The news of the new continent had whetted the appetites of all the countries on the continent, but they also understood that without the ability to sail across the ocean, there was no meaning in discussing this.
Compared to this, it was more important to stabilize their development first because only then would they have a chance to grasp the opportunity to develop the new continent.
If they fell behind before this, naturally there was no need to mention anything.
So as the news of the new continent was released bit by bit by New Flyer, the other countries on the Sines began investing more and more in developing the magic machine industry.
The companies under the Frestech Chamber of Commerce received cooperation requests from the companies, countries, and other powers of the continent every day, so everyone in the Frestech Chamber of Commerce was very busy.
Actually, the busiest and most popular one was without a doubt the Xinfei Household Magical Machine Chamber of Commerce led by Ancato.
Now that the household magic machines were deeply rooted in Sines, everyone understood that the household magic machines could bring great convenience and comfort to their lives, so there were more and more companies investing in the household magic machine industry.
Just in the first four months of this year, there were over a hundred companies that applied to buy household magic machine technology from New Flyer. The technology they bought included all the technology that New Flyer officially sold to the outside world.
In order to satisfy the large demand from the outside world, New Flyer responded to the calls of countless people and announced at the beginning of this year that it would release thirty seven household magic machine technology. This included the Magic Air Conditioner, Magic Refrigerator, and other high end products that New Flyer had never announced to the public.
Like this, all the household magic machine technology the Frestech Chamber of Commerce could produce would be transferred. It would allow the household magic machines that the Frestech Chamber of Commerce only had before to be produced by other companies, so the Frestech Chamber of Commerce had lost their monopoly.
Of course, New Flyer was far ahead of the other companies in terms of technology and craftsmanship. Even if it was the same thing, New Flyer's products were clearly better than the other companies' products in terms of quality and performance.
In addition, the New Flyer had already become the symbol of magic machines in the hearts of Sines. It had an extremely high reputation and reputation, so no matter which country, the Xinfei brand of household magic machines was still the most popular product. There was absolutely no shortage of sales.
After entering June, this advantage was once again manifested like in previous years.
According to the report from the Xinfei Household Magical Machinery Chamber of Commerce, the sales volume of Xinfei brand household magical machinery this year had greatly increased compared to last year. In the month of May alone, the total sales volume was as high as 1.7 million gold coins.
However, after careful calculation, they found that compared to last year, the net profit of the Xinfei Household Magical Machinery Chamber of Commerce had increased quite a bit, but it was obviously lower than the increase in sales.
The reason for this phenomenon was due to the increasing number of companies that could manufacture household magic machines. At the same time, the price of various raw materials was constantly rising. Coupled with the increase in labor costs, the cost of manufacturing household magic machines had obviously increased, causing the profit margin to decrease.
In the first few years of New Flyer, the lowest profit margin of the Xinfei brand household magic machines was over 50% and the highest was a shocking 80%.
Over the years, with the popularity of household magic machines, the profit margin of the Xinfei brand household magic machines had been decreasing.
According to the statistics this year, among the Xinfei brand household magic machines, the Magic Air Conditioner which had the highest profit margin only had a profit margin of less than 30% and the Magic Lamp which had the lowest profit margin only had a profit margin of less than 10%.
Based on this phenomenon, it could even be said that the era of large profits for household magic machines had passed.
Although this was something that Xu Yi had expected, he never thought that it would appear this quickly.
It had to be known that on earth, this kind of situation only appeared after developing for several decades.
In Sines, it had only been sixteen years since household magic machines had appeared.
But after carefully thinking about it, Xu Yi could only helplessly admit that this situation was brought on by him.
Because he had always had the idea of promoting the magic machine industry, he didn't hold back on the household magic machine technology. Now that there were many companies that had the ability to manufacture household magic machines, this directly divided the sales volume of the Xinfei brand household magic machines and created competition, reducing the profits of the Xinfei brand household magic machines.
The increase in the cost of raw materials and labor was also related to him.
Let's talk about labor first.
Before New Flyer, although the companies in Sines didn't have a fixed salary for their employees, for normal employees, there wasn't a single company that would give them a high salary.
For example, seventeen years ago when New Flyer had just been established, the highest salary the companies in Banta City gave was only ten gold coins a year.
When New Flyer had just been established, they actually gave their normal employees a high salary of five gold coins a month.
Counting it all, that was over sixty gold coins a year!
This salary for Banta City where most people barely didn't starve and for the entire Lampari Kingdom, it was an exaggerated amount. Almost everyone in Banta City thought that New Flyer and Xu Yi were crazy.
But it was because of this that New Flyer was able to quickly hire enough people, quickly meeting their large production needs. So in the beginning, New Flyer didn't even suffer from a lack of production.
At the same time, this caused New Flyer's fame to soar, helping New Flyer develop quickly.
Based on this, for New Flyer, the advantages outweighed the disadvantages.
But for the other companies that entered the industry after New Flyer, Xu Yi's initial salary was without a doubt a great sin.
Because New Flyer had already set the standard, it made it so that if the other companies wanted to enter the magic machine industry, they couldn't give a lower salary. Otherwise, they wouldn't be able to recruit people and it was even more impossible for them to poach skilled workers from New Flyer.
So after all these years, because of the competition between the companies, the salary kept increasing.
Now, New Flyer's salary wasn't high, it could even be considered low among all the companies related to the magic machine industry. The other companies had much higher salaries.
This in turn affected New Flyer.
Before the Xinfei Household Magical Machinery Department was separated, they still stuck to Xu Yi's salary and no one complained.
But after the Xinfei Household Magical Machinery Chamber of Commerce was established, Ancato changed the salary in order to raise the morale of the company's members and establish his prestige. This made the salary of the Xinfei Household Magical Machinery Chamber of Commerce rise to a rather high standard among the companies related to the magic machine industry.
As a result, the labor costs of the Xinfei Household Magical Machinery Chamber of Commerce immediately soared. Just in the month of May, just the salary and various benefits had reached 630,000 gold coins, a huge increase compared to before. This greatly increased the cost of Xinfei Household Magical Machinery.
Then there was the matter of raw materials.
When New Flyer had just been established, the people of the Sines didn't pay much attention to the raw materials needed to produce magic machines. So among the raw materials needed by the Xinfei Chamber of Commerce, the most expensive were the magic materials needed to draw Magic Arrays.
As for the iron ores, although they were controlled by the Falcao Chamber of Commerce, the price wasn't high.
As for the equally important Magic Crystals, because they were everywhere, it could be said that they weren't worth much.
Afterwards, as the magic machine industry became more and more important, all the countries on the continent began to pay more and more attention to the raw materials related to the magic machine industry.
Naturally, the price of these raw materials also increased.
Take the iron ores, for example. In the first few years, New Flyer only bought iron ores from the Falcao Chamber of Commerce for around two gold coins per ton. The pig iron that had already been smelted was only around ten gold coins per ton.
But this year, according to the Falcao Chamber of Commerce's latest price announcement in June, the iron ores had already reached six gold coins per ton.
The iron ores had risen to six gold coins per ton and pig iron to twenty-seven gold coins per ton.
Compared to before, it had more than doubled!
Even the Magic Crystals that weren't worth much before, other than the high quality ones, no one would even spare a glance at them. Now that they had become a necessary energy source for all magic machines, the price had increased greatly.
Take the Magic Crystals that New Flyer bought from the Kandla Empire that met the medium standard, the price had already reached ninety-three silver coins per ton.
Moreover, because of the large demand for Magic Crystals, the price had increased very quickly.
At this time last year, it was only seventy-six silver coins per ton, but it had already risen to ninety-three silver coins per ton in a single year.
With this speed, it wouldn't be difficult to break through one gold coin per ton this year.
The demand for raw materials crazily increased along with the price, naturally creating a series of problems.
First was that the various countries on the Sines had increased their control over raw materials. With the Kandla Empire and the Malor Empire as the leaders, there were many countries that didn't export raw materials at all.
Even the only company in the Kandla Empire that traded raw materials was New Flyer. The reason was because New Flyer was the only company that knew how to smelt iron, non-ferrous metals, and Magic Crystals.
Adding in the fact that the Kandla Empire and New Flyer had many cooperation projects, New Flyer could continue to buy raw materials from the Kandla Empire without any restrictions.
However, no matter how much they received benefits, the price of these raw materials had greatly increased, increasing the cost of making magic machines.
If New Flyer was like this, it could be imagined how the other companies and countries on the continent were.
It was fine for the countries that had enough raw materials, but for the countries that didn't have enough raw materials, naturally they had to think of other ways to solve this problem.
Among these methods, the most common and easiest one was war.