Try calculating how much you would make if you sold coal, iron ore, chemicals and power on the market, lets call that A, and then take the price at which you can sell your steel, lets call that B. Now calculate A-B, lets call that C. C will give you the profit you make by turning the coal, iron ore, chemicals and power into steel. I dont know how much C is for realm 2, but for realm 1 it is minimal or even negative.Stash wrote:Hm,
thought about producing the coal + iron ore yourself?
I produce Coal for 0.33 Caps and Iron ore for 0.51 Caps.
--> 1.65 Caps Coal + 1.02 Caps Iron ore = 2.67 Caps costs for 1 steel
+ of course self-made chemicals 2.59 Caps
+ power 2 Caps
+ 15 Caps production cost
= 22.26 Caps costs per Steel
134-22.26
= 111.74 Caps profit (I can live with that!)
Were is my mistake
Raw materials NPC
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It may be different now, but as I recall coal and iron ore have both sold very quickly. If they didn't, the price would move down until producing it was less profitable and making steel was more worthwhile again. Ah, the wonders of market equilibrium.Stash wrote:I understand your points, but as said already, steel is a sure 132-134 on the market. Your coal + iron ore may stay on the market for a couple of weeks until finally sold.
He saves 134, same as it would cost him to buy. Which is not a lot.+ you must not forget how much you can save when using the produced steel for your own buildings!
Try thinking of it this way Stash. Suppose Bill Gates left Microsoft and came to work for you. What would you have him do? Would he cut the grass? Think of the money you'd save on lawn maintenance! Would he cook lunch? The money you'd save on takeout!
No, he would do what is most efficient for him to do - design software. For anything else, it doesn't matter what you save, because you're giving up a much better opportunity. It would be silly to take a person who is capable of designing a computer operating system, and use him on some less valuable chore. If he could make billions, why obsess over saving a few hundred?
Well it's the same with your buildings here. A land slot is a valuable thing. Why waste your factory converting materials to steel to save a few caps, when you could make and sell gas or chemicals and make enough money to buy that steel with cash left over?
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That's something I've though alot about myself. Currently I am no where near filling up my building slots, so I am continuing to produce q0 steel, stones and q0 wood.Knolls wrote:Well it's the same with your buildings here. A land slot is a valuable thing. Why waste your factory converting materials to steel to save a few caps, when you could make and sell gas or chemicals and make enough money to buy that steel with cash left over?
I have an idea that as I grow and the amount of buildings slots I have gets smaller, those materials slots (stones, steel and q0 wood) are going to be among the first things to go. Unless at that point I need high q steel for something, then the steel factories might stay. The contract price between players and what you can get steel q0 from the NPC is very small. For q0 steel is almost makes sense to just go wiith the NPC or a player willing to produce it for you, rather than produce it yourself. Especially as your company grows.
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Re: Steel
If you would do this, the price would go THROUGH THE ROOF!! I mean we'd be paying 300 for steel, no limiter, so way to slow it down. That would make power, water, coal, iron, chemicals, and minerals go up, but wow, it would make everything go up. Everything would have to double....triple, and suddenly people making steel don't make any more money.Philip212 wrote:I think that the only solution to the lack of steel producers is to eliminate the NPC. This would make if fair for all players and would encourage more people to produce steel, this would increase the demand for power, iron ore, coal, water and chemicals. this would help hundreds of players.
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Re: Raw materials NPC
Hey buddy,snapser wrote: 5x coal = 5x 18.95 -> 94,75
2x iron ore = 2x 21 -> 42
0,5 x chemical = 0,5x 21 -> 21
200x power = 200 x 0,09 -> 18
Q0 production cost in green -> 4,5
Q0 production cost in red -> 15
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Manufacturing cost in green -> 180,24
Manufacturing cost in red ----> 190,75
NPC price ----------------------->135,00
Nobody ask you to buy at market price. At variable cost :
Coal : 2,73 caps
Iron : 2,91 caps
Mineral : 3,49 caps
Chemical : 5,47 caps
Steel at variable cost : 57,21 caps in red area.
If you prefer to buy you raw material 10 times their price, it is your business.
If you add depreciation at 30 days for your mine + 25% margin, you still below 135 caps / unit in red area.
People wants the highest profit. Sometimes the best way is a shorcut : Producing yourself.
Business(wo)men which are in raw material industry can survival only with High quality product. Clients are always ready to pay a premium for the highest quality not for low quality.
Regards,
SPB,
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SPB could you please rewrite your post so that i can atleast remotely see your point 
oh and heres my 2 cents - at the current NPC prices no one produces steel, so steel is actually a really funny product, used by many, produced by (almost) no one. one begins to wonder why is it even included in the game
its really so unnecessary, except that the steel npc eats HUGE quantities of cash daily. with all that money companies could do so many other things 
oh and heres my 2 cents - at the current NPC prices no one produces steel, so steel is actually a really funny product, used by many, produced by (almost) no one. one begins to wonder why is it even included in the game
its really so unnecessary, except that the steel npc eats HUGE quantities of cash daily. with all that money companies could do so many other things -
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You forgot on one thing SPB Corp. To have few mines, some factory + some plantations will lower your manufacturing cost of wardrobes really much. That is true. But that is best begining if you were playing single player game. At this point you should rething why to sell wardrobes so cheap. You can open your own stores and be selling wardrobes there for almost +50% to price that offer most players. So you are completly independent.... completly single player game.
Making steel is waste of your building slot potential.
For small chek... if you will have all buildings you wanted, but only 1 mine(at 1.000.000m
Making steel is waste of your building slot potential.
For small chek... if you will have all buildings you wanted, but only 1 mine(at 1.000.000m
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I have an issue with regard to the often referred to balance. In a real market, there's not balance across different market segments. You can't expect drugs to be balanced with cars to be balanced with clothes. Some sectors are capital intensive, some are price sensitive, some are rapidly expanding. Each company does what they know best and not what might bring the most money. In real life, it's really rare that a company jumps from one sector to another just because it's more profitable. And it usually ends up miserably, as they are not experts in the new field.
I don't know if producing low/high q steel is profitable. I don't know what's the most profitable market to be in. But I would say, pick a sector, any sector, a sector that would suit your taste and get the best in the sector.
Ziyi, for instance, is on the way to being the best in producing money. ^^
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I don't know if producing low/high q steel is profitable. I don't know what's the most profitable market to be in. But I would say, pick a sector, any sector, a sector that would suit your taste and get the best in the sector.
Ziyi, for instance, is on the way to being the best in producing money. ^^
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