Chapter 365 - 363: The Art of Pricing

Chapter 365: Chapter 363: The Art of Pricing

The sky was completely dark.

The fluorescent glow from the leaves of the Starlight Mulberry Trees grew brighter, so much so that you could sit in the Sangtian and read a book by their light.

Eleanor and the others had already gone back, leaving only Duane and Natalia strolling through the Sangtian, hand in hand.

Oh, and of course, there was Fur Ball, who was tearing around the fields with seemingly endless energy.

"In the fifty-some days you were gone, the Black Soil in the Secret Realm has piled up into a mountain. I had the handlers take the Star Velvet Mammoth and a dozen packhorses to bring some back, but their carrying capacity is limited. After three trips, they only managed to transport a little over ten thousand jin of Black Soil."

The packhorses have a limited carrying capacity; they can only manage about two hundred jin at a time.

As for the Star Velvet Mammoth, it’s just over three years old, still a year and a half away from adulthood.

To avoid stunting the Mammoth’s growth, Natalia only had it carry fifteen hundred jin at a time.

Because the journey was so long, they could only make three round trips in over fifty days.

"You’ve already done an amazing job!"

Duane wrapped an arm around her waist. "I ran into Julian on my way here. He told me about your supplemental regulations for the Spiritual Soil fees. That’s fantastic!"

Natalia leaned against Duane’s shoulder, feeling completely at ease.

"I was so angry when I heard some of the subjects spreading rumors, saying things like ’any extra you grow just goes to the Lord anyway, so why not take it easy? As long as the yield is over two hundred and fifty, it’s good enough.’"

She pouted, "You kindly offered them a share of the profits, wanting them to have full bellies, but all they could think about was slacking off and not repaying your kindness."

Duane comforted her, "That’s just how people are. You can have the exact same situation, and some will praise it and be satisfied, while others will belittle it and grow greedy. You don’t have to get too worked up about it."

"You’re right. At first, I wanted to round up the people saying those things and punish them!"

Natalia’s voice softened. "But then I thought better of it. It’s enough to just add a new regulation to curb it."

"In the second half of the year, when they have to buy the Spiritual Soil themselves and we tax them at the normal rate, they won’t feel like they’re just farming for me anymore."

The bigger the harvest, the more the subjects get to keep. It’s a win-win situation.

Natalia nodded. "Oh, right. You asked me to set a price for the Spiritual Soil. Julian, Ralph, and I discussed it and came up with a couple of options. Which do you think is better?"

"Oh? Tell me about them." Duane’s interest was piqued.

"Right now, the energy for the Magic Array comes from the Fel Energy Crystals sold by Viscount Charlemagne. A single Basic Crystal costs 80 Silver Coins and can produce 300 jin of Filthy Blood Spiritual Soil. That’s our hard cost."

Natalia analyzed, "Let’s say a family of six can farm 50 mu of land a year. After paying 35% in taxes and setting aside the 5,400 jin of grain they need for the year, they can sell the rest for 3 Copper Coins per jin. That would earn them 6 Gold and 18 Silver."

She was calculating based on the 800 jin per mu yield that Duane had mentioned.

"If we price the Spiritual Soil at 39 Copper Coins per jin, the family would earn 33 Silver Coins a year just from grain. If we price it at 40 Copper Coins per jin, they would only earn 18 Silver Coins. And if we sell it for 41 Copper Coins per jin, they’d only make 3 Silver Coins."

Natalia presented the three options. "Which tier do you think is most appropriate?"

Duane asked thoughtfully, "Which one did you choose?"

Natalia replied, "I chose the 39 Copper Coin price, since you said you wanted the subjects to live more prosperously. But Ralph and Julian both chose 41 Copper Coins. They think that price not only lets the subjects eat more than before but also earn a few hundred Copper Coins, which is already a considerable improvement."

Duane chuckled. "Since one side chose 39 and the other chose 41, I’ll just split the difference and pick 40. We’ll sell the Filthy Blood Spiritual Soil for 40 Copper Coins per jin."

Natalia was a little surprised and said with a hint of disappointment, "I thought you’d choose the same one as me. I guess we’re not quite in sync yet."

Duane laughed and explained, "Julian and Ralph’s choice is too extreme. 3 Silver Coins is too little. A small, unexpected setback could lead to a poor harvest and send a family into debt, making them unable to afford Spiritual Soil in the future."

"On the other hand, at your 39 Copper Coin tier, the subjects earn too much. 33 Silver Coins can buy a lot of things. There would definitely be people who become content with just farming to support their families and wouldn’t be willing to take on other work to increase their income."

"Black Forest Island is developing right now. Construction, land reclamation, mining... every sector needs labor. If the subjects all become complacent, where would I find people to do the work?"

"40 Copper Coins is just about right. They still have 18 Silver Coins, but after you factor in daily expenses and the cost of raising the next generation, there isn’t much left over. That way, they’ll still be motivated to work hard and earn more money to improve their lives."

After listening, Natalia’s eyes lit up slightly. "So that’s how you were thinking about it... You’re right. If we let them earn too much, some people would definitely slack off."

The recent talk about "any extra grain just benefits the Lord" convinced her that such people truly existed.

Duane nodded and continued, "We buy their grain at 3 Copper Coins per jin, then sell it for 4 or even 5 Copper Coins. That way, we not only cover our costs for excavation and transport but also turn a small profit."

Natalia understood. "So, we can’t let them be too poor, but we can’t let them be too rich either."

"Exactly!"

Duane nodded. "The art of ruling lies in balance. The subjects need hope, but not too much ambition. This pricing ensures their motivation while also making sure they still need to rely on my policies to live a good life."

He wasn’t some great philanthropist who would invest without considering costs or returns.

On the contrary, only by first securing his own wealth could he afford to train more subordinates and soldiers to protect the security of the Territory.

At the very least, Duane was letting them eat better, dress warmer, and live better than before.

Natalia smiled faintly. "It seems I still have a lot to learn from you."

Duane looked toward the mulberry grove. As the night deepened, the light on the leaves gradually dimmed, as if their luminous energy had been exhausted.

"Later, when the Territory has more industries and the subjects have more employment options, we can lower the price of the Filthy Blood Spiritual Soil. But for now, we’ll stick with this price."

Natalia nodded. "I heard that Fertile Soil from the outside world sells for several dozen Silver Coins per jin. Our price is more than conscientious."

The Fertile Soil Duane used to cultivate the Starlight Mulberry Trees was bought from His Majesty the King for thirty Silver Coins a jin!

Using Fertile Soil at that price to grow grain would be a surefire way to lose your entire investment.

Clearly, the Nobility had monopolized this resource for their own use. Any sales to outsiders were likely just to save face.

"When that time comes, we won’t sell our Spiritual Soil to outsiders either. We’ll only use it within our own Territory," Duane said.

He thought for a moment, then added, "Although, if the Count needs some, we could sell him a little."

Natalia was touched, but she still said, "Just do what you think is best. You don’t have to consider me."

Duane teased, "What’s this? You’re not even married to me yet, and you’re already taking my side completely?"

"No, that’s not it! I just think the island has too much farmland right now, and our limited production isn’t even enough for our own use!" she explained.

Duane considered it. From the looks of it, the supply of Filthy Blood Spiritual Soil was massive. Selling a portion to the Count was inconsequential.

Besides, if grain production on the Silent Shore increased, its population would grow, and more people would migrate to his Territory. It was a positive feedback loop.

"I’ll talk to your father. If he can support me with more Mithril, we’ll be able to produce even more."