Chapitre 41: Chapter 41: Absolute Monopoly
Chapter 41: Absolute Monopoly
Brent's mind started racing as he imagined those wealthy women and young ladies buying cosmetics and then casually picking up a hat or a pair of shoes. He couldn't help but be impressed by the Prince's business acumen.
Nearby, the older man with glasses suggested, "Your Highness, nearly half of yesterday's customers were noblewomen from Versailles. Do you think we should open a branch in the palace?"
"There's no need," Joseph replied with a smile, shaking his head. "Having them travel all the way to Paris to shop only emphasizes the exclusivity and irreplaceability of Paris Angel. Plus, when Parisian nobility sees them frequently visiting our store, they'll be more likely to follow suit."
With the sales strategies settled, Brent brought up another matter. "Your Highness, in the past few days, six individuals have expressed interest in joining Paris Angel as franchisees. These include Count Albrow, Duke Lavalier, and Marquis Montes. What are your thoughts on this?"
Indeed, from the very beginning of planning the store, Joseph had intended to expand Paris Angel through franchising!
Opening stores one by one on his own would be slow and labor-intensive. If he took too long, shrewd capitalists would start copying him, creating competition. Although Joseph held the exclusive formula for salicylic acid, ensuring his products' superiority, competition would still siphon off potential customers.
So, by franchising, Joseph could rapidly dominate not just France's but all of Europe's cosmetics market. By establishing Paris Angel as the unrivaled leader in product efficacy, brand promotion, and market scale, he would leave no room for competitors.
In this era, where concepts like antitrust didn't exist, wouldn't it be a waste not to take full advantage of the times and create a monopoly?
Moreover, the profit margins on his cosmetics were sky-high—somewhere between 800% and 1300%. Offering a fifth of that profit to franchisees was a small price to pay, while the franchisees themselves would be earning profits that would make them smile in their sleep!
Finally, through Paris Angel's network of franchisees, Joseph could establish a comprehensive sales channel. This would allow him to quickly distribute any future products he developed, ensuring swift cost recovery.
Joseph nodded and said to Brent, "I'm leaving all matters related to the franchisees entirely in your hands. All the franchise terms and negotiation strategies are in the documents I've provided, and I trust you've already memorized them. Once you finalize the agreements, just bring them to me for signing."
Joseph never underestimated the intelligence of people from this era. They simply lacked the broader perspective and modern concepts of later times. Once these were taught to them, they would perform just as well, if not better, than people from the future. Especially professionals like Brent, who excelled in their fields.
Since Joseph wouldn't be able to dedicate his time to the daily operations of Paris Angel, it was crucial to delegate and empower his subordinates as soon as possible.
"Thank you for your trust," Brent said, placing a hand over his heart and bowing deeply. "I won't let you down!"
On Paris' Serpente Street, Paris Angel's headquarters welcomed several high-profile guests that day.
Among them were Count Albrow, Duke Lavalier, and Marquis Montes—either wealthy old nobles or newly rich capitalists. Each of them held significant influence in Parisian business circles.
They had all gathered for the same purpose: to become franchisees of Paris Angel.
Brent first gave them a tour of the company's production workshop, leaving these business elites in awe.
"Is this a workshop or a luxurious mansion?" they marveled.
The workers' uniforms were clean and neat, and they sat on intricately carved chairs, working calmly and steadily. Everything, from the raw materials warehouse to the packaging stations, was made from high-quality oak, with exquisite designs and spotless surfaces.
After the tour, Brent led them to a meeting room, where he presented a large oil painting of the company's flagship store. He then addressed the group with enthusiasm:
"Becoming a franchisee is quite simple—it's your chance to own a store as extraordinary as this one!"
He smiled warmly, "I understand that some of you may be worried about whether you can achieve the same exceptional results. But rest assured, you don't have to worry about the store's décor or setup—we'll handle everything. The store will be ready to open its doors to customers as soon as you take ownership.
"Even the management and staff training will be taken care of by Paris Angel. We'll provide uniforms and even oversee the staff for you!
"In other words, all you need to do is sign the franchise agreement and start counting your money."
Count Albrow, Duke Lavalier, and the others shared knowing smiles.
Brent added, "Let me share a little secret with you all: the highest single-day sales at Paris Angel's flagship store on the Champs-Élysées reached 126,000 livres."
Even these seasoned business elites, who were no strangers to handling large sums of money, were stunned.
A single day's sales from this store were higher than what their large factories earned in a month!
Brent continued, "We will open only three franchise stores in all of Paris, with each store no less than half a league apart."
(A league is approximately four kilometers, so the stores would be spaced at least two kilometers apart, ensuring that they don't compete for the same customers.)
"Oh, and for the first franchisee, the franchise fee will be 150,000 livres. After that, the fee will increase to 180,000 livres. For franchisees outside Paris, the fee will be 110,000 livres."
The business elites immediately began whispering among themselves.
To be honest, the franchise model and its potential were very appealing, especially after witnessing the incredible opening day at the Champs-Élysées store. However, since they were unfamiliar with the franchise concept, they still had some reservations.
Duke Lavalier, with deep lines on his face, spoke up, "Mr. General Manager, the market is unpredictable. Sales might be 126,000 livres today, but they could drop to 1,200 livres tomorrow. I'm skeptical about the profitability."
"Your Grace, you underestimate women's dedication to beauty. They'd rather go hungry than neglect their appearance. I can assure you that Paris Angel doesn't have an off-season."
"Well, I'd like to sell other products in the store," suggested Count Albrow.
"Oh, now that's a bit difficult…"
As they continued to negotiate, a young man sitting in the corner clenched his fists.
His name was Baudouin, and he had only taken over his family's textile business three years ago. However, last year, the French government signed a trade agreement with the British, drastically reducing tariffs on almost all industrial goods.
A flood of high-quality, low-cost British textiles had overwhelmed France, leaving his factories with no way to compete. In just over a year, he had lost most of the family fortune, eventually selling off the remaining textile mills in a desperate bid to avoid bankruptcy. He had resigned himself to living quietly as a wealthy gentleman for the rest of his days.
Baudouin hadn't originally planned to join Paris Angel—he had been dragged here by an old friend. But now, he suddenly recalled the Paris Angel franchise ad he had seen in the newspaper: "Pessimists are always right, but only optimists make money!"
He abruptly stood up, fixing his gaze on Brent. "Mr. General Manager, I've decided to join. As the first franchisee, I qualify for the 150,000-livre discount. So, I'll invest 300,000 livres to open two stores!"
(Chapter End)
Friends, if you like the novel, you can buy it at my p*treon
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Johanssen10
Johanssen10 Friends, if you like the novel, you can buy it at my p*treon
As we are close to finishing the month, if you buy a book, if you use this code: 102024, you can save up to 30% off. The promotion ends at the end of October.
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