Volume 7 Chapter 54 - Rise In Cost (1/2)

The news of the new continent naturally stirred the appetites of all the countries, but they also understood that without the ability to travel on the seas, all discussion was meaningless.

Compared to this, consolidating their own development was more important because only by doing this would there be a chance to grasp the chance to develop the new continent.

If they fell behind before this, then there was no need to mention anything.

So once the news of the new continent was released bit by bit by the Frestech Chamber of Commerce, the other countries started investing more and more into developing their magic machine industries.

The companies under the Frestech Chamber of Commerce received many applications to cooperate every day from the various companies and countries of the continent. It had caused all the workers of the Frestech Chamber of Commerce to be swamped.

Actually, the busiest and the most popular was without a doubt the Frestech Household Magic Machine Chamber of Commerce led by Ankhto.

Household magic machines had already entered the hearts of the people, so everyone understood that household magic machines would make their lives more convenient and comfortable. There was more and more investment into household magic machine companies being made.

Just in the first four months of the year, there were over a hundred companies that made applications to the Frestech Chamber of Commerce to purchase household magic machine technology. Among them included applications for all the current technology the Frestech Chamber of Commerce released.

In order to satisfy this large demand, the Frestech Chamber of Commerce agreed with the appeals of countless people and announced at the beginning of the year that they would be releasing another thirty seven household magic machine technologies. Among them would include technologies like the Magic Air Conditioner, the Magic Refrigerator, and other high end magic machines that they had never released before.

Like this, all of the Frestech Chamber of Commerce’s current household magic machine technologies were released. This made it so that all the other companies could produce the household magic machines that only the Frestech Chamber of Commerce could produce before, causing them to lose their monopoly.

Of course, the Frestech Chamber of Commerce still led all the other companies when it came to technology and craftsmanship. Even if they had the same things, the quality of the Frestech Brand was still better than the brands of the other companies.

Then adding the fact that the Frestech Chamber of Commerce had already become the symbol of magic machines in the minds of the people, having a high fame and prestige, so no matter which country it was, the Frestech Brand was always the most popular product and never lacked sales.

Once June came, this advantage had shown itself just like in the past years.

According to the report from the Frestech Household Magic Machine Chamber of Commerce, their sales had increased once again compared to last year. Just in the month of May alone, their sales had reached one million and seven hundred thousand gold coins.

But through detailed reports, they found that compared to last year, while the profit of the Frestech Household Magic Machine Chamber of Commerce had increased, it didn’t increase as much as their sales.

The reason for this was that as more and more household magic machine companies appeared, the price of raw materials kept increasing, as well as the cost in manpower. It had increased the base cost of these household magic machines, which had decreased their profits.

In the years that the Frestech Chamber of Commerce had been formed, the profit margins of the Frestech Brand household magic machines were at lowest 50% and were as high as a shocking 80%.

But as the household magic machines became more and more popular, the Frestech Brand household magic machines’ profit margins kept dropping.

Based on the stats this year, among the Frestech Brand household magic machines, the one with the highest profit margins, the Magic Air Conditioner only had 30% profit margin. As for the lowest, the Magic Lamp, it only had less than 10% profit margins.

Based on this, one could say that the period of explosive profits from household magic machines had already passed.

Although Xu Yi had already expected this, he never thought that it would come so quickly.

It had to be known, on earth, the household appliance industry had to develop for several decades to reach this level.

On the Sines Continent, it had only been sixteen years since the household magic machines had appeared.

But if he thought about it, Xu Yi could only admit that he was the one that created this situation.

Because he always had the idea of promoting the magic machine industry, he didn\\\'t keep the household magic machine technology at all. There were many companies that could produce household magic machines, so they shared the market with the Frestech Brand, creating competition that reduced the profits of the Frestech Brand.

And when it came to the increase in materials and manpower, it couldn’t be said that it was unrelated to him.

First when it came to manpower.

Before the Frestech Chamber of Commerce, although there wasn’t a fixed value for the companies hiring their staff, for most staff, most companies wouldn’t give them a high wage.

Seventeen years ago, when the Frestech Chamber of Commerce was formed, the highest wage in Banta City was only around ten gold coins a year.

When the Frestech Chamber of Commerce was formed, they actually started off by giving their workers five gold coins a month.

This was over sixty gold coins a year!

This salary for most people in the Banta City and the Lampuri Kingdom that could barely fill their stomachs was an extremely large amount. Almost all the people of Banta City had thought that the Frestech Chamber of Commerce and Xu Yi were crazy.

But it was also because of this that the Frestech Chamber of Commerce was able to quickly recruit enough workers at that time, quickly increasing their production capacity. The Frestech Chamber of Commerce in the beginning didn’t even face the problem of not having enough production capacity.