Chapter 375: The Merchant Alliance

Bathhouse.

A large group of merchants followed Yang He out from within.

Everyone's hair was still dripping wet, but they could not hide the joy on their faces.

"This soap is truly a fine item; it will absolutely sell like wildfire," one merchant said, giving a thumbs-up.

"Every piece of commercial cargo that comes out of the Prince's Mansion is so convincing."

"Isn't that the truth? I said it before: staying in Yancheng has its benefits. Being close to the water, one gets the moonlight first."

"..."

The merchants discussed it animatedly, each of them looking excited.

The generous profits brought by the Prince's Mansion's Fine Wine, Perfume, and Glassware had filled their pockets to the brim.

But a merchant's craving for Silver is never satisfied.

With one more type of commercial cargo, they would have one more means of making a profit.

It was precisely for this reason that many of them simply bought residences in Yancheng, living there to keep an eye on the movements of the commercial cargo.

"Official Yang, the Trading Firm is going to make a huge profit again this time," a corpulent merchant said, pressing close to Yang He.

Yang He was feeling smug about his own cleverness.

Having bathed, the merchants had an intuitive sense of what soap was.

Whether it could make money or not, they surely had their own calculations in mind.

"Hahaha, if there is Silver to be made, we shall make it together, make it together," Yang He said, winking at the fat merchant.

This merchant was surnamed Lu, named Lu Lin, and was a merchant from Yuzhou controlled by the influential Wang Family.

The Eight Great Influential Clans had different approaches regarding trade issues with Yanzhou.

The Dou Family, Xiao Family, and Han Family connected directly with the Trading Firm through core members of their clans.

To obtain goods or exclusive sales rights, one only needed to find the clan member in charge.

However, the Wang Family, Fan Family, Ma Family, Liang Family, and Xie Family were different when it came to trade.

They issued Merchant Permits to merchants who traded with the Prince's Mansion and took a cut of the profits from the goods they sold from the Prince's Mansion.

Of course, the merchants who could obtain these Merchant Permits often had very close relationships with them.

They were either clan members, relatives by marriage, or wealthy merchants who had joined under their banner.

By selling Merchant Permits, these five families effectively took the profits from the sale of the Prince's Mansion's goods in their respective provinces directly.

The dirty and tiring work was left for others to do.

Although these two methods were different, the lion's share of the profits still fell into the hands of the influential clans.

"Official Yang, this Zhu is hosting a banquet at home tonight; I wonder if you could do me the honor of attending?" Seeing Lu Lin and Yang He acting intimate, another merchant immediately crowded over, his face full of smiles.

"I have a pleasure boat at the Golden Scale Pond; I hope you will do me the honor."

"..."

The other merchants did not fall behind, each one full of sycophancy.

Even the merchants from the influential clans all hoped to invite Yang He for a gathering.

After all, the Yanzhou Trading Firm was bound to provide soap to the market next.

Whether one could obtain exclusive sales rights, when one could get goods, and how much cargo one could get—this was all decided by Yang He alone.

Yang He had long been accustomed to such scenes and remained composed while surrounded by the merchants.

When the Prince's Mansion only had Fine Wine, these merchants had not been this respectful toward him.

But after the Perfume appeared, and then the Glassware followed, he could truly feel the enthusiasm of these merchants for him growing.

Even the merchants' evaluations of Yanzhou had gradually improved.

Many merchants even chose to settle in Yancheng directly while doing business in their hometowns.

He understood this change quite well.

After all, the Prince's Mansion was now their bread and butter.

"Everyone, hold on. This official needs to go to the Prince's Mansion and ask His Highness to set a price for the soap. As for these banquets and singing and dancing, we shall discuss them later," Yang He said.

Having said that, Yang He cupped his hands and headed straight for the Prince's Mansion.

Upon seeing Zhao Xu in the study, Yang He said, "Your Highness, this subordinate just used a little trick. Now the merchants in Yancheng are all singing the praises of the soap, and everyone is begging this subordinate to buy it. However, as for how to price the soap, I hope for Your Highness's instructions."

Zhao Xu touched his hair, which was not yet dry, and asked casually, "What do you think is appropriate?"

Yang He often mixed with merchants and was more familiar with the market than he was.

Therefore, he wanted to understand his thoughts before making a final decision.

"Currently, the soap in Yancheng sells for three coins of Silver each, and that is only a small piece, not even half as much as this soap. This subordinate thinks it should sell for five coins of Silver," Yang He said.

Zhao Xu nodded. In fact, some commercial principles were common to both ancient and modern times.

For example, there were sky-high prices for Perfume, but no sky-high prices for soap.

Because Perfume was often used for socializing and contained an element of keeping up with others.

But soap was merely a bathing product, relatively private, and it was not suitable for it to be too expensive, otherwise it would be difficult to sell.

One should win by volume.

This was the same principle as the person who sold bottled water in modern times becoming the richest person in the country.

He felt five coins of Silver was very appropriate.

"Mm, let us set that price," Zhao Xu nodded.

"And the exclusive sales rights—although the price of soap is lower than Perfume, this subordinate thinks it should be about the same, as the profit that can be made from soap will definitely not lose to Perfume." Seeing his idea was approved by the Yan Wang, Yang He grew a bit bolder.

"Mm." Zhao Xu nodded again, having no objections to this either.

However, what he was focused on this time was not the price of the soap, but a plan that was to be implemented next.

"Regarding the matter of Soap and other goods from the Prince's Mansion, I have an idea at the moment." After thinking for a moment, he said.

"Please instruct me, Your Highness." Yang He bowed.

He was very expectant, because whenever Yan Wang had an idea, it would inevitably bring some changes to Yanzhou.

"Several months ago, I recruited merchants to establish the Yanzhou caravan, ordering the caravan to travel throughout the Great Song to sell goods, and even to participate in maritime trade in the future. Now, I want you to establish another organization, to be called the Yan Prefecture Merchant Alliance. Any merchant who joins the Commercial Alliance will be able to receive discounts on goods and exclusive sales rights," Zhao Xu said.

"Discounts?" Yang He frowned, "But Your Highness, the goods of the Prince's Mansion are unique in the world. Even without giving them discounts, they would still have to buy them. Your subordinate thinks this is unnecessary."

Zhao Xu smiled, "These discounts are not given to them for free; the essence of the Commercial Alliance is to control these merchants for the use of the Prince's Mansion."

The nature of merchants is to pursue profit, which has remained unchanged throughout the ages. They are slaves to profit, which is why some merchants risk beheading to smuggle.

For these merchants who trade with the Prince's Mansion, the Prince's Mansion is their lifeblood.

Therefore, he wanted to use this point to make these merchants vassals of the Yanzhou Trading Firm.

Not only to make them move their wealth to Yanzhou, but also to make the interests of the Prince's Mansion their own interests.

After all, once the Prince's Mansion suffers losses, their interests will also suffer.

If this plan can be successfully realized, he will be able to use the goods of the Prince's Mansion as a link to build a commercial empire covering the Great Song.

He will also let this commercial empire extend its tentacles into every aspect of the Great Song, such as minerals, grain, cloth, and so on.

In this way, he will be able to control every aspect of the Great Song and hold the economic lifeline of the Great Song in his own hands.

By then, the rise and fall of prices in the Great Song will only require a single word from him.

Thinking of these things, he told his plan to Yang He.

After listening, Yang He was completely dumbfounded.

Yan Wang's meaning was very simple: to buy over merchants for the use of the Prince's Mansion and support their growth.

It was like scattering chess pieces across the map of the Great Song to build an invisible commercial network, invisibly controlling the trade of the Great Song.