Chapter 223 – Diversifying
The guard noted my interaction with the lady and let me pass through the door without saying anything. Beyond it was a simple corridor, with doors on both sides. Each corresponded to an office belonging to someone working for the commerce office. I understood that this was where the real work was happening, the one that made the whole system turn.
I followed the names on the doors until I arrived at one with Clifer written on it. The doorplates only had names without the official position of the person inside, which might be because it was a trend that didn’t exist yet in the kingdom. I knocked, and a voice immediately responded from inside.
“Come in!”
I opened the door and entered. There was a woman, looking busy with paperwork. She was a rank 6 mage and a lynx, a medium-sized feline subspecies common in the kingdom. She stopped working on a document as I made my way inside, observing me.
“Nice to meet you. I’m Tila Urtek, a trader from Geola.”
“Yes, nice to meet you too. I’m Clifer Veng, deputy chief of the commerce office. Who sent you to me?”
“Someone from the reception. She gave me this letter.”
She took it and glanced at it.
“I see. Sit down so we can talk.”
I sat in front of her desk, and she continued when I was comfortable.
“You want to open a store in the capital as a foreigner, correct?”
“That’s right.”
“It’s normally impossible unless you have a royal silver token, or higher.”
“Royal?”
“It sounds intimidating, but it’s the same token you have for Chian. We only call it this because Hyien and its surroundings are the kingdom's property.”
“That makes sense. Is there a way for me to obtain that token?”
“Not really. We don’t offer it to just anybody because it gives its owner a lot of rights. However, this is different from opening a store. The silver token allows you to do many things, including owning property, but that doesn’t mean there’s no way to give that single right without the silver token.”
“I guess you’ll want something in exchange for giving me that right?”
“That goes without saying. You do know about the three great merchant companies, right?”
“Of course.”
“The queen has become dissatisfied with them lately. Are you aware that about 70% of all trading in the continent happens through one of those three companies?”
I knew they were big, but that number was incredibly high. It was almost… monopolistic.
“…They have grown too big?”
“That’s right. Using the free city of Geola and Vejas as a shield, their growth has become explosive. What’s worse is that they signed some kind of deal between them to get almost monopolies on many goods, with each company specializing in certain sectors. They’re able to control the flow and prices of merchandise, and that’s a huge problem for us. They didn’t manage to provide us with what we needed for the war, and whatever they sold us was overpriced. Plus, all their goods are steadily rising in price because they know people have no choice but to buy from them.”
I was learning a lot from this discussion, even though I still didn’t know what she was expecting me to do.
“I understand, but how can a simple merchant like me influence such giant companies?”
She suddenly sent me an impish smile.
“You know about Geola’s situation, right?”
“Yes.”
“Well, it just happens that the heads of the three great merchant groups were in Geola when the epidemic started.”
She chuckled while I realized what she meant.
“Yes, that’s right. They’re completely stuck inside the city and can’t go out! That doesn’t mean the companies stopped working since huge organizations like these can function without their leaders, but they’re definitely not at their top right now. I heard that they need to bribe Geola’s soldiers with a large amount of money whenever they want to send a message outside.”
“You mean that now’s the chance to do something about them?”
“Precisely! And that’s where you come in. While they’re in trouble, we want to diversify our trading partners. We’ll allow you to open a store in the capital if you sign a contract with us.”
“What sort of contract?”
Her grin changed into a professional one.
“It’s very simple. Whatever you sell in Hyien, it should never be priced over 80% of the price from the three great merchant companies. As long as you respect that, the contract will be valid and you’ll be able to continue trading here as long as you want.”
It seemed simple, but that condition was very stringent. If the three great companies truly owned 70% of the trade happening in the region, it meant that I would always need to sell my goods 20% under market price. It might not seem that bad, but that was a lot. If I were to acquire something at 70, and the market price for the good was 100, instead of earning 30 on each sale, my profits would be limited to 10. In this example, my profits would be cut by two-thirds. It could even be worse for low-profit margin goods.
I also understood what the woman hadn’t explicitly expressed.
“You must have given a similar proposal to many other merchants.”
She only smiled meaningfully without answering. However, that wasn’t the end of the issues.
“If I sign such a contract, wouldn’t I become the three great merchant companies’ enemy? Wouldn’t that be similar to a commercial suicide? Or maybe even a real suicide if they take it badly.”
Her lips stretched even further on both sides.
“That’s right. Are you afraid? No one’s forcing you to do it. We want solid partners, and not wimpy merchants ready to give up at the first sign of danger.”
“Will I get any sort of protection?”
“No.”
“You’re giving almost nothing, but you get a lot in return. That contract is overwhelmingly in your favor.”
“You’re the one who wants something from us. There’s only one capital, but there are many traders like you. If you don’t take the offer, someone else will.”
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