Steel, Explosives, and Spellcasters-Chapter 882 - 9 Negotiation_2
Chapter 882: Chapter 9 Negotiation_2 Chapter 882: Chapter 9 Negotiation_2 Mr. Leo then provided Winters with a very imaginative plan—the stepped transportation.
In the past, Mr. Leo had actively engaged in the traditional business between Vineta and Paratu: mule and horse trading.
It is said, “Oil, salt, soy sauce, vinegar, sugar come from the east while cattle, sheep, mules, and horses come from the west.” Every horse dealer knows that herds cannot be directly driven from the high altitudes of Paratu to the low altitudes of Vineta.
If the horses were transported directly to Vineta by boat, at best they would significantly lose weight, and at worst they would simply die of illness.
Therefore, the common method was: along the trend of decreasing altitude, they set up a series of horse-feeding ranches, and drove the herd down the plateau like descending stairs.
Firstly, it allows the horses to gradually adapt to the air and environment at lower altitudes, and secondly, to change their feed step by step.
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However, this meant that “there are always some horses in transit,” unable to be sold.
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This was not much of a problem for small-time horse dealers who traded in one batch at a time in a single deal.
But for major mule and horse merchants, “having horses always in transit” meant “constantly having a portion of capital tied up,” which significantly squeezed their cash flow.
Over time, cash-rich mule and horse merchants simply stopped going to buy horses in the higher altitudes of western Paratu, instead purchasing directly from the lower-elevation areas of eastern Paratu.
Though it was more expensive, it saved a great deal of transportation time and capital returned faster.
Some extraordinarily resourceful mule and horse merchants were even able to buy directly from the military horse farms in Paratu or even from stationed troops.
The military horse farms that sold the horses would use the money to buy cheaper horses from the west to replenish their stock, easily making a profit on the margin.
These pieces of information are just the tip of the iceberg regarding the inside trade secrets of the “Paratu-Vineta” horse trading business. It’s not a secret to insiders, but it’s like a mountain barrier to outsiders.
Without Mr. Leo’s explanation, Winters could never have imagined that someone could be bold enough to privately sell military horses.
Even more shocking intelligence followed, according to Mr. Leo, most of the warhorses of the Vineta Army were bought this way.
Finally, Mr. Leo asked Winters to pose a few questions to Antonio, “How many horses does the Vineta Army actually need? How do they want to buy? And what are they willing to offer?”
…
Antonio’s tent.
Mr. Leo did not know the number “three thousand,” but Winters did.
So the answer Winters received was, “Three thousand, a number proposed considering the long-distance, short-term transportation losses. The more warhorses Iron Peak County can provide, the better, but the minimum per transaction must be enough to equip two squadrons—namely four hundred horses.”
As for what the Vineta Army could put on the scale, “As for money, the annual budget for both the Navy and Army is being tightened (Antonio sighed deeply). If it’s food… maybe we could work out another accounting.”
…
Mr. Leo’s guestroom.
“Food is no good.” Mr. Leo slammed his fist on the table, becoming somewhat agitated, his plump face turning red, “Food isn’t something that can be transported long-distance unless by water! What’s the use of food? Arms! Arms would be more like it!”
Then, Mr. Leo explained a set of merchant mnemonics used to estimate transportation costs.
One sentence goes, “Transporting food three hundred li, and you cry all the way home.”
It means, “When trafficking food by land, every one hundred and fifty kilometers, the transportation cost matches the price of the food itself. The grain dealer loses terribly and cries all the way home.”
This is a bloody lesson for merchants—food can’t be traded long-distance unless via water routes.
“Go ask General Serviati,” Mr. Leo pondered, “if he can provide arms. What’s the price?”
…
Antonio’s tent.
“Arms?” Antonio regarded Winters, falling into thought, “No.”
…
Mr. Leo’s guestroom.
“No?” Mr. Leo sneered, “Then there’s nothing to talk about. Tell General Serviati, no arms, no warhorses!”
“Wait a moment.” Winters interrupted an impassioned Mr. Leo, frowning. “Do I always have to act as the messenger? How about this, you fully represent me and negotiate with General Serviati?”
Mr. Leo suddenly deflated, shaking his head vigorously, “No, no, I can’t. If I come forward, it’s not negotiating and it won’t work. Only you can sit at an equal position.”
…
Antonio’s tent.
“Ahem.” Winters mustered his courage, gazing directly at his foster father, “No arms, no warhorses! You may go back, and send my regards to my aunt.”
…
Mr. Leo’s guestroom.
“Half food.” Winters told Mr. Leo. “Half arms, no room for negotiation.”
Mr. Leo paced back and forth, his right hand unconsciously scratching at his cheek. Though it was winter, he was sweating profusely, “Mixing half and half? It’s not impossible, but the food has to be discounted!”
…
Antonio’s tent.
“You might not be aware, but every one hundred and fifty kilometers of transporting food, the cost is higher than the food itself.” Winters took out his notebook, carefully doing the calculations for his foster father, “If the food isn’t discounted, it would be too much of a loss for me.”
Unable to help himself, Antonio tapped Winters on the forehead.
Winters was stunned; it had been a long time since anyone had shown him such an intimate gesture.
“You, silly boy!” Antonio, not noticing Winters’ emotional fluctuation, was a bit exasperated, “Mr. Leo is a partner of Lady Navarre, not your partner! You haven’t even become her son-in-law yet!”