Everything Under Control
A chorus of gasps filled the air as the leading pharmacists and herb gathering team leaders stared wide-eyed at Xiao Yan.
They all wondered if they were hallucinating! Xiao Zhan was equally shocked, but trusting in his son, he suppressed his urge to question Xiao Yan, maintaining a calm facade.
A middle-aged man stood up, cupping his fist in salute to Xiao Yan, and said, "Young Clan Leader Xiao Yan, it's not that I don't trust you, but may I ask, do you know how many gold coins are needed to purchase a year's worth of these herbs?"
The pharmacists' astonishment stemmed from the sheer magnitude of the sum! Unless it was the Mittel Auction House headquarters, even the Wutan City branch couldn't produce that much cash.
Herbs weren't solely for pill concoction; apothecaries also used them for medicine to treat injuries and illnesses. The majority of Wutan City's herb consumption went to apothecaries for medical purposes.
Xiao Yan set down his teacup, mentally calculating, and said, "While these four herbs are the lowest grade, they aren't cheap. Our Xiao Clan also sells these herbs, so I know your annual output. I've roughly calculated that the pharmacists' cultivation combined with the Wutan City herb gathering teams produce about thirty thousand gold coins' worth of each herb annually. Adding our offer, which is fifty percent above the market price, that's forty-five thousand gold coins per herb, totaling four herbs."
"So, annually, it would require one million eight hundred thousand gold coins, and for three years, it would be five million four hundred thousand gold coins. The deposit is ten percent, so if you agree, I'll immediately give you five hundred and forty thousand gold coins."
Xiao Zhan's heart skipped a beat. In reality, it was more than that, because the pharmacists and herb gathering teams only accounted for about half of Wutan City's supply; the Mittel Auction House held the other half!
Last year, the Xiao Clan spent over four hundred thousand gold coins to buy a Mystic Rank high-level Cultivation Method. The clan's wealth had already been significantly depleted, and they couldn't afford that much money! Hearing Xiao Yan's clear calculations, the pharmacists began to chatter amongst themselves. Xiao Yan waved his hand impatiently, saying, "Alright, alright, if you want to discuss, go back and do it behind closed doors. Give me your answer by tomorrow morning."
Even Xiao Zhan didn't know what medicine Xiao Yan was selling in his gourd. Why was he driving the guests away at this moment?!
"Then we'll take our leave first and visit Clan Leader Xiao Zhan and Young Clan Leader Xiao Yan again tomorrow morning."
With Xiao Yan issuing the order to leave, everyone breathed a sigh of relief and departed.
Once everyone had left, Xiao Zhan immediately asked, "Yan'er, if you let them leave like this, they'll definitely run to the Galio Clan and Oba Clan overnight."
Xiao Yan smiled and said, "That would be for the best."
"Hmm? Yan'er, you... could it be that you don't want to monopolize the herbs and cut off their source, but rather to raise the price of the herbs?!"
Xiao Yan didn't hide anything, nodding and saying, "Dad, if our clan partners with an alchemist to sell pills, what's the profit split?"
Xiao Zhan thought for a moment and said, "If the clan is responsible for the herbs, a five-five split is generally ideal. The alchemist gets fifty percent of the profit, herb costs are twenty percent, sales, packaging, and labor are ten percent, and the clan's income is twenty percent."
"But in most cases, it's a six-four split, with the alchemist taking the larger share. After all, alchemists are hard to come by, and the clan is already grateful to have ten percent of the income."
!!?
Xiao Zhan suddenly understood, looking at his son with surprise and joy, and said, "So that's why you want to raise the market price of herbs by fifty percent! That way, the herb premium will be equal to the profit, and they'll lose money if they dare to raise prices. Liu Xi won't lower his profit, so the increased cost can only be deducted from the clan's profit. You want the Galio Clan and Oba Clan to lose money every time they sell a pill!"
Xiao Yan said casually, "In the past two months, their town market has raised the price of Spring Return Powder from one hundred gold coins to three hundred gold coins, which is already the upper limit of mercenaries' purchasing power, and it has also accumulated a lot of public resentment. Once they run out of pills, it will be the last straw that breaks the camel's back. Even if we do nothing, no one will go to their town market to buy anything anymore."
"If they choose to transport herbs from the Outer City, they're guaranteed to go bankrupt if we intercept them even once."
Xiao Yan and his father raised their eyebrows, like two foxes, one big and one small.
...
Late at night, just as Xiao Yan had predicted, the Galio Clan was still brightly lit, and Oba Pa and some Oba Clan elders were also present.
"That damned Xiao Zhan! He's playing dirty tricks on me!" Galio Bi smashed a cup. Several pharmacists had already come by.
For pharmacists and herb gathering teams, it was best for these clans to bid against each other, as that would maximize their profits.
"Dad, should we just give up? If we offer sixty percent, we'll lose money. We can transport herbs from the Outer City," Galio said cautiously.
"You know nothing! Xiao Zhan's goal is to make us spend money to buy herbs from the Outer City. Once we leave Wutan City, we won't be protected. We're in the open, and they're in the dark. If the herbs are intercepted and stolen, the consequences will be unimaginable."
After being scolded by Galio Bi, Galio immediately shut his mouth and dared not speak.
Oba Pa's expression was gloomy: "What a Xiao Zhan, this is simply a blatant scheme. Brother Bi, should we lower the price first to stabilize public opinion?"
"Lower the price?" Hearing this, Liu Xi, who was sitting on the side, frowned, obviously unwilling. After all, he was splitting the profits based on sales, and the difference between sixty percent of three hundred gold coins and sixty percent of one hundred gold coins was huge.
Liu Xi curled his lips and said, "Do whatever you want, but even if you lower the price, you still have to give me a share based on the previous triple price."
Galio Bi and Oba Pa now just wanted to slap this guy to death.
Galio Bi thought for a moment and said, "There's no need to lower the price. As long as the herbs aren't more than fifty percent above the market price, we can still break even. Once the merchants in the Xiao Clan's town market have all moved away, we'll still have the last laugh."
"Tell those pharmacists that we'll only give them fifty percent above the normal market price, no higher, but we can sign a five-year contract with them and give them a twenty percent deposit."
"If they're not willing, then let them go to the Xiao Clan. We'll go to the Mittel Auction House and ask them to prioritize selling us herbs."
However, they also knew that when it came to shrewd merchants, Mittel Ya Fei was the biggest in Wutan City. She would probably know about this matter, and the next time they went to the auction house to buy herbs, those herbs would definitely have their prices raised under various pretexts.
Galio Bi only hoped that that vixen wouldn't be too ruthless.
...
Early the next morning, just as Xiao Yan had predicted, those pharmacists went to the Xiao Clan again, but this time Xiao Zhan directly gave them the cold shoulder, unwilling to raise the price further, and not even wanting to talk.
And just like that, the entire Xiao Clan once again fell into silence. But everyone knew that this was the calm before the storm.
Five days later.
"Young Clan Leader, the two great clans have already signed contracts with all the pharmacists and paid the deposits," Xiao Ning hurriedly ran into the Council Hall.
Xiao Yan revealed a confident smile, waved his hand, and commanded, "Third Elder, find a few disciples with unfamiliar faces, disguise them as pharmacists from other places, and sell all the low-level medicinal herbs that the clan stockpiled half a year ago, except for the items on this list, to the Galio Clan and the Oba Clan, as well as those few pharmacists, at high prices."
"Second Elder, you immediately take people to various underground venues and town markets to spread the news. Say that the Xiao Clan has obtained the formulas for the Spring Return Powder and the Little Dou Qi Pill, and has already hired an alchemist to refine these two kinds of pills, which is why they are competing with the two great clans for medicinal herbs. Also, say that the Xiao Clan Leader will go to the Mittel Auction House to discuss long-term cooperation."
"Great Elder, have people post notices in all of our Xiao Clan's town markets and industrial sites. I want everyone in the city to know that all of our Xiao Clan's town markets will soon have pills for sale, and the prices will be cheaper than those in the Oba Town Market, with even stronger effects."
"Father, please be patient and wait until tomorrow, then go to the Mittel Auction House to clarify things with Miss Ya Fei. Say that the rumors in the market are false, and we have not obtained the formulas for the Spring Return Powder and the Little Dou Qi Pill. Promise that we will absolutely not compete with the two great clans for medicinal herbs, and the Mittel Auction House can rest assured in cooperating with the two great clans on medicinal herbs. Furthermore, the Xiao Clan will attend the Mittel quarterly auction in three days upon invitation."
After speaking, Xiao Yan closed his five fingers together, as if everything was in his grasp!
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