Chapter Eleven: Carotus’s Terms

Carotes smiled.

How to set the price was indeed a major issue—or perhaps, in truth, not an issue at all.

“That’s something for you to consider, not me,” the red-haired student council president said unhurriedly. “I only possess the authority to accept or refuse.”

The greatest challenge for Su Ziye lay in the fact that the cost of producing the concentrated syrup was almost entirely within Carotes’ sight. With costs so transparent, there was no way he could ask for an exorbitant price.

“I choose to sell the concentrated syrup directly to the Academy. I’ll participate in the subsequent carbonation and bottling, but won’t charge extra for that,” Su Ziye stated frankly. “The cost of producing three hundred kilograms of concentrated syrup is one Golden Leaf, which yields fifteen thousand liters of Academy Sparkling Water. In the future, I’ll attempt to sell this beverage outside the Academy as well, tentatively pricing each 500-milliliter serving at one Copper Sic.”

The Lanyeh Empire’s currency was still based on a gold-silver-copper system. The highest denomination, one Golden Leaf, could be exchanged for twenty Silver Sics, and each Silver Sic for one hundred Copper Sics.

By Su Ziye’s calculations, the cost of one Golden Leaf produced three hundred kilograms of syrup, which could be bottled into fifteen thousand liters of Academy Sparkling Water. At a price of one Copper Sic per serving, that amounted to fifteen thousand Copper Sics, or 7.5 Golden Leaves.

In other words, using the cost of one Golden Leaf, he could generate a value of 7.5 Golden Leaves—a gross profit margin of 750 percent.

Of course, in practice there would be labor, logistics, and taxes to consider, so the net profit wouldn’t be quite so astronomical. Yet it was, undoubtedly, an unimaginably lucrative business.

Especially if Su Ziye could secure the Academy as a stable sales channel, he would have a steady cash cow to support further expansion—making outside promotion far easier.

As Qing Yi listened to Su Ziye’s explanation, she recalled learning about his order of one thousand Golden Leaves’ worth of supplies from the Shining Gold Chamber of Commerce. She had previously thought he was just putting on airs, but now it seemed that those one thousand Golden Leaves could almost reliably be turned into a return of seven thousand five hundred Golden Leaves.

Even though the overall amount was still a far cry from a million Golden Leaves, this was, without question, the boy’s first pot of gold.

And the initial investment was truly only one Golden Leaf.

Looking back, all Su Ziye really had was a formula for Academy Sparkling Water and a unique method of bottling and carbonation. The entire process could be summed up in a single phrase: scientific and technological progress is the primary productive force.

“Interesting,” Carotes said calmly. “So, what price do you plan to offer us?”

“Half price,” Su Ziye replied succinctly. “I’ll sell the Academy the concentrated syrup at three and a quarter Golden Leaves for every three hundred kilograms.”

“I’ll also guarantee a daily provision of three hundred kilograms of syrup to the Academy. If the Academy wants more, the surplus will be sold at market price. What do you think, President?” The youth’s attitude was steady and composed.

Qing Yi found herself looking at him in a new light.

After all, earning two and a quarter Golden Leaves from the Academy every day added up to nearly a thousand Golden Leaves of steady annual income—a considerable business by any standard.

Especially since Carotes was fully aware of the production costs of the syrup.

Yet, after hearing the entirety of Su Ziye’s business logic, Qing Yi felt that if Su Ziye truly offered the syrup at three and a quarter Golden Leaves per three hundred kilograms, the Academy would actually be getting a remarkable deal—a tremendous discount.

As for pricing Academy Sparkling Water at one Copper Sic per serving, Qing Yi was no naive fairy; she was well aware that such a price would be extremely competitive if launched broadly, enough to drive many traditional tea and alcohol merchants out of business, especially with the Academy’s endorsement behind it.

After all, it was an undeniable fact that Academy Sparkling Water would be spreading outward from the Academy itself.

“Agreed,” Carotes said without the slightest hesitation. “But I have one condition.”

“I don’t want to hear it,” Su Ziye refused flatly.

“I haven’t even said it yet,” Carotes replied with a smile.

“The President’s conditions are always non-negotiable. If I had a choice, I’d rather not hear them at all,” Su Ziye said earnestly.

“In that case, you have all the more reason to listen to this one,” Carotes continued with a smile. “Your story is finished, and it’s indeed a fascinating one. I also know that you’ve ordered a thousand Golden Leaves’ worth of supplies from the Shining Gold Chamber of Commerce, to be paid for and collected in installments. You did this under the Academy’s name, correct?”

“That’s right,” Su Ziye answered without any defensiveness. He wasn’t curious how Carotes knew all this; if Carotes couldn’t find out, he would hardly be worthy of his position.

“And you also took it upon yourself to name the beverage Academy Sparkling Water. If it spreads, you’ll bear a share of responsibility,” Carotes remarked, gazing at Su Ziye.

The Academy held a special power and prestige not only in Nightleaf City, but across the entire Lanyeh Empire, if not the world.

If this beverage truly bore the Academy’s endorsement, the credibility behind it would be unimaginable.

It was not out of the question that Academy Sparkling Water could become the national drink of the Lanyeh Empire.

“Then, President, you can refuse,” Su Ziye smiled.

“Why would I refuse?” Carotes countered, then smiled as well. “However, naming rights come with a price.”

“That’s my condition: the Academy will take a stake in this project, contributing its name as capital in exchange for twenty percent of the shares and dividends,” the student council president said, smiling slightly at Su Ziye. “What do you think?”

“Tying the Academy’s sacred name to such a trivial drink is rather degrading, isn’t it? I doubt others would approve either,” Su Ziye replied calmly.

He certainly did not wish for this outcome. Carotes wanted to claim twenty percent of the profits with nothing more than a signature, and although Su Ziye would have to pay taxes in Nightleaf City—handled by the student council—dividends were no substitute for taxes.

Unless Carotes said they could be.

“If I say it’s acceptable, then it is,” Carotes replied, glancing back at Qing Yi. “What do you think, Vice President?”

“Agreed,” Qing Yi answered without the slightest hesitation.

And so the question returned to Su Ziye.