The storm was indeed coming for the New Flyer.
But this storm didn't bring trouble, rather it brought countless citizens of Banta City who wanted to become rich overnight.
After the product announcement, the New Flyer's small company support plan was widely publicized by the newspapers of the city. Adding in the fact that the City Lord Manor had put up notices in the city square, in just a few short days, everyone in Banta City knew about this.
After learning that a few farmers from Ireland Village could earn over a hundred gold coins a month by participating in this plan, the citizens of Banta City instantly went wild.
In just a single night, there were countless companies with strange names that appeared in Banta City. Then these small companies that suddenly appeared all asked the New Flyer to join the small company support plan.
In just a short three days, there were over a thousand companies that applied to join this plan.
Although most of them were new companies that had applied in just a few days, there were also some small companies that had already existed in Banta City.
Faced with such a large number of applications, the City Lord Manor officials sent by Count Samo to help the New Flyer with this plan were even more tired than dogs. They worked from morning to night every day and they didn't even have more than five hours of sleep.
It was a good thing that the New Flyer had already made a set of detailed criteria before releasing this plan. Any small company that didn't meet the criteria wouldn't accept an application, which saved them quite a bit of trouble.
The most basic one was that the small companies that applied to join the small company support plan had to have the most basic proof of funds.
The lower limit of this amount was temporarily set by Xu Yi at two hundred gold coins.
Just with this, half of the thousand companies that applied were eliminated.
Adding in the other criteria, there were only two hundred companies that passed the small company support plan in the end.
However, when the over two hundred small companies learned that even if they participated in the small company support plan, they couldn't make complete magic machines like the Magic Fan, the Magic Rice Cooker, the Magic Bread Maker, and other magic machines. They could only choose to make parts for these magic machines, over half of the small companies chose to withdraw.
In the end, there were only eighty seven small companies that insisted on participating in the small company support plan.
"Xu Yi, when you said that you would give the screw bolts to Freeman's group to make, I didn't think it was anything since the screw bolts aren't that important.
But now you're telling me that you're planning on giving these parts to these small companies to make ….. Hey, are you planning on dismantling our household magic machine workshop? "
As Xu Yi's prestige in the company increased, in the New Flyer, the only one who wouldn't hesitate to criticize Xu Yi was Heinz.
Today wasn't the day he was supposed to return to Banta City, but when he saw the report on the small company support plan in the « Karma Times », he couldn't help running back.
It was for no other reason than to question Xu Yi.
"Who said that I wanted to dismantle the household magic machine workshop?" Xu Yi looked at him with a confused gaze.
Heinz looked at Heinz with a confused look, "I say, you came back today just for this?"
Heinz pointed at the representatives of the eighty seven small companies that were being led around the household magic machine workshop by Ancato and angrily said, "Could it be that it isn't?
This workshop is just making these parts and then assembling them. If you're going to give these parts to those small companies that I've never heard of, what is the use of this workshop?
Is it just simply assembling these parts each day? "
"Wait ….. Heinz, I've found that there is a problem with your logic." Xu Yi said with a frown.
"Even if I give these parts to those small companies, why does it mean that this workshop has nothing to do?"
"Nonsense!
These things are what our household magic machine workshop's workers do. If you give it to others, of course our workers have nothing to do! "Heinz angrily said.
"Who said ….. Oh, I understand."
Xu Yi patted his head and reached out to grab Heinz's shoulder as he said with a laugh, "It's my fault that I didn't make it clear to you.
Un ….. How should I put it, I'll tell you first. Even if these eighty seven small companies join in the production of parts, it won't affect the work of our company at all. I'm certain of this, so you don't need to worry. "
Although Heinz was angry, he knew that Xu Yi wouldn't joke with him in this situation. He couldn't help asking in a confused voice, "What is going on?
Speak clearly. "
"It's like this.
Look, first, you were the person in charge of this workshop before, so I think that you should be clear that there has always been a bottleneck in the household magic machine workshop's production capacity.
The reason for this bottleneck is that our production speed can't catch up to our assembly speed, right? "Xu Yi asked.
Heinz thought about it before nodding, "That's right.
But before I left, I adjusted the ratio of the workers and did my best to keep it the same.
Could it be that after I left, that kid Ancato changed it again? "
"That didn't happen. Ancato has done his work very well, so you don't need to worry.
But you have to think about it. Although you did adjust the ratio and increase the overall efficiency, isn't this just a compromise? "Xu Yi asked.
"Then what do you want to do?
You said it yourself, the production speed of the workers can't catch up to the assembly speed. We can't just hire a group of workers to focus on producing parts, right?
We don't have that much space right now, unless ….. "Heinz was suddenly stunned. After thinking about it, he looked at Xu Yi in surprise.
"Hey, could it be that you want to use these small companies to replace the workers and space that we need?"
Xu Yi nodded with a smile, "Not bad, you finally understood."
Heinz looked at the representatives of the small companies in the distance and after thinking for a while, he knit his brows again.
"That still isn't right.
Although letting them process the parts can save us a lot of manpower and space, since these parts are processed and produced by them, if we buy from them, they will definitely make a profit.
If that happens, won't our profits decrease? "
Xu Yi chuckled, "Heinz, let me ask you a question.
Previously, when we produced a # 3 screw, how much did it cost? "
Heinz was startled and he stared at Xu Yi, "How would I know? You should ask Sebas."
"I already asked, so I know.
Let me tell you. According to Sebas' estimates, the cost of producing a # 3 screw is between 25 to 30 copper coins, "Xu Yi said.
"That's not right, is it?
The # 3 screw is so small and only uses a small amount of pig iron, how could it cost 25 to 30 copper coins? "Heinz said in a confused voice.
"The pig iron is just the material cost, but if we calculate the actual cost, we also need to add in the cost of manpower, the cost of the Magic Thread Rolling Machine, and various other factors, so the final estimate is this much." Xu Yi explained.
"Un ….. Alright, even if it's this much, how is this related to my previous question?" Heinz asked.
"Of course it is.
Now you know that it costs around 25 to 30 copper coins to produce a # 3 screw. But do you know how much it costs for us to buy a # 3 screw from the Ireland Chamber of Commerce? "Xu Yi asked back.
"I really didn't know about this.
But thinking about it, they also need to make money, so a # 3 screw should ….. be around 35 copper coins.
If it's more, you definitely won't agree. "
Xu Yi revealed a faint smile and shook his head, "You're wrong.
If we buy a # 3 screw from the Ireland Chamber of Commerce, it only costs twenty three copper coins. "
"That's impossible!" Heinz immediately refuted in a surprised voice.
"Could it be that they don't make money?"
"No, it's the opposite, they can still make money.
According to my estimates, if they sell a # 3 screw for twenty three copper coins, they can make around five copper coins. "Xu Yi said.
"How is that possible?!" Heinz was completely shocked.
Heinz was completely stunned, "We spend 25 to 30 copper coins to make a # 3 screw, so why can't they even use 20 copper coins?
Could it be that they do it better than us? "
Seeing Heinz's excited expression, Xu Yi knew that this must have hurt Heinz's pride as the previous household magic machine workshop director, so he patted his shoulder and said, "This isn't related to you.
It's because our New Flyer's employee benefits are better, so we invest more in manpower.
As for the Ireland Chamber of Commerce, they are the boss of the company and also have employees, so they can ignore manpower. Naturally they can lower their overall cost compared to us. "
"Then what about the quality of the screw they make?
If it's not as good as what we make, I'm still against you doing this. "Heinz said in an unconvinced voice.
"It's a pity, the quality of the screw they make is even a bit better than what we make ….." Xu Yi helplessly spread his hands.
"Ah?
It can't be, right?
Why is that? "Heinz's face was filled with disbelief.
"It's very simple, it's because they are professional." Xu Yi gave a shrug as a trace of relief appeared in his eyes.
"I only sold them a few Magic Thread Rolling Machines and some related equipment, as well as teaching them how to make screw bolts, but I never thought that they would keep improving during this time. The quality of the screw bolts they make now are already quite good.
It's even better than mine ….. Un, in short it's very good, it definitely meets the requirements of our company. "
Heinz was in a daze as he looked at the representatives of the small companies who were looking at the Magic Thread Rolling Machines in the distance. After muttering a few words, he suddenly asked Xu Yi, "I can understand why you gave the parts to these small companies, but Xu Yi, aren't you worried that these small companies will grow up one day and steal all of our New Flyer's business?"
Xu Yi revealed a faint smile, "If they can really do this, I will definitely raise both hands to welcome them."
Seeing the sincere smile on Xu Yi's face, Heinz painfully patted his head.
"I forgot that you're a lunatic!"