Chapter 44 The Potential of Small Chambers of Commerce
The storm is indeed coming to the Xinfei Chamber of Commerce.
However, this storm brought not trouble, but countless ordinary people inside and outside Bangta City who wanted to make a fortune overnight.
After the product launch, the small chamber of commerce support plan of the Xinfei Chamber of Commerce was widely promoted by several newspapers in the city. In addition, the City Lord's Mansion also posted relevant notices publicly in the municipal square, so it took just a few days to be known to everyone in Bangta City.
When they learned that several ordinary farmers in the Irish village could earn hundreds of gold coins a month by participating in this plan, ordinary people inside and outside Bonta City almost instantly became crazy.
Overnight, countless chambers of commerce with strange names appeared in Bangta City, and then these small chambers of commerce that suddenly emerged proposed to the Xinfei Chamber of Commerce to join the small chamber of commerce support plan.
In just three days, there were more than a thousand chambers of commerce applying to join this program.
Although most of them are new chambers of commerce that have been rushing to register within the past few days, there are also some small chambers of commerce that have long existed in Bonta City.
Faced with such a large number of applications, several city lords' office officials sent by Count Samo to assist the Xinfei Chamber of Commerce in implementing this plan were even worse than dogs during this period. They were busy from morning to night every day, and they even went to bed for no more than five hours.
Fortunately, the Xinfei Chamber of Commerce had already formulated a very detailed review standard before launching this plan. Any small chamber of Commerce that did not meet the standards would not accept the application, which saved them a lot of trouble.
The most basic one is to apply to join the small chamber of commerce support program. You must have the most basic funding certificate.
The lower limit of this fund is temporarily set by Xu Yi to 200 gold coins.
This alone has directly reduced half of these more than a thousand applicants.
In addition to other standards, only more than 200 companies were left after passing the review to obtain qualifications to participate in the Small Chamber of Commerce support plan.
However, when more than 200 small chambers of commerce learned that even if they participated in the small chamber of commerce support plan, they could not directly produce complete magic machinery such as magic fans, magic rice cookers, magic bread machines, etc., and they could only choose to produce some accessories of these magic machinery, more than half of the small chambers of commerce immediately chose to withdraw.
In the end, only eighty-seven small chambers of commerce remained.
"Xu Yi, you said you would hand over the screws to Ferriman and others for production before. I think this is nothing, after all, screws are not very important things. But now you tell me that you plan to hand over these parts to these small chambers of commerce for production... Hello, are you going to let our home magic machinery production workshop disintegrate?"
As Xu Yi's prestige in the Chamber of Commerce gradually increased, the only one who would criticize Xu Yi in person in the new airfield chamber of commerce was left in the current case of Heince.
Today was not the day he would return to Bonta City every month. But when he saw the follow-up report on the small chamber of commerce support plan in the Kalma Daily, he immediately couldn't help but run back.
Nothing else, it is just to question Xu Yi in person.
"Who said I want the home magic machinery production workshop to disintegrate?" Xu Yi looked at him for no reason. "I said you came back today for this?"
Heinze pointed to the representatives of the 87 small chambers of commerce who were visiting the home magic machinery production workshop under Ankato's leadership, and said angrily: "Isn't it? The work in this workshop is to produce those parts and assemble them. Now you have to hand over the production of these parts to those small chambers of commerce that I have never heard of. So what else do in this workshop? Do you just simply assemble those parts every day?"
"Wait...Hiince, I find your logic is very problematic." Xu Yi frowned. "Even if I hand over the processing of parts to those small chambers of commerce, why does it mean that this workshop has nothing to do?"
"Nonsense! These things are done by the workers in our home magic machinery production workshop. If you give them to others, our workers will of course have nothing to do!" Heinze said angrily.
"Who said... Oh. I understand." Xu Yi slapped his head and reached out to block Heince's shoulder. He laughed and said, "I blamed me for not explaining it clearly to you. Well... how to say it, I will tell you clearly first. Even if these 87 small chambers of commerce are involved in the production and processing of parts, it will not affect the work of our chamber of commerce itself at all. I am very sure about this, so you don't have to worry."
Although Heince was angry, he knew that Xu Yi would never joke with him in this situation, so he couldn't help but ask in wonder: "What's going on? Explain it clearly."
"That's it. Look, first of all, you were the main person in charge of this workshop before. I think you should be very clear that in fact, there has always been a bottleneck in the production capacity of the home magic machinery production workshop. The reason for this bottleneck is that the speed of our own production and processing parts can never keep up with the assembly speed, right?" Xu Yi asked.
Heinze thought for a while and nodded: "That's right. But before I left, I had adjusted the proportion of workers' jobs and tried to keep it consistent. Did this kid Ankato make random changes after I left?"
"That's not. Ankato's work is done well, so you don't have to worry. But you have to think so. Although you have indeed adjusted the proportion of jobs and improved the overall efficiency, this approach is actually just a compromise, right?" Xu Yi asked again.
"What do you want? You said yourself again, the speed of workers processing and production parts cannot keep up with the assembly speed. We can't recruit more workers to be responsible for processing and production parts, right? We don't have that big site now, unless..." Heinze suddenly was stunned, thought for a moment, and looked at Xu Yi in surprise. "Hey, do you want these small chambers of commerce to replace the workers and sites we need to hire?"
Xu Yi nodded with a smile: "Yes, you finally figured it out."
Heince looked at the representatives of the small chamber of commerce in the distance, and his mind turned around. After a while, he frowned again.
"This is still wrong. Although letting them produce and process parts can save us a lot of manpower and site, since these parts are processed and produced by them, we will definitely make money if we purchase them from them. In this way, our own profits will be reduced?"
Xu Yi smiled and said, "Hiince, I'll ask you a question. Before, we produced a No. 3 screw ourselves, how much is the cost?"
Heinze was stunned and glared at Xu Yi: "How do I know this? You should ask that guy Sebas."
"I asked, so I know. Let me tell you, the cost of producing a No. 3 screw, according to Sebass estimates, is about 25 copper coins to 30 copper coins." Xu Yi said.
"Not right? The No. 3 screw is so small, but it only uses a very little pig iron. How could it cost so much twenty-five copper coins or even thirty copper coins?" Heinzer wondered.
"Pig iron is just a material cost, but when calculating the actual cost, we also need to consider the labor cost, the cost caused by the loss of the magic tooth rubbing machine, and other factors, and finally estimate that it is so much." Xu Yi explained.
"Well... OK. Even if there are so many, does it have anything to do with my question just now?" Heinze asked again.
"Of course there is. Now you know, we will produce a No. 3 screw ourselves, which will cost about twenty-five copper coins and thirty copper coins. But do you know, how much does it cost to purchase a No. 3 screw from the Irish United Chamber of Commerce?" Xu Yi asked back.
"I really haven't noticed this. But I think they want to make money, so a No. 3 screw should... sell about 35 copper coins. If there are too many, you will definitely not agree."
Xu Yi smiled slightly and shook his head: "You are wrong. We are now purchasing a No. 3 screw from the Irish United Chamber of Commerce, and only needs twenty-three copper coins."
"This is impossible!" Heinze immediately retorted in surprise. "Are they not making money?"
"No, on the contrary, they can still make money. According to my estimate, they can make about 23 copper coins for a No. 3 screw," Xu Yi said.
"How is that possible!" Heinze was shocked this time. "It costs twenty-five copper coins or even thirty copper coins to produce a No. 3 screw ourselves. Why can't they even use twenty copper coins? Are they better than me?"
Seeing Heinze's excited expression, Xu Yi knew that this must have ruined Heinze's self-esteem as the former director of the home magic machinery production workshop, so he patted him on the shoulder and said, "It's not your business. It's because our employees of the New Flight Chamber of Commerce are relatively good, so we invest in labor costs. As for the Irish United Chamber of Commerce, they are the bosses of the Chamber of Commerce and are also employees, so labor costs can be ignored for them, so they can naturally put the overall cost much lower than ours."
"What about the quality of the screws they made? If it's not as good as we did ourselves, I still object to you." Heinze said unconvincedly.
"It's a pity that the screws they made are even a little better in quality than what we do ourselves..." Xu Yi spread his hands helplessly.
"Ah? No, right? Why is this?" Heinze looked disbelief.
"It's very simple, because they are professional." Xu Yi shrugged, with a hint of relief in his expression. "I just sold them a few magic tooth rubs and some related equipment, and taught them the technology of producing screws, but I didn't expect that they kept thinking about improving them during this period. The screws produced now are quite excellent in overall quality. They are even better than me... Well, in short, they are very good and definitely meet the requirements of our chamber of commerce."
Heince stared blankly at the representatives of the small chamber of commerce who were working in the magic tooth rubbing machine in the distance for only two days in the visiting workshop. He muttered a few words and suddenly asked Xu Yi: "I can understand why you hand over the parts processing to these small chambers of commerce for doing it now, but Xu Yi, don't you worry, these small chambers of commerce will grow up and then snatch all the business of our Xinfei Chamber of commerce?"
Xu Yi smiled slightly: "If they can really do this, I will definitely raise my hands to welcome you."
Looking at the sincere smile on Xu Yi's face, Heince slapped his head in pain.
Chapter completed!