Is your business plan doing you in? - A Rough Guide

Guest · Post by **Guest** » 19.11.2010, 10:14

This topic has most propably been covered before but since it comes up so often ill add my own spin to it, I also have way too much time on my hands until I get a job =)
The first and biggest question any player askes himself is, "What is the best industry and am I making the right choice in my building plans?"
Never fear figment of my imagination the solution of this eternal question is just over the horizon!.....get it?...Over the Horizon.....HORIZON!! Oh forget it!

Bad jokes aside the simplest and fastest answer is below, for each building size your shiny new build should be making AT LEAST this much each and every single hour.

20 - $1,901 _______<->______ 2000 - $96,584
100 - $9,187 ______<->______ 3000 - $115,889
200 - $17,543 _____<->______ 4000 - $140481
300 - $25,186 _____<->______ 5000 - $150,579
400 - $32,195 _____<->______ 6000 - $158,043
500 - $38,630 _____<->______ 7000 - $163,884
600 - $44,550 _____<->______ 8000 - $185,427
700 - $50,074 _____<->______ 9000 - $189,648
800 - $55,183 _____<->_____ 10000 - $193,169
900 - $59,935 _____<->_____ 15000 - $227,245
1000 - $64,390 ____<->_____ 20000 - $301,039

So how did your genius-ship work all this out?
This is how much as simple mine can make producing stones, its the most profitable raw material industry that a new player can break into

Well thats Great but how do us mere mortals figure out the profitability of our building?
The formula is so simple its easy
(Production per hour)*(Sales Price-Production Cost-Raw Material Cost-Cost of Sale)
Cost of Sales is the cost your incur in order to get a sale, in most cases its the 10% market commission
In order to get a genuine profit assessment you need to use the cost of raw materials as if your buying off another player, that means that if you have a power station feeding your mine you cant use 0.03c cost of power but rather whatever cost you can buy power, if you dont know why then your going to have trust me (or send me a message im happy to help)

Um....So now what?
So glad you asked
This method of valuing your building leads to a whole new way of organizing the world, seem a little bit over the top? Well not really, the way we price our goods should be attached (at least roughly) to this method. So to give an example
Gold = 850 power + 90 Water + $12 Therefor 260c Costs Therefor to make equal profit to stones your gold should be priced at $342 to make a profit close to stones. Therefor to make a golden necklace it will cost 500 power + $50 + 30 gold therefor to equal stone profit sales price must => 1150

The only time this should change is when supply and demand pushes the price up, in other words if you cannot secure a guaranteed purchaser for your product at this profit level or above DONT MAKE IT! The only exception is crusaders like greed with his perfumes biz who care naught for profits.

Thanks for listening
My 2c
H

Guest · Post by **Guest** » 19.11.2010, 20:43

Erm...

Someone somewhere wrote (I lost overview over who wrote what yrs ago) that you should calcualte with npc-prices for raw materials when calculating production prices.

The reason why stones always sell is (I think) they are ALWAYS needed no matter in what business a player is involved so they have a huge demand. the prices are limited by the npc so they have a quite constant price. Not like wardrobes or other goods where demand & offer can really strike.

Somehow I do not understand the second column of numbers, to be honest...

Dopamin

Guest · Post by **Guest** » 20.11.2010, 01:11

Thanks dope,
The reason you should use NPC prices is when supply and demand is limited by the NPC. So player prices are pegged on the NPC price, like power in R1 you can only very rarely buy for under .27 ever therefore its necessary to use the NPC prices. Elsewhere however the price you buy your stuff for is ok or where the price of raw materials is normally lower than NPC, power on R2 is available at .26-.25 in large volume.

Its precisely because they sell that I used stones. First its an industry with no entry limitations, ergo any player can produce it at max profit, and the market depth of stone is astounding. I dropped 500m stones onto the market in R2 a while back and to pushed the prices down by $1.5, elasticity is out the window.

The second column is just a continuation of the first, just so my post wasn't stupidly long if I put them in a single column

Hope it cleared a bit of it up, ill add to it later
H

Guest · Post by **Guest** » 22.11.2010, 01:16

Yeah, stones tell us about it...

Got some decent mines just for raw materials in a decent Q like minerals, iron ore, coal, quartz. Whenever I do not need anything of that I produce STONES just to keep them busy. Do I have to mention that I have a quite good use for the stones?

A few days ago I had an enquiry if I could produce silver Q0 (the player noticed my accidently produced pile on the market) for him and offered me 260 each. Guess what I told him...

Dopamin

Guest · Post by **Guest** » 22.11.2010, 09:08

Dopamin wrote:Guess what I told him
Dopamin

Let me guess:

Go #$&&" yourself, you $%"$# son of a &/(%$!!!

Guest · Post by **Guest** » 22.11.2010, 09:10

Oh MY GOD!
Honey, get my tin foil hat. This bloke can read minds!
Very subtle greed =) Prehaps on topic would help?
H

Guest · Post by **Guest** » 22.11.2010, 11:09

Greed,

roundabout - not THAT bluntly - I dropped a hint to kapitools & excel... B)

Horizon,

profits might be for some players a dead dry topic - lets have some fun (and hard numbers here and there)...

Dopamin