A golden opportunity to make money has come.'
"The volume we've secured is 2.5 times our annual sales. Of course, to meet that demand, we'll have to grab the city's poor by the collar and make them apprentices, working them like dogs. But still, the money going into your pockets will be a lot, won't it?"
This was an undeniable truth.
"I'll allocate production quotas. For the time being, don't even think about touching alcohol, no, beer, and work to death. If you can't meet delivery dates and minimum quality standards, the deal will be cut off."
At those words, the guild's second-in-command vice master objected:
"Then can we mix in scrap iron or pig iron with steel inconspicuously? We've all been doing that to increase our profits a bit more."
The guild master broke out in a cold sweat.
What if some idiot actually did that and got caught by Viscount Medici?
'From what I heard about that person, he thoroughly and severely retaliates against those who break promises with him.'
There was a rumor that some viscount who didn't issue a trading company establishment permit after taking a bribe died a 'questionable natural death'...
If 'intentionally defective products' rather than mistakes come out due to poor management of his guild?
Who knows what that mad dog would do.
In the worst case, he and the senior craftsmen in the blacksmith guild could all end up on the streets.
"We can deceive our baron to an extent that's not noticeable, but don't think about deceiving Viscount Medici. This is just my feeling, but when I cried and wailed saying we're only eating twice the production cost, he seemed to pretend to be fooled with an expression like he knew everything. No, it felt like he was just pretending to be fooled."
At those words, the other craftsmen felt chills down their spines.
The other party has already pretended to be fooled once to guarantee their profits.
But if they try to deceive him twice?
'We could really die.'
The vice master immediately gave an embarrassed smile for a moment, then advised with a serious expression:
"There's no bigger client than Viscount Medici. Don't think about deceiving him! If anyone intentionally makes defective products, I'll find them all and smash their skulls with a hammer."
"Yes, Vice Master!"
And they immediately rushed into the slums to recruit (kidnap) employees.
Although they hadn't trained their bodies, blacksmith work makes the upper and lower body very sturdy.
So much so that there's a saying that after 20 years of forge life, you can beat a mediocre knight in strength.
With such craftsmen going in groups with hammers in one hand...
"Aack, please spare me, Master Craftsman!"
"Are we going to kill you? How long are you going to stay cooped up in the city slums?! Shouldn't you work hard and live well? Get married too! From today, you're our forge apprentice, work like a brown cow!"
"What are you saying?"
"We're saying we'll make you a citizen (legal slave)!"
The city guards pretended not to see this commotion.
As expected, a report went to the mayor, but the mayor also noticed the kind intentions of the warm-hearted craftsmen rehabilitating the poor and turned a blind eye.
Perhaps thanks to similar incidents occurring in various other guilds?
On this day, the number of poor in this city decreased by nearly half.
A few weeks later, the guild masters received commendations from the baron who was the lord of this city.