Gross profit was called gross profit precisely because various costs had not yet been deducted from it.
Raw materials?
That was not actually a large sum. A single batch of ingredients for a Jade Marrow Pill cost only five spirit stones.
Even under the impact of the war, when the price rose to six, it was merely a drop in the bucket.
Add in the losses from refining Jade Dew Pills, Nether-Passage Pills, and other medicinal pills at a deficit, and the total material cost came to only forty thousand spirit stones.
As for rent, Danxia Hall cost five thousand spirit stones a year.
The price would not go up for the moment; he was still in a honeymoon period with Ice Fort and could continue to secure this discounted rate.
The lion's share of expenses lay in labor!
After pushing their alchemy to full throttle for an entire year, the cultivators of the Pill Hall and Medicine Hall were practically run ragged.
Under such conditions, besides their base salaries, Luo Chen naturally had to provide substantial bonuses.
These two halls alone ate up sixty thousand spirit stones in a year.
The War Hall was responsible for protection and transport. There was no need for extra bonuses there; maintaining basic stipends was sufficient.
That came to about sixty thousand spirit stones a year as well.
The Gold Hall handled sales, the most critical link aside from alchemy itself!
On top of base stipends, Luo Chen did not give flat bonuses, but rather commissions.
For every bottle of medicine sold—whether a finished Jade Marrow Pill or roughly processed Essence Cultivating Spirit Liquid—he promised a commission of two spirit stones.
Given that the Gold Hall had few female cultivators and their cultivation realms were not high, even after offering such generous compensation, the total expenditure there was only twenty thousand spirit stones.
"Calculating it this way, the cost for ordinary cultivators comes to around a hundred and forty thousand. Adding in materials and rent, it is merely a hundred and eighty thousand."
"The truly massive drain, rather, is the higher-ups."
For the upper echelons of the Luotian Association, the stipends Luo Chen offered far exceeded those of the lower ranks.
Leaving aside figures like Sima Huiniang and Murong Qinglian, veterans like Zhou Yuanli and Liu Qiang drew only three to four hundred spirit stones a month.
Even so, all the ninth-layer Qi Refinement cultivators combined came to sixty thousand in a year!
And to think, this cohort was actually the smallest in head count.
Then there were Wang Yuan and Duan Feng, each enjoying an allowance of three thousand spirit stones a month.
For each person, that meant at least thirty thousand spirit stones a year!
"Adding all of this together, annual expenditures come to at least three hundred thousand spirit stones!"
After tabulating the accounts, even though Luo Chen had mentally prepared himself, he could not help being astonished.
No wonder Wang Haichao had been so stingy back then, almost never giving fixed stipends to the cultivators under him.
No wonder Mi Shuhua was unwilling to let the Mountain Breaker Gang produce a second Foundation Establishment True Cultivator—supporting just one cost at least thirty to forty thousand spirit stones a year.
Any ordinary Foundation Establishment power could not possibly sustain such monstrous operating costs!
Only Luo Chen possessed both the ability and the daring to do so!
Had Wang Haichao still been alive and seen how lavish Luo Chen was, he likely would have cursed him as a fool.
Yet Luo Chen saw through it more clearly than anyone.
These expenses were entirely necessary.
Those people were merely receiving the compensation they rightfully deserved.
Without their contributions, where would such immense revenue come from?
Setting everything else aside, Duan Feng took thirty thousand a year—was that too much?
Not in the slightest!
First, he was a Foundation Establishment True Cultivator.
Second, the Artifact Hall's annual output and revenue reached eighty to ninety thousand spirit stones.
That four hundred thousand gross was not solely the Pill Hall's earnings.
Lastly, once Duan Feng trained up disciples for the Artifact Hall, they could manufacture and sell their own goods, forming a steady source of revenue.
As for Wang Yuan, thirty thousand a year—was that too much?
On the surface, he produced no tangible goods, right?
Yet throughout the Luotian Association's journey, Wang Yuan had always been the bedrock of their martial strength.
In the battle against the Fu family, it was he who broke through their impregnable fortress.
In the Battle of Mount Xiaohuan, it was he who bore the brunt of Duan Qiankun's pressure head-on.
In the Battle of Gaoling Plain, he fought above his cultivation level to defeat Huo Hu.
When moving onto Danxia Peak, he boldly slew Cao Wanchun to establish prestige for the Luotian Association.
One could say that thirty thousand spirit stones a year was far too little for him.
If one hired Chu Kui of Tianlan Immortal City, a single intervention started at a hundred thousand!
Not to mention Wang Yuan's countless pointers and personal dedication to Luo Chen throughout their journey.
For this very reason, Luo Chen had long set Wang Yuan's compensation at the steep rate befitting a Foundation Establishment consecrated elder.
As for the others?
Beyond their diligent efforts, Luo Chen had experienced the hardships of being a low-tier cultivator himself; how could he not reward them generously?
Besides!
"Over the year, I still have a surplus of a full one hundred thousand spirit stones!"
A hundred thousand!
Net earnings, pure profit, belonging entirely to Luo Chen alone!
Which rogue Foundation Establishment cultivator could earn so many spirit stones?
Even late Foundation Establishment grand cultivators like Chu Kui had to demand exorbitant fees to earn hard-fought blood money, and only if an opportunity presented itself.
Even Foundation Establishment cultivators backed by sects likely could not match this.
This was enough to purchase a low-grade magic treasure every year... no, even two or three!
Such was the value that an alchemist—an alchemist with an organization of his own—could create!
What was more, this was not even under Luo Chen's full-tilt alchemy mode.
What if he went all out?
If he did not tinker with Jade Dew Pills or refine Nether-Passage Pills, and trimmed back his cultivation time a bit, the value he could generate would be even greater.
However, Luo Chen would never put the cart before the horse like that.
In fact, he wanted to save even more time for his cultivation once the Luotian Association was fully on track.
What did it mean to be on track?
Hundreds of spirit fields generating steady yields!
The Artifact Hall self-sufficient in production and sales!
In the Pill Hall, Qu Lingjun and Mi Li maturing until they could shoulder responsibilities independently.
Even for the War Hall, Sima Huiniang and Sima Xian had recently been scheming to find them some side jobs.
If nothing else, planting all those spirit fields required hands!
The War Hall had dozens of formidable late Qi Refinement cultivators sitting around idle; picking up a few spiritual-farming techniques to tend the fields during peacetime would be great!
Farming when idle, rolling up their sleeves to fight when war broke out—that was a healthy operating model for the War Hall!
Cultivating every single day?
What could a bunch of Qi Refinement cultivators cultivate day in and day out? Overdoing it might just scramble their brains.
It could be said that Luo Chen's blueprints for the future were exceptionally clear and goal-oriented.
When that time came, the Luotian Association's revenue would not rely solely on the current Pill Hall and the opportunistically acquired Artifact Hall.
He was drifting a bit too far ahead.
Reeling his thoughts back in, Luo Chen began calculating how to maximize the utility of this massive sum of spirit stones.
Invest it in himself!
With a hundred thousand, low-grade magic treasures could practically be bought at whim.
Add a little more, and he could even try acquiring a medium-grade magic treasure.
Yet he would never do that!
He already had two magic treasures, covering both offense and defense.
No matter how many magic treasures he had or how high their quality, given his Foundation Establishment cultivation realm, he could not unleash their full potential anyway.
Advancing his cultivation was what truly mattered.
"Perhaps I can consider moving to a different immortal cave."
Luo Chen recalled the second-rank superior immortal caves belonging to Tantai Jin and Ling Yuzhi.
Their spiritual energy concentration was double that of a low-grade immortal cave.
If he could cultivate in such an environment, his cultivation speed would undoubtedly soar!
However, no second-rank superior immortal caves had become available yet, leaving him with money he could not spend.
"Purchase other resources useful for cultivation?"
Luo Chen's thoughts settled. He planned to find time to tour the major shops in the city.
There were bound to be many good things he knew nothing about.
Treasures like Taibai wine, for instance!
He could also visit Wanbao Tower more often.
He heard that they had recently rolled out a new flying boat capable of gliding over land within the immortal city—supposedly a simplified version of his Langqi flying boat.
The moment it hit the market, cultivators sought after it fervently.
With Wanbao Tower's research and development capabilities, they surely sold auxiliary magical implements tailored for the cultivation of Foundation Establishment cultivators.
*Thump.*
A faint noise sounded.
Luo Chen snapped out of his contemplation and glanced over.
Having stood for so long, Xu Xiaoliu had instinctively shifted and bumped into the wall behind him.
"President, I'm sorry..."
"It's nothing!"
Luo Chen smiled, knowing he had been lost in thought for far too long.
Looking at the two of them, Luo Chen commended, "You two have done exceptionally well lately!"
Xu Xiaoliu scratched the back of his head with a chuckle. "It's because your idea was brilliant, President. Once those fliers went out, even with Danxia Hall being so tucked away, customers started coming of their own accord. Why didn't we ever think of that before?"
Luo Chen offered a faint smile.
Mere fliers were nothing extraordinary.
Cultivators simply could not bring themselves to stoop to such methods.
Xu Xiaoliu had not done poorly either; after Luo Chen proposed the fliers, Xu Xiaoliu had shown good initiative by suggesting they engrave route maps on the back.
That way, even cultivators who had no immediate need for pills would keep the fliers.
"Caiyi, you have done wonderfully as well!"
Meeting Luo Chen's approving gaze, Gu Caiyi straightened her ample chest.
Beaming, she said, "These are merely things you taught me years ago, President. Caiyi dare not take credit."
Luo Chen shook his head. "I am not just referring to those female cultivators. From nothing to everything, you managed this entire vast shop almost single-handedly. I have seen all the hardships you endured."
Gu Caiyi opened her mouth to murmur modest words, but the voice caught in her throat, choked with emotion.
Just as Luo Chen said, this past year had been extraordinarily grueling for her.
Back in Dahe Market, she had also experienced managing a shop.
Yet back then, the scale was small, the patrons few, and most people she received were of lower cultivation than her.
Even when encountering high-tier cultivators, Zeng Wen had been by her side to support her.
Now Zeng Wen was gone.
It was left to her alone to shoulder the pillar of the Gold Hall.
Having to face all sorts of diverse individuals, even the slightest misstep was more than she could bear.
It truly matched Luo Chen's words: the hardships within were not something outsiders could know!
Countless times, she had jolted awake in the dead of night, fretting over how to make the next day's business the best it could be.
Thankfully!
All of that effort was worth it.
He had seen every bit of it.
These were no hollow platitudes, but heartfelt praise!
"Everything Caiyi did was only what I ought to do." She was tempered by experience after all, capable of mastering her emotions and speaking with proper decorum.
Luo Chen showed a warm smile.
"There is no such thing as what you ought to do. You did well, so naturally you deserve a reward. I recently developed a little something that is of immense benefit to female cultivators. Once the shop closes later, you can try it."
Gu Caiyi blinked her large eyes, anticipation gleaming in them.
For Luo Chen to say it was of immense benefit to female cultivators, it had to be remarkably effective.
"With you two watching over Danxia Hall, I am at ease. As for Biyou Valley, in terms of training the maidservants, Caiyi, when you have free time, you can go over and guide..."
As he spoke, Luo Chen's voice trailed off.
His gaze angled outward, staring toward the exterior.
As if penetrating the wooden pavilion's doors and windows, he saw a figure that had been standing in place on the street outside for quite some time.
"A distinguished guest has arrived at our door!"
Chapter 245