Chapter 28: Final negotiations.
It had to be mentioned that the profit margins for bloomeries were considerably tighter, and with the nobles controlling the flow of steel and iron, the markup was heavily restrained. This caused the price of most steel goods to skyrocket, as most blacksmiths and bloomeries had to sell their goods at high prices in order to remain profitable. Whereas industries like Dale's were mostly labour intensive, allowing them to keep a tidy margin of profit.
Now, Alaric knew Cassius likely did not require his investment, he had Hektor, and he had the wealth of the Margrave, what value did he possess to him? He thought, while he was blinded by the potential of wealth, he recognized that Cassius had seen some reason to include him as one of the 'shareholders' as he had stated it.
'What does he need from me?'
When Cassius mentioned his connections in the smithing industry, it was crystal clear to him. He could rope in his shop, so there was twelve or so people. His friend & competitor would never turn away the opportunity either, so there was another fourteen or so… He could do it. The veteran smith saw the obvious boons this new 'manufactorum' could bring to him and his business.. But he needed to sweeten the pot for himself, and for his peers.
"If possible…" He started, rallying all of his courage for his shameless demand.
"In exchange for recruiting other shops and blacksmiths to your business, can we blacksmiths get access to your steel for an extremely discounted price?"
Cassius blinked at the man, a strange look crossing his youthful features.
"Alaric, you misunderstand," Cassius began, leaning forward, his hands resting on the table. "You won't be buying materials from me at a discount—if you work for Stennfall, the steel is free, and you'll get a fair salary.
Every sword you make for us? Our company keeps the profits. But anything you create outside the contract is yours, and you can sell it for whatever price you like. The only cost you'd pay is the base production price of the steel."
Alaric raised an eyebrow, surprised by the generosity of the offer. "And how large would the contracts be?"
"Well, we will go by a month by month contract; So, what is the composition of your Smithy?"
"Well, I am myself a certified Master Sword Smith, as recognized by the Margrave and the Smith's Gyld. I have five blacksmiths beneath me, and there are another six apprentices and journeymen below that. On average we can produce around 30-50 swords a month depending on supply and season, or if any unique and special orders arise."
"So, your contract would probably look like this: You create 30 swords a month, and every sword or creation you produce afterwards would be entirely your profit. This would be in addition to the salaries afforded to you.
"Before you ask, that is what the contract will look like for any Smith & shop that comes to work for my Stennfall Steel Company."
Alaric's mind raced as he considered the offer. Thirty swords a month, and everything beyond that was pure profit. His Smithy's average was closer to forty, so he could easily pocket a small fortune. The bloomeries were struggling, prices for steel were out of control—but with Cassius's deal, the usual hurdles wouldn't matter. His shop could thrive. His competitors? They'd be desperate to jump at the chance.
But if he accepted, he'd be tying his shop's future to Cassius. Was it worth the risk? After his initial excitement for potential for profits, uncertainty plagued his mind. What if this grand plan failed? The last thing Alaric wanted was to lose control of the craft he'd spent his life perfecting.
Alaric leaned back, eyes narrowing as he considered Cassius's words. The offer sounded almost too good, and though he had begun to trust Cassius well enough, there was always a catch. "And what happens if production exceeds your expectations? If demand drops? Am I still locked into the same terms?"
Cassius didn't flinch. "If demand drops, we adjust accordingly, we can also begin exporting, or you can focus on personal projects, or we switch gears to other projects that will require a team to work on."
Alaric knew the current system was unsustainable. With some nobles choking the supply of steel and iron to scalp prices, plenty of blacksmiths just like him were barely keeping their heads above water. He'd heard the whispers—more than one shop had shuttered in the last year. This wasn't just an opportunity; it was a lifeline.
As Cassius's words sank in, Alaric's mind drifted to the other shops around town. Old friends, yes, but competitors nonetheless. Could he convince them to join this new venture? Could they even afford not to? The thought of his friend Markus came to mind—the man barely scraping by, his forge cold more often than it should be.
"And you're sure," Alaric said slowly, "That these terms apply to every smith who joins? The same deal for me, for Markus, and for anyone else?"
"I swear it on my family's Honour, Alaric." Cassius stated with resolve.
"And what of the nobles?" Alaric asked. "You think they'll stand by and let us undermine their stranglehold on steel?"
'Ah yes, the other Nobles' Hektor grimaced, chiding himself for not remembering the biggest obstacle they would face.
Cassius's smile faltered for a brief moment. "They'll resist, no doubt. But we're not alone in this. If the Margrave supports us, and with more smiths on our side, we can force their hand. They'll have no choice but to lower prices if we start producing steel at scale."
"On top of which, what Noble outside of a powerful Duke or his Majesty the King would be willing to handicap themselves by picking a fight with our Family? If they interfere with us, the entire Kingdom can suffer if our defense of the territory falters."
Hektor felt a cold knot form in his stomach, 'I believe this boy just stated that he's holding the Kingdom hostage?'
With this statement however, Alaric who was none-the-wiser to his naked threat to any challengers, relaxed substantially.
"I'll talk to my men," Alaric said, rising from his seat. "And I'll speak with Markus and the others. But if I do this, I'll need something from you in writing—no vague promises."
Cassius nodded, already pulling a prepared rolled-up parchment from his satchel. "You'll have your contract by the week's end once I have my fathers approval."
Alaric glanced at the man once more. It wasn't just his own future on the line anymore. The other smiths, his friends, were relying on him to make the right call.
"Don't forget the Spinning Wheel Alaric!" Hektor shouted as he also exited the room, he needed to find ideal land, along with a long talk with the boy's father about his incredible ambitions.
After Alaric & Hektor had left, Dale quickly followed suit. He had a lot of people to contact and a lot of resources to prepare if he was going to help Hektor and Cassius construct his monstrously huge furnace.
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