Chapter 18 - Factions

"I've been thinking about F11."

"F11??" Shortyty was startled. What the hell was that trademark name? It seemed that his respected boss wasn't as skilled as he thought.

"F11 was a keyboard key that put the internet browser in "fullscreen" mode... But of course, you wouldn't know what that is. Just in case, it's a short, easy-to-remember name, and unique in Sombreal. I believe it's not that bad, right?" Ian asked, staring at the poor Shortyty.

"Hahaha, good name! I like it!" The enthusiastic director said.

So the F11 was registered, and Ian met a number of important officials from the external area of the state machine, got recognition from many, fawned over others, in short, gave every possible face and more, in order to establish a good basis for relationships.

Ian returned home, exhausted and with facial muscles tired from smiling after hours. The Gnomes were a happy people and valued positive expressions. Etri was waiting for him in the living room, to talk, eat, or date? NO! To forcefully take him to the rooftop, to TRAIN! Five hours later, a zombie finally obtained the blessing of rest.

The next day was reserved for getting to know and greeting the most prominent Factions in Gnel. Factions were allied business groups that helped each other and aimed to dominate various market sectors. In other words, they sought an oligopoly for their members. In many countries on Earth, this could be considered illegal, but in Sombreal, it was part of the mechanics of commercial politics. There were six of these alliances, distinguished by colors: White, Green, Red, Blue, Pink, and Yellow. The Whites and Greens dominated the north, Reds and Blues the east, Pinks and Yellows the west, the center was held by the Royals, and the south housed the Guild Headquarters. The F11 sales point was in the heart of the city, but the warehouse and workshop in the eastern area... Red and Blue.

Early in the morning, the unpaired duo, mounted on a hateful beast, once again, trotted through the streets. Their objective? The Reds' headquarters and then the Blues. Ian mentally pondered, if there were no significant advantages between the two factions and he had to choose one, without a shadow of a doubt, he would want to go for the colorados. Reason? This rivalry between colors brought him a feeling of nostalgia about soccer/football teams, and in his former life he had cheered for a team whose shirt was red.

After some time, they arrived in the heart of the eastern region, where two tall twin towers, at least 20 stories high, stood facing each other with the main road dividing them. In reality, the only relevant difference was the color of the paint and the flag.

"Do they both have identical headquarters?" Ian asked perplexed.

"Sir, the competition between them is so fierce that as soon as one undergoes renovation, the other imitates it." The small one nodded his head.

"Instead of copying, why not make something better?"

"Sir, if one does something different, considering that aesthetic and utility parameters are abstract and vary from person to person, the opposition could claim to have the most beautiful and best structure, and the fact couldn't be easily or entirely refuted."

"Are all enemy factions like this?"

"Each sector presents a disparate aspect of competition." Ian shook his head, wasn't this a bit childish on their part?

As planned, the duo entered the crimson building, where Shortyty's hat once again saved them from a lot of bureaucracy, and they were quickly ushered into a spacious meeting room, furnished with a large table adorned with decorative items. As the two drank soul elixirs and herbal cookies, our main character discovered that he could eat and drink moderate amounts of cultivator food and drink, since it would be fully absorbed by the body.

A little later, the opposite door opened, and a funny little Gnome with smooth, blond hair and blue eyes entered. Ian noticed that the cuter, smaller, and more comical a Gnome was, the more beautiful they appeared, and this young woman could be considered a beauty, since the little guy next to him lowered his gaze in embarrassment and held back. The girl also noticed the reaction and gave a half-smile of satisfaction, she was certainly aware of her aesthetic attributes and seemed quite proud of them.

"Welcome to the Red Faction. I am Poly Poket, responsible for negotiating membership in this alliance." Poly said with a soft voice and perfect oratory skills, with a touch of sensuality. Ian had to use all his self-control to manage the emotions and not laugh at the scene. Even more with such name... Never mind.

"I appreciate the hospitality. My name is Ian Haller, owner of F11 company. And this is my hired Secretary-Guide, Shortyty Bretas."

The woman was confused, this was not the expected scenario. Shortyty was part of the Royals and even a level three, an important person and, given his age, had room for future improvement. Although those in the Royality were supposed to be neutral and not participate in Guilds and Factions, many founded companies and put oranges to run them, so relations ended up somewhat complex between the three powers. Normally a Gnome, preferably a friend or distant relative, would be used, but another species would not mean anything new. Could it be that the young man was afraid and chose to keep up appearances?

"Ms. Poly, you may refer to my boss, things are as they appear to be." Shortyty would not have the status of a great talent if he was not able to perceive what was happening to the charming Gnome.

"I apologize for my rudeness." Poly recomposed herself and addressed Ian.

"No need to worry. I am also sometimes surprised by my luck to be assisted by Shortyty, a genius and elegant Gnome." Ian said, causing Shortyty to shrink a little. How could he not understand that the boss had noticed his infatuation with the girl and was promoting him?

"But let's get to the point. I have many things to deal with, and so do you. What do I gain or lose by joining or not joining in your Faction?" Ian asked directly.

"Dear Mr. Haller, the advantages are extensive. You will be included in our contribution system and have access to discounts from suppliers, partnerships, access to knowledge, and our own masters of craft. I am proud to inform you that we have a Grandmaster in the Dao of Metallurgy. He is one of the professionals that can be hired to consult and do small projects. In addition, we provide protection against other organizations." Poly explained.

"And what are the conditions for entry and the obligations of the members?" The speech really tempted him, a sort of business club with a touch of mafia.

"The conditions we demand is that your products do not directly rival us or at least that the distribution point is not in the same area as a member. We do not accept companies with ties to other Factions, either commercial or kinship, a matter of reasonable trust. We collect 5% of revenues to maintain the structure and increase the power of the Faction, and a minimum of 100 monthly contribution points, 1300 annually, aiming to keep only firms engaged in the collective cause."

If we take into account the 5% obligatory taxes that the Royalty collects from all citizens, when entering a Faction, the taxation ends up doubling. In a highly competitive environment like Gnel, having half the external production burdens could be considered a comprehensive cost advantage. However, Ian doubted that the life of neutral individuals was peaceful, and perhaps the benefits of the coalition could compensate for the initial monetary loss. Initially, F11 would enter the market with innovative products, so naturally, they would already enjoy extraordinary Schumpeterian Profits, and they could easily afford to pay higher fees in exchange for access to greater wisdom. Even the supreme God of Norse mythology, Odin, sacrificed one of his eyes in exchange for wisdom, and Ian would be willing to give much more.

"Currently, we will focus on the armament industry. The store is located in the central region, and in the near future, we do not intend to limit ourselves to this market. However, all our products will be unique."

"How unique?"

"Original ideas and means of production."

Poly was surprised. The arms industry didn't have much local output but had good exports. This sector was characterized by high investment, but Ian said he would expand into other areas. This was strange, since firms rarely opted for diversification before developing as much as possible in a niche. The statement about originality touched her. What moved a Faction was exactly that, new cards capable of turning the game, in other words, knowledge and technology.

"I think we can move on to the bureaucratic step now, don't you?" Poly felt that if let this fish get away, it would make her regret for the rest of life, so she put the best gentle expression on face, leaving Shortyty a bit flushed.

"Not yet, I appreciate your attention, but I want to analyze my options."

Instantly Shortyty's eyes widened and Poly's lips tightened. This was a taboo. No one in sane conscience would announce that they were considering joining the rival Faction. The Gnome already knew that F11's warehouse and workshop were located in the east, so the option should be named as "BLUE".

"Don't be disappointed, Ms. Poly. I am a serious businessman, and I will consider your proposal deeply. But I don't feel obligated to stay here without knowing what I would receive from the Blues. I already have contacts in the Royalty Office and I'm not afraid to surf on opportunities."

Ian gambled. In his mind he already knew that the rewards would be equivalent in either of the two institutions, so he tried to reap some extra perk.

On the other side, Poly didn't doubt. Just look at the level 3 Secretary-Guide next to him and the industrial sector he was entering. Initially, it was mostly dependent sector on connections with prestigious state entities, no fool would afford the large capital investment required without contract guarantees.

So, the man of indeterminate race, was not simple and she would have to make a risky choice. On the one hand, should he succeed, the gains would be shared, but if failure came, the same. In the short term the superiors would criticize her anyway, for losing to the Blues or giving the concessions that Ian would surely ask for.

"I shouldn't offer anything more... The protocol and rules are fair and apply to everyone."

"I don't think F11 is considered equal to the others, Ms. Poly. I just want unrestricted access to all Faction rights, of course, I will pay the contribution according to the schedule."

Poly let her little agenda fall to the floor. What Ian asked for was to receive Rank 4 status upon entry. The Reds had their own hierarchy by ranks up to 5. Members when they joined, would be Rank 1, after a few years of participation and cooperation, they could move up. Rank 4 was only below the leader and directors and would have access to all benefits. Simply the elite that many dreamed of and very few could achieve, even in hundreds of years of effort.

"I know what you're going to say, Ms. Poly. but I must tell you that I have patrons such as the Helis Marshal, a level 6, and the External Director of the Royal Office, a level 4 in the Gnome caste system. And my innovations will be a game-changer in the commercial war. The Blues, without a doubt, will think very carefully about it, considering I would be what you couldn't have. Other than that, I could remain neutral, I don't think offending an entire race and high officials of the royals would be worth to suppressing a single company."

PREPOTENT! Poly and Shortyty were startled. Ian's rudeness, arrogance, and ambition were not in line with Gnomish culture. Not even the Blues would have the face to do that. Mr. Bretas was even more dumbfounded, after all, the chief's relationship with his master although good was far from patronage, a total bluff. They would be even more shocked if knew that apart from the Marshal, the rest of the main Helis powers wanted him seven feet under the ground.

Humans were humans and would always be humans, regardless of the shell they occupied.

"Sir, I don't think we should... "

"Shortyty, I don't fear Reds, Blues, or any color. I am luxury, and if they want me, they must pay a high price."

"Mr. Haller, I need a moment to study the feasibility..."

"All right, but don't take too long! I want to get out of here during business hours, I have VISITS to make." Even Ian was disgusted with himself, however, his family was at stake and since he was still small, he needed every boost possible.

Poly left the room and Shortyty was clearly upset. The boss had revealed himself to be a person of poor character and, worse, mistreated the muse of his heart.

In the time it takes to boil the tea water, the girl returned next to a rosy-cheeked old man. She stood quietly with head down and her hands clenched, while he stared coldly at Ian.

"Are you the brazen one who is trying to take advantage of this little girl?"

"And are you the one who will hand me over to the Blues on a silver platter?"

"Brat! You think highly of yourself!"

"Well, I just asked for permission to access all available benefits. I don't know what all the drama is about, it's not like I'm going to steal or anything. I'll pay the standard price, without discounts. But if you think your protocol is worth more than an opportunity, I'm grateful not to join this closed-minded organization."

The elder was thoughtful. This junior was daring, but had a lot of courage and, according to what Poly told him, is an influential figure with contacts and seemed to be in possession of some unique goodies.

Since the time the old Gnome talked with the girl was short, he hadn't fully understood the situation. Ian wanted access, but no other privileges of Rank 4. 'If it was just that...'

"Mr. Haller, do you have any samples or patent records on hand to prove that you are truly worth the price you claim?"

"Humpf." Ian took a folder from a pocket in his cloak and handed it to the elder in front of him.

Poly was already internally celebrating Ian and Shortyty's expulsion from the building in a fit of rage from her master. However, what occurred was different from the conjuncture she imagined. The Personnel Director nodded and smiled, then...

"Excellent! These projectiles are extremely powerful. They allow even a common citizen with low cultivation to injure a Heli Gold Body?! Junior, this old Gnome apologizes for his terrible mood. We, Reds, are open-minded, but it's difficult to distinguish the false from the true, and sometimes my eyes are clouded." The treatment Ian received from the old man changed dramatically.

"Since you have decided to listen to reason, I will not take our previous disagreements to heart."

"You mentioned that you have some other ideas that haven't been developed yet. Could you shed some light on the subject?"

"I'm interested in the entertainment, beverage, and cleaning industries. Think of..."

The rest of the day was spent on paperwork, signing documents, protocols, customs... It took three days to resolve and understand how things worked in that Faction. Ian didn't stay uninterruptedly at the headquarters of the colorados. In the intervals he returned home, to sleep and give attention to his wife, aka TRAIN...

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Hey dude, if you want learn more about economics... Search in the internet about Schumpeterian Profits.

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