Economic: It is good to be a Power Supplier...

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Economic: It is good to be a Power Supplier...

Post by Guest » 26.05.2008, 12:52

Economic: It is good to be a Power Supplier.

I have studied the Power market for a while. Often this market is fluctuated function to upgrade and new acquisitions into our Companies; it means our level of supply depends of our new capacity to absorb those new products. That is a fact.

I made a little study. It seems that a Power Supplier earns 2 times more than I do despite of my effort of researches and the high level of competition in my industry.

Effectively, if we consider a Power supplier of medium size which own 60 power plants at 1000 sqm each at Industrialist level in red area makes a revenue of 310 Millions per week caps or 44,47 Millions caps / days.

If we consider that those fellows modify their industry at Industrialist level, there cost per square meter are evaluated at 25,318 caps / sqm at NPC price.

The total cost of its Power plant empire is above 1,519 Billions caps for a total asset of 356,28 Millions Caps.

Image

So, as you can see in the above chart, as long as those fellows kept their Power Plant their variable cost decreases. After 6 months, one KwH cost them 0,0213 caps when they sell it around 0,15 caps at the moment: Over 86% of NET MARGIN!

Worst, those people have a lot of cash. What can they do with it? Because, they don

Guest

Post by Guest » 26.05.2008, 13:11

Unfortunately it could change at any minute with a large amount of Power being dumped on for a low price. The only real reason it continues to go up is that people buy to sell for higher to Myself Loco... so it will always stay higher than his price. That is until he stops accepting and then more Power is being made than is actually needed and once again the price is lowered.

EDIT: Also, while I'm at it, 44mil is a rather low income for 300mil FA..
Last edited by Guest on 26.05.2008, 13:16, edited 1 time in total.

Guest

Post by Guest » 26.05.2008, 13:14

wow you did your research :)

Guest

Re: Economic: It is good to be a Power Supplier...

Post by Guest » 26.05.2008, 13:35

SPB Corp. wrote:Whatever, currently it is good to be a Power Supplier.
Nice calculations... really! However, I see a big difference between the title and your conclusion... because the word currently makes a huge difference. Trader is right... it can change any minute :)

As I explained this morning in another thread... I control the power market right now... and even though your calculations have been done with a rather conservative price of 0,15c... that price can drop very very very fast if the offer exceeds the demand. Imagine I stop buying and dump 50 billion for 0,1c on the market... then some producers would panic because they would not manage to sell their power anymore... but they need cash... so they would go even below my price... and if there are no big players that step in and invest a couple of billions... then the price will start to fall dramatically.


Now imagine what the price would be if I started to dump my whole stock on the market...

Guest

Post by Guest » 26.05.2008, 21:36

Just to comment on one thing. SPB you say that the most hardly hit area is oil. That is not so. The hardest hit areas are those who make jewllery and electronics. Since over 2000 power is put into the total production of most jewllery products and a little less for electronics they seem to be the hardest hit. Oil producers who make q0 oil can still make almost 20caps per barrel. Gold producers who make q0 gold can make no caps. 850*0.23=195.5 and with J.Inc (realm 1's largest gold buyer) buys gold for 170*2q, people who make gold must make an extremly high quality or make their own power to survive.

Guest

Re: Economic: It is good to be a Power Supplier...

Post by Guest » 27.05.2008, 01:18

myself wrote:
SPB Corp. wrote:Whatever, currently it is good to be a Power Supplier.
Nice calculations... really! However, I see a big difference between the title and your conclusion... because the word currently makes a huge difference. Trader is right... it can change any minute :)

As I explained this morning in another thread... I control the power market right now... and even though your calculations have been done with a rather conservative price of 0,15c... that price can drop very very very fast if the offer exceeds the demand. Imagine I stop buying and dump 50 billion for 0,1c on the market... then some producers would panic because they would not manage to sell their power anymore... but they need cash... so they would go even below my price... and if there are no big players that step in and invest a couple of billions... then the price will start to fall dramatically.


Now imagine what the price would be if I started to dump my whole stock on the market...
myself has a very good piont, it would just take about 10billion power to completely destroy the power market and bring the price wayy down thats why im stockpileing my money right now so when someone does do that, i can buy the power for 0.1 and slowly leachit backinto the market at a much higher price :twisted:

Guest

Re: Economic: It is good to be a Power Supplier...

Post by Guest » 27.05.2008, 08:17

myth123456789 wrote:myself has a very good piont, it would just take about 10billion power to completely destroy the power market and bring the price wayy down thats why im stockpileing my money right now so when someone does do that, i can buy the power for 0.1 and slowly leachit backinto the market at a much higher price :twisted:
which is the reason why I will not only dump 10 billion power on the market :) but anyway... I would hope for the downward spiral to kick in... otherwise it will also be hard for me to control the market... especially when a few of the big players decide to invest a couple of billion in the power market.

so investing in power is not the safest thing to do... I think that only prices lower than 0,06 or so are really safe. otherwise you can also invest into coins... they also double in price every 2 weeks :)

Guest

Just like the real world

Post by Guest » 05.06.2008, 04:56

While it is unfortunate, this is also how things work in real life.

If you are not familiar with Nikola Tesla, you should do some real research. He developed power systems that would deliver free and unmetered power. (two seperate technologies) When he accepted financing from JP Morgan who had a vested intrest in keeping energy supplies locked down (Industrialist market trading/control) he destroyed Tesla's labs.

Of course some basic assumptions are made there as well. In modern times is it not intresting how our government invades a oil producing country, runs it government, and our own oil prices more than triple?

That is indeed a intresting point worthy of thought.

Guest

Post by Guest » 05.06.2008, 15:56

Well as proven now on the market, dumping 10 billion power on the market is not enough. People have been without power for way to long and try to get whatever extra they can affort. myself's 10 billion at 0.16 was gone in a sec then at 0.18 was gone fast to and now at 0.19 it might steadly stagnate. It takes more then 30 billion to somewhat drop the prices. Might take another 50 billion or more to get the price controlled down to 0.15

Guest

Post by Guest » 06.06.2008, 11:33

I just put another 28 billion on the market... and if that doesn't suffice to drop prices then I'll put all my remaining power on the market :)

Guest

Post by Guest » 06.06.2008, 19:35

how much power do you have remaining? :shock:

Guest

Post by Guest » 07.06.2008, 11:51

well, let's say I just noticed that I can't put all my power on the market because there seems to be a limit of 60 offers/player... so I can't put more than 40x2,14b of power on the market :(

and that's what I currently have on the market... with half of it for 0,14 I think. I don't care at all about the price for which I sell my power... I have expanded all my 100 buildings to the maximum so I have to wait anyway...

Guest

Post by Guest » 07.06.2008, 11:55

myself wrote:well, let's say I just noticed that I can't put all my power on the market because there seems to be a limit of 60 offers/player... so I can't put more than 40x2,14b of power on the market :(

and that's what I currently have on the market... with half of it for 0,14 I think. I don't care at all about the price for which I sell my power... I have expanded all my 100 buildings to the maximum so I have to wait anyway...
what? your saying all your buildings are at 32000m2 of something if so tahts a big WOW :P

Guest

Post by Guest » 07.06.2008, 13:25

How much did you spend on this game??

Guest

Post by Guest » 07.06.2008, 18:24

hebawom wrote:How much did you spend on this game??
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