Chapter 21: All Within Control

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A wave of sharp intakes of breath echoed as the major drug merchants and leaders of the Medicine Gathering Teams stared wide-eyed at Xiao Yan.

They all doubted whether they had just imagined hearing that!

Xiao Zhan was equally shocked, but trusting his son, he forced himself to hold back his questions and put on a calm, composed expression.

A middle-aged man stood up, bowed to Xiao Yan, and said: "Young Clan Leader Xiao Yan, I don't doubt you, but I must ask—do you know how many Gold Coins are needed to purchase a year's supply of these medicinal materials?"

The reason the major drug merchants stared in shock was simple—this amount was absurdly huge! Unless it was the headquarters of the Mitel Pai Mai Chang, even the Mitel Pai Mai Chang couldn't muster that much cash on hand.

Medicinal materials aren't always used for Spirit Refining; they can also be used by Alchemists to prepare medicines and treat injuries. Most medicinal material consumption in Wutan City is for Alchemists treating patients.

Xiao Yan set down his teacup, did a quick mental calculation, and said: "These four medicinal materials are all the lowest grade, but they're not cheap. Our Xiao Clan also sells these materials—we estimated your annual yields. I roughly calculated that, combining the merchants' cultivation and Wutan City's Medicine Gathering Teams, each material requires about 300,000 Gold Coins per year. Adding our premium of 50% over market price—that's 450,000 Gold Coins per material. Four materials total."

"So annually, you need 1.8 million Gold Coins; over three years, that's 5.4 million Gold Coins. The deposit is one-tenth—so if you agree, I'll pay you 540,000 Gold Coins immediately."

Xiao Zhan's heart skipped a beat—actually, it was even worse, because the major drug merchants and Medicine Gathering Teams only accounted for about half of Wutan City; the Mitel Pai Mai Chang still held the other half!

Last year, the Xiao Clan spent only 400,000 Gold Coins to buy one Arcane-Rank High-Level Cultivation Method. The family's wealth had already been largely depleted—they simply couldn't afford this much!

Hearing Xiao Yan's precise calculation, all the drug merchants began chattering among themselves. Xiao Yan waved his hand impatiently: "Enough, enough. If you want to discuss it, go back and lock yourselves in. Give me your answer by tomorrow morning."

Even Xiao Zhan didn't know what trick Xiao Yan was playing—now you're kicking them out?!

"Then we'll take our leave for now and visit Clan Leader Xiao Zhan and Young Clan Leader Xiao Yan again tomorrow morning."

With Xiao Yan's dismissal, everyone sighed in relief and left.

Once everyone was gone, Xiao Zhan immediately asked: "Yan'er, if you send them off like this, they'll surely rush to the Gale Clan and Oba Clan overnight."

Xiao Yan smiled: "Then all the better."

"Huh? Yan'er, you… you don't mean to monopolize the medicinal materials and cut off their source—you're… raising the prices?!"

Xiao Yan didn't hide it—he nodded: "Father, if our clan partners with an Alchemist to sell Elixirs, what's the profit split?"

Xiao Zhan thought for a moment and said: "If the clan supplies the medicinal materials, the ideal split is usually fifty-fifty: the Alchemist takes 50% profit, the material cost is 20%, sales, packaging, and labor take 10%, and the clan earns 20%."

"But most often, it's a sixty-forty split—the Alchemist takes the lion's share, since Alchemists are hard to hire. If the clan gets even 10%, we're lucky."

!!

Xiao Zhan suddenly understood, his eyes bright with delight as he looked at his son: "So that's why you're raising market prices by 50%—so the premium matches the profit margin exactly. If they raise prices, they lose. Liu Xi won't lower his own profit—this added cost must come from our clan's share. You want the Gale Clan and Oba Clan to lose money on every Elixir they sell!"

Xiao Yan said casually: "For the past two months, their market prices for Return-to-Life Elixir have risen from 100 Gold Coins to 300—already at the limit of mercenary purchasing power, and they've accumulated plenty of public resentment. Once they run out of Elixirs, it'll be the final straw. Even if we do nothing, no one will buy from their market anymore."

"If they try importing medicinal materials from outside the city, one interception by us and they're bankrupt."

The father and son raised their eyebrows, like a pair of foxes—big and small.

Late at night, just as Xiao Yan predicted, the Gale Clan's halls remained brightly lit; Oba Pa and several Oba Clan Elders were also present.

"Damn Xiao Zhan! Playing such a sneaky trick on me!" Gale Bi crushed his cup in his fist. The drug merchants had just left.

For the drug merchants and Medicine Gathering Teams, the best scenario was for these clans to bid against each other—maximizing their own profits.

"Father, maybe we should give up. If we raise our offer to 60%, we'll lose money. We can import medicinal materials from outside the city."

"You know nothing! Xiao Zhan's goal is to make us spend money importing from outside. Once we leave Wutan City, we lose protection. We're in the open; they're in the shadows. If our materials get ambushed and stolen, the consequences are unthinkable."

After being scolded by Gale Bi, Oba Ao immediately fell silent.

Oba Pa's expression was grim: "Good one, Xiao Zhan—this is pure open strategy. Bi Brother, what if we lower our prices slightly to calm public anger first?"

"Lower the price?" Hearing this, Liu Xi frowned, clearly displeased—he earned a percentage of sales, and 60% of 300 Gold Coins was vastly different from 60% of 100.

Liu Xi sneered: "Do whatever you want. But even if you lower prices, you still pay me the same 60% as before."

Gale Bi and Oba Pa both wanted to slap the man dead right then.

After thinking for a moment, Gale Bi said: "No price cut. As long as the medicinal materials don't exceed market price by more than 50%, we break even. Once all the Xiao Clan's merchants have switched over, we'll still be the ones laughing."

"Tell the drug merchants we'll pay no more than 50% above market price—but we'll sign five-year contracts and offer a 20% deposit."

"If they refuse, let them go to the Xiao Clan. We'll go to the Mitel Pai Mai Chang and ask them to prioritize selling us medicinal materials."

But all of them knew—when it came to shrewd merchants, Mi Tiel E Ya Fei was Wutan City's greatest. They knew she'd find out about this—and next time they bought materials at the Pai Mai Chang, she'd find every excuse to raise prices.

Gale Bi only hoped that fox-woman wouldn't be too ruthless.

Early the next morning, just as Xiao Yan predicted, the drug merchants returned to the Xiao Clan—only this time, Xiao Zhan refused to see them, wouldn't raise prices further, and didn't even want to talk.

Thus, the entire Xiao Clan fell silent once more. But everyone knew—this was the calm before the storm.

Five days later.

"Young Clan Leader, the two clans have signed contracts with all the drug merchants and paid their deposits," Xiao Ning rushed into the council hall.

Xiao Yan smiled confidently, waved his hand, and commanded: "Three Elders, gather a few unfamiliar Disciples, disguise them as foreign drug merchants, and sell off our clan's six-month-old stock of low-grade medicinal materials—except for the few listed on this roster—to the Gale Clan, Oba Clan, and those merchants at high prices."

"Two Elders, take men immediately and spread the word in every underground venue and market: the Xiao Clan has obtained the Pill Formula for Return-to-Life Elixir and Minor Qi Pill, has hired an Alchemist to refine them, and that's why we've been competing with the two clans for medicinal materials. Clan Leader Xiao Zhan will visit the Mitel Pai Mai Chang to negotiate long-term cooperation."

"Grand Elder, post notices in all our Xiao Clan markets and business premises—I want the whole city to know our markets will soon sell Elixirs, cheaper than the Oba Clan's and more effective."

"Father, please wait patiently until tomorrow, then go to the Mitel Pai Mai Chang and clarify to Miss Ya Fei: the rumors are false—we have not obtained the Pill Formula for Return-to-Life Elixir or Minor Qi Pill. We promise we will not compete with the two clans for medicinal materials. The Mitel Pai Mai Chang can safely cooperate with them. And three days from now, the Xiao Clan will attend the Mitel quarterly auction."

With that, Xiao Yan clenched his five fingers together—as if all was within his grasp!