章 27: Margins and Money

Hektor, who recovered the fastest, had questions. Lots of questions.

"I need to know your math and the considerations behind this figure."

Cassius nodded, already anticipating this. "Think about it: if one blast furnace can produce roughly seven tons of Stenfall Crucible Steel per day, that's about 2,550 tons annually. The cost of a single suit of armour or sword can represent months of a warrior's pay—assuming a noble or the margrave doesn't buy it outright for their men. Here, let me write it out." Cassius pulled out a notebook and scribbled some figures.

Total estimated annual income after expenses

Raw Steel Revenue: 700 Goldens

High-Quality Swords and Armor: 6,200 Goldens

Inexpensive/Assorted Goods: 3,100 Goldens

Total Est Gross income: 10,000 Goldens

Total Est Expenses: = 5,506

1. Salaries: 1500 Goldens

2. Materials: 400 Goldens

3. Transportation: 700 Goldens

4. Goods Tax (5%): 500 Goldens

5. Provisions: 20-200 Goldens

6. Land Tax: 1300 Goldens

7. Shareholders (11%): 906 Goldens

Total Est Income: = 4,494 Goldens

The Kingdom had two coin types divided into Silver, and Gold which were broken down into 100 Silvers made a single Golden, and Gold was Gold. Other nations have 3-4 currencies, such as Copper coins and 'Iron's', but due to the unique topography and mining industries, copper and iron were quickly done away with due to how quickly the prices of goods inflated. Imagine paying 300 Irons for a tunic which would cost 2-5 silvers normally? Hence why upon the founding of the Kingdom, the currencies were changed to remove the two lesser coinages from circulation.

"My end goal is for daily production of High-quality swords to exceed values of one-hundred, and I hope to produce fifty sets of armour once every 2-3 days, and produce a few tons of the other goods every day with Cast-forging."

"Of course this is just an estimate, expect anywhere from a 5-15% profit margin due to the fluctuations in market, materials, travel and shipping costs etc. Besides that, to reach the production values I desire, I will likely require a small army of blacksmiths, craftsmen, labourers, etc which will cut down massively on our actual income. I took the liberty of converting these figures to Goldens, so the number is much more stomachable."

Alaric, Dale, stared at the numbers in disbelief. Alaric and Dale, skilled craftsmen and business owners, had their own stash of Goldens—well-earned from years of catering to the rich and powerful. While although Hektor himself had built up an impressive fortune of over eight hundred goldens in his lifetime, and spent hundreds more, He thought it was a paltry drop in the water compared to those numbers.

"Quite frankly, If you decide to help invest in my business, I will certainly need to build a town around this industry to support it and feed it with labour and craftsmen.

If they knew the full extent of Cassius's long-term plans, they might have run away in fear—or torn him limb from limb to figure out how his mind worked. Cassius, however, knew he couldn't achieve everything without his system. Outside of his math skills and life long obsessions, complex steam engines, oil, and electricity were out of reach. Maybe a rudimentary hydroelectric waterwheel, but usable electricity? Not his forte.

He shrugged mentally, he was just going to have to throw money at problems for the time being.

The three men exchanged a shocked expression between the three of them. Hektor had considered himself to be a greedy man, and personally had a few hundred employees under his control. But this boy's appetite was akin to that of a whale. It wasn't unheard of for some villages to rely on the trades & industries like mining to survive, but he doubted Cassius would stop with just that.

"I would also need to rely on the three of you once again to help organise the transportation of ore's, labourers, carpenters, and Stone Masons for the construction… and charcoal men for the fuel we will initially be using.

Finally… We will also need men or women who are skilled in crafting pottery, and men who can man the crucible."

Hektor once again sighed and started running the estimations, if he rushed the job it would probably cost him between 60-120 goldens, wait.. He paused, quickly double checking Cassius's math. "Shareholders you mean investors? Meaning, Dale and Alaric, and myself?"

"Yes, and hopefully the Margrave as well."

"So… our annual income would be 226 or so Goldens?"

"Indeed, of course this is all estimations, but investors would roughly take that much home annually."

Hektor huffed, "I can handle the entire investment process! No need!"

Cassius smirked, "Be that as it may, I will need to have Alarics help to find me blacksmiths willing to swing their hammers for me, and Dale's assistance in finding other skilled craftsmen for my business while you focus on the actual construction of the site."

"Your initial investment will be returned to you in full as well, our first year will of course have a limited production, but we can likely return your full investment in a year at max."

"If you can complete the construction in under 4 months time, you can even keep 100% of the proceeds that the Spinning wheel will produce."

That was all Hektor needed to hear, flames essentially sprouted in his eyes as he agreed to the proposal, he would oversee the construction personally.

He turned his head to address Alaric and Dale, "This is of course assuming you two will be willing to help invest and support my new business?"

Dale simply nodded with a smile. If this paid off, History would remember him and his family for all time, and his children would never worry about hunger or money again.

Alaric, showing rare cunning, decided to press for another advantage. "If possible…"

Cassius noted the look in Alaric's eyes. Given the tight profit margins on bloomeries, and with nobles controlling steel and iron flow, blacksmiths like Alaric often struggled to remain profitable. Cheaper, high-quality steel in large supply could change everything for him.

-----// Authors note //-----

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