"Well, we've gone over the numbers and we're going to have to figure out how to bring costs down."
Bill, our CFO, was always talking about bringing costs down. Our first ship, based on a BA700 and the upper stage of a Falcon Heavy (which we bought from SpaceX for a song since it was actually part of the rocket that put our BA700 in orbit) currently had a scientific research team from India spending the next three months studying zero g manufacturing techniques. SpaceX was offering us $15m per round trip passenger to LEO on their Dragon/F9 combo which barely allowed us to charge enough for a profit.
Linda, our marketing/sales director chimed in, "I talked to Matsumori yesterday. Barry says the LEOnardo [the stretch Dragon] will cost us only $2m per seat, but only at full capacity of 42 seats."
"How many on that movie project need to go up?", we'd given a slight discount to the Indians to prepare for the the film crew by painting the interior green. They were like kids having fun, rather than the old government science employees they actually were, when doing it. They got paint all over including themselves. Not to worry they said, it's just part of an Indian holiday custom they assured us.
"Not enough to fill 42 seats."
"Well, get back to them and see what it will cost with the people we will need to send," I knew Linda would get the best price possible for us, "...oh ...and let the film crew know we can give them a longer stay at a reduced rate to handle the difference."
"Will do boss."
That left this settlement charter business to consider. Our flagship (well, our only ship at this point, but we planned more as business picked up) has a dry mass of 40mt and life support for 42. It had been designed with life support for only 18, but when we got wind of the stretch Dragon we paid another $20m for the upgrade. The 'cabins' were just 15 m3 zipper tents tied to 'hard point' metal rings on the BA700s outer walls. They had a built in mattress/sleeping bag and zippered cabinets able to hold life support and other personal supplies that could last for as long as 2 yrs. We could send 42 to mars. That would make our non fuel mass 82mt. We'd need 12 FH flights for fuel. That's a billion dollars for fuel!
Then another $100m to get those 42 to LEO. Six Red Landers for another $900m means our cost is a cool $2 billion. Rumors of fuel from the moon were still rumors at this point. LOX2LEO was still trying to raise capital.
"So what is it these mars colonists are offering?"
"Only $20m in cash, but they want us to be members of their charter giving us 42,000 sq. km. of martian real estate," said 'Buddy' Williams, our lead counsel.
"What's that worth?" I asked.
"Anywhere from nothing to perhaps $100 an acre," Bud saw the puzzled look in my eye and continued, "that's more than 10 million acres so about a billion dollars."
"Forget it then. That's only half our cost and doesn't include any profit."
That ended the meeting for the day, but Bud called me at home later that evening, "Look, I was talking to Linda and she thinks this land deal has a lot more profit potential in it. She's won me over I think."
"Ok, how?"
"Well, we know we have to get at least $200 an acre to cover our costs, right."
"Right."
"Linda says she can sell it for $250 to $500 an acre."
"How?"
"She knows one of the colonists personally. It turns out he went to school with Linda. He wants to create a reality show on mars."
"How does that help us?"
"It makes real estate on mars more tangible to potential investors, increasing the pool and the perceived value. Let's not forget, down the road we may be talking about developed land worth considerably more. Musk is saying he wants to get 10,000 colonists on mars. They're all going to need homes."
"Well. We're going to need to put another ship in orbit for our other local customers costing us another $250m. Make that two ships. Talk to Bill about packaging that deal and see what the bank will charge us. Make it a long term loan."
They don't call me a risk taker for nothing.
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