newbie goods

Guest · Post by **Guest** » 23.02.2007, 06:10

like i said it will not happen again as we will not be useing the market soon once the guild is done

i had to make alot of sig's for people today so that took up some time

Guest · Post by **Guest** » 23.02.2007, 12:27

Aha, what a typic mistake. To understand the cost caculationis not hard, since you have already known the case that the total value of your materials is higher than your selling price. Then think about this, if you have 3 2-euro coins, will you agree to change one 5-euro note? I think you won't, even if the 3 coins are quite easy to earn for you ; ).

What I said is the right way to calculate the price at which you "should" rather than "must" sell, you can sell your product I totally agree there are a lot of way to enjoy the game, you can product and sell anything you want or prefer, even if the prodocts are not as profitable as something like uninteresting water, I am also doing that. ; )

However, I couldn't agree "most of the products are sold at a 'lower than their cost' price in this game", at lease I didn't found. A few people sell them quite cheaply because they can buy the input cheaply, too. Otherwise, it is a mistake( but people always did mistakes, right? Just like me

) as long as they still wanna increase their wealth(I agree that sometime people just need fun.

) by the production they just did in the game.

Generally, if you find some goods are cheaper than the cost, you should always think of 2 things:
1st, is there any material temporary overvalued?
2rd, is it because the product can't even be sold at the cost price easily in the retail shops? (If yes, it is a bug.)

Guest · Post by **Guest** » 23.02.2007, 18:16

PolymerTim wrote:I would agree that there is more to consider than profit per time, but I think other considerations basically get back to this fundamentally. In the end, if you are competing for rankings based on net worth then the game is basically aa rate where the highest average profit per time wins. That's not to say that you can't have a lot of fun just playing the game and not trying to be on the scoreboards.

As for steel, I think H-B's first estimate was right on the money. I make my own steel from scratch and it costs me exactly 20.2135 caps each. Thats using a power plant in green, a mine in yellow, and a factory in red.

Thanks PT, I think I understand what kiddbeck is talking about now, he is calculating 'value' instead of cost. The thing is, actual values change constantly, and trying to keep track of this would be very time consuming. It's not a bad idea to use his formula and see how well or poorly you are doing with a particular high-end product, but I don't think many things can be produced profitably from goods bought at market price, that's just my opinion. I also think it's not an accurate way to judge cost or profit, because it relies on irrelevant tangibles, you didn't sell or buy the steel for 120, so why would you consider this price in your cost? Maybe you could have sold your steel for 120 yesterday, but you decided to make wardrobes and sell them for 1000 today, so what you may have sold the steel for yesterday, has no bearing on your cost to make wardrobes, or the time involved.

I look at profit/time like everyone else, it is important to consider. Some things just aren't as profitable because of the time it takes to make the profit. However, my primary consideration is profit margin. How much you actually made minus how much it actually cost you to make it. The time is not a major consideration to me in this, because time is free. It costs me the same regardless of what I am producing. I understand the goal is to be #1, but let's face it, everyone is not going to be #1. If my company is growing and making a good return, I am happy.

Guest · Post by **Guest** » 23.02.2007, 19:41

If the word "value" is more suitable for you, then understand by it

In ecnomics, it is just the right cost. Generally, it is equal to the money to put in plus oppotunity cost.

I think I have tried a lot to express a part of what I learned these years, but the effect is not good, there is a really big gap in abillity between my professors and me. So, forget what I said, and just enjoy your kapilan

If someone really got something from these threads, I would be happy

Guest · Post by **Guest** » 23.02.2007, 20:15

kiddbeck, I am certain we have some language bariers, but I completely understand what you are saying about economics, and this point you make is very good. I only speak from the aspect of the game itself, which doesn't always simulate real life economics. In the real world, I would be paying salaries to employees weekly, in accordance with the time they spent on the job, overtime, injuries and illnesses, benefits, etc. I would also be paying taxes and other things, which are not an aspect of this game. I would also be paying salaries when the factories stood idle, waiting for materials. Production time becomes a non-issue in the aspect of cost, to a degree, because the time is not costing you anything more in real terms. You have a static production cost, and that is all.

We can agree, knowing and understanding the markets, evaluating the 'bottom line' by looking at the 'value' cost of things to produce, and being able to spot opportunity, are the keys to success here. I have had to alter and change my strategies several times so far, as markets have changed, and prices fluctuated. It is always good to have a contingent plan ready to roll out, if what you are doing stops working.

To say I enjoy my Kapiland, is an understatement! I absolutely LOVE my Kapiland! I am addicted!

Guest · Post by **Guest** » 23.02.2007, 23:48

kiddbeck wrote:...I have to say that, you make a mistake of caculating the cost of steel. I mean the cost of steel is much more than 21.

... but the problem is that the cost is not the value,

...Add them all, you get your cost of steel. ^^

I also see what you are saying, but I think it is just a matter of definition. I don't know the official economics terms, but I think you hit on something when you said the cost is not the value. I would argue that the cost of a product is simply the expense to make it (in this case about 20). I believe the number you are suggesting (70 plus costs) is actually the minimum value of the product. Just my opinion of course.

I agree with you that if you can't sell the steel for more than you could have sold the raw materials then there is a more efficient way you could have made money, but you are still making profit if you sell your steel at 50. You just could have made more money if you either sold the steel for typical market prices or if you sold all your raw materials for typical market prices. In my mind, the market value of the components of a product do not equate to the cost of the product unless the producers is buying the raw materials off the market.

But in the end, I see your point. I think it is only in the terminology that I disagree.

And yes, I too am addicted and having fun