Tunbao Construction
The opening day was a grand occasion.
The shop was already packed with people who had rushed over after hearing the news. Men, women, and children were all there, their faces filled with curiosity, anticipation, and a natural trust and reliance on the "official" shop.
People craned their necks to peer into the store, whispering amongst themselves.
What's most appealing and reassuring is the store's transparent pricing system.
The prices of all goods were written in blackened charcoal on small, polished wooden signs, the writing clear, and then hung in the most prominent position in the corresponding product area.
The price of a pound of oats, a foot of coarse wool cloth, a pound of sea salt, a medium-sized Iron Pot... is clearly displayed, eliminating the chaos of haggling and the possibility of being taken advantage of by inexperienced staff.
This open and transparent approach was an unprecedented and reassuring experience for the homeless people who were used to street vendors charging arbitrary prices and even treating customers differently based on their status.
As a result, business was booming from the moment it opened, with a constant din of people.
Long, winding queues quickly formed in front of the grain and salt counters, in particular.
People clutched the copper and Silver coin they had worked hard to earn or saved through frugality, waiting anxiously and expectantly.
The government-run grain shops were carefully priced by Edgar and Herman. In order to avoid drastic market fluctuations and vicious competition, the retail prices of grain in the government shops were basically consistent with those of the other two private grain shops in the Shantytown Area operated by the Southern Merchant Guild, and slightly lower than the grain prices in Fran City during the pre-war peacetime period.
However, considering transportation costs and the current situation in the Northern Territory, this price is within the affordability range for the refugees.
However, when prices are the same, the reputation of official shops backed by the Lord's Residence becomes an enormous advantage.
In contrast, although the two private grain stores were not known to have committed any serious misconduct, their owners were, after all, outsiders with a weak foundation of credibility, and were naturally at a disadvantage in the face of the "official" label.
Edgar's sales strategy for salt was even more ingenious, demonstrating his business acumen.
Carnford is close to Amber Bay and has a long coastline. Some refugee families who fled here and originally lived by the sea have revived the traditional craft of making sea salt.
Making salt by the sea is simple and inexpensive. Although the salt produced by these migrant families has many impurities and poor color, it is perfectly adequate as table salt, and many people even make it for their own use.
Edgar astutely grasped this point; instead of maintaining a relatively stable profit margin as he would with grain, he adopted a flexible procurement strategy.
They purchased large quantities of this "rustic salt" at a price slightly higher than the cost for migrant families to use themselves, but far lower than the market price. They then performed simple filtration and sun-drying to remove most of the mud and bitter substances, and finally sold it in official shops at an extremely low price, almost the same as the purchase price and only slightly higher to cover the shop's operating costs.
This strategy kills multiple birds with one stone. First, the extremely low price of salt becomes the most powerful "traffic driver" for official shops. Almost every family needs to buy salt regularly, and the ultra-low price of salt attracts a huge flow of customers. While buying salt, these customers are likely to also look at cloth, ironware or other goods, thus boosting overall sales.
Secondly, purchasing the homemade salt from displaced people provided these families with a stable, even meager, source of income, helping them to settle down.
Finally, using the low price of government-issued salt to disrupt the market can effectively combat potential salt speculation and hoarding, stabilize the prices of basic necessities, and win public support.
As for profits, Edgar was well aware that in the initial stages, the primary task of state-run businesses was not to make money, but to control the lifeline, stabilize the market, serve the people's livelihood, and establish credibility.
The "price concessions" on salt are a completely worthwhile political and economic investment.
In stark contrast to the bustling, government-run shops, there were several other privately owned shops in the Shantytown Area, especially the three grain stores.
In the few days since they opened, their business has plummeted, with hardly any customers.
Their grain prices were not competitive, and they dared not lower them easily for fear of triggering a price war and intervention from the Lord's Residence. Their reputation could not compare with that of official shops backed by the Lord's banner, so they faced enormous competitive pressure.
The shop owners, looking worried, gathered together to discuss countermeasures: should they lower prices to promote sales, improve service quality, or switch to selling specialty products not covered by the official shops? They needed to find a way out as soon as possible.
However, the advantage of state-run enterprises lies in controlling vital industries such as grain, salt, and iron, as well as stabilizing public sentiment and prices, but it is neither possible nor necessary for them to cover all commodities.
For goods that are not necessities but can improve the quality of life and meet diverse needs, such as tea, tobacco, fine clothing, various handicrafts, toys, cosmetics, and higher-end condiments from the south, the current state-run shops have neither the source of goods nor the capacity to deal with them.
Karl currently has no intention of allowing the Lord's Residence to directly manage these "luxury goods" or "non-essential items," as that would divert valuable administrative resources and attention.
This is precisely the irreplaceable value and role of privately owned shops.
Therefore, diagonally opposite the government-run shops, and on several other small commercial street corners that gradually formed in the Shantytown Area, several privately owned shops invested in and opened by the Southern Merchant Guild, including Grimm, were also doing quite well.
Their decorations were simpler, and their goods were more diverse and novel, meeting the consumption needs of some elderly residents, craftsmen, and junior officers who had just received their wages and pensions and were relatively well-off.
Although the profit margins of these commodities cannot compare with those of monopolistic grains, salt, and iron, a stable customer base and reasonable profits are enough for these shrewd merchants to maintain their businesses and look forward to greater business opportunities brought by the future prosperity of Carnford.
Karl welcomed this development, believing that a healthy and vibrant business environment requires the complementary and mutually reinforcing relationship between government-run "ballast" and private "flourishing" initiatives.
However, what Karl cared about most and devoted the most energy to was always the construction of the Tunbao, which was the foundation of his survival.
Under the tireless efforts and scientific planning of engineer Morr, the construction of the first experimental Tunbao Stockaded Village Number One, has begun in full swing and is progressing at an astonishing pace on a relatively flat plain southeast of the main fort of Carnford, near a water source.
Morr was very experienced; rather than spending enormous manpower and resources to build a long and sturdy outer wall, he decided to prioritize the construction of the various functional buildings planned inside the wall.
Once the internal buildings are basically completed, or even partially put into use, then efforts will be concentrated on completing and constructing the outer defensive walls.
The advantages of doing this are obvious: during construction, the movement of building materials and construction workers is extremely convenient, eliminating the need for detours or the construction of temporary passages, which greatly improves transportation and construction efficiency.