"Yes, Griphook mentioned a few outlines and I'm very interested to learn how that system works. We have a standard policy regarding profit-sharing. I will listen to your suggestion and if I think Gringotts could profit from taking over the system, you'll be given a share of five per cent of the profit." Corpnik said.
Harry grinned.
"Fifteen per cent." He demanded.
"Harry, five per cent is more than generous for you only delivering the idea." Corpnik said.
"I'm not only delivering the idea, I'm giving you the detailed working process of the system. The whole required equipment, the means how you can convince the shops to accept payment with the new credit card and even my name for marketing the product if you do it. I think fifteen per cent is more than generous of me." Harry said.
Corpnik was surprised. Normally wizards didn't bother bargaining with goblins, they thought it to be under their station. But Harry was not giving an inch. He had leeway in the negotiations from the board. Up to fifteen per cent he could accept. But he would try to get Harry down a bit. Oh how long had it been that he had the pleasure of a good bargain.
"Perhaps you are right, but I can't agree to that share. I don't know yet if what you are promising to deliver is worth it. Your offer to promote the credit card system has a certain value as the Potter name and your name especially have a great pull to people. I'll agree to eight per cent." Corpnik said.
"I'll give you an incentive to easier decide. I'll agree to ten per cent of the profit if you make less than five thousand galleons profit with the new system in the starting phase of six months after the marketing offence has started. You'll place an advertisement in the Daily Prophet and all other daily publications and send out pamphlets to all wizarding households that have accounts here at Gringotts. Additionally I'll get you the addresses of all the muggleborns that graduated in the last twenty years as they'll probably be your most probable customers. If you make more than five thousand galleons profit, I'll get my fifteen per cent." Harry said confidently.
Corpnik grinned. That was a deal the board would gladly accept. Less than they would at most have accepted in case the profit wasn't as high as they hoped and the limit if the system worked out well and then Harry had definitely earned his share. Generally new products needed a longer starting period than six months to become profitable, so the probability that they would make five thousand galleons profit was low. And having Harry Potter personally promote their product would make fantastic publicity.
"Deal." He said, holding out his hand for Harry to shake, which he did.
They then went over the standard contract that Gringotts made with their partners and Harry read it very carefully. He argued about a few passages with Corpnik which were altered to Harry's liking, the clause they had bargained about was inserted and then both of them signed in blood, making the contract magically binding for both sides. The contract glowed golden and two copies were produced. One was for Harry and one went directly to the goblin archives. The original Corpnik would take to the board and present the deal he had made with the young Potter heir.
"Okay, now I think it's your turn to give me the details." Corpnik said.
Harry nodded and opened the book bag he had from Flourish and Blotts and pulled a notebook out. He opened it and showed Corpnik the diagrams and explanations of the muggle credit card system, the fee the issuing bank got and what the shops got.
"In the muggle world a percentage that doesn't exceed a certain amount of money is added to the price for the bought goods. Normally three per cent. Like if you bought clothes for one hundred pounds you're charged one hundred and three pounds. Of the additional three pounds two pounds go to the bank, the other pound is for the shop. Now Gringotts operates in all European Countries, you have five branches in America, two in Canada, two in Australia and four spread over Asia." Harry surprised Corpnik with his accurate knowledge. "By my estimation the wizarding population of the world is about thirty million witches and wizards. Now if we assume of them forty per cent are children, eighteen million remain. Of those eighteen million Gringotts has probably about sixty per cent as customers, makes ten million eight hundred thousand. Now if only fifty per cent, meaning five million four hundred thousand, accept the credit card as a form of normal payment as it reduces the problems with carrying around great amounts of gold, can be made safe from abuse of others who might have access to the vault by keying it to your wand or blood, can be seen as a symbol of status in society, because you only give out those cards to those who can settle their bills and it makes paying faster, you have a great base to get the system accepted in the wizarding world. In the muggle world the creators of the system also noticed that many people don't look that closely to how much they buy if they pay with the card as they don't see the money corporeally 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 that start this year, makes, if we settle for a middle amount of money that is spent on the children of seventy five galleons three thousand galleons would be spent. With two per cent profit for Gringotts that are already sixty galleons only 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 stated.
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