Chapter 165
Chapter 165. The Bumpy Family And Pipedreams
“The clothes that sell the best are those aimed at merchants or shopkeepers. Those who have to present themselves in public tend to stretch their budget a bit to buy clothing. Items for merchants tend to cost around 120,000, while for shopkeepers, it’s roughly 70,000.”
“What’s the difference between a merchant and a shopkeeper?”
“Aren’t they the same?”
“Ah, sorry. It’s just a distinction I’ve personally made. Merchants are those affiliated with trading companies, while shopkeepers are those in guilds and similar groups. Cooks, waitstaff, weapon shop owners, and general store clerks are examples.”
“I think I understand.”
“There’s no strict distinction. Don’t worry too much about it.”
“Got it. So, how many pieces sell in a month?”
Felicia, the head of the clothing guild, crossed her arms. Though her massive chest shifted, it seemed purely due to deep calculation and not an attempt to show off.
“A trading company of ten people buys around ten pieces priced at 120,000 a month and twenty pieces priced at 70,000. Orders from nobles would boost profits for that month.”
“I see. That’s about 2.6 million per month.”
“Quick on the calculations, huh.”
Even if it’s a trading company of ten people, labor costs in this world are quite low, perhaps between 1 to 1.5 million. Factoring in procurement costs and maintenance, the company’s profit margins range between 300,000 and 500,000 per month.
Considering the scale, the profit margin seems a bit tight.
“This shirt I’m wearing… it’s called a Y-shirt. How much would fabric costs be for this design if it were made as a short sleeve?”
“Let’s see… considering fabric quality and price balance, the cost would be around 3,000 yen.”
I see. It’s somewhat on the pricier side…
“Felicia, with a sewing machine, how many pieces do you think one person could make in a day?”
Although I don’t intend to have a single person make an entire piece, I’ll let it go for now.
“I’d guess five pieces… no, maybe seven.”
“What’s the daily wage for a seamstress?”
“The lowest is 3,000. The highest is 8,000. The average is 5,000.”
That’s quite cheap…
“Then, assuming an average of 5,000 yen, producing five pieces a day makes labor cost 1,000 yen per piece.”
“That’s a rough estimate.”
“Adding fabric costs brings the price to 4,000 yen per piece.”
“…That’s cheap.”
“And with thirty seamstresses making five pieces each per day?”
“That’s… 150 pieces a day…?”
Felicia finally seemed to grasp it.
“Yes, and if we sell each piece at around 7,000 yen, that makes about 3,000 yen profit per item.”
In reality, the trading company would have various dues to the clothing guild, lowering profits somewhat, but that’s an overall expense to be accounted for.
“Daily profit of 450,000… Monthly…”
“1.35 million yen.”
Felicia stared into the void, sweat dripping down her forehead.
“Our calculation is mixing up the clothing guild’s production and the trading company’s sales. Let’s clarify a bit. If the cost is 4,000 yen, and we add a 1,000-yen profit margin, that’s 150,000 yen profit for the guild. With a trading company buying at 5,000 yen, they make 2,000 yen profit per piece, totaling 300,000 yen per day.”
“Monthly profit… 4.5 million for the guild, and 9 million for the trading company…”
Felicia’s face suddenly lit up with realization.
“Wait, that’s assuming we sell 4,500 pieces a month! Clothes don’t move like that…”
“With traditional clothes, yes. Even old, worn clothes trade for around 30,000. Even ragged cloth goes for 10,000 yen. Would you, given the choice, buy old, tattered clothes for 10,000 yen over a new, trendy piece for 7,000 yen?”
“Ugh… But even if it sells initially, selling 4,500 every month is…”
“Indeed. Selling 30% to 50% would be plenty.”
“What…?”
“30% of 4.5 million… 1.35 million. After deducting seamstress wages, would that be unsatisfactory?”
“…No issue.”
“What about the trading company?”
“No problem.”
“And the designs change with the seasons.”
“What? But isn’t consistent design the point?”
“Exactly. That’s why it’s only three or four times a year. Leftover stock gets discounted by 30%, 40%, 50%.”
“Won’t that cause a loss?”
“The initial 30% profit is sufficient. We’ll liquidate remaining stock without dipping below cost and throw away a small remaining portion.”
“Why not keep the unsold stock?”
In this world, inventory clearance doesn’t seem to exist.
“No, outdated designs need to be sold out.”
“Why?”
“To push new fashion.”
“Clothes aren’t something you replace that often.”
“This pricing breaks that mindset. With the economy improving, people indulge when they save up a little. That inevitably targets clothing, food, and shelter.”
“Clothing, food, and shelter.”
Is that phrase unfamiliar?
“The three fundamental human needs. Without housing, survival is tough; without food, you die. Without clothing, you’re barred from public spaces.”
“Hmm…”
“Do you think people, sick of wearing secondhand clothing, won’t buy new clothes that are cheaper?”
Felicia closed her eyes to ponder.
“…They will…”
“That’s human nature.”
Silence hung as she paced, contemplating deeply. Her chest bounced with every step, offering quite a sight.
“Sewing machines… are they expensive?”
“Probably takes two to three years to break even.”
“I thought so.”
“But…”
“…”
No need to continue; she understood. Once acquired, a sewing machine lasts decades, even over a century with repairs.
Felicia paced like a pendulum clock, deep in thought.
“Fine. I accept, but I have a condition.”
“What is it?”
“I want samples of the clothes, and if you have other good designs, I’d like them too.”
“The Y-shirt is fine. Other designs… I’ll consider.”
“Please do.”
“Understood. I’ll do my best.”
“And you’ll provide sewing machine training?”
“Yes. Though mass production isn’t ready, we’ve recovered artifacts to speed things along. If possible, I’d like Utis as a trainer.”
Since Utis was a seamstress, training her as a machine instructor could boost her earnings.
I expected an immediate “OK,” but Felicia folded her arms, lost in thought.
“Is there a problem?”
“Hmm, I need to check with her trading company, but it should be fine.”
Of course. She’s only employed by a guild-affiliated company.
“But just her won’t do. We’ll need more.”
“That’s fine.”
Multiple trainers would be better.
“Shall we proceed with the details?”
“Yes, I’ll rely on you.”
Felicia and I exchanged a firm handshake.