Chapter 570 I invite you to build a factory
While Adele was watching several big men helping the stones to wear armor, Frederick was attending a banquet at the palace of the Grand Duke of Milan.
This is an informal buffet-style banquet, which is now increasingly accepted by upper class society because everyone has a chance to talk.
Before the banquet started, Frederick and Edwards, the Archduke of Milan, had a private chat between the two of them in the study.
After talking about the weather and customs, Edwards asked Frederick: "Do you think Milan is a suitable place to make a fortune?"
Frederick replied: "I only have a superficial understanding of the city of Milan, but I have already felt the enthusiasm of the people here."
He was talking about asking the businessmen in the tavern last night if they were willing to do it. Edwards thought the replies he received after some industrial investments were from the girls who ran to his residence last night and came out at noon today, with smiles on their faces that could only be understood but not explained.
Frederick pretended not to see it and continued: "The most profitable industries are always those that people cannot live without, such as clothes, food, travel and daily necessities."
Edwards Agreeing: "That's true. Because anyone can do these businesses, there are many people doing them. Everyone doesn't seem to make much, but the profits of the entire industry are very scary."
Fitter Lie added: "The introduction of new industries will lead to a new problem. Have you heard of the burning of Weisenbu?"
Edwards nodded and said: "I heard that cheap and high-quality Wesen cloth and clothes bankrupted weavers and many tailors in the Rhine Valley. This kind of thing also happened in the city of Milan, and now along the coast of the Kingdom of Sardinia No one in the area was weaving their own cloth, and the tailors of ordinary clothes were not having a good time."
"There were some riots at that time, which were quickly suppressed."
Ordinary people and armed landlords. The strength gap between them is huge, and there is no possibility of rebellion. If the trouble becomes big, there will basically be someone behind it.
In traditional feudal manors, the homespun cloth woven by serfs and tenant farmers was part of the tax revenue and an important source of income for small landowners. The emergence of Weisen cloth has damaged the economic interests of small landowners.
But those who sold Wesen cloth were big landowners. Their fists were bigger, and things calmed down quickly.
Frederick knew about this matter and said: "My idea is that everyone gets rich together in peace."
"The root of this kind of commotion is economic problems. To completely solve them, we need to start from the economic perspective." ."
Edwards asked seriously: "How can I solve this problem? Please give me some advice."
Frederick said: "Profits must be generated only if they are sold."
Edwards nodded. The city of Milan has developed business and there are many cases. There are many examples of huge losses due to transportation problems.
Frederick continued: "The people who buy goods are not just wealthy people such as nobles and merchants, nor are they just citizens and squires in the city who have relatively rich wallets, but also farmers who account for 90% of the population."
"The farmer is very poor. There used to be a family there whose quilt was hundreds of years old and had become a ball of rags, but it was still used for heating in the winter."
"If the farmer Our income is high, even if a family can afford one new piece of clothing a year, how big do you think the clothing market is?"
Edwards immediately calculated in his mind.
The Kingdom of Sardinia has about 10 million people, 9 million people based on 90% of the agricultural population, and 1.8 million households based on 5 people per household. Even only one in 10 households buys a new item every year. For clothes, that means selling 180,000 pieces of clothes a year.
Edwards rang the bell at hand, and the butler immediately rushed in with his servants and gave him a bottle of blood pressure-lowering potion.
Frederick also wanted to eat this piece of meat, but he had no choice. The huge market in the north had made the garment factories run in three shifts. Many families bought sewing machines, and housewives picked up the spare parts at home. Inmates who cannot build roads in the prison have to work two shifts a day to set up their sewing machines, and ready-made clothes are still in short supply.
So he has been dividing the garment factories, and at the same time holding on to upstream materials and machines such as cloth and threads. Those who use sewing machines really have no energy to make money.
According to Frederick's plan, when the railway is built in the future, cotton from the south can take the railway from Port Ferdinand in the Osmaga Empire to the Principality of Wesson, and then be woven into cloth and then use the railway to cross the White Clothing was made from the mountains in the Kingdom of Sardinia, which was partly produced locally and partly sold to the southern continent.
Edwards sat on a chair with his eyes closed and waited for his blood pressure to drop. At this time, his butler came to report that it was time for the banquet to begin.
"No time." Edwards waved his hand, "We are talking about a business of tens of thousands of Oreis a year. If they are hungry, they can eat first without waiting."
Frederick smiled and picked up the teacup to drink. After taking a sip of tea, he released the news when he didn't agree to anything. Edwards was not stupid and quickly asked the key question: "How can we get farmers to buy clothes?"
Frederick smiled, put down his teacup, and replied: "We just said that farmers can't sell the cloth they weave at home. Why do they want to weave cloth? The key is that it is difficult to live close to the output of the land."
Edwards said: "That's true, so The problem is more obvious in the mountains to the south, where many people come out to work as mercenaries.”
The mercenaries of the Kingdom of Sardinia are quite famous. They are good at using crossbows and good at defense.
Frederick knew them quite well because the Talon Gang had successfully opened up this market and allowed them to replace their crossbows with double-barreled shotguns.
“Increasing farmers’ income is a big problem.” Frederick said, “I won’t talk about the issue of taxation. It’s overstepping the bounds.”
“In addition to tax reform to increase farmers’ income, I also Vigorously develop magic fertilizers, improved seeds, intensive farming and magic pest control to increase crop yields."
Edwards said somewhat depressedly: "I used to have a lover who was a necromancer. Although she was not very beautiful, she was very beautiful. Gentle and nice to talk to.”
"It turned out that she received a letter from her classmates one day three years ago, and she ran to your place to study magic that only kills insects but not plants."
"I heard that she got married there recently. "
Frederick didn't expect him to mention this, so he just smiled.
There are rumors in the world that the Necromancers in the world have one stone, and the Duke of Wesson has eight stones, and there are two more on the way to the Duke of Wesson.
Frederick said: "I can sell fine seeds, fertilizers and farming machines to the Kingdom of Sardinia to increase the production of agricultural products."
"Our practice has proved that the first thing farmers buy when they have money is clothes."
While promoting the garment factory, he also further promoted seeds, fertilizers and agricultural machinery, which are all high-tech and high-profit. industry.
Edwards is no stranger to tractors and other farm machinery and has bought several of his own.
However, improved seeds and fertilizers are not very popular in the Kingdom of Sardinia due to transportation costs, which limit the final increase in revenue.
It will be easier once the railway is opened. Transportation costs will decrease and income will increase. The final income will be quite considerable.
Edwards thought quietly for a long time, and finally said sincerely: "I invite you to build a clothing factory in Milan."
"I think it makes sense to increase farmers' income, and I will be responsible for it."
>
Frederick replied: "In principle, there is no problem in building a clothing factory, but the specific cooperation methods need to be discussed."
"There are many kinds of clothing. My opinion is to build different factories, each factory Produce one kind of clothing and avoid unnecessary competition."
Edwards agreed.
Frederick continued: "In the first cooperation model, investors from the Principality of Milan go directly to the Principality of Wesson to purchase equipment, etc., and build their own factories. I have no relationship other than providing discounts."
"Chapter 1 Two cooperation models, the Principality of Milan releases the land, and I come here to build a factory and recruit workers, but there is no income except land use fees, taxes and workers’ wages and taxes.”
“ In the third cooperation model, I will invest 30% of the price of the machinery and equipment, and the remaining investors can invest in land, capital, etc., and finally receive dividends based on the shares.”
“If it is the third model, I have the conditions, I am a fool. A general can destroy an elite army, and the same goes for a factory, so factory managers must pass the Duchy of Wesson's Industrial Manager Qualification Examination."
Edwards did not immediately give an answer to this matter. Need to discuss with others.
Frederick was not in a hurry and went to attend the banquet first.
(End of this chapter)