From online gas to large-scale transactions, the thod of asking soone to state what they consider a reasonable price is widely used.
On the surface, it seems like a considerate way to give the other party the opportunity to make the first proposal.
It allows one to apply pressure under the guise of understanding the circumstances, which is why it's commonly employed.
"If I state the price first, the other party might say that's difficult, but if I reverse the roles, the initiative shifts to ."
After a long period of contemplation, the blacksmith guild master finally spoke.
“We will deliver our goods at about 30% lower than the prices we sell in this city.”
Even a 30% reduction off the regular price would ensure we secure about 25% of the transaction amount as profit.
To put it more vividly, you could say we're capturing 25% of the economy of a small town.
However, money is always better when there's more of it, and we still have plenty of room for more reasonable discussions.
I crossed my legs and stared into the eyes of the blacksmith guild master.
“Hmmm, just 30%? That’s rather disappointing.”
It’s not good to show a gaze that conveys contempt or any negative feelings at tis like this.
The best approach is to give them a completely uninterested look.
I have to make them feel as if there’s no point in continuing the discussion under such conditions.
After all, it’s not who’s in a hurry; it's them.
Even when fishing, one often waits 3 to 5 hours with bait out to catch a big fish.
If they can’t afford to wait casually when making such a significant deal—one that’s incomparable to fishing—that's just unqualified.
A lengthy silence ensued between and the guild master.
I could see a bead or two of cold sweat start to trickle down his face.
“... 35%! Really! We absolutely cannot go any lower! If we reduce it further, we won’t have anything left!”
You should speak correctly, my friend.
What you're saying isn’t that you have nothing left to spare; it ans you don’t want to concede beyond that because your greed keeps increasing.
In the 21st century, perhaps, but in this era, guild exclusivity and collusion are fully applied to product transactions.
Do you think I don't know that the selling price to citizens is more than 100% above the production cost in profit?
Our rchant group may not belong to the guild, but we’re quite familiar with such transactions involving seaweed, steel, coffee, and more.
“It’s getting late, so I’ll take my leave now. I’ll see you again when the opportunity arises.”
I said this as I finished the tea in my cup.
As I grasped the armrest to rise, the guild master rely stared at with his mouth agape.
I moved deliberately slowly, causing his mouth to hang open in sync with my movents.
“Ah, ahh.”
The blacksmith guild in this city probably produces about 70% of the weapons, armor, and tools.
‘The remaining 30% must be purchased from other rchants or guilds. Complete monopoly is impossible from the start.’
Regardless, even if they manage to collude properly, supplying 70% of the goods in this city should yield them so profit.
However, that amount isn’t likely to be large.
The majority of the population, composed of farrs, only use cheap tools and equipnt that don’t cost much, and repairs are done at the village blacksmith.
There are quite a few citizens, but for them, buying one or two swords for self-defense is the extent of their expenditures.
The ones purchasing the most weapons would be the lord's guards and local military, numbering only about 1,000, so the scale isn’t that large.
‘But to penetrate a transaction for a division of 8,000 n?’
The scale of the transaction amount could realistically increase by about 5 to 6 tis.
Even if their profit decreases, they should still see several tis the inco they earn annually.
“P-Please wait a mont! Baron dici!”
Upon hearing that, I halted my movent briefly.
“I will give you a 50% discount! We will sell at 50% of the cost price! At this price, we will barely make a minimum profit! If it goes any lower, we will genuinely starve!”
Humans are not a species that communicates solely through spoken words.
Words, expressions, situations, atmosphere, body movents.
Only by comprehensively observing these can one finally understand the intentions behind what the other party is saying.
So, I carefully watched the guild master.
Desperation was palpable in his words, and I could see his movents wanting to reach out and grab , but being unable to due to my status.
Now, he seed to be speaking the truth.
‘Still, rchants won’t forgo profits, so even with that, they must be leaving quite a bit of money on the table for themselves.’
“50%, can you really lower it that much?”
“I hesitate to say this, but Baron, you are well aware of the rchant ecosystem, so I will speak honestly. The prices of the goods the guild puts on the market have been artificially inflated by the artisans colluding to exceed the actual production costs by a bit over double.”
When I looked into the Florentine blacksmith guild, it turned out to be three tis.
Since you’re a rural guild with low transaction volus, it seems likely to be about 3.2 tis.
Even if I demand a cut down to half, it will still be 160% of the production cost, leaving them with a 60% profit margin.
Still, they need to make enough profit from our transaction to maintain a good relationship with going forward.
I have to turn a blind eye to this much.
‘We need to make a deal that satisfies both parties for long-term benefits.’
Only trying to drive small businesses into bankruptcy, like the malicious primary contractors in Korea, by offering them prices that barely keep them afloat is akin to drinking saltwater out of thirst.
So, I’ll pretend to play along.
“Understood, I wasn’t born a rchant, so I was unaware. You are quite conscientious.”
“Thank you. Can you accept this?”
I nodded in agreent as I looked directly at the guild master.
“I hope the contracts with other guilds go just as smoothly.”
While the product contracts needed for different types of military supplies would have varying terms, they would likely proceed in a similar manner.
“The goods will be transported directly by our dici group, so you need not worry about transportation costs.”
“Thank you!”
“Our group values trust above all else. Delivery and product quality must adhere to the minimum standards.”
It’s a common practice to mix in cheap items for weapons or armor used by non-commissioned officers and soldiers who lack a voice during military supply.
Doing that and giving a little bribe leaves more money.
However, to expand into a comprehensive trading company, trust must be rigorously maintained.
Quality and delivery deadlines must be strictly observed.
“I’m pleased that we could have a productive discussion. Later, I will gather the guild masters in this city and buy them a drink.”
In Joseon, the thought of a nobleman dining with a rchant seems almost unimaginable, but in the Toscana Empire, such things pose no issue.
Of course, while we could eat together, there exists an ‘invisible wall’ that cannot compare to the gatherings in Korea. But isn't the heart what truly matters?
“I’ll take my leave now. You should also get so rest tonight, and prepare for a busy day tomorrow.”
Shortly after concluding the conversation with Fabio, the blacksmith guild master summoned all the other artisans.
In the building that serves as both a guild and an inn, the artisans were each holding a mug of beer.
Beer is a beverage rather than an alcoholic drink, so it's acceptable to drink it during serious discussions.
The master didn’t make any specific remarks about them.
“Baron dici, who is garnering significant attention among the other nobles in our city, has arrived.”
The upper artisans, who were officials of the guild, knew the na Baron dici, but most of the mbers were unfamiliar with a person famous only in the center.
And frankly, they wouldn’t need to know unless they climbed higher up the ladder.
These artisans barely recognized the na of the emperor, let alone which families were dukes.
“Yesterday, Baron dici visited us and entrusted us with the production of weapons, armor, and tools needed for supplying one division to our Perugia blacksmith guild.”
Upon hearing this, everyone put down their beer mugs.
They all recognized that it was a ‘great event’ that shouldn’t be heard in a state of drunkenness.
“The selling price will be half of our Perugia city’s standard price. However, the volu of sales will be five tis the amount we sell in this city every year. This demand will be regularly guaranteed.”
Simultaneously, all the artisans clenched their fists tightly.
‘A golden opportunity to make money has arrived.’
“We have secured an amount that is 2.5 tis our annual sales. Of course, to et that demand, we’ll have to grab the impoverished people of the city by the neck and turn them into apprentices, treating them like dogs. But still, the money that will end up in your pockets will be significantly higher, right?”
This is an undeniable truth.
“I will allocate production quotas for you. For the ti being, don’t even think about touching alcohol, or rather beer, and work yourselves to the bone. If you can’t et the delivery deadlines or quality standards, the deal will be cut.”
At those words, the guild's second-in-command, the deputy master, asked a question.
“Can we mix in scrap iron or pig iron with steel in a way that’s not noticeable? We’ve all been doing that to gradually increase our profits.”
The guild master broke into a cold sweat.
What kind of fool would do that and get caught by Baron dici?
‘From what I’ve heard, he’s known for being rcilessly thorough with those who break promises.’
There are rumors of a certain baron who received a bribe and didn’t grant permission for a trading company establishnt, only to suffer an ‘unnatural death’...
What would happen if they produced ‘deliberate defective products’ due to a failure to manage their guild properly?
No one could predict what that rabid dog might do.
In the worst-case scenario, blacksmith guild mbers, including himself and the upper artisans, might find themselves out on the street.
“Our baron might tolerate being cheated discreetly, but don’t think about trying to fool Baron dici. It’s just a feeling of mine, but when I ntioned that I would take only double the production cost, he seed to have an expression that said he knew everything and was just playing along. No, it felt more like he was just pretending to be deceived.”
At those words, the other artisans felt a shiver run down their spines.
To guarantee their profits, the other party had already been deceived once.
But if they attempted to deceive them again?
‘They could genuinely die.’
The deputy master quickly flashed an awkward smile before seriously advising.
“There’s no larger trading partner than Baron dici. Don’t think of cheating! Anyone caught deliberately producing defective goods will have their heads smashed by with a hamr.”
“Yes, Deputy Master!”
Then, they rushed out to the impoverished areas to hire (or rather, kidnap) workers.
Although they hadn’t physically trained, working as a blacksmith would make their upper and lower bodies quite sturdy.
It is said that after twenty years in the forge, even a diocre knight could be defeated purely by strength.
So, when these artisans went in groups wielding hamrs...
“Uagh, please spare , Master Artisan!”
“Are we here to kill you? How long are you going to hide out in the slums?! You need to work hard and live well! Get married and everything! From today on, you’re our blacksmith apprentice, so work like a dog!”
“What does that even an?”
“We’re saying we’ll make you a citizen (legal slave)!”
The city guards turned a blind eye to the uproar.
The mayor was inford, but he too overlooked the artisans' noble intentions to rehabilitate the impoverished.
Perhaps similar events were happening among various guilds?
On that day, nearly half of the city’s impoverished population diminished.
A few weeks later, the guild masters received comndations from the baron, the lord of the city.
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