Cost/price drivers

[Guest]

Ive ran the numbers a few times and keep finding that i can make more (realm1) producing gold than if i switched to gold necklaces or some other next level production. This is because people seem willing to pay quite a bit for my gold and this is not reflected in what they are willing to pay for necklaces.

I can only presume (I do not own a jewelry store) then that the High Price of Gold is not represented by a reaction from the Kapi economy. In other words the stores cannot get away with charging more for gold made items because the System market is unresponsive to user market price changes.

I'm probably not being very clear here.

what it boils down to is this, you can sell q0 gold for 250caps on the user market (realm1). It takes 30gold to make a necklace. But you would be hard pressed to get a buyer willing to pay more than [6750(gold) + 30(production) + 115(power)] 7645* which you need for it to be worth your while spending the time. This is obviously because you cannot sell in the jewelry store for much more than this figure.
This needs to be addressed otherwise there is no point in entering into producing these items unless you can produce at a very high quality.
I'm sure this is the case for many other products.




*7645 was based on opportunity cost i.e the gold required could have sold for 7500(30x250), the power could have sold for 115(500x0.23)

[Guest]

You will probably find that the people buying your gold have production and sale facilities.
Also if there are necklace producers who don't have sales facilities they are more than likely selling on contract.

[Guest]

Also There will tend to be less people producing at the boottom end of the production cycle as you might be making gold now but soon youll want to sell only in shops (usually). So there is high demand for gold which is why gold costs so much.
If you do produce necklaces you will want to sell them yourself and wont bother selling because you can make more yourself or selling to a big buyer who only sells it in shops.
Finally you could become only a shop only company were you will buy through contract only from some loyal suppliers. I think there are a few on realm 1. They might pay more than the market price for regular contracts. Check if anyone needs gold necklaces and how much they will pay, then see if it is worthwhile switching to production.

[Guest]

what it boils down to is this, you can sell q0 gold for 250caps on the user market (realm1). It takes 30gold to make a necklace. But you would be hard pressed to get a buyer willing to pay more than [6750(gold) + 30(production) + 115(power)] 7645* which you need for it to be worth your while spending the time.

Well, the answer is very simple.

Just ignore the ones who responded befor me and listen carefully.

The answer is: RESEARCH.


You noticed people pay the same as it costs to produce, but they also pay a bonus on quality.
The people buying your gold have high research like Q100.
Then they use your gold to produce their product and depending on what they are producing they end up producing a product Q25 or Q33 depending on the amount of products needed for production.

When someone pays 5.000+500Q for an item which would cost 7.500 to produce it would result in following.
5.000+(25x500)
5.000+ 12.500 = 17.500 each.

Then suddenly they make a 10.000 profit from the product instead of a 2.500 loss they get on the product without the research.

Same will happen with your gold.
When you sell gold Q0 at 250 you hardly make a profit.
However i think you get a bonus of 5 per Q level, so when you produce Q10 gold you end up with a 50 profit each due to the extra Quality.

Not sure about the exact current numbers tho cuz i'm not in the mining/jewelry business, but i'm sure you'll understand the idea.