Chapter 46 - 46 Cleaning Up the Mess of Price Destruction
Steve was waiting at the Emmanuel Trading Company for the head of the Industrial Guild, Alfonso Simoncini, to arrive for their meeting.
The subject of the meeting was the low-priced Archibalt-made furniture being sold by the Emmanuel Trading Company. Unlike existing furniture, where craftsmen made each piece to fit a specific household, these were mass-produced to set standards to keep prices low.
There was a high demand for cheap furniture, and sales were strong, but the flip side was that furniture craftsmen were losing work. It was only natural for the guild to take action to protect its members.
In arranging the meeting, Steve had specified the Emmanuel Trading Company as the venue. Since it was the Industrial Guild of Sowell Land, the Archibalt Territory was too far for them to travel, yet going to the guild's own territory would likely give the opponent the upper hand in negotiations, so he chose the Emmanuel Trading Company.
Steve and Emmanuel were waiting for their guest today in the reception room rather than their usual small office.
"Still, I must admit, I was surprised when you instructed me to set up this meeting. Since the opponent is a commoner, I thought House Archibalt might simply choose not to engage with them."
While waiting for Simoncini, Emmanuel asked Steve about something he had been wondering.
Many nobles wouldn't even entertain a petition from a commoner, so it was unexpected that Steve would create an opportunity for dialogue like this.
For Steve's part, having suffered immensely from the entry of cheap overseas companies in his previous life, he understood the other side's feelings and felt he could at least hear them out. However, he also believed that industries protected by price cartels would eventually decline, and he intended to make them reconsider that mindset.
To use an example, it was like how traditional barbershops were driven into a corner by the appearance of 1,000-yen hair salons.
Barbers also had unions that set uniform prices. However, when low-priced shops that didn't belong to the union appeared, things became difficult all at once.
Conversely, for automobiles where no tariffs were applied, the constant struggle against overseas competition resulted in only the strong surviving. Agriculture was being pushed back by cheap foreign products, but some had added value and actually increased their exports abroad.
Based on these experiences, he considered the Industrial Guild to be spoiled.
"Co-prosperity might be difficult, but I thought I'd at least show them a path to coexistence. Besides, His Excellency wouldn't want the local industries to collapse. I want to avoid being targeted for now."
"That statement makes it sound like you don't mind being targeted in the future."
Emmanuel looked at Steve and gave a meaningful smile.
"As House Archibalt grows, we'll inevitably be targeted anyway. From His Excellency's perspective, I suppose you can never have too much money, but I wonder what will happen once the military is bolstered?"
"That is a dangerous thing to say."
"Are you going to report me?"
"Perish the thought. I owe my current position to the Lord of the Dragon Wing Medal. Rather, if you are looking toward a future where you grow that large, I wish to maintain a good relationship with you hereafter."
Emmanuel, who had been an unreliable merchant at first, had begun to think more like a great merchant as the scale of his trading company grew.
Though he didn't say it out loud, his phrasing implied that if Steve failed to meet expectations, he could switch to Aurora's side at any time.
As they were having this conversation, an employee came to announce Simoncini's arrival.
When Emmanuel granted permission to enter, an elderly man without a single hair on his head walked in. It was Simoncini.
Originally a woodworker, he had retired due to age, but the muscles he had built during his active years had not withered; he had a physique that looked like he could kill a stray dog with his bare hands.
"I apologize for keeping the Lord of the Dragon Wing Medal waiting."
"No, we arrived earlier than the appointed time, so that is our responsibility. It is not an issue."
Steve did not use his usual polite way of speaking. He maintained a tone that clearly showed the difference in status between a noble and a commoner.
After a brief greeting, Steve urged Simoncini to sit in a chair and decided to begin the discussion.
"Now then, let's get to the main point. It seems there are complaints that the prices of the furniture we produce here are too low. Is that correct?"
Steve went straight to the heart of the matter. Since his opponent wasn't the type he needed to feel out, he didn't want to waste extra time.
"Yes, that is correct. When items are sold at roughly twenty percent of the price of our furniture, our work is taken away."
"That is your own circumstance; prices are determined by customer demand. The furniture we supply to the Emmanuel Trading Company is different from handcrafted work; we don't make it to fit the specific circumstances of each household. Furthermore, we have simplified the construction to keep it cheap. With simple shapes like circles and squares, it's hardly the kind of thing a noble would place in their home. It's not something that will still be in use a hundred years from now. There's no reason it should be the same price as furniture made by a craftsman."
In Steve's previous life, the paulownia chest of drawers his great-grandmother had brought as part of her dowry was still being used a hundred years later. Because of the precise fit, pushing one drawer in would cause another to pop out. Despite that, pushing the drawer wasn't heavy.
You don't see that kind of chest in modern mass-merchandise stores.
Steve believed that was exactly what defined a craftsman's work. The furniture they made wasn't poor quality, but it was ultimately an industrial product; as long as it met dimensional tolerances, it was a good product. This was different from creating something perfect by adjusting for the variations in individual parts.
That was why he wanted to say that there was a path for furniture craftsmen to survive.
"I understand what you are saying. However, there are those whose skills are not as good."
"That in itself is an insult to the buyers. Are you saying they should endure a bad skill level just because the price is the same as others? Among craftsmen, there are surely those who, upon receiving a little money, lose themselves in drink, gambling, and play, neglecting to hone their skills. Is the Industrial Guild okay with that?"
Simoncini regretted his words, thinking 'I've done it now.'
Steve's atmosphere had changed at the statement meant to protect the unskilled lot. He was projecting his feelings of anger without hiding them.
If the child in front of him had been an ordinary one of his age, Simoncini would have responded without panic, but his opponent was the Dragon Wing Medal. He was an existence that possessed both authority and military might.
Seeing Simoncini fall silent, Steve pointed to the table they were currently using for the negotiation. It was a Rococo-style table with elegant and delicate curves.
"Guildmaster, what do you think of the workmanship of this table?"
Simoncini was bewildered by the sudden change in topic, but he felt relieved that the subject had shifted regardless.
"It is very well made. To have purchased such a fine item, it is truly as expected of the thriving Emmanuel Trading Company. It must be the work of a first-rate craftsman from the Royal Capital."
Steve wore a satisfied smile at Simoncini's answer.
Seeing that, Simoncini thought he had given the right answer. However, that was shattered in the next moment.
"I made this, you know."
"Hah? You jest. To produce work of this caliber, one must undergo considerable training."
"That's right. That's why I apprenticed under a craftsman in the Royal Capital and learned how to make it. Look under the table. My Dragon Wing crest is carved there. It's proof that it's my work. When entering the furniture market, it's only natural to learn how existing furniture is made, isn't it?"
When Steve set out to produce furniture, he had visited a furniture craftsman's workshop in the Royal Capital. At that time, he had recorded the production methods using his SOP Magic. Then, he had used Body Enhancement Magic to boost his abilities to create this table.
It was only natural for Simoncini to judge it as a joke.
"Whether you believe it or not is fine, but if I get serious, I can make furniture like this. However, if I did that, the furniture craftsmen of Sowell Land would completely lose their jobs, so I haven't touched that market. If the guild intends to keep trying to maintain prices without making any effort in the future, I will expand into this kind of furniture and take your customers away. What will you do?"
At this point, it was a complete bluff on Steve's part. While Steve could make such furniture without difficulty, the workers in the factory could not.
However, he wanted to light a fire under the guild, which was being complacent about its work, so he showed them this bluff.
At this point, Simoncini was troubled.
There was logic in Steve's argument, and the negligence of some craftsmen protected by the guild was indeed eyesore-inducing.
To the silent and troubled Simoncini, Steve showed a concession.
"Besides, if you want to enter the low-priced furniture market, you should come and inspect our factory. In my remote territory, costs inevitably pile up due to the distance—both for procurement and for sales."
"Is that alright? We are business rivals."
"Production methods will spread eventually anyway. However, the tolerances we use are a secret. Even we have pre-produced prototypes to determine the acceptable range for furniture wobbling and had them evaluated in the market. I want you to figure that part out for yourselves."
"Low-priced furniture might be difficult because of a craftsman's pride, but if it's a high-end line, some might be convinced."
"Even with our main product, toys, workshops have recently entered the high-end market and are eating into our sales. Even so, we aren't doing anything like putting pressure on them. It's a matter of market segmentation. Well, I'll leave the persuasion of the guild members to you."
"I see..."
As Steve said, with the appearance of high-end toys, there were parts where the sales of toys from the Archibalt Territory were being eaten away. However, he had anticipated that from the beginning, which was why he was aiming for product diversification.
Faced with these facts, Simoncini was unable to argue. And he was made to promise to persuade the guild members.
Simoncini himself was a skilled craftsman, and seeing the Rococo-style table Steve showed him, a desire to try making furniture once more welled up within him.
On top of that, he was tasked with his job as the guildmaster, and his heart felt very heavy. He wanted to try being a craftsman again, but his strong sense of responsibility wouldn't allow him to abandon the task of persuading the guild members.
In the end, Simoncini left for home that day without being able to push through the guild's demands to Steve.
When Simoncini returned to the Industrial Guild, many guild members were waiting for him.
Simoncini was surprised by the sight.
"What is the meaning of this?"
"We were worried the guildmaster might be treated harshly by the noble, so everyone was waiting. We were talking about storming in if you had been even slightly mistreated."
One craftsman said this while looking over Simoncini's body.
"As you can see, I wasn't given any injuries. No, rather, it would have been many times easier if I had been."
"What happened?"
"Actually—"
Simoncini told the guild members what Steve had said to him at the Emmanuel Trading Company. The guild members present fell silent, unable to argue against Steve's words, which sounded like a lecture they hadn't expected.
"So, I won't force you to choose between high prices or low prices, but if you choose neither, you'll have to find another profession."
"Those are painful words to hear."
"Now you know how I felt listening to them the whole time. Being punched would have been much easier."
Thus, the complaint from the Industrial Guild was resolved. Some insincere craftsmen changed jobs because of this, but since the guild members knew their conduct well, they didn't hold a grudge against Steve.
And some of the motivated craftsmen decided to enter the educational toy market as a way of getting back at Steve.
When Steve later heard about this from Simoncini, he looked happy despite the increase in business rivals.