[Economy] House factory and RAW companies - Rentability
Unamused Rick Sanchez
Good afternoon everyone, today I pretend through this article that someone that is more knowledgeable than I am in the economic module to tell me that I am wrong, I am (was) personally very interested in this module, it probably was my favorite module until Plato decided to destroy it completely because it didn't give him money which made us go and ask him when he was gonna fix this module, this was more or less his response:
The point is that the profitability of the companies are not worth the time nor the Gold you should invest in them to become profitable, because you have to invest hundred maybe thousands of gold in companies and you have to use all your daily energy in order to make a fortune, this will prevent you from fighting so you will have to choose between fighting or working and if you do both you won't excel in any of them.
I have been doing some calculations to see which of the existing companies in the game is more profitable and to be honest, I was really surprise, and not in a good way, we all know the economic module its destroyed but I didn't think it was this destroyed, I don't pretend to enlight anyone, as I said my intention is for someone else to enlighten me and point me where I am wrong, I still have a little hope.
At first my intention was to see how profitable were house factory companies and RAW companies since I was thinking about creating new companies besides the weapons one I have been using in the last years.
This were the results:
First we have to have in mind that house companies can not be worked as manager, which means you can only profit from them by employing other players. Also I would like to remark that this article is written by somebody that does not use any packs.
As I was saying, first of all, house companies can not be worked as manager, you have to employ players.
RAW companies:
Base productivity is what the building produce in a country with 0% house bonuses, you can check what your country’s bonuses are by going to the tab Community:
Then choosing the option “My country” and then choosing the tab “Economy”, then finally scroll down until you see the “Productivity information” section:
Depending in how much bonuses your country has what the final production of your company will be, to calculate the production of your company in relation to the percentage of bonus your country has you have to multiply the productivity base by a number related to the percentage of bonuses. For example, if your country has 100% house bonus you will have to multiply the productivity base of your company by 2, if your country has 90% bonus you have to multiply it by 1.9 and if your country has 80% bonus you have to multiply it by 1.8 and so on until if your country has 0% bonus the final production will be the productivity base. Here is a list:
Now what we have to consider is salaries, actually salaries vary between 1200 cc and 1230 cc so lets say something in the middle like 1215 cc. So your country has 100% house bonus, also note that if a company doesn't profit in a country that has 100% bonus it probably won't profit in a country with less than that, and lets calculate the profit for a Q5 House Raw company.
Your company in this country with 100% bonus will produce 5 RAW units per employee, each employee will be paid 1215 cc so each unit of RAW will cost 243 cc (1215/5=243). If you sell your RAW at 243 each you won't lose money but you wont profit out of this company, since RAW materials do not have taxes your income will be exactly the price you set. However, a quick search in the marketplace will show you that house raw material in the United States are sold by 245.97 per unit which means that you have a 2.97 cc profit out of every unit you sell, considering each employee produce 5 unit and each Q5 company can have up to 5 employees, each company will produce 25 RAW units per day, lets do the math:
25 x 2.97= 74.25 cc
Each Q5 company will have a profit of 74.25 cc per day (Remember that this calculations are based off a salary of 1215 which is not real, salaries vary between 1200 and 1230 and today they are 1250, which makes it not worth it)
Each Q5 company cost 35 Golds and the current Gold price is 509 CC, which means a the company cost 17,815 cc, if you have a daily profit of 74.25 cc you will need to employ 5 players every day under this perfect conditions for 240 days in order to actually start profiting out of this company. My conclusion is that this company is not worth it and since this is the most profitable RAW company that exist, that means that the other ones (Q1, Q2, Q3 and Q4) are even less worth it.
Not lets see house factory companies, these companies also can not be worked as manager, you have to employ players, let say you are still under these perfect conditions and your country has 100% bonus and salaries are 1215, and let's make it even more perfect and say you are hiring employees in your house RAW companies and they are producing RAW materials at 243 per unit.
House factory companies work differently than the other companies in the game, each employee produces a percentage of a house each time they work which takes the house several days to be produced by one employee, this percentage depends on the bonus your country currently have. Here is a list with the information you need to calculate how much it cost to produce a house in a country that has 100% bonus:
RAW NEEDED : Is how much RAW materials you need to have in your storage to produce one house.
EMPLOYEES: Is how many employees that company can hire (Note that if you want to produce a house as fast as possible you have to hire the maximum number of employees your company allows you to do, and still it will take a few days)
DAYS IT TAKES TO PRODUCE A HOUSE: If you hire the maximum number of employees your company allows you to, these are the days it will take them to produce one house.
So lets recapitalize everything:
You produce your own RAW material so it cost you 243 per unit.
You hire employees for 1215 cc.
(Remember, this salary is not real, its just fantasy )
Your country has 100% bonus.
This is the formula to calculate the cost of production of each house:
(RAW NEEDED PER HOUSE x RAW UNIT PRICE)+(SALARY x TOTAL AMOUNT OF EMPLOYEES x DAYS IT TAKES TO PRODUCE A HOUSE)
Lets produce a Q5 house:
RAW needed to produce a house: 120
RAW price: 243
Salary: 1215
Total amount of employees: 10
Days needed to produce a house: 3
(120x243)+(1215x10x3)=65610 cc
65610 cc is the cost of production of a Q5 house under perfect conditions, a quick marketplace search will tell us that each house is currently sold at 64990 cc so that means that we have a profit of 10 cc per house. Definitely not worth it. (REMEMBER THIS IS UNDER PERFECT CONDITIONS WHICH MEANS THAT SINCE SALARIES ARE HIGHER THE HOUSE PRODUCED WILL COST MORE TO PRODUCE THAN WHAT YOU ARE GOING TO SELL IT FOR)
Now that we know the formula used to calculate the cost of production here is a list of the cost of production of each house quality with how much you can profit off them:
Clic in the image to open it in another tab.
Also note that this profit are per each house and each house takes between 2 and 3 days to be produced, so if you want to know the daily profit of each house you will have to divide the profit between the days it takes to produce the house. For House Q5 por example is 10/3= 3.33cc per day.
Comments
my script displays : SCAMMER!
Yeah its okay, it was something from like 2 years ago
o7
[removed]
Great article. Illustrates perfectly how Tycoon Pack users price out everyone else on the job market making the hiring of employees unprofitable for non-pack users.
Me liked.
This is a vote.
Packs are what makes profits for the admins and the ones that uses them smart. Great article!
cant wait for season4
We are almost there, just a couple of weeks!
Very cool
o7
I still like q1 houses. I just did the math myself as i saw the major producer i was competing with is not in the market anymore.
it takes 4.6 work tickets to make a q1 house. in florida usa.
wages are 1256 * 4.6 = 5777.6
q1 house price is 5899
thus per q1 house produces a player can make almost 200 cc profit a day!
though i am not willing to start production again.
1.clicking to put workers in my factory. is too much hassle!
2.the deflation means i will have to continue to lower wages every time wages drop a bit.
3.usa is under attack and losing florida could hurt me significantly!
4. some foreign counties have much reduced wages and some players run communes for cheaper labor
So if someone is willing they could profit a bit from producing q1 houses. as almost any player who is paying attention should always have a q1 house activated . a q1 house produces 7 work tickets a week and only takes 4.6 to produce. so either the consumer, the producer or the government profits those 2.4 work tickets a week!
it is cool to me that q1 houses will always be profitable to use or produce! it is the only item in the game that has that effect! however the limited demand does make me sad.
Actually only salaries are 5777.6, you have to add how much you spent on raw materials, to produce a Q1 house you need 10 raw materias and its current price is 251.99 so its an additional 2,519.9, total of 8,297.5.
You lose 2,398.5 per house
Also lets say your math was correct and you didnt need raw, it still was a profit of 150 cc per house which takes 4.6 days to be produced so it was 150 cc profit per 4.6 days
the 4.6 tickets to produce a q1 house include producing the raws myself. It is only like 2.5 workers to produce a house and 2.1 workers to produce the raws. I guess some people might buy raws from the market. but it used to be nice to just have exactly enough raws to produce exactly enough houses. so there was no rounding nor weird percentages nor worry about having to buy raws. hhowever now that polution occurs. IT messes everything up 🙁
Ohhhhhhh i see what you did there, you are right! It seemed really weird that it took you 4.6 working tickets ahaha. Indeed with polution everything is messed up, might aswell change the companies to another location but that also involves an investment
Also, are you sure it takes 4.6 days to produce a q1 house in Florida, USA? We have 100% bonus so it should take 2.5 days more or less, depending on polution
I just checked you have 25% pollution so that explains the low productivity
And ALSO there is a thing about taxes... 😉 When you sell you must pay VAT!!! So, do calculation one more time and include VAT and pollution.
I thought about doing that but it was just too long how it was, if I added pollution or taxes even fewer people would have read it ahaha, altough now that you mention it I forgot to clarify that they should calculate that too