Some Guidance here needed

[Guest]

He was stating your company stats. He wasn't saying you cheated or did anything wrong.

Just let it go.

Thornsten, as you can see I forgot to check the latest prices before I posted the first time. That is probably where you "went wrong".

*Hint: I like to barter. I have done it my whole life. I am always sending mining companies messages trying to get a cheaper deal on bulk products.

[Guest]

He was stating your company stats. He wasn't saying you cheated or did anything wrong.

true, its not my place to say anything about what other ppl do with theyr accounts, there are mods for that.

Azer, the profit you are making comes from your mines/power plants, not from your factory, if i want steel to expand i buy it from the NPC, to make steel for expansion would make one of my factories not make enough profit to occupy a slot.
the only reason i make steel is for Q to put in wardrobes, otherwise its just better to make chemicals or gas.

[Guest]

First of all, everyone is presumed innocent until otherwise, and if you think someone is cheating you should report them privately.

Secondly, discussing another company's circumstances is a private matter and does not belong on a public board. If they want to bring up facts about themselves for you to discuss, that's fine. But no looking stuff up to talk about them.

Thirdly, and this is just as an aside, you're holding an awful lot of cash relative to your fixed assets, Fiesta. It doesn't make you any money sitting under your mattress.

[Guest]

First of all, everyone is presumed innocent until otherwise, and if you think someone is cheating you should report them privately.

Secondly, discussing another company's circumstances is a private matter and does not belong on a public board. If they want to bring up facts about themselves for you to discuss, that's fine. But no looking stuff up to talk about them.

Thirdly, and this is just as an aside, you're holding an awful lot of cash relative to your fixed assets, Fiesta. It doesn't make you any money sitting under your mattress.

Ya i know wat u mean, i really told u in private message, do wat u suppose to do

[Guest]

Azer, the profit you are making comes from your mines/power plants, not from your factory, if i want steel to expand i buy it from the NPC, to make steel for expansion would make one of my factories not make enough profit to occupy a slot.
the only reason i make steel is for Q to put in wardrobes, otherwise its just better to make chemicals or gas.

If I was to just sell the materials I use to make steel I would make 42.75. Compare that to the 68.445 profit I could make per steel. It is cheaper for me to upgrade this way.

[Guest]

(I should point out I do mine a little coal so that does have an effect on the cost. Add to that I bought a large amount of coal and iron before the gold contest so it was cheaper.)

I produce:
Minerals
Chemicals
Power
little bit of coal


Productions costs
Coal: 6ea (bought + home made = average)
Iron Ore: 8.5ea
Chemicals: 1.09ea
Power: 0.01ea
Fee: 15ea

5 Coal x 6 = 30
2 Iron x 8.5 = 17
0.5 Chemicals x 1.09 = 0.545
200 Power x 0.01 = 2
1 Fee: 15

Total price = 64.545



Now that the gold contest is over the prices of coal and iron will go back down.


When I first posted I forgot to add the most current iron and coal prices. That was my mistake.

As I suspected you're figuring your costs incorrectly. Your mines are subsidizing your factories so your profits are largely skewed. There are several threads about how to correctly figure production costs (which don't change whether you buy or produce your materials).

Basically you have to use the current market value for your production costs regardless of whether you bought the raw materials or made them yourself. The reason for this is that you could just sell the raw materials for the market value and by keeping them to produce steel with you are in effect paying the market price.

Bleh, I started to type out an example of this, but it's been done before if you care to search for it.

[Guest]

Azer, the profit you are making comes from your mines/power plants, not from your factory, if i want steel to expand i buy it from the NPC, to make steel for expansion would make one of my factories not make enough profit to occupy a slot.
the only reason i make steel is for Q to put in wardrobes, otherwise its just better to make chemicals or gas.

If I was to just sell the materials I use to make steel I would make 42.75. Compare that to the 68.445 profit I could make per steel. It is cheaper for me to upgrade this way.

In this case your profit for steel is only 25.695 caps. (68.445 - 42.75) since the rest of the profit (42.75) is actually coming from your input materials.

[Guest]

Ok, I never said my production costs included "True production costs". (Giving each product a profit.)

Giving all products their profit:

Coal: 40
Iron: 16
Chemicals: 8
Power: 20
Fee: 15

Total "cost" = 99

That is 34 profit.


Just selling what I make: (minus the production costs)

Coal: 1 (I don't produce much.)
Chemicals: 15
Power: 18

That is 34 profit.


As you can see I am dead even.

[Guest]

Fiesta how much money do you have and what is your fixed assets?

[Guest]

well if u guys all suggest me to produce steel
then should i buy stuuf f off the market??
i have no spare mines or wells to support this factory!!!

[Guest]

I make everything on my own, so my production cost is 27 for 1 kg steel !!

[Guest]

I make everything on my own, so my production cost is 27 for 1 kg steel !!

What others are pointing out in this topic sometimes you make more money selling the materials than the steel itself.

If you sell the coal, iron, chemicals, and power you might make more money that using them.

However, it depends on the market and its prices.

[Guest]

factory but no material?

build more mines and oil wells, of course.

But besides that,
at current lowest market prices,
Coal = 11.00
Iron = 10.00
Chemicals = 17.00

to make steel you need 5 coal + 2 Iron + 0.5 chemicals
so you'd end up with 83.5 material cost.
power cost 200kWh @ 0.10 = 20
"MY" production cost = 15.0
total = 108.5 and you can sell it for 134.00
not much money but still money.

OR chemicals

Current mineral lowest market price = 8.10
Production cost 0.49

[Guest]

thank you for your great advice.........
I do minerals now
I buy from market and sell them to people

I can make 3000 minerals eveyday!!

[Guest]

If i could restart, I would start with Mine and Factory and Well. But it's not worth it now... U can earn like more than 3 mil a day if u done em correctly