Info on retailling. Retaillers read and Learn. : )

[Guest]

Does a lower average sales price mean less players will start a gas company?

Well there is always irrational people around. Just look at the cars, a profit is hard to achieve without high research, given the high cost price of materials and it's complexity but it is a dream to some people to make cars.
On the other hand, gas is so much simpler, so figure it out. : )

Realm 2, germany, Cars 1 34,694.44

[Guest]

yeah................ look at this:

when r2 first started,

gas can be sold in 20sqm gas stations for 1000 profit per hour WITHOUT ADS. and belief you me, that's a very high figure.

what happens now? due to the actions by the uninitiated, they have eroded profits to 700 per hour. and i guess it'll keep on decreasing to the level in r1 i.e. around 400+ profit per hour (without ads)

see how much difference that is?

and many people think that stores give the most profit. sadly this is wrong. i've started a thread somewhere showing some simple calculations about this. that's why for small companies, don't build stores. i never start building stores till my FA is around 100-200m. and even at that size, stores are still unnecessary, because their profit per hour (with ads) is half, one-third, one-quarter of some other production buildings =)

of course stores can be very profitable, but too bad people lower the average prices

[Guest]

note: when i say "profit", i mean revenue - MARKET costs of materials, not your own production costs of materials

eg. gas takes 0.5 oil to make
in your calculation, use market price of 40caps x 0.5 , and not your own self-produced oil with a cost of 10caps x 0.5

this is to make sure that you've factored in opportunity costs, and to make sure that all your buildings are making good profits

as a rule of the thumb, try to make sure that EACH of your buildings (except RCs) make at least 800 profit per hour. stores generally give around that figure or less, except for some special stores. i have production buildings which make me up to 5000 profit per hour

hm maybe i should start a new thread about this

[Guest]

i have production buildings which make me up to 5000 profit per hour Very Happy

hm maybe i should start a new thread about this

I am waiting, take your time.