The Fox of France

Chapter 303: Buy Instead of Make

Chapter 303: Buy Instead of Make

Selling a factory to the Americans wasn't a huge deal for the French. Hence, negotiations between the two parties went smoothly. But consider this: ordering steel from France, shipping it to America, manufacturing cannons there with additional facilities, scale, and wage differences for workers—clearly, American-made cannons would cost much more than those made in Europe by the French.

Moreover, those American factory owners, did their "patriotism" mean they didn't love money? If so, why didn't they stick with the "United Kingdom" as their motherland? How did the UK oppress or curtail their freedom? Just because they paid a bit more in taxes, they'd choose "death over loss of liberty" and yet not seek profits? Unthinkable!

Hence, it's almost certain that the cannons made by Americans and sold to their army would fetch a much higher price than those shipped to North America by the French. Possibly even more than what the British charged for cannons sold to Native Americans.

However, this wasn't something the French needed to consider, nor did Robert Livingston need to worry about it—after all, it wasn't his money.

Maybe it was due to the distance between the U.S. and the New World, the limited danger to France, and the historically friendly relations between the nations that the French didn't ask for exorbitant prices. Consequently, the deal swiftly concluded: the American government ordered a steel factory capable of producing 200 cannons annually and a hydroelectric plant from France.

This marked France's first complete export of a hydroelectric plant overseas. Considering the relevant science was already public, exporting such factories wasn't a major issue.

As for the pricing, Joseph explained it this way:

"The American factories need raw materials from us and rely on our technical expertise. The same goes for the power station. So, in the future, we can recoup the money through services. Asking for a high price outright might scare them off, which isn't favorable."

This was a tactic later exploited by some businesses. Selling machines at a loss but profiting from consumables; making no profit from a machine but gaining from maintenance—it's a strategy. In fact, there's a story from another time:

"At the start of the 20th century, Ford Motors was rapidly expanding. Orders overflowed their sales offices. Each freshly assembled Ford car had eager buyers waiting. Suddenly, a motor malfunction halted the entire assembly line and production ceased.

Ford brought in scores of mechanics and experts, but they couldn't find or fix the issue.

Frustrated, the management sought help from the renowned physicist and motor expert, Stantonz. After three days of intense scrutiny, Stantonz took a ladder, worked for hours, and finally, with a chalk, marked a coil, noting 'Here, the coils are wound 16 turns extra.'

To everyone's surprise, the problem vanished! Production resumed immediately!

The Ford manager asked Stantonz his fee. Stantonz replied, 'Not much, just $10,000.'

$10,000? For simply marking a line! At that time, Ford's famous pay slogan was '$5 per month,' a high wage. Many experienced technicians and engineers rushed in for this $5 monthly wage from all over the country.

A line, $1; knowing where to put it, $9,999."

The story itself has flaws and doesn't hold up under scrutiny. Nevertheless, it suggests a money-making model: once you've used our product, even for minor maintenance tasks like marking a line, we can extract a hefty fee. It's not about knowledge being wealth, but about making money through after-sales and technical support.

What's worse, once Americans use French production equipment and systems, maintenance has to adhere to French standards. Considering the U.S.'s technological capability at the time, they wouldn't use French components for maintenance. Disassembled parts would be more valuable than the entire factory. Also, using non-genuine parts, like a self-made screw cap on a drilling machine, would void warranties for the entire system. In essence, buying these things back to the U.S. would be boarding a pirate ship, ripe for plundering in the future.

Surprisingly, most Americans at this time were naive, failing to see Joseph's nefarious intentions. They happily believed they'd made a good deal.

Finally, when the Austrians, long-awaited by the three brothers, arrived, they surprised them yet again. Unlike the East and Green Isles, who established armament factories to spark an arms race, the Austrians merely sought to understand the production capacities of the Russian and Turkish factories. This was to plan accordingly, whether to purchase from France or lease weaponry.

"Even if Austria could produce these themselves, they couldn't match France in quantity or quality. So, why bother establishing factories when, unlike weapons, there's genuine profit in your power stations and related electrical technologies?" Metternich, the Austrian ambassador in France, mentioned at a ball to Napoleon.

"Napoleon, you misunderstand us. In other European markets, we couldn't possibly compete with your factories. But in some places, like within Austria and certain areas of the Balkans, for various reasons, your business isn't exceptionally strong. Developing those markets requires time. It'd be better if we cooperated and jointly developed them, wouldn't it?" he continued.

Napoleon pondered and didn't outright refuse Metternich. Business dealings weren't his forte, so he felt it best to discuss with Joseph before deciding. Thus, he replied, "Ambassador, this matter requires more thought. I can't give you an immediate answer. But regarding temporary purchases or leases of cannons, as a professional military man, I need to remind you that while cannons can be quickly obtained, trained artillerymen aren't as readily available."

"Ah, that's a concern," Metternich acknowledged. "We hope your country could assist in training a batch of gunners. Of course, if your country could provide artillerymen for hire, that would be even better..."