The Mech Touch

that you are targeting the premium segment.
However, there are only so many rich customers in the market.
I think it ’s prudent to evaluate whether it serves the company to offer a cheaper selection of models.
Not immediately, but in the medium term. ”

”The Living Mech Corporation ’s mission is to bring mechs to life.
I can ’t do that without a minimum standard of quality.
I ’m not interested in getting into a race to the bottom.
Cheaper mechs means I ’ll have to start cutting corners, which I really hate doing. ”

The LMC could establish a different brand to take care of that problem, but Ves had already ruled that possibility out.
However, the board member suggested another approach.

”I ’m not saying the company has to be responsible for the production of these cheaper designs.
Your design capabilities are impressive for a young man of your age.
I ’m sure it won ’t be a challenge for you to come up with some cheaper variants of your main designs.
Once you finished your variants, you can license them out to other mech manufacturers, who will do the rest of the work on our behalf. ”

”You ’re suggesting that we engage in outsourcing? ”

In the mech industry, outsourcing meant that Ves would offer his designs up for licensing with a very specific set of terms.
The companies that bought his licenses had to abide by a number of very strict restrictions and wouldn ’t be allowed to modify his designs in any way.
In exchange, Ves would waive the massive licensing fee, though he did take a larger share of per-unit revenue.

Mech manufacturers in possession of production hardware didn ’t always have the money to pay for a standard license.
Producing mechs on behalf of another company was considered a way to make ends meet by these sorts of companies.

”Even though Ves didn ’t wish to cheapen his designs by developing severely hamstrung variants, he was open to the idea of offering up purpose-built designs.
It would enable his work to penetrate the market and allow his reputation to spread beyond a narrow circle of wealthy customers.

Even if the licensees botched up the production, the LMC could terminate the license and find another manufacturer to do the work.
The only issue was that his company earned far less profits than if it did everything in-house.

Then again, Ves had already shot down the possibility to produce any cheap models by themselves.

”The idea holds some promise, but only if the right manufacturers are interested in licensing my designs. ” He replied after careful contemplation.
”Right now, we only offer the Marc Antony Mark II, which is an aging lastgen design that ’s unsuitable to further cost-saving modifications.
Let ’s wait until I ’ve developed my new design before considering the matter in earnest. ”

Ves started to understand the appeal of a board.
Even if they had no actual decision-making power, they had a vested interest in the company ’s success.
The various experts lent their expertise to the various matters that the company faced.

Still, he didn ’t delude himself that they worked for the greater good of the company.
They only had their own interests at heart.

Overall, their knowledge and ability to think at a higher level made them useful sparring partners.
Compared to the company ’s officers, the directors turned up short in terms of depth, but they made up for it by taking the bigger picture into account.

”If I might suggest something. ” The mech industry expert spoke again.
”Your search for a long-term supplier will not be successful.
Even with a moderately successful design, the LMC will always be regarded as a non-entity.
Even if you catch the attention of a supplier, it ’s doubtful they ’re willing to offer favorable terms. ”

”The CRO sounded much more optimistic when he informed me of the ongoing search for a supplier. ”

”Your CRO must be aiming to build a relationship with a distressed or desperate supplier.
It ’s not a good idea to source your materials from a troubled seller. ”

The expert provided many reasons why it might go wrong.
The supplier might have almost tapped out its reserves.
It might have engaged in illegal labor practices.
It may even serve as a channel for pirates to dispose their ill-gotten gains.

”Considering the impending war, it ’s actually best we don ’t rely on any single source to supply our most critical exotic materials. ”

”Why is that? ”

”Because exotics turn into strategic goods over the course of the war.
The Vesians will try to occupy or destroy the Republic ’s mining operations.
They ’ll also prey on the convoys delivering those materials to the hungry industries it feeds. ”

That sounded very troubling.
”I don ’t see why relying on the open market is any better. ”

”Because no matter how the war progresses, the open market will always continue to operate.
Don ’t forget that Bentheim is a port system and that it serves a regional nexus of trade.
Some of that traffic will diminish, but not enough to starve the markets entirely out of resources.
You won ’t be dependent on the whims of the Vesians if you can accept the higher costs. ”

Someone else disagreed.
”As long as the LMC insists on leaving out the exclusivity clause, it ’s free to trade with any other party.
I don ’t see the need to suspend the search for a supplier. ”

”You can ’t have your cake and eat it too! You won ’t find a supplier who is willing to let the LMC retain the right to approach its competitors for business.
The LMC isn ’t producing enough mechs to force a compromise.
They ’d rather decline a partnership than be taken for fools. ”

The issue of suppliers had always given Ves a headache, and the directors just made it worse.
He banged his fist against the table.
”Enough! This is going nowhere.
Let me tell you now that I plan to let the relations department continue to find a supplier and attempt to negotiate a mutually beneficial contract.
We can convene the board again to discuss whether it ’s worth it for us to sign it into the books. ”

Even though the discussion led to nothing substantial, it got Ves to think about what his company would do after the war broke out.
He decided to raise the matter to the board.

”As you all know, the Bright Republic and the Vesia Kingdom will likely be embroiled in a serious conflict.
I ’ll likely be drafted by the Mech Corps, and so will some of my employees.
How can we prepare the LMC so that it will continue to function during wartime? ”

The directors made a number of useful suggestions, starting with his grandfather.
”First up, the Republic provides a substantial amount of assistance to mech manufacturers affected by their wartime policies.
If your administration is up to task, they should have already prepared the necessary paperwork. ”

”I ’ll check up on that after the meeting. ”

”You should also check with the bank. ” The financial expert said.
”In some cases, they ’re obliged to freeze or even forgive parts of your debt in the event of war.
Also, if the company is bleeding cash, it should be able to demand some compensation from the government, though they may demand some equity in return. ”

In truth, the government only offered a limited amount of support to failing mech manufacturers.
It was content to let the weak ones close their doors while offering only a pittance to most medium mech manufacturers.

”The only way to receive better treatment is by contributing to the war effort. ” His grandfather added.
”The Mech Corps has many needs.
The LMC can best serve our fighting force by supplying them with high-quality replacement parts that are difficult to fabricate at military supply bases. ”

They formed a tentative plan around this suggestion.
His grandfather even offered to pull some strings and lay down the groundwork for such collaboration.

At the end of the hours-long meeting, Ves left the conference room with a moderately satisfied expression.
He patted Lucky ’s head once he entered the lounge.

”You did good, buddy.
The directors aren ’t complete bastards. ”

His cat meowed lazily at him before turning around to resume his nap.