Steel Producers...

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Steel Producers...

Post by Guest » 14.08.2008, 00:06

Every 2 days I buy exactly 237,500 units of Q-0 Steel for expansions. That much steel, when bought for 135caps, cost me 32,062,500caps. It saddens me that every single bit of money that I spend on steel goes to the NPC vendor because I refuse to spend more than 135caps for steel just because doing so would be "supporting real players". If steel producers would quit ripping people off they would benefit fully from all the money that is currently going to the vendor. It's a shame that I should be expected to pay 140+ caps for steel when I could simply buy from the NPC for a much more fair price. Obviously this is no new argument as folks have been complaining about this forever but I have every right to vent. So if you're a steel producer I want you to know that you will not receive a single cap from me so long as you continue to sell your product for more than 135caps. Sometime within the next 30 days I will be buying 475,000 units of steel every 2 days which will cost me more than 64mil caps, all of which will continue to go to the NPC if prices do not come down. Thank you for your time.

Eleknar

Guest

Post by Guest » 14.08.2008, 06:40

Well, you see, Q0 Steel don't make a profit at all. We rather not produce them because they yield so little profits. While Q10+ sells fast. Car and wardrobe producers buy them all the time... sometimes reach over more than 200 caps. And though, we really don't care much who buys from who as long our business are going well.

And perhaps i also think it is not our fault. You see, the coal iron and power cost cost so much and it has many production chains. so i should think steel prices should cost 200 or so.


5 Coal = 100
2 iron = 20
0.5 Chemical = 15
200 Power = 40
Production cost = 10

Though, the power producers are really the one to blame. Everything in the game starts with power and they overprice the cost.

Though, if there were no NPCs the steel price would skyrocket to 500-800 caps each.

And i think it should be due to the very low production output it has.

Ratios to steel and gas are
1:10

With every 1 steel you can make 10 Gas so i very much rather produce gASS

Thank you for your concers though,
power producers are not a threat to me even a bit. I produce around 90-120% of my own power


So if you want cheap steel prices, the only way to get it is to lower your prices(which i am sure you are not willing to do)

the same goes for us we wont lower our prices

Guest

Post by Guest » 14.08.2008, 09:40

Made in Indonesia wrote:So if you want cheap steel prices, the only way to get it is to lower your prices(which i am sure you are not willing to do)

the same goes for us we wont lower our prices
Eleknar sells his power for 0.06 on the market so he only makes probably 0.04 caps per power.

Guest

Post by Guest » 14.08.2008, 09:49

Oh... Thought it was R1

Guest

Post by Guest » 14.08.2008, 10:34

dont buy off the market 8-) thats your solution for goodness sake! buy for 134.5 from contracts the market is full or bad offeres for Q0 steel ITS A FACT. and its true if there was no NPC then steel would sky rocket to 500+ easily.

think yourself lucky to be able to buy it from the NPC so cheaply!

Guest

Post by Guest » 14.08.2008, 11:31

Canadian Energy Corp. wrote: Eleknar sells his power for 0.06 on the market so he only makes probably 0.04 caps per power.
hmm... never saw 0.06c power on R2 market last 3-4 months. Currently price is 0.11c. I produce Advertisements and need 1000 power for each, so many power. Because unstable power price in R2 I build my own power stations and now working independent from power producers.

Back to topic. I believe NPC is for decreasing inflation. If you buy from other player, cash stay in realm and accumulate, which work for inflation. If you buy from NPC cash go out of realm and make economy more stable. So buying from other player overpriced steel in long run ruin economic and not help at all to other players.

Guest

Post by Guest » 14.08.2008, 11:47

I am watching gassy's account and I bought 100 mil power for 0.06 from Eleknar yesterday.

Guest

Post by Guest » 14.08.2008, 12:38

Celtne wrote:hmm... never saw 0.06c power on R2 market last 3-4 months. Currently price is 0.11c. I produce Advertisements and need 1000 power for each, so many power. Because unstable power price in R2 I build my own power stations and now working independent from power producers.
Unfortunately this is because when I put a few million units of power on the market for 0.06 caps it doesn't take long before it's all bought up.

Guest

Post by Guest » 14.08.2008, 12:45

Made in Indonesia wrote:Well, you see, Q0 Steel don't make a profit at all.
I stop you immediately, STeel Q0 is profitable. I have already explained it in one post, that depends of the degree of insourcing of your product.

Insourcing is opposite to outsource. I take your exemple for that :

5 Coal = 100 => 54%
2 iron = 20 => 10%
0.5 Chemical = 15 => 9%
200 Power = 40 => 22%
Production cost = 10 => 5%

Total = 185 caps at that price your get the equivalent in %. Then, you must insource Coal 54%... if you understood it, you have manager skills if not someone may launch an offer on your company. :lol:

Of course, not everything has to be insourcing. A car maker should outsource steel even if that represent 90% of the cost of the cost. Store might be taken into consideration ...

Define your vision and the strategy of your company, then at this time you will make money.

Guest

Post by Guest » 14.08.2008, 13:42

You are getting sharked if you pay 20caps for your Q0 coal. And if it's higher quality than 0 - then you are paying too much if you're producing Q0 steel. I think a realistic price is 14caps for Q0 coal (realm 1).

It's also interesting that your iron ore Q0 only costs you 10caps! Good price!

Anyway - if you can reduce your coal price to 14caps this would reduce you cost from 185 to 155.

I think most steel producers make there own inputs. I make Q11 coal and iron ore for 2.55caps. I also mine my own minerals and make my own chemicals. There is massive profit to be made in steel.

Guest

Post by Guest » 14.08.2008, 14:19

yes if u wud make some products yourself it is actually very profitable.... you should atleast make your ores yourself...

Guest

Post by Guest » 14.08.2008, 16:10

The cost of the products are the same, made by yourself or bought from someone else; a shame people still dont understand it. And, eleknar sells his power very cheap, we cannot complain about it. One more thing: if you buy, from contracts, 1 million steel q0 for expansion, why pay 134.5? For that huge amout of steel, you will be saving 500k (almost nothing). I think we should buy everything from the NPC until q0 steel producers really reduce their prices; if they dont, just continue buy from the NPC. That's just my opinion :roll:

Guest

Post by Guest » 14.08.2008, 16:25

PMM wrote:The cost of the products are the same, made by yourself or bought from someone else; a shame people still dont understand it. :roll:
Coal = 10 kWh Power 7 Liter Water

10 * 0.2 = 2 (power)
7 * 0.2 = 1.4 (Water)
Production cost = 0.13 (Q11)
Total = 3.53

Even using NPC prices for power and water it comes out to 4.72

I don't understand what you mean. It's cheaper for me to make my own rather than buy from other players. Definitely.

If you are saying that because I could sell it for 14 I may as well buy it for 14?

As far as I'm aware coal is only used to make steel - so if I bought it or made it - it's all the same!!
Please explain your statement!!

Guest

Post by Guest » 14.08.2008, 16:30

I am not the best guy to explain that. Ask Knolls - he is the true genius. Or, in the beginner and questions section, you can see one his posts in the topic about cattle.

Guest

Post by Guest » 14.08.2008, 16:35

That's why I gave you the NPC price for coal. I didn't say - well I produce power for 0.02caps so the price of coal would be this....
I used realistic power and water prices.
I didn't do what knolls was suggesting in his epic post. If I'm missing something then please tell me, because the way I see it, it's well worth making coal.

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