Price required for desired profitability for each product

[Guest]

I have been extremely bored today for whole day already and i browsed through forums. I found this thread. It has a very nice idea of assigning production values to various products. However, the production values are not the best information one could get when deciding on a profitable business. The most useful information one could get when in production part of the chain is what the selling prices of a certain product should be, given the desired profitability. With this guideline in mind, i decided to make a list of prices a product should be sold for if we want to get the desired profitability per worker. All products are considered produced at merchant level with 2 workers in a building. The ratio of production between different industries doesnt change so the final results will be the same with 2 employees at merchant level or 3267employees at trillionaire level. Just multiply with the drop in productivity when you expand/reach next level. For example, lets take a look at mincemeat.

Mincemeat | 32.28 | 5.24 | 10.47 - here first number is the cost to produce without any profits taken, second number is the amount for which one needs to raise the price so his employees make 100 caps/hour each when turning beef into mincemeat, and last number is the amount for which one needs to raise the price so the workers in the entire production chain make 100 caps/hour. (i.e. plantation workers who make corn, cattle breeders who make cows, butchers who turn cows into beef and butchers who turn beef into mincemeat. All the numbers are for 2 employee producing buildings at merchant level. If someone is, lets say, manager, his producing buildings only produce 0.731 times what merchant's buildings produce. If our manager has his buildings expanded to 4000 sqm and optimized, his buildings will produce only 0.359 times what they used to at 20 sqm. So managers 4000 sqm producing buildings make only 0.262 (0.359*0.731) times per employee what merchants 20 sqm producing buildings do. Therefore we need to raise the 2nd and 3rd price for 1/0.264 times = 3.81 times. So for our manager's 4000 sqm buildings the prices would be:

Mincemeat | 32.28 | 19.96 | 39.89

IF we wanted to only make 100 caps/employee. Usually we want atleast 300 caps per employee, so we will multiply our two numbers by 3:

Mincemeat | 32.28 | 59.88 | 119.67

At these prices, we will be satisfied as each part of our production chain is making good money. We only want to calculate what the selling price would be if we want to make the desired profit - we need to add the base production price to our added value:

119.67 + 32.28 = 151.95 = Value of mincemeat if we are at level manager with 4000 sqm producing buildings and we want to make 300 caps per employee in each of our buildings.

One thing that interferes with calculations is of course npc prices, so given that all the npc products are at npc prices and are not likely to drop anywhere in the future, i will use the npc prices when calculating production costs of stuff like wardrobes etc.

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Product | Base production cost | Required price increase for 100 caps/worker profitability (only last stage) | Required price increase for 100 caps/worker profitability per unit of product (all stages)

BEVERAGES FACTORY

Apple juice | 26.69 | 4.49 | 14.02
Beer | 35.64 | 4.49 | 13.56
Bottled cocoa | 10.45 | 4.49 | 10.47
Kapi Cola | 20.36 | 4.49 | 12.26
Orange juice | 26.69 | 4.49 | 14.02
Wine | 91.47 | 8.98 | 101.93

BUTCHERS SHOP

Animal food | 30.185 | 8.98 | 11.25
Beef | 34.55 | 6.73 | 10.46
Lamb | 30.79 | 6.73 | 9.01
Mincemeat | 32.28 | 5.24 | 10.47
Pork | 23.09 | 6.73 | 9.01
Sausages | 26.25 | 5.24 | 6.14

CAR FACTORY

Cabriolets | 121490.88 | 80.64 | 2916.96
Car bodies | 40800 | 49.38 | 49.38
Cars | 134990.88 | 80.64 | 2916.96
Engines | 14659.88 | 71.94 | 99.55
Motorbikes | 30268.64 | 71.94 | 695.54
Tires | 749.3 | 26.92 | 76.22

CATTLE BREEDING

Cattle | 189.45 | 6.73 | 30.73
Chicken | 18.14 | 6.73 | 10.73
Eggs | 1.86 | 4.49 | 4.89
Lambs | 151.85 | 6.73 | 22.73
Milk | 0.72 | 2.24 | 2.40
Pigs | 188.85 | 6.73 | 22.73
Wool | 3.64 | 4.49 | 5.29

CHEMICAL FACTORY

Detergents | 25.94 |8.98 | 14.30
Lotions | 11.15 | 8.98 | 13.74
Perfumes | 45.46 | 23.95 | 31.28
Shampoo | 25.96 | 8.98 | 16.31
Toothpaste | 5.11 | 8.98 | 10.77

ELECTRONIC FACTORY

Computers | 1268.48 | 86.21 | 218.36
CPU | 255.71 | 67.34 | 69.36
E-components | 163.88 | 19.65 | 20.88
Monitors | 466.91 | 40.24 | 99.9
Printers | 417.22 | 25.25 | 74.17
Televisions | 660.27 | 33.67 | 140.76

FACTORY

Chemicals | 8.17 | 2.24 | 3.92
Gas | 8.7 | 1.50 | 2.84
Glass | 40.69 | 5.98 | 10.74
Plastic | 27.67 | 6.73 | 14.02
Silicon | 9.39 | 4.49 | 6.17
Steel | 106.21 | 9.98 | 23.7

FOOD FACTORY

Biscuits | 3.73 | 4.49 | 5.88
Breads | 8.46 | 6.73 | 10.20
Candy | 33.20 | 4.49 | 17.52
Candy bars | 24.82 | 8.98 | 18.93
Cocoa powder | 28.29 | 8.98 | 12.52
Coffee powder | 39.12 | 8.98 | 13.80
Flour | 31.57 | 8.98 | 13.88
Sugar | 47.31 | 4.49 | 18.62

FRUIT PLANTATION

Apples | 3.03 | 4.49 | 4.71
Bananas | 3.03 | 4.49 | 4.71
Grapes | 3.30 | 4.49 | 4.71
Lemons | 3.03 | 4.49 | 4.71
Oranges | 3.03 | 4.49 | 4.71
Pears | 3.03 | 4.49 | 4.71
Strawberries | 3.03 | 4.49 | 4.71

ICE FACTORY

Banana ice cream | 6.83 | 4.68 | 16.5
Chocolate ice cream | 9.43 | 4.68 | 13.5
Coffee ice cream | 12.13 | 5.61 | 14.43
Lemon ice cream | 6.83 | 4.68 | 16.5
Orange ice cream | 6.83 | 4.68 | 16.5
Strawberry ice cream | 6.83 | 4.68 | 16.5

JEWEL FACTORY

Diamond rings | 9574.80 | 35.91 | 174.07
Golden necklaces | 8049.00 | 28.45 | 179.95
Golden watches | 10696.07 | 28.45 | 231.52
Silver necklaces | 5967.00 | 20.94 | 105.19

JOINERY

Beds | 1932.42 | 20.94| 134.73
Chairs | 1010.7 | 13.47 | 203.12
Tables | 621 | 20.94 | 20.94
Wardrobes | 2355 | 21.69 | 21.69

MINE

Coal | 4.68 | 1.68 | 1.68
Diamonds | 315.00 | 6.73 | 6.73
Gold | 262.80 | 5.05| 5.05
Iron ore | 4.86 | 1.68 | 1.68
Minerals | 5.02 | 1.68 | 1.68
Quartz | 5.04 | 1.68 | 1.68
Silver | 232.20 | 3.37 | 3.37

PLANTATION

Cocoa | 4.33 | 2.99 | 3.21
Coffee beans | 5.68 | 2.99 | 3.21
Corn | 3.07 | 0.49 | 0.80
Cotton | 3.88 | 9.43 | 9.65
Potatoes | 1.63 | 6.73 | 6.95
Rubber | 10.73 | 4.49 | 4.93
Seeds | 0.28 | 0.22 | 0.22
Sugar Cane | 13.92 | 4.49 | 4.71
Wood | 36.28 | 5.98 | 6.20

TEXTILE FACTORY

Jeans | 423.42 | 23.95 | 137.74
Leather | 285.23 | 8,98 | 24.35
Leather gloves | 184.62 | 23.95 | 36.13
Leather jackets | 586.37 | 31.45 | 93.73
Pullovers | 132.62 | 16.46 | 58.78
Shoes | 347.76 | 16.46 | 66.57
Textiles | 109.14 | 8.98 | 37.93

TOY FACTORY

Stuffed animals | 373.22 | 16.46 | 144.57
Toys | 300.51 | 16.46 | 58.52
Wooden toys | 409.34 | 21.69 | 49.73

TV STATION

Advertisements | 540.00 | 24.30 | 24.30

WELL

Oil | 36.00 | 6.73 | 6.73

p.s. you can calculate your own drops in productivity with help of kapitools

[Guest]

Very good job and verry helpful!!!!(also JR Enterprise). I never saw before the other thread (I'm playing this game only from Aug 2010 so I'm kinda new here). Usually I look for the new things but I think a treat like this is very usefull and was easier for me if I saw it before!

I did my own calculations for some products I make (not for all) and are close enough with yours but I never thought of profit per worker (good ideea).

I hope that these calculations will help lot of new players, because I saw many players who... just because they want to make something more diverse and more complicated, they sell products under the production costs and loosing money! Few of them I managed to warn them, but I think there are many who do so!

[Guest]

Quite useful as a rough guideline when profitabilty start going totally down the drain

This first totally leaves out demand/supply...

If I look at my decent size company which could produce odds and sodds am now "convinced" by a customer, that my Q0 TVs should never ever be sold over 200? Due to a lower price even would be profitable?

Well, Televisions are made out of plastic, glass, e-comps, I wonder how you calculate the two factory goods workerwise. Mine can only do either or and to prooduce 100k of one does not take as long as the other.

I am regularly stunned what maths can explain

Nah, when someone wants a decent amount of goods in a relatively short time, its either my price or no sale. And I keep on assuming most of the time - I assume, a few k for a TV is quite profitable - for all stages of production...

Dopamin

[Guest]

first of all, if you find a way to include supply&demand in my calculations, i will be more than happy to add it

second of all if you read THIS POST you would understand i am not saying your TV's should be sold for 200. neither am i saying they should be sold for 660.27.

and since you asked, i first calculated the prices for plastics/glass/e-comps and then included them in price.

and yes, if someone wants in short time i am sure you can enforce your way. however if you want to do steady business ...

[Guest]

Very nice and super helpful...

this will be a great guide for anyone to use if you want to explore newer markets...

I just restarted my R1 company and you already helped me make some decisions..

Good Job buddy..