The conversation revolves around the business model of a pirate company, Piracy Incorporated. The company operates like any other business, providing a product or service to its customers in exchange for money. This money is then spent on equipment and personnel to produce more product for more customers, generating more profit. The company's customers, however, do not wish to be serviced, and the company's business model ensures that they are serviced regardless.
The company is run by two elected officers: the captain and the quartermaster. The captain is not the boss but serves at the pleasure of the crew. If the crew is unhappy with the captain's strategic decisions, they can replace him at any time by a majority vote. The quartermaster, on the other hand, keeps the ship running, overseeing the men, their quarters, their rations, and punishments for contract violations.
The company operates on a contract for each voyage, which sets the voting methods, codes of conduct, punishments for violating those codes, distribution of pay, and workman's compensation. The contract is agreed upon by all men before setting sail.
The company's employees are paid in shares of the profit, not in wages. The captain gets two shares for the strategic decisions he makes, the quartermaster one and one half for his labors, and the rest of the crew get one share each.
The company operates outside the law, and the captain's orders are but the words of one man. Outside the law, a majority can take control at any time by force. The company's only incentive is the potential for great wealth. The only thing standing in the way of this wealth is the subtractor of costs, which come in mostly two forms: ship repairs and people repairs. The company prefers not to fight due to the high costs and the high personnel costs associated with injuries in battle. The company's contract lists generous compensation for lost limbs and eyes, and after the treasure is seized, the injured are compensated, the ship is repaired, and supplies are replenished. The remainder is profit.
1. The business model of a pirate operation involves making a product or providing a service to customers in exchange for money, which is then spent on equipment and personnel to make more product for more customers, for more money [Document(page_content="00:00:10.29: Make a product or provide a service to your customers in exchange for money.\n00:00:12.29: Then spend that money on equipment and personnel to make more product for more customers, for more money.")].
2. The difference with Piracy Incorporated is that their customers don't wish to be serviced, but with the correct spending on equipment and personnel, the business will service them regardless [Document(page_content="00:00:21.85: The difference with Piracy Incorporated is our customers don't wish to be… serviced.\n00:00:27.91: With the correct spending on equipment and personnel, the business will… service them regardless.")].
3. The profit for a pirate company is income minus expenses, and income means seizing the biggest booty [Document(page_content="00:01:07.97: (Quartermaster)\nProfit is income minus expenses.\n00:01:10.17: And for a pirate company, income means seizing the biggest booty.")].
4. The pirate business has two elected offices: the captain and the quartermaster. The captain serves at the pleasure of the crew and can be replaced at any time by a majority vote. The quartermaster keeps the ship running [Document(page_content="00:02:00.78: The captain and the quartermaster.\n00:02:02.50: The captain is not our boss, but serves at the pleasure of the crew.\n00:02:06.45: If they are unhappy with his strategic decisions, the crew can replace him at any time by a majority vote.\n00:02:28.32: the quartermaster keeps the ship running.")].
5. The cost of labor for crew members is low, and they are not paid in wages, but with one share of the profit [Document(page_content="00:02:48.29: Which means the cost of their labor is low.\n00:03:31.61: As a crewmen on a pirate ship, you are not paid in wages, but with one share of the profit.")].
6. The pirate ship is not owned by the men who sail it, but by monarchs or investors who hire captains and officers to run it [Document(page_content="00:04:20.08: Empire and merchant ships are not owned by the men who sail them.\n00:04:23.29: But by monarchs or investors who hire captains and officers to run them.")].
7. The costs of a pirate operation come in mostly two forms: ship repairs and people repairs. For the ship, the rules of supply and demand work against them, and they can't sail into a port of the Empire seeking repairs without raising questions [Document(page_content="00:05:49.15: These costs come in mostly two forms.\n00:05:51.58: Ship repairs and people repairs.\n00:05:57.04: We can't sail into a port of the Empire seeking repairs without raising questions.")].
8. The remainder after the treasure is seized, the injured are compensated, the ship is repaired, and supplies are replenished is profit [Document(page_content="00:06:43.13: The remainder is profit.\n00:06:44.92: The glorious, glorious profit.")].
9. The one share of profit after one successful voyage with the pirate operation will be worth years of labor with the Empire [Document(page_content="00:06:50.71: And your one share, after one successful voyage with us, will be worth years of labor with the Empire.")].