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Chapter 54 Cost Rising

Although the news about the New World has aroused the appetite of almost all countries on the mainland, they also understand that talking about these things is meaningless when there is no conditions for ocean navigation. ≤≤,

In comparison, it is more important to stabilize your own development first, because only in this way can you have hope to successfully seize the opportunity to develop a new continent when it comes to your eyes.

If you have fallen behind before this, then you will naturally have to stop everything.

As the news about the New World was gradually revealed by the New Air Chamber of Commerce, other countries on the Seines continent have become increasingly invested in the development of the magic industry.

The chambers of commerce under the Xinfei Chamber of Commerce receive cooperation applications from various chambers of commerce, state and other forces on the mainland almost every day, making almost everyone in the Xinfei Chamber of commerce and the whole country busy.

In fact, the busiest and most popular one is undoubtedly the Xinfei Household Magic Machinery Chamber of Commerce led by Ankato.

On the Synes continent, home magic machinery has been deeply rooted in people's hearts. Everyone understands that home magic machinery can bring great convenience and comfort to life, so more and more chambers of commerce are invested in the home magic machinery industry.

In the four months of this year alone, there were more than 100 chambers of commerce applying to the Xinfei Chamber of Commerce for purchasing technology related to home magic machinery, among which the technology purchased covers all technologies officially sold and transferred by the Xinfei Chamber of commerce.

In order to meet the huge demands of the outside world, the Xinfei Chamber of Commerce, in response to the call of countless people, announced to the public at the beginning of this year that it would open up 37 additional technologies related to household magic machinery, including the manufacturing technology of high-end products such as magic air conditioners, magic refrigerators, etc. that the Xinfei Chamber of Commerce has not announced to the public.

In this way, in fact, all the household magic machinery related technologies that the Xinfei Chamber of Commerce can currently produce will be sold and transferred. This has made some of the household magic machinery unique to the Xinfei Chamber of Commerce now have the ability to produce. The Xinfei Chamber of Commerce has lost its exclusiveness.

Of course, the Xinfei Chamber of Commerce is still far ahead of other chambers of commerce in terms of technology and technology. Even with the same thing, the Xinfei Chamber of Commerce's products are still significantly better than the products of other chambers of commerce in terms of quality and performance.

In addition, the Xinfei Chamber of Commerce has become a symbol of magic machinery in the minds of everyone in the Synes continent, and has a very high reputation and reputation. Therefore, no matter which country it is in, Xinfei's home magic machinery is still the most popular product and will never be sold.

After June, this advantage is reflected again as in previous years.

According to the report statistics from the Xinfei Household Magic Machinery Chamber of Commerce, the sales of Xinfei Brand Household Magic Machinery this year have once again increased significantly compared with last year. The total sales in May alone reached 1.7 million gold coins.

However, after accurate statistics, it was found that compared with last year, although the net profit of Xinfei Household Magic Machinery Chamber of Commerce also increased significantly, it was significantly lower than the sales increase.

The reason for this phenomenon is that as more and more chambers of commerce can manufacture household magic machinery, the prices of various raw materials continue to rise, and coupled with the increase in labor costs, the manufacturing cost of household magic machinery has increased significantly, resulting in a decrease in profit margins.

In the few years before the establishment of the Xinfei Chamber of Commerce, the profit margin of Xinfei's home magic machinery could exceed 50%, and the highest could reach an astonishing 80%.

In recent years, with the popularity of household magic machinery, the profit margin of Xinfeipai home magic machinery has been declining.

According to statistics this year, among the Xinfeipai home magic machinery, the most profitable magic air conditioner has only a profit margin of less than 30%, while the lowest magic lamp has only a profit margin of less than 10%.

Judging from this phenomenon, it can even be said that the era of huge profits in household magic machinery has passed.

Although Xu Yi had expected this, he did not expect it to appear so quickly.

You know, on earth, the home appliance industry only took decades to develop.

On the Continent of Synes, it has only been more than sixteen years since the appearance of home magic machinery.

However, after thinking about it carefully, Xu Yi could only helplessly admit that this situation was actually what he asked for.

Because he has always been thinking of vigorously promoting the magic industry, he has hardly reserved the technology of home magic machinery, so many chambers of commerce now have the ability to manufacture home magic machinery, which directly allocates the sales of Xinfeipai home magic machinery, triggers competition, and reduces the profits of Xinfeipai home magic machinery.

The increase in costs in raw materials and labor is also inseparable from him.

Let’s talk about the artificial aspect first.

Before the New Air Chamber of Commerce, although the Chamber of Commerce on the mainland of Sines did not have a fixed value for the salary level of the employees they hired, for ordinary employees, no chamber of commerce would give much high salaries.

Take the time when the Xinfei Chamber of Commerce was just established seventeen years ago as an example. At that time, the maximum salary given by the Chamber of Commerce in Bonta City was only ten gold coins a year.

As soon as the Xinfei Chamber of Commerce was established, it actually offered its ordinary employees a high salary of five gold coins per month.

If you count it, there are as many as 60 gold coins a year!

This salary was an extremely exaggerated amount for Bangta City, which most people could barely go hungry at that time, and even the entire Lampari Kingdom, which made almost everyone in Bangta City feel that the Xinfei Chamber of Commerce and Xu Yi were simply crazy.

However, it is precisely because of this that the New Aircraft Chamber of Commerce was able to quickly hire enough personnel to quickly meet the needs of mass production, so that at the beginning, the New Aircraft Chamber of Commerce was not even troubled by production.

At the same time, this also greatly increased the fame of the New Air Chamber of Commerce, which indirectly helped the New Air Chamber of Commerce to develop rapidly.

From this perspective, for the Xinfei Chamber of Commerce, this is more beneficial than disadvantages.

However, for other chambers of commerce that also entered this industry after the Xinfei Chamber of Commerce, the salary standard set by Xu Yi at the beginning is undoubtedly a serious crime.

Because the Xinfei Chamber of Commerce has set the standards, it is impossible for other chambers of commerce to enter the magic industry in the future to offer lower salaries. Otherwise, it is impossible to recruit people at all, and it is even more impossible to recruit skilled workers and skilled workers from the Xinfei Chamber of Commerce.

So over the years, due to the competition and poaching of various chambers of commerce, the salary standards have risen again and again.

Now, the salary of the Xinfei Chamber of Commerce is not high, and it can even be considered low among all chambers of commerce related to the magic industry, while the salary standards of other chambers of commerce are much higher.

This in turn affected the Xinfei Chamber of Commerce.

Before Xinfei's home magic machinery department was divided, it still stuck to the salary standards set by Xu Yi. No one complained.

After the establishment of the Xinfei Household Magic Machinery Chamber of Commerce, Ankato re-established this salary standard in order to enhance the morale of the Chamber of Commerce and establish his own prestige, so that the salary standard of the Xinfei Household Magic Machinery Chamber of Commerce has been raised to a higher level in the entire magic industry-related chambers of commerce.

Therefore, the labor cost of the Xinfei Household Magic Machinery Chamber of Commerce immediately rose. In May alone, the wages and various welfare benefits expenditures reached as much as 630,000 gold coins, which has been greatly improved compared to the previous one, thus greatly increasing the cost of Xinfei Household Magic Machinery.

Then there is the raw materials.

When the New Air Chamber of Commerce was just established, people on the Continent of Sainz did not pay much attention to the various raw materials needed to produce magic machinery. Therefore, the biggest cost of all the raw materials of the New Air Chamber of Commerce was the part of the magic materials needed to draw the magic circle.

As for the iron ore with the highest usage, although the Falcao Chamber of Commerce is in control, the price is not high.

The same crucial magic crystals are almost everywhere, and can be said to be as worthless as free gifts.

Later, as the magic industry became more and more important, all countries on the mainland also paid more and more attention to the raw materials related to the magic industry in their country.

Naturally, the prices of these raw materials are increasing.

Take the iron ore with the highest demand as an example. In the first few years, the Xinfei Chamber of Commerce purchased iron ore from the Falkao Chamber of Commerce was only about two gold coins per ton, and the pig iron that had been melted was only about ten gold coins per ton.

And this year, according to the latest price announced by the Falkao Chamber of Commerce in June.

Iron ore has risen to six gold coins per ton, while pig iron has soared to twenty-seven gold coins per ton.

Compared to before, it has been more than doubled!

Even the magic crystal, which was not valuable in the past, except for the particularly pure high-end goods, was thrown on the ground for a second. Now, it has become an energy material that all magic machinery must use, so the price has soared.

Taking the New Air Chamber of Commerce’s magic crystal that can only meet the medium standards for purchases from the Candela Empire, the price has reached 93 silver coins per ton.

Moreover, because of the huge demand for magic crystals, the price growth is extremely fast.

At this time last year, there were only seventy-six silver coins per ton, but a year later it had risen to ninety-three silver coins per ton.

At this rate, there is no pressure to break through one gold coin per ton this year.

The demand for raw materials has naturally caused a series of problems as prices rise wildly.

First of all, all countries on the Synes continent have strengthened control over various raw material resources in their country. The two empires, led by the Candela Empire and the Maro Empire, are a large number of countries that do not export raw materials at all.

Even the only object in the Candela Empire to trade raw materials is the Xinfei Chamber of Commerce. The reason is that the Xinfei Chamber of Commerce is the only Chamber of Commerce that masters steel smelting, non-ferrous metal smelting and magic crystal concentration and refining technologies.

In addition, the Candela Empire and the New Aircraft Chamber of Commerce will have multiple cooperative projects, so the New Aircraft Chamber of Commerce will continue to purchase various raw materials from the Candela Empire without restrictions.

However, no matter how much discount is obtained, the prices of these raw materials are still greatly increased, which leads to an increase in the cost of manufacturing magic machinery.

This is the case with the Xinfei Chamber of Commerce, and the situation of other chambers of commerce and other countries on the mainland is even more conceivable.

It is easy to say that countries with sufficient raw material resources in China, but countries with insufficient resources naturally need to think of other ways to solve this problem.

Among these methods, the most common and most likely to occur is war. (To be continued...)
Chapter completed!
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