Hi there,
This is Liandri Mining Corp from R2. I decided to call it an end and wait for R3, but then instead of the big auction held in R2 section, my final bit to offer is the Excel file I always rely on to operate my company. Yes, I'm going to share it here.
I'm not going to explain it in very details, just briefly:
This file has a couple of macros, but they are harmless, you will see the usage later.
BOM - This page is fixed, no need to touch it.
cost2 - This is the page you use most. Simply type the price in the "Selling Price" column, and you have interactive info updated in the whole spreadsheet. Items I rely on includes: Profit per hour> Mainly use for absolute comparison of cashflow between different buildings. ROI (Return on Investment)> THis should be the ultimate indicator of how profitable an item can be based on the price of its raw material.
tree - please ignore
tree2 - Press the button 1 to use, it calculates the ingredient of an item (Using macro)
price/ROI - A sheet used by me to compare how value adding of each research is, not yet completed, but usable, please explore by yourself.
Sheet1 - All info used by the sheet "cost2" are here, most info from Kapitools.de and based on Large Scape Manufacturer, 1000m2 of building.
Location of the file:
http://www.mediafire.com/?wj0jkzzwuin
Final bit from me based on my R2 experience
Moderator: moderators
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Now it is time to play for a few hours with that spreadsheet... 
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Kapiland is a business game, and to do business, our focus will be maximizing profitability.
Knolls has a lot of explanation on this topic already, I'm also going to explain it in my words, and with the Excel file I supplied above.
The basic thing to do in order to maximize your profitability is to find out the most profitable product. Profitability is defined as:
[Selling price in store] - [Ultimate unit cost]
Semi-products like plastic or gold or car body are not going to generate any real money from end customer, and their value are solely dependent on how other manufacturers are going to price them, and they should not be considered individually.
Ultimate unit cost should be in terms of power, since all items in this game are ultimately produced just by power. You use power as input, and make some item in factories, in between you added value in the process. Our target is to find out:
1. what factory can help you add the most value, and
2. how to reasonably charge your customer due to your value-adding.
To achieve target 1:
It's simple, you just fill in the price and you will find them out, in terms of profit per hour or ROI.
To achieve target 2:
This is the topic I would like to explain. To do this effectively using my Excel file you need to use an Excel function call "Solver". In brief, solver accepts multiple constrain/requirement of a calculation and try to find out an optimum solution. Search it in google and you know how to operate it
1. Create a dummy row and input related details to simulate a store (you will find examples in row 115-124 in sheet "cost2", you can just re-use those rows).
2. For store, selling price is the target selling price you will put the item in a store to sell in game. Production cost is always 0. Material cost is the buying price of finished good. Production rate is hourly rate of how fast your goods sell in 10m2 of your store [so if you sell 1000 eggs in a 50m2 grocery in 24 hours, production rate is (1000/5)/24]. CAPEX is how much you need to pay to build 10m2 of that store. Others just leave them with the formulas.
3. Now you need to properly configure Solver to calculate. I built some models which you can use in row 205-220 in sheet "Cost2". (To load a model, launch solver-->press options/preferences-->press load model, select rows to load. For example, for computer you should select A206:A220, TV is H206:H217). The concept here is to balance the ROI of every part of the supply chain, so for example, if you are making TV, no matter if you are making quartz or plastic or selling TV, you get the same ROI, so no one grows too fast and no one gets no profit.
Knolls has a lot of explanation on this topic already, I'm also going to explain it in my words, and with the Excel file I supplied above.
The basic thing to do in order to maximize your profitability is to find out the most profitable product. Profitability is defined as:
[Selling price in store] - [Ultimate unit cost]
Semi-products like plastic or gold or car body are not going to generate any real money from end customer, and their value are solely dependent on how other manufacturers are going to price them, and they should not be considered individually.
Ultimate unit cost should be in terms of power, since all items in this game are ultimately produced just by power. You use power as input, and make some item in factories, in between you added value in the process. Our target is to find out:
1. what factory can help you add the most value, and
2. how to reasonably charge your customer due to your value-adding.
To achieve target 1:
It's simple, you just fill in the price and you will find them out, in terms of profit per hour or ROI.
To achieve target 2:
This is the topic I would like to explain. To do this effectively using my Excel file you need to use an Excel function call "Solver". In brief, solver accepts multiple constrain/requirement of a calculation and try to find out an optimum solution. Search it in google and you know how to operate it
1. Create a dummy row and input related details to simulate a store (you will find examples in row 115-124 in sheet "cost2", you can just re-use those rows).
2. For store, selling price is the target selling price you will put the item in a store to sell in game. Production cost is always 0. Material cost is the buying price of finished good. Production rate is hourly rate of how fast your goods sell in 10m2 of your store [so if you sell 1000 eggs in a 50m2 grocery in 24 hours, production rate is (1000/5)/24]. CAPEX is how much you need to pay to build 10m2 of that store. Others just leave them with the formulas.
3. Now you need to properly configure Solver to calculate. I built some models which you can use in row 205-220 in sheet "Cost2". (To load a model, launch solver-->press options/preferences-->press load model, select rows to load. For example, for computer you should select A206:A220, TV is H206:H217). The concept here is to balance the ROI of every part of the supply chain, so for example, if you are making TV, no matter if you are making quartz or plastic or selling TV, you get the same ROI, so no one grows too fast and no one gets no profit.
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Mr Right, yes, I'm from Hong Kong, I suppose you are too?
Ronintje, that is what I called mis-pricing. Indeed I got a group of partners making 1 single product together, and no matter which part you are in, you earn the same. That is the fair way, and it is the best way to grow together, so no one grow too fast, no one grow too slow and become the bottleneck of growth for the team as a whole.
Ronintje, that is what I called mis-pricing. Indeed I got a group of partners making 1 single product together, and no matter which part you are in, you earn the same. That is the fair way, and it is the best way to grow together, so no one grow too fast, no one grow too slow and become the bottleneck of growth for the team as a whole.
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Then you surely must have payed well above market price for your quarts.liandri wrote:Mr Right, yes, I'm from Hong Kong, I suppose you are too?
Ronintje, that is what I called mis-pricing. Indeed I got a group of partners making 1 single product together, and no matter which part you are in, you earn the same. That is the fair way, and it is the best way to grow together, so no one grow too fast, no one grow too slow and become the bottleneck of growth for the team as a whole.
I've rarely ever seen it above 5 each and i keep pointing out those who sell it at the market at the usual 1-3 each are.....i know i'm not allowed to say that word, but the word is "Retards"...
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I agree.Ronintje wrote:Then you surely must have payed well above market price for your quarts.liandri wrote:Mr Right, yes, I'm from Hong Kong, I suppose you are too?
Ronintje, that is what I called mis-pricing. Indeed I got a group of partners making 1 single product together, and no matter which part you are in, you earn the same. That is the fair way, and it is the best way to grow together, so no one grow too fast, no one grow too slow and become the bottleneck of growth for the team as a whole.
I've rarely ever seen it above 5 each and i keep pointing out those who sell it at the market at the usual 1-3 each are.....i know i'm not allowed to say that word, but the word is "Retards"...
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For quarts to become more profitable then stone you need high Q and like what liandri said, when you work togheter as a team where profits are spread it can be profitable because you need that item nomather what for your endproduct. Quarts is not only low priced, the supply/demand is also limited. When you are buying alot of quarts, prices will go up unless you have a provider that can fullfill all your needs.
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So you tell me he payed a lot above market value??OBHD wrote:For quarts to become more profitable then stone you need high Q and like what liandri said, when you work togheter as a team where profits are spread it can be profitable because you need that item nomather what for your endproduct. Quarts is not only low priced, the supply/demand is also limited. When you are buying alot of quarts, prices will go up unless you have a provider that can fullfill all your needs.
You write prices will go up when you buy a lot, but i've rarely ever seen market above 5 and mostly it actually was around 1-3.......regularly even below 1 each !!!!!
But despite that you say he payed a lot more for it.
Like 20 each or something???
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Your way of thinking is definitely on the individual side, focusing on your own growth but neglecting the importance of your suppliers/customers growth.Ronintje wrote:So you tell me he payed a lot above market value??OBHD wrote:For quarts to become more profitable then stone you need high Q and like what liandri said, when you work togheter as a team where profits are spread it can be profitable because you need that item nomather what for your endproduct. Quarts is not only low priced, the supply/demand is also limited. When you are buying alot of quarts, prices will go up unless you have a provider that can fullfill all your needs.
You write prices will go up when you buy a lot, but i've rarely ever seen market above 5 and mostly it actually was around 1-3.......regularly even below 1 each !!!!!
But despite that you say he payed a lot more for it.
Like 20 each or something???
Try to think in this way, if you supplier grow slower than you, eventually you will be under-supply, so you cannot make use of your production facilities efficiently. On the other hand if your customer grows slowly, no one buys your product and again you slowly pile up your inventory and your growth slowed as well.
You keep saying quartz, so we use this as an example. If you look into the market, we seldom have high Q quartz there, and even they are available, they are in very low quantity, and much more expensive than other available quartz.
Quality comes with a price, and I'm not the type of manufacturer blindly chasing after quality. But that implies that someone out there is able to make high Q quartz, they found it worthwhile to research in quartz. So why develop the quality and productivity when something is so extremely mis-priced? (Other products with similar situations are namely Cattle, Wool)
Quartz in market are basically unusable, and the reason is unstable supply. They all in low quantity, how can you continuously use them as a source? The only way if you are glass/silicon maker is to partner with someone and guarantee his profit. You share your profit in glass/silicon with him. You taking all his profit and pay 5c each for a quartz, very soon you will find yourself lack of supply.
Typed a lot, but it's all in one sentence actually: Think of the supply chain as a whole