At first, the natives were glad to trade provisions to the colonists for metal tools, but by 1609 the English governor, John Smith, had begun to send raiding parties to demand food. This earned the colonists a bad reputation among the Native Americans and precipitated conflict.
The answer to the question above is "experienced a loss condition" which the situation that Louis will face if he decided to make another gadget. The net income or loss is the difference between cost and benefit of a project or a business