[Feel free to close] Pig production - NOT FOR CONTEST

[Guest]

So here we are again. Pig production.

I have been reading the help sections to better understand production and cost, and I think I'm doing ok with my sausage business. Not great but ok.

Since the introduction of the Pig contest I have been skimming the Pig market and (ignoring Q2) I noticed that some people offer "test offers" (1-10) for a ridiculous low price. I came to the conclusion that a Pig, without any profit or market value added, cost 25,71c to produce. If I add market value of Power and Water to the production, a Pig would end up costing 141,13 (I think). I would of course add profit if I were to sell them.

So... Am I way off base if I demand more than 150c for a pig (IF I were to sell it)? Or are those people demanding less than 150c not paying attention?

[Guest]

well those who buy pigs of course want their pigs to be as cheap as possible. its up to you pig breeders to achieve a decent price. and i guess that those offers with ridiculously low price dont contain many pigs, maybe 1-100. of course if you raise the quality and put a big quantity on market it will sell for decent price (big quantity = less clicking and setting production for so many different qualities)

[Guest]

I take it that I'm on the right path. It's so difficult to figure out what's average when people add all sorts of prices, not to mention the different ways to calculate price.

I'll explore some more.

[Guest]

I take it that I'm on the right path. It's so difficult to figure out what's average when people add all sorts of prices, not to mention the different ways to calculate price.

I agree with that, this is also difficult in the glass market, a reasonable average price.
Listed prices do not always make sense at all.

[Guest]

I find it difficult when people say "Always pay your buildings" but don't offer a suggestion of how much to add to make it reasonable. But then again, I suppose that any number added is a profit. I'm currently playing with the idea (and my excel sheet) of adding a 5% profit to all components to see where that leads.

All that can happen is that I go bankrupt and have the restart.

[Guest]

when they say"always pay your buildings" they mean that you should figure out your costs as if you were selling the product on the market.
As an example it takes Corn and Power to make pigs...it also takes seeds and water to make corn.
the following is an example only priced in market prices
1seed+10 water+production cost=1corn
.75+2.00(10x.20)+.15=2.90

30corn+350 water+production cost=pigs
(30xMP)+70(350x.20)+2.25=true cost of the pigs

in this way every building used in the production gets paid as if they sold the product on the market.
pk

[Guest]

it is reasonable to try and achieve maximum possible (hourly) profit per employee. for example, i get about 1.2k hourly per employee in my joineries, which is really high (due to high research). in furniture stores i get about 500. i remember mines that produce stones also make about 500 (depends on the prices of input products and stuff that you produce course).

so, if you want to make decent growth, i think everything from 300 on is acceptable.

(my chemical factories and drugstores in the perfumes business on the other hand only make somewhere around 50-100 caps, which i consider very bad business, but i do it for fun - and of course because kapiwomen stink)

[Guest]

well with my gas stations i make around 700 per hour profit per employee from gas i buy
and my factories make around 1300 per hour profit tnx to big gas research

[Guest]

I noticed that some people offer "test offers" (1-10) for a ridiculous low price.

The reason of those rediculous offers is more related to the contest.

Someone wants to produce contest product and attempts to get the right Q but fails so he ends up with 10 pigs Q1 or Q3.
Nothing he can do with it but offer it on the market in an attempt to get it sold fast and ignore the loss.

Others just don't want to calculate real production cost and sell cheap, those usually are the new people with small companies.

I never produce pigs unless there is a pork/sausage contest which boosts the market price of pigs.

[Guest]

Heck, I'll take a stab at this.

1 Pig = 350 liters of water and 30 kg of corn.

30kg corn equals 30 seeds + 300 liters of water

30 seeds = 30 liters of water.

So far, that's 680 liters of water dedicated to 1 pig.

680 liters of water = 68 kW of power.

Now I will begin the process of finding the actual cost of one pig, provided you were able to generate the water, well the water, grow the corn, and raise the pig on your own.

Cost to produce 1 pig = 25.71
Cost to produce corn = 2.70
Cost to produce seeds = .30
Cost to produce all of the water = 13.60
Cost to produce the water to well the water = 2.04

Total production cost: 44.35 each pig, plus quality variances.

Asking 150 for 1 pig is a 338% profit margin.

In other words, you are making 105.65 of actual profit.

Just my 2 cents.

[Guest]

Opus, I have no idea how you got that calculation. The only thing I agree on is that pigs cost 25,71c to make without any sort of profit or market value added.

This is how I do it - without profit or market value, just to keep it clean.

Power production cost 0,02
Water prod. cost 0,02 + power 0,02*0,1 = 0,3 rounded up.
Seeds prod. cost 0,01 + water 0,03*1 = 0,04
Corn prod. cost 0,09 + water 0,03*10 = 0,3 + seeds 0,04x1 = 0,43
Pig prod. cost 2,3 + water 0,03*350 = 10,5 + corn 0,43*30 = 25,71

As far as I can tell that would be the raw cost of 1 pig.

But like any other person I want profit, and seeing how I can now sell power and water for roughly 0,20 on the market, I have to put those values in the mix which raise the price between 140 & 160 (hard to tell due to the contest).

So I am still quite confused, but I am beginning to trust my own calc more and more.

[Guest]

Andro

What part confused you? Isn't the cost of producing a pig on the cattle farm 25.71 each? Or 2.30 each? I don't have a cattle farm, and there is nothing that says how much it costs to produce something, just the component list.

Ok, so if the cattle ranch only charges 2.30 per pig, then subtract 23.41 from what I quoted. Which is 20.94, provided your info is correct this time.

150 is a huge mark up IMO.

Cheers

[Guest]

Andro

What part confused you? Isn't the cost of producing a pig on the cattle farm 25.71 each? Or 2.30 each? I don't have a cattle farm, and there is nothing that says how much it costs to produce something, just the component list.

Ok, so if the cattle ranch only charges 2.30 per pig, then subtract 23.41 from what I quoted. Which is 20.94, provided your info is correct this time.

150 is a huge mark up IMO.

Cheers

The cattle plant says 2,30, but that doesn't include the cost of making all sub-products. Add upp all sub-products at basic costs and you get 25,71. But that's profit-less.
We seem to be on the same page but you don't seem to include profit at all. Not what you could get for power and water at the market anyway.

Ah well. Looks like no one wants to touch the pig/cattle market due to 2 year old threads saying don't. The threads seems a tad bit outdated after having looked at R2 market (again, ignoring Pigs Q2).

[Guest]

Now I will begin the process of finding the actual cost of one pig, provided you were able to generate the water, well the water, grow the corn, and raise the pig on your own.


Read that above paragraph again from my 1st post. I clearly said that this cost I came up with, if YOU PRODUCED ALL, 100% the whole enchilada, amount of the the product and sub-parts.

I forgot nothing.

Cheers

[Guest]

Hi, before you go any further I wonder if you have taken into account the 'pay your builds' concept.

You have to factor in the amount you would have made had you broken the product down into its componets and sold them. IE pigs take 350 water, thats 350*0.2 = 70c! and the 30 corn needs 300 water (300*0.2=60c) now if I simply produced the water to make 1 pig I would be only 10c worse off. assuming you sold on contract your pig farm would have to make 12 pigs in the same time as 650 water just to break even with your wells! Some how I dont think thats gona happen. If you do understand said concept ignore all above

Feel free to continue your debate however, I think its rather....interesting
H