Power Prices are too low
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Guest
Power Prices are too low
I think everyone should try to get power prices above 0.15...The current prices give not much profit to the power producers
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Guest
Re: Power Prices are too low
Perhaps the Power-Buyers like them like this...nikhilm92 wrote:I think everyone should try to get power prices above 0.15...The current prices give not much profit to the power producers
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Guest
The way I see it, power producers who have plants in green, are making power for .01, and selling it at a 600% profit at .07 This is not bad, considering there is no other material required to make power. It is essentially the same profit rate as steel, but with steel, you must produce all the components to make it first.
The problem with power is, you have to produce so much to make a lot of money. 1,000,000 units of power is equal to about 600 units of steel, or 70 wardrobes. (estimate) Now, it takes my power plants (4m2) at least two or three days to produce 1,000,000 units... whereas, my steel factory can produce 600 units a day easy, and my joinery can also produce 70 wardrobes in a day. There are a lot better ways to make money besides selling power, although power is a great product to produce and sell because it is so easy to do.
From a business standpoint, there are a number of products that require massive amounts of power to make... leather... wood... steel... If these products are being used in further productions, those producing them have to consider power costs, and there is a huge difference between paying .01 for power you produce, versus .07 on market. It can drastically increase your cost of production, but at .07, you can still afford to buy it in a pinch, to keep production going. If you increased it to .15, more people would build their own plant, because it would become cost prohibitive to purchase power at market.
The problem with power is, you have to produce so much to make a lot of money. 1,000,000 units of power is equal to about 600 units of steel, or 70 wardrobes. (estimate) Now, it takes my power plants (4m2) at least two or three days to produce 1,000,000 units... whereas, my steel factory can produce 600 units a day easy, and my joinery can also produce 70 wardrobes in a day. There are a lot better ways to make money besides selling power, although power is a great product to produce and sell because it is so easy to do.
From a business standpoint, there are a number of products that require massive amounts of power to make... leather... wood... steel... If these products are being used in further productions, those producing them have to consider power costs, and there is a huge difference between paying .01 for power you produce, versus .07 on market. It can drastically increase your cost of production, but at .07, you can still afford to buy it in a pinch, to keep production going. If you increased it to .15, more people would build their own plant, because it would become cost prohibitive to purchase power at market.
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Guest
Yep, and from what I've seen, most of the early product lines give about the same profit per day for the same investment. For instance, in H-Bs case, he could be making 500,000 * 0.06 or around 30,000 caps per day. As you mention, this is much less than the profit you get from your other products, but I would imagine that you put much more investment into building your other products. Your exmple of steel for instance, if you are making around (130 - 20) * 600 = 66,000 per day from a single 40m2 factory, your building cost was about twice the cost of a single 40m2 power plant. For the same cost you could have had 2 * 40m2 power plants and then the difference would be very small.
I analyzed the profit margins on several product lines when I first started and 7x showed up quite frequently based on going market rates. I see a range usually between 4x and 8x, but 7x is the average it seems with almost any good approach.
For me, the deciding factor between different paths to profit is which ones will help to open up new patways to future products and thus diversify my company. There are some paths that seem more likely to be deaad ends to me in the future or that will at least oversaturate while others may have even higher profit margins in the future.
I analyzed the profit margins on several product lines when I first started and 7x showed up quite frequently based on going market rates. I see a range usually between 4x and 8x, but 7x is the average it seems with almost any good approach.
For me, the deciding factor between different paths to profit is which ones will help to open up new patways to future products and thus diversify my company. There are some paths that seem more likely to be deaad ends to me in the future or that will at least oversaturate while others may have even higher profit margins in the future.
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Guest
I suppose this should really go in the suggestion forum, but another angle to look at would be. In the real world power doesn't come from thin air, yeah yeah i know about wind farms. (yes, I know it's a game, not real life)
the products are already in the game to produce power,
coal, oil, & gas are three traditonal materials that go into making power.
Or for greener options.
wind farm - steel & something else
wave farm - ....... and ...
Now doing this could also open up another possiblity where you get penalized for poluting and rewarded for greener options.
yes ratios and quanites would have to be worked out, but would provide power at different prices, and yes I know would have huge econimic impact on the game.
I realise most likly won't be done, just thought might add a little more to this discussion.
the products are already in the game to produce power,
coal, oil, & gas are three traditonal materials that go into making power.
Or for greener options.
wind farm - steel & something else
wave farm - ....... and ...
Now doing this could also open up another possiblity where you get penalized for poluting and rewarded for greener options.
yes ratios and quanites would have to be worked out, but would provide power at different prices, and yes I know would have huge econimic impact on the game.
I realise most likly won't be done, just thought might add a little more to this discussion.
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Guest
if you are making around (130 - 20) * 600 = 66,000 per day from a single 40m2 factory
Please reconsider your words, if you only have "a single 40m2 factory", how can you get your input materials at 20. The cost is much more than the number which is showed in your warehouse. I sincerely recommend you to read the threads where I tell how is the "cost" calculated. ( the post name is "newbie goods".)
The power price case is just because of the guide from the players who enjoy the high(maybe over-high ) profit before. Many new comers built a lot of power plants afterward, so now the daily demand in the kapiland can't adsorb such a big supply.
Don't be panic, there should be more profitable industry areas waiting for your invest.
The kapiland game is not as easy as just to receive guides. Get the basic knowledge and find your ways to improve your company as fast as possible.
Please reconsider your words, if you only have "a single 40m2 factory", how can you get your input materials at 20. The cost is much more than the number which is showed in your warehouse. I sincerely recommend you to read the threads where I tell how is the "cost" calculated. ( the post name is "newbie goods".)
The power price case is just because of the guide from the players who enjoy the high(maybe over-high ) profit before. Many new comers built a lot of power plants afterward, so now the daily demand in the kapiland can't adsorb such a big supply.
Don't be panic, there should be more profitable industry areas waiting for your invest.
The kapiland game is not as easy as just to receive guides. Get the basic knowledge and find your ways to improve your company as fast as possible.
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Guest
there is nothing wrong with power prices as i see it ... i make my own power, and i use most of my own power ... from the odd time, i will buy some power to finish up some projects for a few more hours, and from the odd time i will sell some power cause i have surplus ... i produce mine in the red area - and it costs .03 ... i dont mind the fact that it costs a little more, as i use 99% of it all the time - so in a green area, id need to buy more at a higher price ...
the market price of power is so low because its easy to produce because it only takes money to produce ... the one thing i think is missing is a way to sell power to NPCs ... obviously they need power as well, right?
our market has WAY too much power on it, thats why it is so low ... there are over 100 people selling power at below .10, if u can get all of them to sell higher, then another 100 will sell lower to get theirs bought.
the market price of power is so low because its easy to produce because it only takes money to produce ... the one thing i think is missing is a way to sell power to NPCs ... obviously they need power as well, right?
our market has WAY too much power on it, thats why it is so low ... there are over 100 people selling power at below .10, if u can get all of them to sell higher, then another 100 will sell lower to get theirs bought.-
Guest
Walthir, it is an interesting suggestion, but if you look at the stickied thread in the suggestions forum, they are not planning on adding any new products to this version of the game. It may at least be considered for a future version, but I think they are trying to keep each run of the game sable without making major changes that would affect players long-term strategies.
kiddbeck, I am very familiar to the thread you are referring to. If you check, I am one of the people who has been debating with you in thata thread. I won't continue the debate here, but I will simply say that I disagree with your terminology. Refer to my last post for reasoning. Simply put, the total number of caps that I put into the production of each of my steel is 20. I do not include in this price the market value of raw materials which I did not buy, nor do I include the cost of the buildings to produce it in. For that matter, I don't include the loss of the possibly higher profit I could have made by investing the same money in any of 100 different product lines instead. I simply quote what I believe to be the "cost" of my steel to me in caps.
kiddbeck, I am very familiar to the thread you are referring to. If you check, I am one of the people who has been debating with you in thata thread. I won't continue the debate here, but I will simply say that I disagree with your terminology. Refer to my last post for reasoning. Simply put, the total number of caps that I put into the production of each of my steel is 20. I do not include in this price the market value of raw materials which I did not buy, nor do I include the cost of the buildings to produce it in. For that matter, I don't include the loss of the possibly higher profit I could have made by investing the same money in any of 100 different product lines instead. I simply quote what I believe to be the "cost" of my steel to me in caps.
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Montoya Inc
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Guest
PolymerTim，
It totally doesn't matter whether you agree with my words or not . I don't respond in that post anymore because I think the word "value" in Halee-Burton's mind at last is not far from the "cost" in mein or I have to say in the economics. And I think our discuss ended by a mutual respectable way.
However, my words are simply not a "terminology" for you, otherwise, how will you respond my question?
-----" if you only have 'a single 40m2 factory', how can you get your input materials at 20?"
I don't wanna change your mind, but since you are guiding someone, I have the responsibility to point out your mistake, not for you but for others.
What you simply did is not simple.
It totally doesn't matter whether you agree with my words or not . I don't respond in that post anymore because I think the word "value" in Halee-Burton's mind at last is not far from the "cost" in mein or I have to say in the economics. And I think our discuss ended by a mutual respectable way.
However, my words are simply not a "terminology" for you, otherwise, how will you respond my question?
-----" if you only have 'a single 40m2 factory', how can you get your input materials at 20?"
I don't wanna change your mind, but since you are guiding someone, I have the responsibility to point out your mistake, not for you but for others.
What you simply did is not simple.
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Guest
Alright, I saw your words in that post...
Just like what I said, if you can get the meaning by the word "value" , that is alright.
But the case seems different. You told that if you sell the steel for 50 you still earned the money, it just showed your misunderstanding of the "cost".
Please think about it, before you produce the steel, you have 70 caps because you can sell the input materials on the market, but after your production and sale, you only have 50, Do you still think you have earned money?
Furthermore, you still could not think you are earning money (in more general ecnomic way), even if you sell the steel at 71, because you should also consider the general profit/time by one production activity in the kapiland. Considering what H-B said, not everyone like to be the No.1 in the game, me neither, let 's just use the newbie income stream, I mean just better than they product fruit or Q0 seeds.
I should say sorry if I use some annoying words which could make you unhappy, because I feel a little bit vexed about the topic just before, but now I just wanna give some of my opinion for everyone, I hope the readers including you can pick up somehing useful.
Thanks everyone for reading. and enjoy the improving of the company.
Just like what I said, if you can get the meaning by the word "value" , that is alright.
But the case seems different. You told that if you sell the steel for 50 you still earned the money, it just showed your misunderstanding of the "cost".
Please think about it, before you produce the steel, you have 70 caps because you can sell the input materials on the market, but after your production and sale, you only have 50, Do you still think you have earned money?
Furthermore, you still could not think you are earning money (in more general ecnomic way), even if you sell the steel at 71, because you should also consider the general profit/time by one production activity in the kapiland. Considering what H-B said, not everyone like to be the No.1 in the game, me neither, let 's just use the newbie income stream, I mean just better than they product fruit or Q0 seeds.
I should say sorry if I use some annoying words which could make you unhappy, because I feel a little bit vexed about the topic just before, but now I just wanna give some of my opinion for everyone, I hope the readers including you can pick up somehing useful.
Thanks everyone for reading. and enjoy the improving of the company.
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Guest
