are wardrobes profitable?

Guest · Post by **Guest** » 18.02.2009, 15:01

Hello!

Currently I'm a wood supplier, but I'm looking in the future and one day I will come into furniture business. I have tried to calculate profit from wardrobes q0:
18 production cost
20 Piece Wood * 75c
5 kg Steel * 135c
600 kWh Power * 0.14c
Total = 18 + 20 * 75 + 5 * 135 + 600 * 0.14 = 2277

Price on the market is about 2200-2800c
Price in the stores is 2500-3000c (and high avg quality)

Where is the great profit that so many players produce and sell wardrobes??? Have I missed something in my calculations?

I think, I will stay in the wood business, because it's much more profitable than furniture.

Guest · Post by **Guest** » 18.02.2009, 15:06

hmm i had once gone into wardrobe business the thing is you must put the wardrobes in your store for 48 hrs to get a good price for it and you need high quality in wardrobes.. and i guess there are some more factors but i am no expert in this business... i left it anywayz

Guest · Post by **Guest** » 18.02.2009, 19:00

Wardrobes make some money but in my opinion not enough( i tried before) its a good business as the stores cost the most per m2 and big players like their fixed assets so furniture+jewelry stores both offer the same amount per m2 and jewelry markets fluctuate to much, therefore they go into wardrobes draggin 25% of kapi with them!

Guest · Post by **Guest** » 18.02.2009, 19:03

and whats your proposal? gas? that isnt way to go either, you dont get as much by improving quality as with wardrobes.

Guest · Post by **Guest** » 18.02.2009, 19:06

Yes but for small and medium players gas is a much better oppurtunity than wardrobes, thus i am staying in gas

Guest · Post by **Guest** » 18.02.2009, 19:26

GREED inc. wrote:that isnt way to go either, you dont get as much by improving quality as with wardrobes.

Do you have calculations for the high q wardrobes? Could you publish them please?

Guest · Post by **Guest** » 19.02.2009, 00:37

rasfast wrote:
GREED inc. wrote:that isnt way to go either, you dont get as much by improving quality as with wardrobes.
Do you have calculations for the high q wardrobes? Could you publish them please?

I am currently producing Wardrobes Q26 and selling them on my Stores.
Here is my current calculations:
1 Coal Q20 = 10 x 0,27 (Power) + 7 x 0,27 (Water) + 0,16 = 4,75
1 Iron Ore Q20 = 10 x 0,27 (Power) + 7 x 0,27 (Water) + 0,49 = 5,08
1 Mineral Q23 = 9 x 0,27 (Power) + 9 x 0,27 (Water) + 0,31 = 5,17
1 Chemical Q30 = 1 x 5,17 (Mineral) + 10 x 0,27 (Power) + 0,85 = 8,72
1 Steel Q23 = 2 x 5,08 (Iron Ore) + 5 x 4,75 (Coal) + 0,5 x 8,72 (Chemical) + 200 x 0,27 (Power) + 24 = 116,27
1 Wood Q26 = 50 x 0,27 (Power) + 50 x 0,27 (Water) + 1 x 4,65 (Seeds Q37) + 17,28 = 48,93
1 Wardrobe Q26 = 20 x 48,93 (Wood) + 5 x 116,27 (Steel) + 600 x 0,27 (Power) + 31,20 = 1.753,15
I am selling all my daily production (30.000) at the price of 5.500,00 each on my stores on a cycle of 24 hours, wich gives me more than 3.500,00 of profit each. Besides that I'm also buying Wardrobes Q18 at 3.100,00 each and sell them at 4.000,00 each.

Guest · Post by **Guest** » 19.02.2009, 01:11

i use 2000+75q, which makes me quite decent profit. it is also worth noting that i sell most of my wardrobes to people who buy wardrobes, while i expand my stores, which will soon (in one yar) become the biggest retail buidings in the whole damn realm. then i will sell them all to be the no.1 perfume producer in whole kapilands.

Guest · Post by **Guest** » 19.02.2009, 02:22

So you have to have high Q research before you make to much of a profit?

If this is so then it isnt great tbh... if you are dedicated its fine, or if you have a lot of cash but otehrwise it isnt worth it, taking years to research a high Quality and all that :S

Guest · Post by **Guest** » 19.02.2009, 03:30

SiberianTiger wrote:I am selling all my daily production (30.000) at the price of 5.500,00 each on my stores on a cycle of 24 hours, wich gives me more than 3.500,00 of profit each.

105M profit on 5.4B fixed assets making wardrobes in Realm 1? Is that just a fraction of your business? I make 40M in oil/gas on maybe 200-300M FA (about 2/3 of my business).

Guest · Post by **Guest** » 19.02.2009, 06:20

SiberianTiger wrote:Here is my current calculations:
...
1 Wardrobe Q26 = 20 x 48,93 (Wood) + 5 x 116,27 (Steel) + 600 x 0,27 (Power) + 31,20 = 1.753,15
I am selling all my daily production (30.000) at the price of 5.500,00 each on my stores on a cycle of 24 hours, wich gives me more than 3.500,00 of profit each. Besides that I'm also buying Wardrobes Q18 at 3.100,00 each and sell them at 4.000,00 each.

Thank you very much for your numbers!
The main question: do you produce all materials yourself? If yes, it seems to be a great defect in the business. Recently I have learnt that I should buy most of the materials and concentrate on producing of my main product. I think, it's true for all companies in all realms (and maybe for the real world too).
If you buy most of the materials then the price for wardrobes will be higher in 2-3 times, and they become completely unprofitable.

GREED inc. wrote:it is also worth noting that i sell most of my wardrobes to people who buy wardrobes, while i expand my stores

Yes, but the problem is producing wardrobes with the lowest cost. I have showed my calculations, and it seems like the prime cost of 1 wardrobe q0 is about 2250-2300c. If I sell it to you for 2000c - I will fail.

Straw Man wrote:I make 40M in oil/gas on maybe 200-300M FA (about 2/3 of my business).

Wow, 13-20% from FA! It's really cool. It seems like I will get a manager level, sell all my plantations and move to gas industry

Guest · Post by **Guest** » 19.02.2009, 06:33

rasfast wrote:Wow, 13-20% from FA! It's really cool. It seems like I will get a manager level, sell all my plantations and move to gas industry

Hmm, no, I will not do that, because I will lose a chance to get good money from contest!

Gas industry has no variety of products (water, oil, gas and nothing more), and it's nearly impossible that one of the contest will be made in gas industry.
But the latest contest in realm2 gives me a great boost - I have gor 3 times more than my FA

Guest · Post by **Guest** » 19.02.2009, 08:30

Straw Man wrote:
SiberianTiger wrote:I am selling all my daily production (30.000) at the price of 5.500,00 each on my stores on a cycle of 24 hours, wich gives me more than 3.500,00 of profit each.
105M profit on 5.4B fixed assets making wardrobes in Realm 1? Is that just a fraction of your business? I make 40M in oil/gas on maybe 200-300M FA (about 2/3 of my business).

No my daily net profit it's around 900 million, I also produce and sell gaz, produce and sell cabrios and jewells.

Guest · Post by **Guest** » 19.02.2009, 11:15

Straw Man wrote:105M profit on 5.4B fixed assets making wardrobes in Realm 1? Is that just a fraction of your business? I make 40M in oil/gas on maybe 200-300M FA (about 2/3 of my business).

when my expansions are finished i will make approximately 1 billion daily on wardrobes. considering that my fixed assets are 6.7 bil and that wardrobes business comprises roughly 60% of my fixed assets, then they give me about 25% of my f.a. daily

and p.s. my previous post didnt make much sense

Guest · Post by **Guest** » 19.02.2009, 14:18

GREED inc. wrote:i will make approximately 1 billion daily on wardrobes.

Do you produce or sell wardrobes?
If you produce - do you make all materials yourself?