[201-400] THE MECH'S TOUCH

Chapter 269: Third Party

The entire matter about outsourcing the production of bronze label Blackbeaks had spread throughout the entire company. None of the workers under Ves felt very concerned. In fact, everyone felt excited to be part of something big. The option to leave the heavy lifting to another manufacturer was seen as boon to the LMC as a whole.

"Look at it this way." Gavin told him next morning as Ves prepared to go on a field trip. "Up until now, most of your new recruits had nothing to do. The anemic sales of the Mark II generates so little paperwork that most of them felt useless."

Ves raised his eyebrow as he finished dressing. "Is handing over most of our production to a third-party manufacturer going to change anything?"

The way these outsourcing contracts worked in the mech industry was that a mech designer sold the rights to exploit a design to someone else. Often times, the third-party manufacturer also gained the right to sell the mechs based off the borrowed design through their own channels with their own branding.

This last point served to raise the profile of the third-party manufacturer while simultaneously isolating any faults from affecting the original mech designer. Only rarely did the mech designer insist on retaining his company's original branding. That only happened if the two parties entered into a long-term alliance or if the mech designer owned a significant stake in the other manufacturer.

Essentially, it came down to control.

"Ves, just because the third-party manufacturer is going to do their own thing doesn't mean we're left in the dust. A strong surge in sales of the bronze label version will affect the popularity of the silver label and gold label versions as well. We aren't competing against our own partner for the same group of buyers."

Those that wanted to acquire more distinguished mechs could afford to wait for the LMC to produce their premium copies. Meanwhile, those who only wanted to buy the Blackbeak for its performance could order a cheaper copy with much less wait time from a third-party manufacturer.

"I admit, I'm not entirely sold on the idea. We don't actually get that much money from our partner as well. It's only a couple of millions of credits at most."

Gavin shook his head. "That's money that we basically earned for free. It doesn't cost us anything to extend a license to someone else. Sure, we need to keep an eye on them to insure they don't make shoddy mechs, but as long as they follow the agreement, we can sit back and relax while the money rolls in."

Some mech designers made their living licensing out their products. They setup design studios and focused solely on coming up with the best designs they could make. As for turning them into actual mechs? The third-party manufacturers handled all of that. They just went back to inventing newer designs while enjoying the steady stream of licensing fees.

Ves couldn't imagine working like that. He valued his designs and wanted any mechs built according to his schematics to be wholesome products that added genuine value.

To that end, Ves planned to go on a trip. "Gavin?"

"Yes, boss?"

"Please arrange an appointment with the three manufacturers we've entered talks with. I want to take a look at their production facilities."

"Why would you do that? The manufacturers have been very forthcoming with informing us of their available production capacities."

"It's not enough to know how fast and how efficient they can pump out mechs. I want to see whether they put their heart into their mechs."

Gavin scratched his head. "If you say so."

The LMC's various departments had been working at full tilt since yesterday. Marketing brought forward their advertising plan as soon as they secured a third-party manufacturer. They also released the virtual version of the Blackbeak onto all of the popular mech sims in order to ease some of the pressure that had been building up.