powerplant needs?

[Guest]

Hehe, I can't wait for the KapiTools in English to come out. I think thaat will help a lot. It's hard to make these kinds of long-term decisions when you don't even know what the production rate and costs are until you buy the building.

[Guest]

Factories should always be built in green.

I disagree. Wether a normal factory should be build in red or green depends on the price of the produced product.
If the price is low, green is more profitable, if the price goes up red generates more money.
Apart from that there are other things to consider:
1. If you use your factory-product (like plastic) to produce another end product (say TV) red becomes better, because the higher production-cost of the plastic is just a small part of the total production cost of the TV. The higher plastic output then becomes more profitable (as you can wait longer to expand or you can sell surpluses)
2. Prices tend to increase. Although the prices fluctate on a long-term scale the prices will go up. But the line between wether red or green is more profitable is fixed, so at some time the price will most of the time, or always over that line.

There are factory-buildings that should always be built in green, namely the electronic factory, because these products have such high production cost and low output, that the price-line where red becomes better is extremly high.
Power plants are also better in green, when you intend to sell your power. But the normal factory should IMO always be built in red.

You can make the calculations yourself, once the english kapitools are avaible.

[Guest]

Well, that consulting fee would be ill deserved. Though I agree with Klasanov that power plants should be built in the green area (don't you get a 25% bonus on the production of raw materials, or is power not considered a raw material?), I completely disagree for most other factories (though I didn't make a calculation for electronics yet).

Let me do a simple calculation to show my point, taking a steel mill as an example. The figures I took from a forum post in a related thread.

Steel mill in green, 17.82 units per hour with a production cost of 4.5 Caps (valid for 2 workers) results in 80.19 Caps production cost per hour.

Steel mill in red, 22,28 units per hour with a production cost of 15 Caps, results in 334,2 Caps production costs per hour.

Now assume you are going to sell this steel for 100 Caps per unit (not an unrealistic price, in the German version steel sells for 130+).

So, you get:

1782 Caps for the sale, minus the 80.19 Caps production cost, ergo 1701,81 Caps profit per hour for the steel mill in green
or
2228 Caps for the sale, minus 334.2 Caps production cost, ergo
1893,8 Caps profit per hour for the steel mill in red

resulting in a higher income for the steel mill in red of 191,99 Caps per hour and roughly 4600 Caps per day. With that sum you very quickly amortize the higher production, labour and expansion costs of the steel mill in red. In addition, the higher the price for steel is going to climb, the higher the profit difference between the red and green areas is going to be. Especially when you also consider that Kapilands is going to run for years ....

Radman

[Guest]

Don't you mean 46,000 capilands a day? Not 4,600?

You're also forgetting the costs of coal, iron, chemicals and power.

[Guest]

The costs for materials is the same wether you produce in red or in green.

Another example: Plastic
1 Plastic needs:
0.5 oil
1 chemical
150 power

Lets say i buy oil at 40, chemicals at 20 and power at 0.1
Then each plastic costs me 20+20+15+x where x is the production cost.
I can sell one unit of plastic for around 70

First in red:
Production cost is 1.5 and with a E:2 20qm factory i can produce 30 units in one hour.
Profit per unit: 70 - 56.5 = 13.5
Profit per hour = 13.5 * 30 = 405

Now the same calculation in green:
Production cost is 1/3 so 0.5 and i can produce roughly 24 units in one hour.
Profit per unit: 70 - 55.5 = 14.5
Profit per hour = 14.5 * 24 = 348

As you can see, with a factory in red i make 57 caps more per hour compared with the factory in green. This doesn't sound much, but this multiply if i build more factories and when i expand my factories.
The factory in red cost me 80k more to build than the green one so it takes me 1403.5 hours before the red actually starts making more profit. That is a long time (nearly 2 months) but it actually shows, in the long run, building in red is more profitable. You also have to take in account that the number of buildings is limited. With 100 factories in red i make more profit than with 100 in green.

With gas, the most produced product, the number should be higher (as the production cost is lower and the output higher) but i'm too lazy to make the calculations there.

[Guest]

No, I am not talking about the profit you can make by producing steel, but only about the difference you will earn, if you run a mill in the red or green area. The cost for the components to make steel (iron ore, coal, power) is the same for both regions, and the difference for 4 units per hour is marginal. The outcome is still the same, it is well worth to initially invest the extra cash it takes to build a steel mill in the red area, as you will make much more profit in the long run.

Radman

[Guest]

Earlier, I said it was two viewpoints on this, and I think it probably just depends on your application of the facility, and how you are looking at it. A case can be made both ways... in some cases.