The Value of Core Technology
Shen Jingchuan looked up at Lin Weiyuan:
"Having said so much, I'll get straight to the point—I wonder if Uncle Lin is interested in this business?"
The three members of the Lin Household were all taken aback upon hearing this, and exchanged glances. Lin Weiyuan stroked his beard, slightly surprised:
"What does the young master mean?"
"What I mean is, the car manufacturing workshop should be run by your Lin Household."
Shen Jingchuan put down his teacup and said:
"The core steering mechanism, shock absorber components, wheel materials, and even the glass for the windows and sunroof—all these things that can't be made locally—are supplied by my Shen Household."
I can provide you with the prototype design. The remaining frame, carriage, woodwork, and metalwork can be made locally by craftsmen. You will manage the workshop, the craftsmen, and the local purchasing and sales; you will handle all the affairs.
Lin Weiyuan was taken aback for a moment, then waved his hand and laughed:
"Young Master Shen, what are you saying? Are you worried that you're new here and unfamiliar with the place, and that opening a workshop will be difficult? What's so difficult about that? Just open it up. I'll take care of the local customs and all sorts of shady characters for you. The brothers from the escort agency will also help keep an eye on things. No one will dare to cause trouble."
"That's not the only reason."
Shen Jingchuan shook his head:
"The Shen Household's business is extensive, with several sea and land trade routes. This carriage business is just one of them. I don't have the energy to stay here and oversee the workshop's trivial matters. As for the supply side, I will naturally make my due profit; the profits from manufacturing and selling carriages will all go to your Lin Household."
Lin Weiyuan didn't reply immediately. He stroked his beard and pondered for a long time, his brows slightly furrowed.
"I appreciate your kind intentions, young master. However, I suddenly realize that I may have spoken a bit too boldly."
To be honest, this business is huge. Once the four-wheeled carriages are on the market, the entire trade route will be transformed, and there will be no shortage of envious people. Although my Lin Household has some influence in the prefectural city, if we really offend a ruthless character, like—if he points his finger to the sky and openly or secretly robs us, I'm afraid we won't be able to withstand it."
"Father!" Lin Yue immediately frowned and slammed his hand on the stone table. "Our escort agency has over a hundred brothers, who are we afraid of? Anyone who dares to reach out and snatch us, we'll break their legs!"
Lin Shan also said in a deep voice, "In the territory of the prefecture city, there are not many businesses that dare to disrespect the Lin Household. If they really want to cause trouble, we are not to be trifled with."
"What if it's from Capital? Or from the Imperial Family?"
The two of them fell silent.
Shen Jingchuan smiled faintly and waved his hand:
"Chief Escort Lin, don't worry too much. It's not that scary. Think about it carefully. Even if others are envious, what good will it do to rob our workshop? It's just a few carpenters and blacksmiths. You can find those kinds of craftsmen everywhere."
But the most crucial components—the steering mechanism and shock absorber wheels—are only available to my Shen Household. Without these, even if they take over the workshop, can the four-wheeled vehicles they assemble even be usable?"
He paused, his tone calm:
Even if others are envious, they can only sit down and discuss cooperation. If they try to forcibly take it, they will only get an empty shell, which will be of no use whatsoever.
"At the foot of the capital, the law still applies; they won't commit murder and plunder in broad daylight. And if they resort to underhanded tactics, they won't find the core components; what kind of trouble can they cause?"
Lin Weiyuan was taken aback at first, then suddenly slapped his thigh, and a sudden realization dawned on him:
"That's right! How come I didn't think of that! The root of the problem is in your Shen Household's hands, what use is it for others to seize a workshop!"
He stroked his beard and nodded repeatedly, all his worries vanishing.
"That makes sense! Since the core technology isn't located locally, we don't have to worry about technology leaks or anyone trying to seize it. Let's get the workshop up and running first, and see how things go. If we really run into trouble, we can just share some profits or give up some shares."
How big is this market? Where can we take advantage of the north-south trade routes, wealthy officials, gentry, and traveling escort teams? We can't let our family take all the benefits. We can go out in small numbers, even if it's a big one."
Shen Jingchuan listened with inward admiration, thinking to himself that the Lin Household Escort Agency's ability to gain a foothold in the prefectural city and grow its business was indeed no fluke.
Lin Weiyuan seem like a rough and tough martial artist, but he is actually clear-headed and open-minded. He knows his limits, knows when to advance and retreat, and can take things in stride. He understands that it's hard to eat alone and that sharing profits is the only way to last. He is a true veteran in the business world.
He glanced at the Lin Shan and Lin Yue, beside him. Compared to their father's shrewdness and vision, they were far inferior. They still had a lot to learn.
"If Uncle Lin thinks this way, I think the deal is more than half done," he said with a smile.
Lin Weiyuan stroked his beard, pondered for a moment, then looked up at him, his tone solemn:
"Young Master Shen, let's get straight to the point. The core components you provided are the foundation of this four-wheeled carriage. Your Lineage's share of the principal and interest will be calculated according to your rules, without missing a single penny."
But you can't work for nothing. Besides, the net profit from the workshop's car manufacturing and sales will be split 50/50: you take 50% and the Lin Household takes 50%.
Shen Jingchuan was taken aback for a moment upon hearing this, then waved his hand and laughed:
"Uncle Lin, that won't do. You've put in so much effort to build the workshop, hire craftsmen, find sales channels, and deal with all sorts of relationships. I'm just providing some ready-made parts; how can I take so much? One-tenth, just one-tenth is enough for me."
"That won't do!" Lin Weiyuan immediately shook his head. "Without your core mechanism, this car is just a pile of scrap wood, and no amount of craftsmen can build it. One-tenth is too little; people will accuse my Lin Household of taking advantage of the younger generation. Forty percent, you must take at least forty percent."
"You really don't need that much." Shen Jingchuan said firmly.
"Twenty percent, at most twenty percent. Uncle Lin, I wouldn't dare accept any more than that. My Shen Household does business on a long-term basis, relying on integrity and various core technologies. As you expand your operations and sell more goods, I'll personally earn some money, and this share will be enough."
The three members of the Lin Household exchanged glances upon hearing this, and each saw a hint of surprise in the other's eyes.
Lin Weiyuan deliberately quoted 50% to test Shen Jingchuan's appetite—he knew perfectly well that the lifeline of this business was entirely in Shen's hands, and if it really was split in half, he would have to agree; it was just a matter of how much he would earn.
But to his utter surprise, Shen Jingchuan took the initiative to lower the price, asking for only 10% upfront, and even when he increased it to 20%, it seemed like he was doing it reluctantly, without the slightest bit of greed.
This open and honest approach actually made Lin Weiyuan feel more at ease. After a moment's thought, he finally nodded and sighed:
"Very well, then it will be as you say, 20%. I appreciate your kindness."
With things settled down, they stopped being polite and began discussing the follow-up details.