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T O P I C    R E V I E W
SoulLord Posted - 06 May 2004 : 16:02:34
I was wondering

Some of the pc after receiving quite a substantial amount of money
have decided instead of spending all in the usual
magical equipment, keeps or the like to start a merchant company

and was wondering how profitable this venture is?

mainly they are thinking of trading

* wood
* food
* weapons

how much is a wagon of wood, food or weapons be worth?
and how much would it cost?

has anyone had similar experiences with their players going
merchant?
25   L A T E S T    R E P L I E S    (Newest First)
AutoSponge Posted - 20 May 2004 : 21:29:41
Thanks Sarta. I had forgotten to add that if (like many of my PCs do) a PC or follower has a craft skill of 5 ranks (not +5) or higher he can add +2 to the roll for both supply and demand but he has to work there all month.

However, this is a circumstance bonus and doesn't stack with other circumstance bonuses. The idea is that it helps a struggling shop in dire times and when the market is even the shop can pull slightly ahead of the competition if its proprietor (who takes the most care in the business) constantly tends to the quality of production as well as knowing how to "fit" a particular item to a particular client.

As I said, this only works (IMO) with carfted goods. So the typical merchant wouldn't benefit from this. However, I can see where having certain skills could help, here's what I came up with (in general if it makes a better product or ensures quality it helps supply, if it helps seal the deal it helps demand):

Appraise -- give a synergy bonus with supply DC
Diplomacy -- synergy to demand DC
Bluff -- synergy to demand DC (can't be used in consecutive months with the same product)*
Decipher Script -- synergy with supply DC dealing in rare texts**
Forgery -- synergy with demand DC dealing in rare texts** (can't be used in consecutive months in the same market)*
Gather Information -- synergy bonus for "nefarious" work on supply DC
Handle Animal -- works same as a craft bonus for herders, dealers, and trainers
Heal -- works same as a craft bonus for apothocaries and herbalists
Intimidate -- synergy to demand DC dealing with "nefarious" work (they won't pay your prices if they're not afraid of you--they'll just take it)
Knowledge (X) -- synergy to supply DC dealing with the appropriate subject area
Perform -- works like craft for a bawdyhouse, tavern, acting company, etc.
Spellcraft -- works like craft for arcane objects and spell components (the classic hedge wizard's shop)

Ultimately it's up to the DM to decide but I'd say that in the average market 5 ranks would be the minimum to get synergy. I can't think of a reason right now to fiddle with that number that couldn't already be accomplished with the other mechanisms. So, suffice to say, keep it simple.
Lashan Posted - 20 May 2004 : 17:23:03
Good ideas, AutoSponge and Sarta! I will fully steal....errr....borrow this type of a system.

Things were ugly when I ran the Thirds of Purloined Velium module that was changed to Tantras and dealt with cattle options. The party was able to convince the merchant to pay them in options instead of cash. Silly me.
Sarta Posted - 20 May 2004 : 06:01:45
I really like your system Auto. The three variables that are used (supply dc, demand dc, and the results chart) are enough to tailor things to fit particular situations such as drought, poor crop yields, piracy, etc. and to specific industries (musical instrument craftsmen, shopkeepers, caravaneering).

I'd allow some skills to offer synergies to profession skills for these checks, such as diplomacy aiding profession merchant for haggling.

If one followed this system for a merchant voyage from Suzail to Messemprar for example they'd make a supply check for each type of item they were attempting to purchase (which would impact the price paid for each product), make the voyage (complete with potential encounters which could offer penalties to the demand checks), then make the demand checks for each type of item they were selling. The dc for the demand checks would probably be lowered due to the wartime circumstances, assuming that the pc's chose items in high need. The difference between the two checks would give a result that could be crossreferenced with a profit percentage earned from each item sold.

It's a simple system that can be tweaked with to more closely reflect the specific situation. Meaning that complex transactions can reflect this complexity, while simple situations can be resolved in a matter of seconds. It also allows pc's to make the most of their cohorts and retainers if they have taken the leadership feat to represent employees in a mercantile endeavor.

As I said, nice solution.

Sarta
AutoSponge Posted - 20 May 2004 : 01:55:25
I'm sure there are a number of things a party could do to increase their profits or their potential but suffice to say that I'm sure I wouldn't think of half of them until a player brought it up. So why try? I bascially just wanted a quick-n-dirty system that would allow me to influence the 'rolls' with circumstance bonuses (which don't stack).

Obviously, PCs could abuse the system, but that usually just opens more plot hooks for them. For example, I reasoned that with the 1k/+1 on the roll, why not seek investors and get them to help the roll then pay them a % each month? Sounds great in theory but what happens if someone is buying up the shares behind your back, or a rival is sabatoging the venture? I think if anything, these sorts of wild ideas by players should be encouraged so they A) work it out of their system and get back to serious adventuring and B) have a bunch of fun with math! I want to see a balance sheet from your D&D game!

HS teachers beware, D&D is the best teaching tool you'll never use.
SoulLord Posted - 19 May 2004 : 22:07:31
Interesting it makes me look back at the classes with profession.
still the more dangerous the venture, the higher one can expect to profit from it.

im thinking for example slave trade <not that any of my players would have anithing to do with it except maybe to release them>

Band goes and enslaves people
the closer they get them to their destination market the higher the price they can get.

If they capture them and sell them to the first merchant that passes by they could probably sell them at 50% of the market price the closer they get with them to their destination the profit would increase.

Now change slaves for growing corn, furniture, paintings etc...
AutoSponge Posted - 19 May 2004 : 19:29:16
I wrote this recently and thought I'd share it. The rules are short and simple, so if you have questions let me know. If you have comments or suggestions I'd love to hear them--I don't suspect I've covered every angle with these terse rules but I think I've got the basics.

Anyone can have a business, but only those with ranks in profession can actually make a profit (others just break even between living expenses and debt as long as their other skill, like craftmaking, is the same as the avg. DC for that business). To determine profit or loss there are two DC's each month determined by the economic climate, competition, supply of goods, etc.

Supply DC. Your ability to secure raw materials or finished products to sell. Your ability to secure the labor to finish materials or projects for clients. As the goods are harder to obtain or produce the DC rises. Average is 15.

Demands DC. The amount of demand for your products or services. As the market gets harder to sell to, the DC rises. Average is 15.

The difference between the two is a profit or loss for the month. For example in any month where the DC's are equal, use the minimum profit or loss of 1. When the demands are high and you meet it, subtract the DC of demands (if you met that as well) to earn your proft (I use encounter tables to determine how much profit is made).

90% of the time the PC should be taking 10 on these rolls. If he does roll for it, 1 is a botch and the losses are doubled. 20 is a huge success and profits are doubled. If he makes one check but not the other, it's a break even month. If he makes both it's a profit month, if he makes none it's a loss month.

A PC can influence his roll by "sinking profits back into the business" (+2 circumstance modifier next month for each 1000 gp spent), guarding his own caravans (+4 circumstance on the supply roll only), working long hours (using forced march rules, each hour per day that is worked beyond 8 gives a +1 for one DC or the other, PC chooses), etc. (allow the PCs to get creative).

Some businesses (like slave trading) are extremely difficult to run because they are dangerous, illegal, and deal with nefarious customers and clients. I usually set the average DCs higher for these businesses and any profits or losses are multiplied by the difference. For example, let's say you assign avg DC 18 to a slave trading operation. This is 3 higher than the norm, so profits and losses are multiplied by 3. You can do the same for easy or simple businesses, but I wouldn't suggest it (just divide the difference into the profits or losses).

The PC must spend at least half of the month working in his business (not adventuring) to even make the check. Otherwise it falls on his cohort (if he has one) or an NPC employee. A follower can make a check just like the PC but an NPC can not. While the PC is away I use his default score -1 for each month he's away. For example, Joe is adventuring for three months, he has profession (woodcarver) 6 ranks. The first month he's away, the shop makes the average check (15) for both DCs and breaks even. The following month, the DCs increase to 16 and for that month the skill check is a 15. Since the PC is not there, he must have his operation take 10 in his stead (he can't roll for it). The shop fails and looses CR1 worth of profits. If the PC didn't leave enough in the coffers, employees will quit and the shop will close, any assets are liquidated to pay debts.

Lastly, if PCs are sharing a business whoever is there the most that month makes the check or if multiple PCs have been present for at least 15 days the one with the higher skill can make the check and the other PCs can "aid another". For each PC or follower that can also attain the DCs that month, add +1 CR to the profits. Remember if no PCs have been there for at least 1/2 the month, the PC who was there the most (or the PC who made the last check) makes the check at -1.

Arivia Posted - 19 May 2004 : 14:21:57
There was an older 2e issue of Dragon I was looking through that dealt with this-I'll get the number later.
Capn Charlie Posted - 19 May 2004 : 11:06:49
I have a rule that a business venture earns back 10% per year of whatever the pcs put in as startup. This is extrapolated off of a rule in the SBG.

Say they want to start an Inn, they invest 15,000 gp. This builds the building, hires staff and has trained merchants advise on it's placement. After this the inn gives 1,500 gp a year in pure profit to the players. THe rest of income goes into upkeep, wages, supplies, and all other expenses.

If the players invest a lot of time into the business, such as running or managing it during offtime, the percentage increase to up to 10%-15%. If they go into managing and working full time they earn up to 20%, but their pcs become npcs.

Simple yet elegant. Works for me.

As for the naval capabilities of mulhorand, I am assuming lots of slave galleys and such. But Mostly oared vessels, with hoplites and archers for the better part of the combat potential, except for the occasional ram and long range catapult.
Lashan Posted - 12 May 2004 : 14:24:13
I do believe you have the upper hand on me with your background. My BFA in Painting or my BA in History doesn't help as much with the trade. I understand that having a complete system would bog things down for those that don't want it or allow players to accumilate too much wealth by abusing a system. Still, I would like to see it for at least a dm's perspective.
Sarta Posted - 12 May 2004 : 01:54:48
Pesonally, when it comes to applying realistic trade to a D&D campaign, I'm against it. I'm far more in favor of plausible trade. Realistic trade means a ton of minutiae that in my opinion would take away from the gaming experience. It also has the potential to allow imbalancing amounts of wealth to get into the hands of pc's.

It is very rare that one will find an entire gaming group that is fascinated by the minutae of trade vs. adventuring. Usually you just have one or two people who find it interesting and the rest just want to get back to the game. With this in mind, I usually just make the system complex enough to those interested and streamlined enough to not upset those who aren't. I also fudge the economics a bit so that given the time invested and encounters involved with trade the party's cash doesn't get too out of whack given their character level. If need be you can toss a trade related disaster at them to pull the hand-brake on their accumulation of wealth.

What this means in the long run is that if the party spends 3 months running their own caravan they will have earned about as much cash and experience as they could have had they spent a few days exploring some ruins. However, they will have forged new contacts and have seen a bit of the world, so there are some upsides to trade vs. adventuring.

I worked in marketing and logistics for a while, so I can pretty much wing a lot of this stuff and take into consideration more than the players may have without having done a lot of research.

Sarta
Lashan Posted - 11 May 2004 : 18:40:18
This topic of trade is something that I have been interested in for a while. I did a little bit of research on the subject and found that the closest thing that has been published was something for the HARN setting. It was a system for assigning values to items and then values to markets (towns) in which one could then establish how much money can be made through trade. The entire FR would have to be defined within the trade system, along with all the commodities, but it could be done. I briefly looked for the product, but was unable to locate it. I've even forgotten the name of it (though, if I saw a list of products for Harn, could remember it). I do not believe that this was a d20 system.

I looked under ENWORLD's list of publishers for GRR (as was mentioned by The Sage), but did not discover anything that fit. So, I am unsure of anyone else with a system for trade. Personally, I would love to see some ambitious OGL company take up the challenge and create one.

If anyone knows of a product out there that handles trading systems, I would like to know of it.
The Sage Posted - 11 May 2004 : 08:05:19
Here's a little side information concerning the Iron Throne, courtesy of Ed of the Greenwood, and a mysterious traveller named Jason Carl -

quote:
The Iron Throne is a mysterious organization that has rapidly taken over much of the arms traffic between Sembia, Thay, and other nations of the East. The Iron Throne merchants claim to be interested in the cause of free trade, speaking for smaller merchants who lack a voice. In truth, the master of the Iron Throne is a half-fiend, "fallen" from the inferno, who seeks to carve a place of power for herself by economic domination of Faerûn through weapons that wreak havoc upon the guilty and innocent alike. No one knows the truth, thanks to the efficient operations of the Iron Thrones’ three wings: The Arms, who handle high level negotiations and business deals; the Feet, who see to caravan security and the destruction or sabotage of rival merchants; and the Eye, wizards and sorcerers devoted to maintaining communications between the organization’s far-flung agents.

The Iron Throne’s initial period of expansion has slowed, largely due to a mounting conflict with newly established franchises of the Red Wizards of Thay.

Sarta Posted - 11 May 2004 : 03:38:57
quote:
Originally posted by SoulLord
That is an interesting premise how much do you think would cost
such a venture?


Frankly, I'd leave that up to the DM. I'd carefully consider how much cash you want to allow the pc's to earn and then reverse engineer how they could make this much cash in as realistic a manner as possible. If they have 8,000 gold for example that they are willing to spend on the venture, and you feel them netting 12,000 profit from a successful round trip (given overcoming obstacles and such) wouldn't overbalance the campaign too much, then use those figures to work with. If they have less or more to spend or you are nervous to have them make too much at once, just rig it so that it works well in your campaign.

quote:
A ship able to make it pass the blockade.


There is no blockade per se. They do have to worry about the following: Thayvian competitors selling grain who probably won't interfere if they realize the party is attempting to help Unther and not in direct competition, Sahuagin who occupy that region of sea, Zhentilar competitors who may be a bit more ornery than the Thayvians but with full cargo holds unlikely to plunder, and Pirates. This gives you an opportunity to throw a couple of swashbuckling sea adventures at them. The Pirates of the Sea of Fallen Stars book for 2ed may help here with some suggestions.

I believe the PHB lists the prices of various ships. However, I'd also give thoughts to a few other options if they want to save some cash: used ships which may have their own problems, hiring a ship, or splitting a ship's cargo holds with another merchant who doesn't quite have a full load.

quote:
the wages of able shipmen to run the ship.


This would largely depend on the size of the ship which dictates the number of crewmembers required, and where they would be sailing back and forth from in terms of time at sea. Figure around 3 gold per 10 crewmembers per day. More or less depending on the reputation of the captain. Plus a couple hundred more gold to cover food and other expenses. The phb lists ship speeds for calculating how long they would be at sea.

For hiring a ship, take into account the above costs for crew before negotiating the deal with the players. A shrewd captain will ask for a large deposit and then try to get a percentage of the take. He will probably settle for a flat fee though with good negotiating. For renting cargo space, you can assume that the merchant or ship's captain would probably try to negotiate the same sort of deal as above, but ask less depending on how much of his tonnage the party will be taking.

quote:
A cargo of food & or weapons?

and based on this cost what coud one expect to profit from it?


I'd go with the response that I gave to your first question. I'd largely just look at what they can afford to spend and given a finite amount let them know what their best bets will be given the harbor they are sailing from. Pages 88 and 89 of the FRCS have a good map of trade routes to help you determine which products will be most common. I can't really help out too much with the prices of various food and weapons by ton, but frankly it doesn't really matter. Ask them how much they want to spend on a product and based on this amount arbitrarily guess as to how many tons this translates to.

Frankly, you don't want them to earn so much that it unbalances the game. At the same time, they should be facing some dangers and will be investing at the very least a month or two into the venture. I find that running something like this occasionally can be balanced out by shorting my party on loot later, so that in the long run they don't get too out of whack. Depending on what you work up in terms of encounters, they could also quite easily level up during this and that will help with balance issues also.

quote:
On a same premise what would be a safe harbor from which to reach Unther?


I'd think it depends on where the party is located to begin with. If they are in Waterdeep this may be a bit of a stretch. However, Suzail, Marsember, Urmlaspyr, Saerloon, Selgaunt, Yhaunn, Procampur, Telflamm, Cimbar, Hlath, Arrabar, Alaghon, and Westgate would all be decent ports to consider using. Each of them has access to different types of exports in large supplies.

Some things to keep in mind. Thay is more than likely going to be making a killing on wheat -- no other country can approach their output and with their established enclaves they are probably going to be very hard to compete with. The party may want to look at cheeses, livestock, and other food stuffs from Sembia or salt and other foodstuffs from the Vilhon reach. If in Suzail, they may even want to look into making bulk weaons purchases from the Iron Throne -- just make sure you hit them with all the appropriate paperwork dealing in weapons entails in Cormyr (found in the Volo's Guide to Cormyr).

I hope this helps,

Sarta
SoulLord Posted - 10 May 2004 : 17:33:32
That is an interesting premise how much do you think would cost
such a venture?

A ship able to make it pass the blockade.

the wages of able shipmen to run the ship.

A cargo of food & or weapons?

and based on this cost what coud one expect to profit from it?

On a same premise what would be a safe harbor from which to reach Unther?
Sarta Posted - 10 May 2004 : 07:50:31
quote:
Originally posted by The Sage
The 2e Old Empires tome states that both Thayvan expansion, and the constant threats posed from pirates and the nearby Sahuagin kingdom makes trade by Mulhorandi sea-craft particularly dangerous and very expensive. Their merchant fleet consists mostly of smaller vessels which can easily evade these threats if and when they're put to sea.



Which doesn't hold up now given Thay's new emphasis on trade vs. conquest. I think a strong argument could be made that Thay is covertly supporting piracy against Mulhorandi ships. It would benefit them in their efforts to compete commercially and would aid them in keeping Unther independent in an effort to deplete Mulhorond's military forces. Thay does not want Mulhorond to conquer Unther at all, being that they know this will likely cause Mulhorond to begin looking North.

I had considered running a campaign in which the characters were all deep-Imaskari working for an Immskari supremacist attempting to reclaim the glory of their fallen kingdom. The campaign would largely have three stages: reconnaissance of the "new world" and new magics, political intrigue and guerilla strikes to aid Mulhorond in defeating Unther and then directing Mulhorond's attention to Thay, and finally at epic levels clearing the Plains of Purple Dusk and raising the city of Deep Imaskari to the surface. I even toyed around with the idea that Szass Tam is secretly Lord Protector Stilofyr, exiled from Deep Imaskari in 799.

Sarta
The Sage Posted - 09 May 2004 : 06:29:50
That's exactly why I asked. There's never been any particular note about Mulhorand's navy, although there are several references to a sizable naval force of times past in some of the older source material. Nothing recent I'm afraid.

I know that both Skuld and Messemprar are home to sea-ports (Unther's capital being the far larger of the two), but other than the mention of merchant vessels (which we can only assume run from Skuld as well), there's really nothing else written about the naval capabilities of the Old Empires.

The 2e Old Empires tome states that both Thayvan expansion, and the constant threats posed from pirates and the nearby Sahuagin kingdom makes trade by Mulhorandi sea-craft particularly dangerous and very expensive. Their merchant fleet consists mostly of smaller vessels which can easily evade these threats if and when they're put to sea.
Sarta Posted - 08 May 2004 : 20:48:39
quote:
Originally posted by The Sage

I like it Sarta . Although I do have a question. What type of ships do you see the Mulhorandi using for their blockades?.



Sadly I know very little about the naval capabilities of Mulhorond. I would imagine they are nearly non-existant or Mulhorond would have already instigated a blockade of Messemprar. The war has definitely been a land war and Unther cannot afford to field a navy given its dire straits. This leads me to believe that Mulhorond can't really field ships that can compete on a naval basis alone. However, even a few trade ships bearing a handful of priests of Anhur would be devastating if met at sea.

I can also definitely see privateers buying commissions from Mulhorond in order to fly their colors and "officially" commit piracy on the heavily-laden profiteers. The Sea of Fallen stars has no lack for pirates, freebooters, and privateers.

Edward Bolme's Alabaster Staff is probably the best resource for information on Messemprar and depicts the Zhents turning very good profits selling food to the populace of that town. The fact that the party would be directly competing with the Black Network would also make things exciting.

All is not stacked against the party though, enterprising chartacters could strike deals with the red wizard enclave and the Northern Wizards of Messemprar to keep this city's docks open.

Sarta
The Sage Posted - 08 May 2004 : 14:59:15
I like it Sarta . Although I do have a question. What type of ships do you see the Mulhorandi using for their blockades?.
Sarta Posted - 08 May 2004 : 08:52:03
Here's my take on it.

If the pc's are truly interested in pursuing this, suggest that they look into the leadership feat. This will aid them with the manpower to begin an endeavor such as this. It will also enable them to sneak away from the business to get in an adventure or two.

Personally, were I the pc, I'd stay away from things like firewood and food and stick to things which will enable better markups. Both of these products will have very little room for a business to make a decent profit unless they can really exploit their markets or can find creative ways to cut costs.

I'd also steer them into some more adventurous locales in order to maximize their profit (and enliven the gaming session). One suggestion is wartime profiteering by selling weapons and food in Unther for example. Unther is sorely besieged with most seeking refuge in Messemprar, which retains an accessible port. Food and weapons will sell for a lot of gold and refugees will offer quite a bit to ship out. If the party can scrape together enough to outfit a ship they can make a killing as long as the stalemate remains in Unther.

Besides this, you can have fun allowing them the opportunity to try to outrun pirates and Mulhorondi blockades.

Sarta
The Sage Posted - 08 May 2004 : 02:44:54
SoulLord, GRR released a very interesting tome on merchants and the art of trade shortly after the overall release of 3e. I can't remember the name of the tome, but I do recall that it details (in 16 pages) a merchant class which can be used either as an NPC of a regular PC.
SoulLord Posted - 07 May 2004 : 21:23:10
This is very helpful thans everyone.

Some ideas of some other people

* shrink Item and teleport for valuable goods
* Polymorph for animals
* item creation & fabricate
* wall of iron & wall of stone

it has lots of potential plots im thinking for example of this

* market flooded and prices begin to decrease

* boycots (" that food was touched by magick who knows what effect it will have on us")

* Merchants all outbidding each other to get the cheapest goods before the others, losers could try to stop the situation from repeating by law or by arms
Wood Elf Ranger Posted - 07 May 2004 : 16:46:40
Hmm this is very interesting I had never thought about it before... what if your players want to go even bigger? What if they want to either found a city of their own or somehow become mayors/rulers/whatever of a certian city? Hmm lots of possibilities there they could do the policing and judging and overall mercantile stuff themselves or just delegate. Very interesting indeed
Faraer Posted - 07 May 2004 : 16:08:18
Establishing a merchant company from scratch sounds unlikely; most begin as alliances of individual merchants or caravan-masters or investors, and without such expertise the characters would have to hire a lot of officers who they'd have to trust to work under them.

With skill, luck, persistence, and perhaps ruthlessness, it would be so profitable that the merchant class is unnerving nobles and wizards by becoming a new power in Faerûn. (The Harpers, Zhentarim, Dragon Cult and everyone at all foresightful knows this and is trying to act on it.) But Ed has never managed to get more than bits of his merchant lore into print. Still, see the Trade in the North appendix of City of Splendors, all the stuff on merchant and caravan companies in the 1987 box and "Rand's Travelogue", Hand of Fire for what a trade caravan is like, this comment on routes... there's more but I'm forgetting it.
Hymn Posted - 07 May 2004 : 00:46:17
hmm, well I would say you take the base of the product prize and take the prize of the finished product and merge to a profitable prize for the PC's. I think I have seen a page somwhere about this. Have to look into it a little bit more.

I actually played in a party who turned into a trading company. WE did the guard duty ourselves in the begining to minize the costs. Raiders in the Calimshan desert stealing our silk among otherthings, that was hot stuff

Veszaun Auvryath Posted - 07 May 2004 : 00:41:29
Hm, trade goods are touched up on a little bit in the PHB 3.5, page 112 in the wealth and money section, might want to check that out.
It would just take a little math to figure out what a "wagonload" would add up to.

In various past campaigns my companions and I have started businesses of various sorts. When all is said and done, its mostly up to the DM's discretion as to how well you make out (though there are guidelines on how much things cost to make and selling prices).

Takes a lot of time and initial resources to get the ball rolling and set up buyers/clients and such, so sometimes it ends up taking too much away from the campaign unless it is specifically geared around nothing but running the business. Which means that adventuring and playing the hero (or villain) ends up sitting by the wayside all too often, as there's always something mundane about the business that needs tending to.
If your company is ( and remains ) small and the party actually caravans the goods personally to each location, can have some adventures on the road, but in the long run doesn't make for much overly (overly much, even. bah, can't type cohesive sentences today )variety.

Now, initially funding a business and letting some trusted npcs actually build it and run it as the campaign timeline progresses works much better, though the PCs have a very nominal role in things that way, so might as well just end up being someone else's anyway.

Though in retrospect, having yer own Inn & Tavern to come home to between adventures, where you get free room, board, & ale is always nice

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