Shops

Seeing that Grimm ' attitude had completely softened and that he had acknowledged the basic principle of the Lord's Residence's Mansion taking the lead, Karl knew it was time to clarify the specific framework for cooperation.

He sat up straight, his expression regaining its usual composure and decisiveness, and began to clearly explain his business management rules.

"Very well, Mr. Grimm. Since your company is willing to cooperate within the rules, let's discuss the specific terms, starting with the scope of business."

"In Carnford, no merchant may trade in the three most critical strategic resources—salt, iron, and grain—at will be allowed to do so Franchise Permit ' issued by the Lord's Residence. Any business conducted without a license is considered smuggling and will be severely punished without exception."

Grimm nodded quickly. "Of course, Your Excellency is very thoughtful. Such important supplies should be managed by the Lord's Residence. I fully understand."

Karl nodded and continued, "Then, regarding the shops your guild plans to open—three grain shops, one general store, one cloth shop, and one ironware shop—these are all acceptable. However, the 'licenses' for the ironware shop and the grain shop require separate applications and approvals. As for the prices..."

He pondered for a moment, then said, "Let's set the price of grain at one Silver coin, seventy copper coins, and one hundred kilograms. This price is slightly lower than the normal market price in the heart of the kingdom, but considering transportation costs and your reasonable profit, it's fair."

Karl knew that although he could get lower prices for grain by leveraging his relationship with the Count, relying on such favors was not a long-term solution and would make him vulnerable to being controlled by others.

A stable, publicly available price that is slightly below the market average but still allows businesses to profit is more conducive to establishing a healthy business order.

Grimm quickly calculated in his mind that although the price was much higher than the "one Silver coin" that Karl had previously boasted about, it was indeed as Karl said, and after taking into account the additional costs of transportation to the Northern Territory, there was still a certain profit margin, and it could quickly open up the market.

He nodded in agreement. "Your pricing is fair, sir, and I have no objection."

Karl continued, "As for other goods, such as cloth and groceries, you may set your own prices based on the market, but you must report to the Lord's Residence and are not allowed to maliciously inflate prices or disrupt the market."

"Of course, our chamber of commerce has always operated with integrity," Grimm assured him.

"Next are the shop locations and rents," Karl said, pulling out a simple Shantytown Area at the Carnford Mountain. "The commercial areas currently planned are mainly concentrated in the Shantytown Area where new immigrants gather, in the most densely populated and easily accessible central locations, with an annual rent of fifty gold coins. The next level of ordinary locations will have an annual rent of twenty gold coins. In addition, we also allow itinerant vendors to set up stalls in designated areas, charging a monthly fee of five Silver coin."

Grimm studied the map carefully. Although the rent in the central area was high, the foot traffic was huge and the commercial potential was the greatest. He decisively chose a location in the central area. "Sir, we are willing to rent two shops in the central area to open a grain shop and a general store."

"Yes," Karl noted, then offered another idea. "Furthermore, I plan to build a large public warehouse near the docks and main roads, which caravans can rent for storing goods. The rent will be calculated based on the area and duration of the lease; we can discuss the details later. This should solve your problems with goods storage and turnover."

Grimm' eyes lit up; this was indeed the facility they desperately needed, and he quickly expressed his gratitude.

Finally, Karl addressed the most crucial point. "Lastly, there's the business tax. Carnford will adopt a ' Eleven Tax,' which is a tax of ten percent of the turnover of all shops. At the end of each month, the Lord's Residence's tax officer will audit the accounts and pay according to the actual amount."

Upon hearing "Eleven Tax," Grimm and the merchant representatives behind him exchanged glances, but didn't show much surprise.

This tax rate is common in the Goldflower Kingdom today; it's neither high nor low. What they really care about is the fairness and stability of taxation.

Grimm began, "My lord, we accept a 10% tax rate, but... how will the Lord's Residence ensure the fairness of the taxation? You know, within the kingdom, tax collectors frequently exploit and double-tax, which is a real problem for merchants."

Karl understood his concerns and solemnly promised, "You can rest assured about that. In Carnford, taxes will be handled by a dedicated person directly appointed by me, and the accounts will be open and transparent. I assure you there will be no unwarranted exploitation or additional levies."

"What I seek is a stable and sustainable fiscal revenue, not a short-sighted approach. Only with commercial prosperity can the Lord's Residence have long-term tax revenue. I understand this principle. My authority will be used to uphold the fair enforcement of the rules, not to undermine them."

Karl's resolute promise dispelled the merchants' biggest doubts.

They had seen far too many greedy nobles, but Lord like Karl, who displayed both strong control and a clear commitment to establishing rules and order, were so rare.

In comparison, the 10% transparent tax in Carnford is far more cost-effective and reassuring than dealing with layers of exploitation in the mainland.

Grimm, representing the Chamber of Commerce, bowed deeply in sincere admiration and said, "Your Excellency's sincerity and vision are truly admirable. We, the Southern United Commerce, are willing to abide by all the rules you have set, operate in accordance with the law, and pay taxes on time. We believe that under your governance, Carnford will surely become a new commercial paradise in the Northern Territory."

After the general framework of cooperation was finalized, the merchants bowed respectfully and took their leave, carrying with them the preliminary agreement and a hint of awe for the young Lord's style of doing things, as they hurriedly departed to prepare for opening shops and establishing trade routes in Carnford.

Watching their departing figures disappear at the end of the Lord's Residence corridor, Karl stood in the spacious but somewhat empty Council Chamber, let out a soft breath, and rubbed his temples, which were throbbing from maintaining focus for so long.

Dealing with these shrewd businessmen requires demonstrating sincerity and a promising future for cooperation while also safeguarding the core interests and bottom line of the territory—no easy task.

Fortunately, a mutually beneficial and win-win macro-direction has been established.

However, he knew this was only the beginning.

Those specific and meticulous details—the careful wording of contract terms, the allocation of shop locations and rental pricing, the detailed calculation and collection process of taxes and fees for different product categories, the arbitration rules for market disputes...

All of these require professionals to tackle the challenges and implement them.