Chapter 897: Let Me Show You Some 21st-Century Rhetoric
For instance, the manufacturing technology for the High-Pressure Steam Engine's critical component, the pressure gauge, was something Sandel had not brought to the Boulton-Watt Company.
The prototype he produced used finished pressure gauges brought over from France.
In the conference room, the eyes of every company director burned with fervor under the influence of Frank's highly inflammatory speech.
They had all heard of just how profitable the United Steam Engine Company in France was.
If they could seize the steam engine business of the European continent for themselves, the company's profits would increase tenfold!
"That's right! It's time to go all in!" someone exclaimed excitedly.
"Lowering costs through high production volume is the right move."
"Put two hundred units into production and crush the Frenchmen!"
Faulkner, however, frowned slightly and looked toward Sandel again. "Mr. Sandel, if we calculate based on an annual output of two hundred units, how much capital would we need to invest?"
No one paid any mind to the genius technician's speed of calculation; instead, they began to deliberate amongst themselves.
"Is that not too much?"
"With the company's current funds, we would need a loan of at least 50,000 pounds."
"We have the technology for the new steam engine; the banks should be more than happy to provide a loan."
Frank merely smiled, raising a hand to signal for silence.
"No, we have other channels to obtain capital."
Everyone immediately turned their gaze toward him.
"For example, the pre-sale model," Frank said, speaking with confidence. "We can pre-sell to customers who need steam engines. That is, they pay a portion of the price upfront, and we deliver the machines a few months later. As long as we give them a small discount, they will be very eager to hand over their money.
"Furthermore, I wonder if everyone has heard the golden maxim in the field of production cost control—'Building is inferior to buying, and buying is inferior to leasing'?"
Everyone shook their heads.
Frank followed the script the Crown Prince had given him. "You see, building a new Milling and Grinding Machine requires an investment of about 3,000 Pounds Sterling. But such a thing can be bought on the market for only 1,400 pounds.
"Building a production workshop for pressure gauges would cost as much as 5,000 pounds!
"But I know a company in the Netherlands that produces these types of pressure gauges. Oh, for the prototype I built this time, I used their product. One costs only one pound and seven shillings.
"With something so cheap, why should we invest 5,000 pounds to produce it ourselves?
"Moreover, the Dutch company will certainly develop new types of pressure gauges in a few years. When that time comes, we can just use them directly without having to invest a single penny in research and development costs."
Watt, who had been silent the entire time, suddenly spoke up coldly. "What if that company suddenly refuses to sell to us?"
Frank laughed with exaggerated boisterousness. "They spent so much money building a production workshop; why wouldn't they sell to us? There are no idiots in this world who refuse to make money!
"Even the French, with whom we are currently at war—don't they ship boatloads of fashion and cosmetics to London just to make a profit?
"Our company will buy hundreds of pressure gauges every year. For such a major client, the Dutch will only come running to beg us to buy from them."
Watt opened his mouth to retort but found that the logic seemed sound.
Indeed, why would anyone refuse to make money?
Never mind Watt; even the nations of the East in the 21st century once found it hard to believe that Americans would walk away from business deals worth hundreds of billions of dollars just like that.
Of course, the so-called Dutch instrument company was something Joseph had arranged in advance.
To ensure the British didn't become suspicious, this company had even provided pressure gauges to Upper Hesse at low prices, which had been in normal use for quite some time—the items were originally French-made, merely passing through the Netherlands to be laundered, so they naturally functioned without issue.
Frank continued, "We must carefully inventory the components that can be purchased to avoid redundant investment. This way, an initial investment of about 50,000 pounds should be enough."
Faulkner was delighted. "You truly are a master of company management! This way, a loan of only 30,000 pounds will suffice."
"No, we should still try to secure as much of a loan as possible," Frank advised. "We need to invest heavily in promotion. No matter how good a product is, if the buyer hasn't heard of it, they won't open their wallet.
"I believe at least 10,000 Pounds Sterling should be invested in promoting the new steam engine. Let every person in Europe know how wonderful the Boulton-Watt Company's steam engine is. This will further increase our sales!"
The shareholders all nodded in admiration, thinking to themselves that Boulton had not only poached a technical master like Sandel this time but had also happened upon a talent in management. They had hit the jackpot!
Boulton immediately said to Frank, "Mr. Frank, I would like to invite you to serve as the Assistant General Manager of the company. I hope you won't refuse."
Frank was overjoyed. Boulton himself was the General Manager, and the Assistant General Manager was the second-in-command for the company's daily management. This would provide immense convenience for the implementation of his plans.
However, he feigned a bit of hesitation. "If I could obtain some shares in the company..."
Boulton and Faulkner consulted for a moment, both wanting to retain this management talent. Finally, Boulton nodded. "The company can grant you two percent of the shares."
"Thank you for your generosity. I shall do my utmost to earn even greater profits for the company!"
After several hours of discussion, the board of the Boulton-Watt Company finalized a production plan involving a 50,000 Pounds Sterling loan, a total investment of 70,000 pounds, and the annual production of two hundred new High-Pressure Steam Engines.
The next day, all shareholders signed the equity transfer agreements one after another.
At this point, the company's share structure was as follows:
The largest shareholder, Boulton, held 26 percent; Watt held 22 percent; Faulkner held 17 percent; Sandel held 20 percent; Frank held 2 percent; and other small shareholders held a total of 13 percent.
With this, the combined shares of Sandel and Frank were nearly equal to those of Watt, the company's founder.
Half a month later, the company's new workshop was already beginning to take shape.
The Milling and Grinding Machines and boring machines purchased from the French company were being unloaded at the docks, and orders for various instruments and raw materials had been signed with suppliers.
At the same time, in the office of the company's research and development workshop, Sandel and Frank were going through the list of the company's technicians, screening them one by one.
"This Martin has a solid theoretical foundation and a quick mind..."
Before Sandel could finish, Frank drew a cross over Martin's name.
"Hmm, Mars seems to be a relative of Boulton's. He has no real ability and can handle piston maintenance at most."
Sandel immediately drew a checkmark.
The two of them quickly went through the twenty-seven core technicians. Every technician with ability or even potential was slated for termination.
"Over the next few days, you need to hire twelve new technicians as quickly as possible. Ensure they are skilled at assembling the machines so Boulton doesn't become suspicious. As for the dismissals, I'll handle them."
One was the chief technician and the other was the Assistant General Manager; working together to get rid of a few technicians was as easy as turning over a hand.
A few days later, Silas Martin, who had been unexpectedly fired by the Boulton-Watt Company, had just reached the door of his home when a well-dressed middle-aged man approached him. The man smiled at him kindly.
"You must be Mr. Martin? A pleasure to meet you. I am Bryan, from the Lyon Machinery Manufacturing Company."
Comments