Wizards: Starting with Synthetic Gems

Chapter 563 Pricing and Lending
The next day, at dawn, Locke gave Scarlett the completed Hydra seed to Gregor and Williams, and accelerated the completion of the Five-Headed Hydra seed.

Scarlett the Witch looked at Locke in surprise, and at the five-headed hydra plant in the fake planter in his hand. "I didn't expect you to have completed a subspecies of the hydra plant in such a short time."

Scarlett the witch flipped through Locke's breeding diary, which she had obtained from the plantation staff. She completely ignored the records of Locke's requests for various potion-related resources from the plantation over the past two weeks.

Anyway, it's Arthas's money, not hers as a worker. Besides, Locke used this money to create the five-headed hydra plant, so even if Arthas's board of directors knew about it, they wouldn't be able to find anything wrong with it.

For Arthas, the fact that the researchers at the Wizarding University could effectively develop some magical plants using the funds was already a very cost-effective thing.

After all, the shop alliances are often "tricked" by the wizarding instructors in various wizarding academies. Before development, they make all sorts of exaggerated claims, but in the end, all the work is done by the students, so naturally they can't develop anything of any value.

Scarlett the Witch, as Locke's trader, was more concerned about the effects of the Hydra. "The Hydra has reduced the burden on individual wizards by a full two-thirds. This is fantastic; it can definitely increase the sales of our Hydra series of magical plants."

Scarlett the Witch was quite pleasantly surprised. She glanced at Locke and said, "It has been a pleasure to work with you. Breeder Augustine, I only mentioned to you before that there was a minor flaw in the Hydra Demon Plant on the market. Who knew you would take it so seriously and actually breed a subspecies again."

Locke nodded slightly. "I'm glad it helped you. I do need the money lately."

Today I'm going to the Fairy Family Bank to apply for a loan and see if I can collect all four elemental rings and plant the Tree of Life inside the Druid's Ring.

That would greatly enhance one's forest sanctuary.

I'm so short of money, I need money for everything, and I'm eager to find a new way to quickly increase my income.

Locke said, "I originally wanted to breed a three-headed serpent. But I didn't expect that there wasn't enough time and resources, so I could only develop a five-headed serpent. Moreover, the power of the five-headed serpent has indeed weakened somewhat."

"Perhaps in the future we can cultivate some complementary small magical plants to make up for the problem that the power of the five-headed serpent magical plant will decrease when it is used."

Scarlett the Witch nodded repeatedly. "I see. But these are just minor issues. The emerging advantages far outweigh these minor drawbacks."

“And having drawbacks is a good thing. There’s a campaign going on at the store alliance recently…” Scarlett the Witch thought of something and suddenly stopped the topic. Then she changed the subject to Locke and said, “In short, with the five-headed hydra plant, I will definitely have more options for future operations.”

"I currently have 107 official wizards working with the Arthas Shop Alliance. To be honest, Locke, you may not be the most capable breeder among them, but you are the kind of person I feel very comfortable working with."

Scarlett the Witch laughed, "Many breeders just want to push their products on us and then leave it at that, relying on us market analysts to arrange everything for them. Unlike you, who directly bred a new subspecies. As for the three-headed hydra plant you mentioned, that is indeed something to look forward to."

"If we could simplify Hydra to Three-Headed Hydra, we could definitely achieve greater sales. Just look at Hydra's sales on September 1st. If the sales are good, I can proactively apply for investment sponsorship for Arthas's company project."

"So you can safely cultivate the three-headed serpent demon plant, instead of like this now..."

Scarlett the Witch said to Locke, "Then I'll accept these seeds for now. With the cultivation materials you've given us, plus our own mature plantation system in Arthas, these Hydra and Hydra will be cultivated very soon."

Locke had always been very curious about the plantation industry chain in Alsace.

Based on my observations of Alsace, its plantations in the Yunze Wetland seem to be used only as special high-end breeding bases and are basically not used for mass production.

Moreover, Alsace seemed very confident in his plantation system, which had very low costs.

Locke couldn't help but ask, "Isn't the plantation that Arthas uses for mass production located here?"

Scarlett the Witch nodded and said, "Yes, that's true. As a trader, I'm not entirely sure about the specifics. But the plantations of the Arthas Shop Alliance mainly come from two places. The first is the land of lower wizards, and the second is the colony plane."

Locke nodded. Sure enough, the core of Arthas's low-cost plantation production came from harvesting crops from colonies and lower wizarding lands.

Leveraging the low labor costs of colonized planes and lower-level wizarding lands for production within the Arthas Shop Alliance.

However, as a first-ring wizard, there was no need for Locke to figure these things out, so he didn't ask any further questions.

Scarlett the witch took the magic quill and scribbled on the documents, then handed them to Locke, saying, "These are the prices I gave you for the Hydra and Hydra plants. What do you think?"

Locke took the documents and looked down at them.

Scarlett the Witch said, "Based on current market price fluctuations and the prices of similar magical plant products, I have set the unit price of the Hydra Magical Plant at 200,000 Magic Stones per plant!"

"This price is a result of considering multiple factors and allows us to maximize our profits, achieving a middle ground between unit price and sales volume."

"The cultivation cost of a single Hydra Demon Plant is around 10,000 magic stones."

Locke's brow twitched, because the cost of cultivating a true Hydra plant to adulthood was approximately 60,000 magic stones.

The Alsace store alliance, however, goes through so many production chain links, yet its costs are only one-sixth of what it would normally cost.

It's clear how ruthlessly the Arthas Shop Alliance exploits those colonized planes.

Scarlett the Witch said, "Besides the cultivation cost, there are also logistics costs, operating costs, and promotional activity costs. All the costs add up to about 50,000 magic stones. The biggest cost among these comes from Arthas's operating costs."

"Therefore, for every Hydra plant sold, Augustine the breeder can earn approximately 75,000 magic stones."

Locke nodded slightly; he could accept the price.

Scarlett the Witch said, "Let's price the Five-Headed Serpent Plant at 100,000 magic stones. The planting cost of the Five-Headed Serpent Plant is lower, but since the main cost is the operating cost, the overall cost will not be reduced by much. However, each plant should still allow Augustine the Breeder to earn 25,000 magic stones."

"But I think the five-headed hydra will be able to sell more, so in the end it will make more money than the hydra."

Locke nodded; Scarlett the Witch was undoubtedly a professional when it came to pricing.

A typical first-level magical plant costs around 10,000, but a more powerful first-level defensive magical plant, especially one that is useful for wizards in the crystallization stage, should cost between 50,000 and 100,000.

In other words, Scarlett the Witch has already priced her five-headed hydra at the maximum price of a single defensive magical plant, and the price of her hydra is far beyond that of ordinary magical plants.

Of course, part of the reason is that both magical plants are tactical-level magical plants.

Of course, this means it will be harder to sell.

Scarlett the Witch said to Locke, "Besides that, I have another suggestion. I think... we can do an event, for example, on September 1st, wizarding organizations that purchase Hydra plants can receive a free Five-Headed Hydra."

"Of course, only the first fifteen wizarding organizations to purchase will be eligible for this discount. What do you think? Although this will further increase our costs, it can boost Hydra's sales and perhaps bring some unexpected gains."

Locke nodded slightly. "Of course."

Scarlett the Witch said, "That's all for now. I'll be going now."

She held up the seeds Locke had given her. "I need to deliver these seeds to the Shop Alliance's mass-production plantations as soon as possible."

"On September 1st, I hope our products will sell very well in the Jinmianshan area."

Arthas has a system to protect the product ecosystem of the store alliance, so it divides Yunze Wetland into ten major regions. The area with the seven top academies of Yunze Wetland as the core is divided into seven major regions, and the remaining areas are divided into three major regions.

Other store alliances are generally divided in the same way.

This approach protects the product ecosystem, safeguards the interests of stores, and also ensures the interests of breeders collaborating with Alsace.

Locke spoke a few more words with Scarlett the Witch, and then said goodbye.

He gave Gregor and Williams a few instructions, telling them to pack up the plantation and take away anything still useful, and then left the plantation ahead of time for the Dragonblood Gathering.

……

The Fairy Family Bank within the Dragonblood Gathering is furnished entirely with mahogany furniture. Because the fairies are generally short, even wizards entering the premises have to duck their heads to walk in.

These strange creatures, said to have originated from the Fairy Wilderness, watched Locke enter their shop with wary and shrewd eyes.

Locke looked at a Crystallized Fairy trader and said, "I want to make a loan."

A shrewd glint flashed in the fairy trader's eyes, and a sincere smile appeared on his face. There's a saying—the fairy family bank welcomes all customers who come to their bank for loans, regarding them as their gods of wealth. The fairy trader immediately made a gesture. "Wizard Augustine, please."

They entered a VIP room filled with exquisite mahogany furniture, where the fairy trader Ferschel poured Locke a cup of eagle-tooth black tea with her characteristically withered and thin fairy fingers.

He poured himself only one cup of tea, but instead of pouring himself tea, he drank a cup of water.

Fairy wizards are known for their stinginess and frugality, but they are also courteous and generous to every guest.

At least for them, this is already considered generous.

The fairy trader, Fisher, looked at Locke with a broad, enthusiastic smile. "Wizard Locke, researchers like yourself from the Institute of True Knowledge are truly honored guests of our Fairy Bank."

Locke nodded, probably because he had a name and a surname, and he could run away but not hide.

For the Fairy Family Bank, having a stable monthly income, a stable job, and a stable residence here makes them an invaluable source of high-quality customers.

Fairy trader Fisher asked, "How much do you want to borrow?"

Locke said, "That depends on your bank's interest rate."

The fairy trader Fisher then carefully took out a Crystal Apple from the mahogany drawer. Instead of eating it himself, he swallowed hard and looked at Locke.

Locke picked it up casually, thinking it was a waste not to eat it, and took a bite. He looked up and saw Fisher staring at him, swallowing hard.

To be honest, the fairy wizards have reached a certain level of stinginess, but the problem is that their stinginess is different from others. They are stingy with themselves, but very generous to their guests.

They will try their best to ensure the customer experience, while for themselves, they will try their best to save costs, spending as little as possible.

Fairy trader Fisher said, “Fairy Bank must have the lowest annual interest rate of all banks. We are a family bank with branches all over the world. Our ancestor was in… Starfield Sea. He was very, very old and enjoyed a high status and prestige in Starfield Sea. He led us away from the Fairy Wilderness Plane, immigrated into the Wizarding World, and became a wizard in the Great World of Truth.”

"Today, we have forgotten the language and culture of our race's past, and many fairies still believe that we are the native race of the wizarding world."

"Perhaps this is a good thing. It means we've completely integrated into this community."

Locke nodded slightly.

According to the Pan-Magical Race Wizarding Law of the White Wizarding Association, any race that can learn magic and voluntarily joins the wizarding world can be considered a native race of the wizarding world.

This point is even said to have been acknowledged by the world's will in the wizarding world.

The law is the magical crystallization of the Holy School. The Holy Masters of the Holy School either have the ultimate goal of creating the most perfect religion in the world, or the ultimate goal of creating a law that can be recognized by the will of the world.

To replace the established physical laws of the world with man-made laws.

The magic of the pan-magical races is one of the masterpieces of the holy wizards.

According to this wizarding law, all races that study magic can voluntarily become 'human'.

But Locke didn't let Fisher lead him astray. When a fairy wizard leads you on rambling conversations, you must remember your original purpose for talking to him, otherwise you can easily fall into his rhythm.

Locke asked again, "Well, I know that the Fairy Family Bank has a long history and a wealth of credit to rely on."

"I'm more reliable than those smaller banks, which is why I came to your bank to inquire about loans. So what exactly is the annual interest rate?"

Fairy trader Fisher quickly reviewed Locke's transaction records at the fairy family bank and immediately beamed. "Alright, alright, impatient guest."

"For a valued customer like you, the annual interest rate is only 5% for loans up to 500,000 Magic Stones. That is, for every 500,000 Magic Stones, the annual interest is 25,000 Magic Stones."

Fisher said, "However, the minimum loan amount is 500,000 magic stones, and it must be repaid in a year at the very least. Early repayment is not possible."

"Furthermore, you will need to provide proof of assets. However, I have already reviewed your monthly bank statements, so this is not required."

Fisher said, “This is absolutely a very fair interest rate. Because the White Wizard Association has strict restrictions on the five major banks, including our Fairy Family Bank, our annual loan interest rate is 5%-30%. The interest rate depends on your credit limit, the amount you want to borrow, and the loan term.”

"The more money you borrow and the longer the loan term, the higher the interest rate."

"For example, the maximum loan amount for a first-ring wizard is two million magic stones, which would result in an annual interest rate of 30%. However, generally speaking, such a high loan amount requires collateral. If there is a one-month default, our bank will immediately seize the collateral."

“We will not provide a wizard with a second loan until the loan is fully repaid.”

Fisher said mysteriously, “Of course, these are loans within the legal scope. Smaller banks and private lenders have fewer restrictions and higher interest rates, but they can circumvent some laws... and some loans don’t even consider your credit or cash flow.”

Locke nodded slightly; he had done some research before coming.

Many first-ring wizards become debt slaves because they initially only took out small loans. At that time, due to the restrictions imposed by the White Wizard Association, the interest rates were relatively reasonable within the scope of small loans.

Then, these wizards will start lending money in large amounts, and because the interest rates on these large loans will be very high, they will reach as high as 30%.

But soon, due to a shortage of funds, they will have to leave the five major banks and start contacting small private institutions. As a result, the loan amount and interest rate will become higher and higher. Because they cannot repay, they can only borrow to repay other loans, and eventually become debt slaves.

However, loans, as long as they are within certain limits, are essentially beneficial.

It can increase consumption and solve one's immediate needs, since everyone will have times when they are temporarily short of money and need funds to operate.

Sometimes all you need is a small sum of money to get things running again, and that's how you weather an economic crisis. If you can't get through it, then you have to use your assets to pay off debts.

Therefore, the loan services offered by the five major banks are, to a certain extent, very beneficial to the wizarding world.

It allows someone to lend you money when you need it.

But human greed is never enough, and in the end, this greed will destroy us.

Some wizards consider the money they can borrow as part of their own money, but this is a dangerous perception.

Because loans are essentially a way to use money you will earn in the future in advance, every penny you get from a loan is not free.

Locke thought for a moment. He could borrow 500,000 magic stones at an interest rate of 25,000 magic stones. But this way, he could raise the money to buy the Four Elements Rings and plant the seeds of the Ancient Tree of Life in his Forest Sanctuary.

Once the Tree of Life is planted, one's own forest sanctuary will be strengthened to a level that even its creator, the wizard Levi, could not have foreseen.

Moreover, with the ring of the four elements, he could do even more. He could begin experimenting with and conceiving the prototypes of his grand magic within his druidic ring.

Now that I'm a wizard at the first crystallization stage, I can certainly start researching and accumulating knowledge; it's better than waiting until the last minute to start.

The interest rate of 25,000 magic stones is, to be honest, not high.

It's practically free.

Whether out of necessity or to understand the Fairy Bank's loan process and become more familiar with the way wizards in Yunze Wetlands do things, Locke felt it was necessary to take out a loan.

Locke nodded and said, "Okay, then I'll take out a loan of 500,000 magic stones."

The fairy trader, Fisher, immediately smiled even more broadly. "My esteemed guest, here is the contract."

"I'll go and fetch you fifty magic crystal cards."

"By the way, would you like to buy another insurance policy? We have all kinds of insurance here..."

Locke said, somewhat speechless, "We won't need this for now."

(End of this chapter)