Goblin Gold

Corpnik's grin widened, delighted with the deal that the board would likely approve. The lower investment allowed for a more flexible approach and a fair share for Harry if the profits exceeded expectations. The prospect of having Harry Potter personally endorse their product promised excellent publicity.

"Deal," Corpnik declared, extending his hand for a shake, which Harry accepted. They proceeded to review the standard contract, and Harry meticulously examined each clause. A few passages were subject to negotiation, and with some alterations to Harry's liking, the contract was settled. The disputed clause was inserted, and both parties signed the contract in blood, sealing the magical bond. The contract glowed golden, and two copies were generated—one for Harry and the other for the goblin archives.

With the business deal concluded, Corpnik urged Harry, "Okay, now I think it's your turn to give me the details."

Harry nodded, opened his book bag from Flourish and Blotts, and retrieved a notebook. He flipped it open, revealing diagrams and explanations of the Muggle credit card system, detailing the fees for the issuing bank and the shops.

"In the Muggle world, a percentage that doesn't exceed a certain amount of money is added to the price for the bought goods," Harry explained. "Normally three percent. For example, if you bought clothes for one hundred pounds, you're charged one hundred and three pounds. Of the additional three pounds, two go to the bank, and the other pound is for the shop."

Corpnik was impressed with Harry's accurate knowledge as he continued, "Gringotts operates in all European countries, with branches in America, Canada, Australia, and Asia. Considering the wizarding population worldwide to be about thirty million, and assuming forty percent are children, leaving eighteen million adults. Of those, Gringotts likely has about sixty percent as customers, making it ten million eight hundred thousand."

"If only fifty percent of those, meaning five million four hundred thousand, accept the credit card, you have a solid base to get the system accepted in the wizarding world," Harry reasoned. "In the Muggle world, the creators of the system noticed that people tend not to scrutinize their spending closely when using cards, as they don't see the money physically before them."

"Now, I'll use an easy example for an event that comes up every year in August."

"Shopping for school supplies. The average Hogwarts student needs to invest about fifty galleons for the starting equipment in basic form, about a hundred galleons if you prefer higher quality. In the following years, the amount is reduced as things like a wand, a trunk, and so on are already there. Hogwarts has about forty students starting this year, making, if we settle for a middle amount of money spent on the children of seventy-five galleons, three thousand galleons would be spent. With a two percent profit for Gringotts, that's already sixty galleons just for one year of students, only in Great Britain. Multiply that with the higher numbers of children in other countries, and you see why I'm more than sure that you'll easily earn the five thousand galleons in six months," Harry explained.

"Now think five million customers, buying their supplies with credit cards all over the world, a system that the Muggle-borns are already used to from their parents. Even if they only spend one hundred galleons in six months, which they won't do but spend more, you'd earn two galleons from each of them, summing up at ten million galleons. Take away twenty percent for maintenance and personnel, and you still have eight million galleons left. I'm really sure I've earned my fifteen percent," Harry asserted.

Corpnik couldn't help but laugh loudly. "You, Harry, could have been a goblin. That was one of the most devious acts anybody has pulled over me for some decades. I definitely underestimated you. Henry would have loved the way how you think. He was the most devious businessman I ever had the honor of knowing. Indeed, if we get it done the way you say and I don't see why not, we'll earn a lot of gold together."

"Do you have other ideas that are as profitable as this one?" he asked, now very interested in what else the boy could think of. Honestly, the most he had expected to get was a vague idea of a Muggle system of how to pay more comfortably. They would have had to investigate how to make it work in the wizarding world, and that would have taken time.

With the detailed information Harry provided, Gringotts could swiftly embark on setting up the credit card system, coordinating the magical aspects, and initiating the advertising campaign. Harry's acumen in business dealings echoed that of Henry Potter, piquing Corpnik's interest in witnessing the boy's growth. The potential he saw in Harry was vast and promising.

"An extension to this, once the system is established in society," Harry proposed, his mind already exploring further possibilities. "Offer accounts for students of magical schools with an included credit card free of the percentile fee as long as they attend school."

He elaborated on the strategy, "The card itself can have a fixed starting fee, like five galleons. While you won't make much profit while the students are at school, they'll get used to using the credit card for their purchases. Once they leave school, the normal procedure starts, and they won't find anything strange about it."

"You bind customers early on, and to be honest, students at Hogwarts mostly spend their money in Hogsmeade and not much more, given the limited possibilities. If they spend fifty galleons a year while at school, that's the norm, even for wealthier students."

Harry emphasized the long-term benefits, "So, you wouldn't get one galleon a year from each student, but much more once they graduate. Of course, there are still the normal fees for the upkeep of the vaults. It's an investment in future profit."

Corpnik, impressed with the extension idea, acknowledged, "A very interesting extension. Yes, I'm convinced we'll make much gold together in the future, Harry."

The goblin recognized Harry's immense value, appreciating the profitable ideas he brought to Gringotts. As Harry's account manager, Corpnik foresaw not only the success of the credit card system but also the substantial rewards that would come their way in the years to come.

....

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