Red, Yellow or Green?

[Guest]

Many new players always have ONE question: Do I build this building in the green, yellow or red area?
I have seen many old and big players doing the same mistake too...It doesn't matter to them because they have enough money to cover the losses. But it is a big thing for the new players.

Here in this guide, I will hopefully help you in chosing which area you should build your buildings in.

Production Buildings:

Here are some production costs of products in the three areas:



*The ratio is the decrease in production cost from the earlier area.

If you noticed:
Production cost decreases by 1.666... times from red area to the yellow area
Production cost decreases by 2 times from yellow area to the green area.

This is true for ALL PRODUCTS in kapilands(except for extremely cheap products like power becuase its difficult to find a number exactly in the same ratio)

Now, to calculate average profits we will need three whole numbers that fall in the same ratio:



Let's say there is a products that uses these production costs and you can produce 1000 of it in 24 hours/1 day.




CLEARLY,
Green area gives the maximum DAILY profit...And red area gives the LOWEST.
For new players, the 25% extra production sounds a lot. But it really is giving you lower profits while you could earn higher profits by buying a cheaper building!

Now, for wells and mines.




NO DOUBT! Wells and mines should never be built anywhere except the yellow area. As you can see, the yellow area gives you around twice as much profits as the red area! That is a truly a lot.

Farming and Plantation products produce 25% faster in the green areas. Extra production in an area with the highest profits! You don't need a spreadsheet to tell you where to build farming/plantation buildings.

Research Centres:

These buildings should be built in the red area. As you go on researching, the research time increases highly exponentially. 20% faster researches could save you days of research. And you could use those saved days to produce high quality products which you could sell for higher prices! If you are a new player, you may build a research centre in the green area to save some money, but faster research will earn you more money than saving you any.

Stores/Shops:

There are no specific areas to build these in. YOu should normally go to "STATS" and check out which country sells your product for the highest price. This countries are mostly in the red area. You might not mind selling products for lower prices to save money, but if you notice: Red areas sell products for nearly twice the prices of other areas. I don't know whether only red area has the highest selling prices, but you should always see which country WITHIN the red area sells it for high prices.

SUMMARY:

All production buildings except wells and mines in GREEN AREA.
Wells and Mines is YELLOW AREA.
Research Centres in RED AREA.
Stores and Shops in RED AREA but in the RIGHT COUNTRY with the HIGHEST SELLING PRICES.

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I hope this guide help a lot of new players and probably changed the way older players think.

If any for you notice a flaw in my calculations OR notice that I haven't taken a specific factor into view, please tell me so that I can recalculate and edit this post to help new players get accurate calculations.

Thank you!

[Guest]

Damnit, so all factories in GREEN?

I gotta stop going to this forum, it keeps influencing me to sell factories and build in another area! Ugh!!

[Guest]

Your forgot Textiles... Textile factories should ALWAYS be in RED. It is well worth the extra production.

[Guest]

partially right and wrong.

[Guest]

Nicely laid out and presented. However, I do have a bit of an issue with it.

Your observations about ratios are correct. However, to reach your conclusion you slipped in an assumption without even discussing it. And that assumption has completely dictated the results. Here's what I mean:



Where did that "20" come from? Try putting a "40" there and see what your results say.

The answer to "which zone do I build in" is dependant on production cost related to profit margin. That is going to vary on every product. So to truly answer this, you need a list of every manufactured product in the game, and a price point above which red becomes useful.

For example, power is better in green up to about .14. Above that, there's so much profit built in that it's better to build in red for the extra production.

You're correct on the farms, research, and stores. Stores are dominant in red because of the salary level - it's such a severe difference that yellow and green really aren't options.

[Guest]

All production buildings except wells and mines in GREEN AREA.
Wells and Mines is YELLOW AREA.
Research Centres in RED AREA.
Stores and Shops in RED AREA but in the RIGHT COUNTRY with the HIGHEST SELLING PRICES.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
I hope this guide help a lot of new players and probably changed the way older players think.

If any for you notice a flaw in my calculations OR notice that I haven't
taken a specific factor into view, please tell me so that I can recalculate and edit this post to help new players get accurate calculations.

Thank you!

Yes, you should recalculate this.

Like Knolls said: The most important thing is the selling price of the product that you want to produce. And you also didn

[Guest]

Thanks a lot guys for commenting me. I guess I will be making a separate table for each product then . If possible is there any place I can find production costs of all products in each area?

Elwood, you are extremely right, I havent stopped researching and making more spreadsheets and calculating since my first post. So, you all will probably see a fully revised version of WHERE to build a building with corrections thanks to all of you advanced players who are helping me achieve my goal of making sure new players dont build wrong things at the wrong place.

I am trying my best to find a specific pattern in the increase of profits so that i casn save myself from excessive work of making sheets of each product and instead making ONE DATA TABLE and ONE GRAPH that will represnt all products.

[Guest]

www.kapitools.de

You can get all the information there. But in my opinion, everyone needs to do the calculation for himself, because you cannot know for what price the people sell and what quality they can produce. And with the quality, the production costs changes, and....

But you can try your best.

All the other suggestions are right: In yellow only mines and wells, selling buildings mainly in red, but choose the right country.

Elwood

[Guest]

I am trying my best to find a specific pattern in the increase of profits so that i casn save myself from excessive work of making sheets of each product and instead making ONE DATA TABLE and ONE GRAPH that will represnt all products

You can not make one data table and one graph that will represent all the products. You really have to make a different calculation for each product.

Each product really has its own increase in profits. High Q steel, or high Q wood, don't benefit from their high Q as much as high Q gas or leather jackets do. You can check the market prices for these products to have a rough idea of this fact.

However, for each individual product, in order to avoid doing the calculations many times (once for each Q), and to still have a common "increase of profit" reference for them, I took their value (and production costs) at Q10 when I did my own calculations to decide in which buisnesses I'd diversify. The profitability at Q0 can be misleading for many products, and Q10 is high enough to start erasing fixed costs of lower Qs. Yet it remains common enough to easily get an idea of its value on the market. It's also a reasonable goal that won't take 6 months of research (eventhough you won't get it overnight either).

Of course, you also need a common level for all the calculations. The production drops fast in the early levels, then it steadies slowly, when considering the decrease in production output from one level to the next down. This is because each level (starting from small businessman) has a fixed increase in production time (3.33%), but it's fixed compared to merchant output, and not compared to the previous level's output. When compared to the previous level's output, that percentage decreases from level to level (i.e. from Upmarket Businessman to Manager, the production time increases by 2.5%, from Manager to Entrepreneur, it only increases 2.44%, then 2.38%, etc).
But the very first level, you loose a whole 13.33%, and the first 3 levels combined represent a drop of 26.666 %. Sounds close to a familiar number ? =)
Many people take merchant level as a reference. Hourly profit calculations are technically not wrong if you take the same level as reference for each product you compare. But in your case, where you want to also compare red, yellow and green areas, I'd advise against taking a reference level too low, such as merchant or retailer. The bonus production output at these levels might artificially boost the results in favor of the area with a production bonus (red for factories, green for plantations, etc), especially if you take a higher Q (and you can't produce high Qs at merchant level).
I would suggest taking manager as reference level. But anything that isn't below Upmarket Businessman would probably be fine (and would also be coherent with a Q10 end product).

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It won't spare you having to do the hourly profit once per product and per zone. But it should spare you having to do it also once for each Q. As long as you stay away from extreme situations (such as quality 0, or merchant level), your area comparison should be just fine.

[Guest]

I am not going to be taking QUALITY into view as quality does not change the production cost and thus does not change the PRICE MARK on the graph that represent the point between red area and the green area.

[Guest]

I am not going to be taking QUALITY into view as quality does not change the production cost and thus does not change the PRICE MARK on the graph that represent the point between red area and the green area.

Sorry that I

[Guest]

Its ok...I am just discovering new things from this thread.

I never knew Q changes prod costs. Sorry, for stating that it doesnt.

Oh no...Kapilands is even more complicated than I thought!

[Guest]

I never knew Q changes prod costs. Sorry, for stating that it doesnt.

It

[Guest]

I am not going to be taking QUALITY into view as quality does not change the production cost and thus does not change the PRICE MARK

1) Quality does change the production cost. Kapitools will actually list the accurate prod cost, depending on the quality.

2) Quality also changes the resale value of the finished product. That's precisely why there is a mark on the graphs that represents the point where red becomes preferable to green. That mark depends on how many times per hour, you can cash in the net profit per item. The "how many times per hour" is decided by the area. The "net profit" is decided by the product, and its quality.

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Knolls gave you the example of power, and its a good example, because production costs are the same for everyone, all year around, since it requires no other semi-products to manufacture (and semi products themselves go up and down in value).
At manager level, the equilibrium point of power is 0.11. It's easy to demonstrate:

At manager level, a 20m

[Guest]

I would probably forgive not taking quality into account in the calculations. The cost adjustment is relatively minor. Of course to be perfect, yes you should ...

If only there was some website we could look at to find these values though. Elwood, do you know of one?