Chapter 899: The More You Sell, the More You Lose!
Over the course of three days, more than a dozen senior technicians dismissed by the Boulton-Watt Company were warmly recruited by the Lyon Machinery Manufacturing Company.
This Lyon-based firm was exceptionally generous. Not only did they offer salaries that were impossible to refuse, but they also promised high-end housing in Lyon, company-funded trips back to Birmingham twice a year to visit family, and even assistance with their children's education and employment.
While these technicians were among the elite in all of Europe, they had worked under Watt—a leader known for being both selfish and ungrateful—and their previous incomes had not been particularly high.
Faced with such excellent benefits and the reality of their sudden unemployment, nearly all of them accepted the invitation without a moment's hesitation.
In truth, the Lyon Machinery Manufacturing Company was an entity Joseph had directed the Industrial Development Fund to invest in. Its primary purpose was to manufacture low-to-mid-range steam engines. This served two functions: it allowed the United Steam Engine Company to focus its energy on high-power, high-end models, and it prevented the United Steam Engine Company from becoming a total monopoly.
Since the Lyon company was newly established and in desperate need of talent, the British had conveniently "delivered" these experts right to their doorstep.
While the actual abilities of these British technicians might not have strictly warranted the high price Lyon Machinery was paying, Joseph didn't mind the extra expense to get them out of Britain.
If it slowed the pace of the British Industrial Revolution by even a few months, the expenditure would be recovered several hundred times over.
Meanwhile, as tens of thousands of pounds sterling were poured into a massive publicity campaign, word spread across half of Europe that Britain had developed a new type of high-pressure steam engine at a remarkably low price.
In Southern Austria, near the city of Pecs in Baranya.
This region held Austria's largest coal reserves, with the sprawling mines on the outskirts of the city supplying over 60 percent of the empire's coal consumption.
By the mines of the Mecsek Mountains, a salesman from the Boulton-Watt Company pointed to an advertisement for the Engine52 high-pressure steam engine in the Hungarian Messenger, his words flowing like a rushing river.
"It boasts a full 52 horsepower. A single unit can replace three of the 18-horsepower water pumps you are currently using."
"For your mining district, just three Engine52 models would be enough to solve your flooding issues. That would allow you to employ twelve fewer technicians to operate the pumps."
The tall, balding mine owner waved him off, clearly uninterested. "Talk to me when you actually have the new pumps delivered."
"You see, this is the pre-sale period. The company has authorized significant discounts to expand our market influence. In a few months, each machine will cost you an extra 50 pounds, and you won't get a full year of free maintenance."
The mine owner stopped in his tracks, though he still frowned. "Buying these machines requires a large sum of money. Applying for a loan takes ages..."
"There's no need for such trouble," the salesman assured him with a wave of his hand. "You only need to pay a ten-percent deposit to sign the contract. The balance can be paid within six months after delivery."
'That sounds reasonable...'
In Nottingham, England.
In the office of the Arkwright Spinning Mill, the textile factory that used more steam engines than any other in Britain, General Manager Richard Arkwright looked at the Boulton-Watt salesman with a scrutinizing gaze.
"Using new steam engines would indeed improve production efficiency, but replacing so many machines with a model that hasn't undergone field testing is too high a risk for my company."
The salesman immediately leaned in and whispered, "To be honest with you, the Engine52 was custom-made for the Royal Navy's warships. Its reliability is absolutely beyond question! Given your status, I'm sure you could hear the news yourself at the Chatham Royal Dockyard."
He then produced a drafted sales contract.
"Furthermore, our company will explicitly state in the agreement that if these machines encounter any irreparable faults, the company will compensate you with ten times the purchase price."
Arkwright couldn't help but nod slightly at those words.
He had purchased many Boulton-Watt steam engines in the past, and the quality had always been decent. Such a high compensation amount proved that the Boulton-Watt Company had immense confidence in this new engine.
He thought for a moment and took the contract. "I am interested in ordering fifteen units, but can the price be lowered further?"
The salesman replied immediately, "As you know, the price of 500 pounds per unit is already extremely low. How about this: if you order eighteen units, I can suggest to the company that your payment deadline be extended to... two years."
Arkwright's eyes lit up. With such a long payment period, the savings on interest alone would be substantial.
He nodded. "If you are willing to add an extra six months of free maintenance..."
"I believe the company will agree to that."
Similar scenes were playing out across Europe.
Spurred by the Boulton-Watt Company's unprecedented discounts and high compensation guarantees, the company's salesmen reported success after success.
With the exception of France, where the purchase of British steam engines was strictly prohibited, they secured pre-sale contracts for 133 high-pressure steam engines in just one and a half months across other markets.
The company recovered over 10,000 pounds in deposits alone.
At a board meeting, Boulton lavished praise on Frank. It was Frank's suggestions for expansion and his sales strategy that had led to the company's unprecedented growth.
However, Boulton felt a twinge of regret that their initial production plan of 200 units per year had been set too low. Based on the current trend, they could easily sell 300 units annually.
Boulton then turned to Sandel. "John, how are the tests with the Navy going?"
"Everything is proceeding smoothly," Sandel replied calmly. "Two prototypes have been installed on the Comet. They have run continuously for twenty hours several times without a single failure."
The directors erupted in cheers. "Excellent!"
"It seems the Navy will complete its acceptance tests very soon."
"150,000 pounds! Haha, we're going to get that 150,000 pounds!"
Boulton quickly asked, "Has Sir Hope mentioned anything about additional purchases?"
Thomas Hope was the director in charge of the Chatham Royal Dockyard.
"Yes," Sandel nodded. "He is very satisfied with the Engine52. Once the sea trials are completed, he should be ordering approximately thirty more."
The room erupted in another round of cheering.
The Navy's requirements for reliability far exceeded those of civilian models; major components were reinforced and built with redundant backups, so the price was significantly higher than the civilian version.
Thirty steam engines would bring the company nearly 60,000 pounds in revenue!
What Boulton and the others did not know, however, was that the sea trials of Britain's new steam warship, the Comet, were actually mired in difficulty.
They had encountered the exact same problem their French counterparts had faced years ago—the ship's axle vibrated violently, leading to deformation and even fracturing.
Given the industrial processing precision of the late eighteenth century, it was nearly impossible to manufacture a qualified ship axle using conventional methods.
Fortunately, British spies embedded in the Brest Shipyard in France had managed to uncover the French solution, though it had cost the exposure of over a dozen agents. The French were using a very specific type of wood to stabilize the axles—a wood known as Lignum Vitae.
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