NOVEL NEXT Chapter 66
In online games and large-scale transactions, the tactic of asking the other party to suggest a reasonable price is a classic.
On the surface, it seems considerate, giving the other person a chance to propose first.
But in reality, it allows the speaker to apply pressure while pretending to understand the situation, making it widely used.
“If I state the price first, the other side will say it’s too expensive, but if I let them go first, the initiative shifts to me.”
After long contemplation, the Blacksmith Guild Master finally spoke up.
“We will deliver our goods at around 30% lower than the prices in this city.”
Even lowering the base price by just 30% can secure a stable profit margin of about 25% for us.
To put it more relatable, think of it as taking 25% out of the small city’s economy.
However, the more money, the better. We still have room to negotiate more reasonably.
I crossed my legs and gazed into the eyes of the Blacksmith Guild Master.
“Hmmm, just 30%? That’s a bit disappointing.”
It’s best not to give off a look of contempt or negativity in moments like this.
Nonchalance is the key.
I need to convey that I’m not even interested enough to be mad or that this condition is unworthy of dialogue.
After all, I’m not the one in a hurry; they are.
Even when fishing, luring the big catch often requires 3 to 5 hours of waiting after baiting.
If they can’t even wait for a big deal that’s leagues above mere fishing, then they don’t meet the standards.
A considerable silence lingered between me and the guild master.
I noticed beads of cold sweat starting to trickle down his face.
“… 35%, really! We can’t go any lower! If we cut it further, we won’t have anything left!”
Speak clearly, buddy.
It’s not that what you leave behind will vanish; it’s more about your greed making you unwilling to concede beyond that point, right?
In the 21st century, maybe. But in this era, the exclusivity and collusion of guilds apply fully to goods trading.
Do you think I wouldn’t know that the listed prices sold to citizens rake in over 100% profit compared to production costs?
Our merchant guild isn’t attached to the Blacksmith Guild, but we’ve become adept at such trades involving seaweed, steel, and coffee.
“Today’s getting late, I should head back and rest. Let’s catch up another time.”
With that, I downed my cup of tea.
As I grabbed the armrest to stand up, the guild master just stared at me, mouth agape.
Deliberately moving slowly, his mouth opened wider in sync with my actions.
“Ah, ahh.”
The Blacksmith Guild in this city produces about 70% of weapons, armor, and tools.
‘The other 30%? They must be buying from other merchants or guilds. Total monopoly is impossible.’
Regardless, just by properly colluding to supply 70% of the goods in this city, they’d stand to gain something.
But the profits won’t be huge.
Most of the population consists of peasants who only buy cheap tools that don’t cost much, and repairs are done at local smithies.
Sure, there are a number of citizens, but they’re only ever buying one or two swords for self-defense in their lifetime.
The biggest buyers of weapons are likely the lord’s guards and local militia, but with only about 1,000 men, that’s not a big scale deal.
‘But securing a contract for an 8,000-man division?’
The total transaction amount could realistically increase by 5 or even 6 times.
Even if they lower their profits, they’ll still be making several times more than what they earn annually.
“P-please wait a moment! Medici Young Baron!”
I paused momentarily when I heard that.
“50%! We’ll discount to 50% of the cost! At this price, we’ll barely scrape by with the minimum profit! If we go lower, we’ll really starve!”
Humans aren’t just a species that communicates through words.
Words, expressions, situations, ambiance, and body language all combine for a comprehensive understanding of the meaning behind their words.
So I observed the guild master keenly.
Desperation was oozing from his words, and his body language showed he wanted to reach out and grasp my hand but hesitated due to my status.
It almost felt like he was finally being honest.
‘But still, merchants never forgo profits, so despite this, they must be leaving a decent margin.’
“50%? Can you really go that low?”
“I don’t mean to put you on the spot, but you understand the ecosystem of merchants well. Honestly, the prices we offer at the guild are artificially inflated over 2 times the actual production cost due to collusion among craftsmen.”
When I looked into the Florence Blacksmith Guild, it was more like 3 times.
Given that they’re a rural guild with lower transaction volumes, it could be around 3.2 times the cost.
Even if I were to demand a cut in half, that’s still 160% of the production cost, so they’d still be keeping 60%.
However, they need to gain enough profit through our trade to maintain a good relationship moving forward.
I might have to overlook this.
‘To maintain a mutually satisfying deal, both sides should benefit in the long haul.’
It’s thirsty work to squeeze out just enough for survival like the wicked upper-tier companies that starve small businesses to the brink of bankruptcy.
Thus, I’m ready to play along.
“Very well, I wasn’t born a merchant, so I didn’t understand. You’re quite conscientious.”
“Thank you! Can you accept this arrangement?”
I nodded in agreement, affirming to the guild master.
“I hope negotiations with other guilds go this smoothly.”
The terms for other supply contracts will vary, but it’s likely to proceed in a similar manner.
“We’ll transport the goods directly from our Medici merchant guild, so you don’t need to worry about shipping costs.”
“Thank you!”
“Our guild places trust above all else. We will ensure the delivery and product quality at a minimum standard without fail.”
Mixing cheap junk into equipment and armor used by non-commissioned officers and soldiers with no say when it comes to supplying military requisitions is something that happens everywhere.
Doing that and squeezing out a bit of bribe money ends up yielding more.
But to expand like a general trading company, trust must be upheld strictly.
Quality and delivery deadlines must be met without exception.
“I’m glad we could have a productive conversation. I’ll gather the guild masters of this city later and treat them to some drinks.”
In Joseon, it’s hard to imagine a noble dining with a merchant, but in the Toscan Empire, that’s entirely acceptable.
Of course, while the act of dining together is fine, there will still be an ‘invisible wall’ far beyond comparison to a typical Korean gathering. What truly matters is the spirit, right?
“I’ll be heading in now. You should get to bed early tonight too; you’ll need to work hard starting tomorrow.”
Just after finishing my talk with Fabio, the Blacksmith Guild Master called upon the other craftsmen.
In the building that serves as both guild and inn, the craftsmen were all holding mugs of beer.
Beer is a beverage, not an alcoholic drink; hence, it’s perfectly fine to enjoy it during serious discussions.
The master didn’t scold them for that.
“Our city is honored to have the Mediсi Young Baron among us.”
The higher-ranking craftsmen in the guild knew the name Medici Young Baron, but most of the members had only heard of distinguished figures famous in the central regions.
And honestly, they didn’t need to know unless they’d risen high enough.
Most could barely remember the emperor’s name, let alone which families were dukes.
“Yesterday, the Medici Young Baron visited us and entrusted the production of weapons, armor, and tools for a full division’s military requisitions to our Perugia Blacksmith Guild.”
Everyone put down their mugs upon hearing that.
They all realized this was a matter of ‘fortune’ that they shouldn’t hear with a buzz from alcohol.
“Our selling price will be half of our Perugia city’s standard. However, the volume of sales will be five times the amount we ordinarily sell annually in this city. This demand will be guaranteed regularly.”
With those words, all the craftsmen clenched their fists tight.
‘A golden opportunity to make money has arrived.’
“The supply volume we secure will be 2.5 times our annual sales. Of course, to meet that demand, we might have to grab the throats of the city’s poor and turn them into apprentices, working like hounds. But the money that will fill your pockets will be enormous, right?”
This is an undeniable truth.
“I’ll assign you your production quotas. For the time being, don’t even think about touching alcohol, let alone beer. If we fail to meet deadlines or keep quality standards, our deal will be off.”
At those words, the guild’s second-in-command, the Deputy Master, questioned.
“Then is it okay to discreetly mix scrap metal or pig iron into the steel? We’ve all been doing this gradually to increase our profits.”
The Guild Master broke into a cold sweat.
What would happen if some idiot actually did that and got caught by the Medici Young Baron?
‘I heard that guy retaliates cruelly against those who break promises.’
It’s just rumors, but isn’t it said that a certain baron who took bribes ended up facing an ‘mysterious demise’?
If subpar goods born not out of ‘mistakes’ but ‘intent’ come out because they can’t manage their guild?
Who knows what that lunatic might do?
In the worst case, all the high-ranking artisans, including himself, could end up homeless on the streets.
“Our baron is okay to be deceived to a certain degree, but don’t even think about fooling the Medici Young Baron. This is just my feeling, but when I cried about how I’d be left with just 200% as a production cost, I got the distinct impression he was pretending to believe me, like he already knew everything. No, it actually felt like he was only acting as if he was fooled.”
That sentiment sent chills down the backs of the other craftsmen.
The other party had already pretended to take one deception for the sake of their interests.
But what would happen if they tried to deceive him a second time?
‘You might actually die.’
The Deputy Master quickly replaced his awkward smile with a serious expression.
“There’s no bigger client than the Medici Young Baron. Don’t even think about cheating! I’ll hunt down anyone who purposely delivers defective goods and smash their heads with a hammer.”
“Yes, Deputy Master!”
With that, they charged off to hire (or kidnap) employees from the slums.
While these craftsmen weren’t particularly physically trained, working as blacksmiths certainly honed their upper and lower bodies.
It’s so famous that after 20 years in a forge, even a shabby knight can win with brute strength.
With such craftsmen heading into the alleyways wielding hammers in gangs…
“Ugh, please spare me, Master Craftsman!”
“Are we here to kill you? How long will you keep hiding in the slums, huh?! Work hard and maybe you’ll live a good life. You’ll even get married! From today onward, you’re our apprentice at the forge, now work like a dog!”
“What do you mean by that?”
“We’re offering to make you a citizen (legal slave)!”
The city guards turned a blind eye to the ruckus.
Reports reached the market, but the mayor turned a blind eye, sensing the generous intentions of the warm-hearted artisans trying to rehabilitate the poor.
Could it also be that similar activities were happening in various guilds?
That day, the number of the city’s poor neighborhood residents was reduced by almost half.
The guild masters were awarded a commendation by the city’s lord baron just a few weeks later.