Price for Power

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SH
Posts: 13
Joined: 21.01.2008, 02:44
Location: R.O.C.
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Price for Power

Postby SH » 11.02.2008, 11:41

Everyone who produce power:

It seems like the price for Power is going down. If is goes lower than 0.05 we might not have "any" profit!!

Everyone please, let's make it at or over 0.06!

Especially to the company "POWERBANK"! :D

Best regard to everyone!
Best regard!

Company:SKH

KahunaCorp
Posts: 31
Joined: 17.01.2008, 19:40

Re: Price for Power

Postby KahunaCorp » 11.02.2008, 13:10

SH wrote:Everyone who produce power:

It seems like the price for Power is going down. If is goes lower than 0.05 we might not have "any" profit!!

Everyone please, let's make it at or over 0.06!

Especially to the company "POWERBANK"! :D

Best regard to everyone!
What drives down the price of power is, like everything else here, supply and demand. When noobs join up, and ask here in the forum what business to get into, and they are told that power is the simplest thing, with a quick, easy and good profit margin, and they take that advice, they are removing themselves from the ranks of power demanders *as well as* adding themselves to the ranks of power suppliers.

A reduction in power prices is inevitable.

Now, I happen to own a power plant. One single, minimum size power plant. I didn't want to be in the power business, it seems dull and boring to me. But at a certain point, I got tired of paying even 0.05 to someone else for power. So I bought my own plant, and yes, I *do* sell what I don't use myself. But I'd be in serious trouble if all I was doing was producing power.

Now consider this: The market price for power, the more incentive there is for people like me to become small producers (like I did), inclined to sell what they don't need. Artifically trying to raise the price of power will, in fact, tend to keep it low.

Don't just depend on power production for your money, DIVERSIFY!
Last edited by KahunaCorp on 11.02.2008, 14:45, edited 1 time in total.
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SH
Posts: 13
Joined: 21.01.2008, 02:44
Location: R.O.C.
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Postby SH » 11.02.2008, 14:38

I am not producing only power, too...
What you said helps me a lot! Thanks!

Like yours, if possible I would like to listen to advise from everyone else!
Best regard!



Company:SKH

Philip212
Posts: 65
Joined: 12.07.2007, 15:20

Power price

Postby Philip212 » 23.03.2008, 12:41

If you want the price of power to go up just stop expanding your power plants and concentrate on another industry like coal, oil, stones, water, iron ore, or food industry.
You will still be making the same amount of power but the the total demand will rise and so the price will go up if enough people stop expanding their power plants.

Lman360
Posts: 616
Joined: 13.02.2008, 16:18
Location: International Logging Co R2

Postby Lman360 » 24.03.2008, 16:23

why complain, you know what is right raise your prices and hope everyone knows thats write
Last edited by Lman360 on 18.04.2008, 10:36, edited 1 time in total.
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Socronoss
Posts: 188
Joined: 20.07.2007, 21:48
Location: SocroCorp, Realm 2

Postby Socronoss » 24.03.2008, 17:33

It's the whole problem with "green" vs. "red":

My guess is that most large/established power producers have initially built their plants in green (since the initial market price on servers rarely if at all go over .13c.).

Now, if the topic poster says that at .05c, there is no profit any more, he is incorrect: Producing power in green would still yield you 0.04 profit per Kwh.

Thus, the 'green' power producers will always have the opportunity to undercut the 'red' power producers. Combined with very very limited entry barriers (no research possible, low investments, etc), the threshold of surpassing the line of 0.13c where it makes sense to produce in red is extremely high.

Just my 2c
Socro
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admyral
Posts: 31
Joined: 14.11.2007, 17:03
Location: Las Vegas
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Postby admyral » 24.03.2008, 20:11

Ah, the beauty of a "free market" economy. Well almost: Except for the .27
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