Positioning for the Mid-to-High-End Market

Xu Yi explained a great deal to Heinz, but he left out the most important point.

It was not that he did not want to explain. Heinz would not have understood, and to put it bluntly, neither would anyone else on the Sains Continent.

That point concerned the industrial system Xu Yi envisioned creating.

In the process of industrialization, the development of light industry was what people saw on the surface. The development of heavy industry was the core.

Even if they made ten thousand or a hundred thousand Magic Fans, that would only mean one product had become successful. At most, it would show that light industry on the Sains Continent had begun to develop.

But if those numbers referred to manufacturing machines instead, that would be another matter entirely.

Xu Yi had chosen to sell President Fasak the magic stamping presses, Magic Thread-Rolling Machines, and other Magic Machinery, and had even agreed to sell the technology for making second-generation variable-speed fans. Beyond the business considerations, his main reason was to start spreading these Magic Machinery across the Sains Continent.

These basic Magic Machinery represented the foundation of heavy industry and possessed powerful manufacturing capabilities. Xu Yi believed they would soon become widespread across the Sains Continent.

And the widespread use of such Machine Tools would mark a major step forward for heavy industry. It was crucial to Xu Yi's vision of establishing a complete industrial system on the Sains Continent.

But who besides a mechanical engineer transported here from Earth could understand any of that?

There was one thing Xu Yi had to agree with, though. Heavy industry might be the core of an industrial system, but if he wanted to make money quickly, constantly innovating and developing new products was the better choice. So while he worked with the Dwarf Craftsmen on new Magic Machinery, he did not neglect research into new products.

That evening, Xu Yi met Viscount Leslie at the estate again.

"Xu Yi, I hear you've been busy lately. How did you suddenly find time to see me?" Viscount Leslie seemed particularly fond of the pond on the estate. Though the sun had set and the weather was no longer so stifling, he still received Xu Yi in the wooden cabin beside it.

"My lord, would you believe me if I said seeing you was part of my work?" Xu Yi asked with a smile.

"Oh?" Viscount Leslie glanced at Xu Yi, then at the strange, long iron box beside him. "Is it because of that?"

Butler Wenlai frowned and was about to speak, but Viscount Leslie raised a hand to stop him.

Viscount Leslie rose with interest and looked at Xu Yi. "What do you need me to do?"

Xu Yi looked around the cabin and spotted an iron rack holding a painting on one wall. He pointed to it. "Help me put this up there."

Both men were young and strong, so setting it in place was easy.

Once they had positioned it as Xu Yi instructed, Viscount Leslie walked around it, studying it. At last, he could not help asking, "Xu Yi, surely you can tell me what this is now?"

Xu Yi chuckled. "Don't rush. You'll understand it better once you've used it." He pressed a switch beneath the iron box, then turned and shut the cabin's doors and windows.

Viscount Leslie and Butler Wenlai watched him, baffled.

"Xu Yi, what exactly are you—" Viscount Leslie broke off as a cool breeze brushed his face, instantly dispelling the stuffiness that had settled over the cabin after Xu Yi shut the doors and windows.

Unlike the breeze from a Magic Fan, this air was cool in itself. It did not eventually leave him feeling hot and uncomfortable the way a Magic Fan's breeze did.

Before long, the steady flow of cool air had refreshed the entire cabin. Not a trace of the summer heat remained.

After enjoying the coolness for a while, Viscount Leslie fixed his gaze on Xu Yi. "Tell me. What exactly is this?"

Seeing the solemn look on the viscount's face, Xu Yi smiled faintly. He's no fool. He's already seen what makes this special.

"It's called a Magic Air Conditioner, my lord. What do you think of the name?"

"Magic Air Conditioner? Air conditioner?" Viscount Leslie considered it for a moment. "As in something that conditions the air?"

"You caught the meaning right away, my lord," Xu Yi said admiringly. "That's exactly it. This Magic Air Conditioner can create a space this cool for you even in such hot weather. I think the name fits, don't you?"

"It certainly does." Viscount Leslie turned back to the Magic Air Conditioner and studied it for some time, his admiration growing. "Xu Yi, is this your latest invention?"

"Yes."

"Then why bring it to me?" Viscount Leslie asked, puzzled. "Now that you've developed it, you should start preparing to manufacture and sell it. I can tell you this much: as long as it costs less than setting up a Large Frost Array, it's bound to sell well."

"I brought it here for two reasons. First, you're a major shareholder in our company, so naturally you should be among the first to see a new product. Second, I wanted to settle the question of how to position it in the market."

"Position it? What do you mean?" Viscount Leslie and Butler Wenlai both looked at Xu Yi in confusion.

"Before we manufacture and sell a product, we need to decide where it fits in the market. To put it simply, we need to decide what kind of people we're selling it to," Xu Yi explained.

Viscount Leslie pointed to himself. "And you mean I'm the kind of person you're targeting with this Magic Air Conditioner?"

"Yes." Xu Yi nodded with a smile. "For now, I'm positioning it as a mid-to-high-end product. It isn't meant for ordinary households, but for people like you, my lord—people of status and standing, and most importantly, the means to afford it. That's why I brought it here first. I wanted to hear what you thought after using it. So, now that you've tried the Magic Air Conditioner, do you think it's worth buying?"

"I see..." Viscount Leslie rubbed his chin and thought for a moment. Instead of answering, he asked, "First, you'll have to tell me how much it costs."

Xu Yi held up two fingers.

Viscount Leslie frowned. "It can't be two gold coins again. That would make it the same price as a Magic Fan. From what you've said, it must be... twenty Gold Coins?"

Xu Yi nodded.

"That price is reasonable. I could certainly afford it." Viscount Leslie glanced back at the Magic Air Conditioner on the wall. "One more question: how many Magic Crystals does it use? You know perfectly well that many families can afford to set up a Large Frost Array. What they can't afford is to keep one running. Those things devour Magic Crystals."

Xu Yi smiled. "My lord, that's the Magic Air Conditioner's greatest advantage. It uses Magic Crystals much faster than a Magic Fan, but even if you run it for an entire day without stopping, it only consumes thirteen to fifteen Silver Coins' worth. Of course, if you want more power and use higher-quality Magic Crystals, the cost will rise."

At his answer, Viscount Leslie and Butler Wenlai both widened their eyes.

"It uses so little? Even at fifteen Silver Coins a day, that's less than five Gold Coins a month. That's dozens of times less than a Large Frost Array!"

Xu Yi smiled confidently. "If it consumed dozens of times less than the Large Frost Array, why would I have developed it?"

Viscount Leslie studied Xu Yi for a long moment, then nodded. "Very good, Xu Yi. If everything you've told me is true, I'm certain this Magic Air Conditioner will sell well. Of course, you can't expect to sell nearly as many as you do Magic Fans. But I imagine the profit on each one is much higher, isn't it?"

Xu Yi chuckled. "Nothing gets past you, my lord. The profit on this is indeed several times higher than on a Magic Fan. But if we want it to sell well, I'm afraid I'll need your help."

"Oh? What sort of help?" Viscount Leslie looked at Xu Yi with keen interest. "Just say the word. I am a major shareholder, after all. There's no need to stand on ceremony when there's work for me to do."

"My lord, what I'd like you to do is quite simple..."