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Today, before i continue on with the introduction to eFoodbank companies, I am going to try and explain and perhaps guide and show a light to those GM's who believe they carry out "business" in eAustralia.

It's no secret that i think most people playing this game are either complete morons, imbeciles or just halfwits who wouldn't have a clue, even if it was posted on a silver platter, right under their noses. Say what you will about me, I don't care, but the fact that wages are so ridiculous in this country (and a few others too but mostly this one) and the fact that no one offering a real wage can hire anyone due to complete fools offering wages for jobs that are beyond comprehension.

Don't understand what I mean??? Ronny having a whinge again??

If you must, but I will now present the facts and display to you in no uncertain terms, how a good majority of GM's in australia are ruining it for the people who try to run a business at a profit, then cry broke and blame everyone but themselves for it and ruin the job mark et by offering Q1 jobs at a Q5 wage.

Still not with me???

First off, let me stress the fact that no matter who you are or what you think you have, offering a wage higher than what an employee produces is not only suicidal in a business sense, but it also artificially inflates wages. What this does in the long run is create unemployment due to the fact that wages are higher than what is produced, sending some owners broke, but more importantly, it chokes production to a standstill in other companies with a sensible GM, offering jobs at the correct rate, but unable to get workers.

Sounds familiar????

Lets take some examples from today's job market.
More specifically, lets scrutinize these two, well rounded business professional genius' running these two companies. (*sarcasm for those not aware......)

Click image for larger size

Job Market


Ok people, lets see how well the GM of this first company did at school. Lets see if he knows the difference between an addition sign and what it means and does, and a subtraction sign and what it means and does.

As you can see, this absolute genius has a Q2 diamond company (its in a high region at least, i checked). From the picture u can see that this well informed individual has a skill 1 job available in his magnificent and (lol) profitable company. The most genius thing about his job offer is the wage he is offering. Yes that right you can see it, it's $6.00 AUD. What's wrong with that you ask???
Let me count the ways.....

Any good GM knows what an employee produces, and what the product sells for. In this case we are talking skill 1, Q2 RM in a high region selling diamonds (at time of writing) at 1.06 per Q2 diamond. As this is the lowest price in eAustralia for diamonds its a good example. Not that the other Q's vary much in price, most diamonds here in eAustralia are all the same price no matter what Q (exceptions of course) Getting back to the facts of our most excellent, super smart GM we are analyzing here, he obviously doesn't know what his skill 1 worker will produce for him.

FACT 1: Skill 1 in a high region at 100 wellness, and a full compliment of 10 workers in the company will net a production value of, wait for it....... 4.05

FACT 2: Diamonds in eAustralia, particularly Q2 diamonds, are on the market for $1.06 and dropping.

FACT 3: In a raw materials company, 1 production point is equal to producing 1 stock.

FACT 4: supposing the above information is correct and true (it is, check it out for yourself) this is eluding to the fact that our skill 1 worker produces 4.05 Q2 diamonds for his days work.

Now, this is where we find out the exciting bit concerning our magical GM, as to whether he understands or even comprehends the difference between a plus and a minus. My bad, we use some multiplication here as well, (but I'm not sure our featured GM will understand this)

multiply the production value times the sale cost

ok this sounds easy, maybe you can have a turn as well, just to check my maths and make sure im not fudging on these figures here.

(PV) 4.05 X (SC) $1.06 = $4.77

This is using the extra 0.05 which u actually don't get to use until the other 0.95 comes, because I'm a fair bloke and would hate for our GM to cry that I didn't include the 0.05 production point.

As you can see, selling his 4 diamonds at the market price doesn't even come close to the wage he is offering for the job.

$4.77 is not $6.00 in my books, never has been, never will be.

The difference between produced and wage is 1.23. This may be fine if you want to send someone broke, (but if you really want to send him broke, work at half wellness, like 75% of eAustralians are) and he gets even less than 4 points.
If u have $6.00 and give it to someone with the promise they will pay it back, only to get 4.77 back every time, must become frustrating and probably makes our particular GM in this instance wish he had spent more time listening to his Grade 3 maths teacher, instead of smoking bongs down behind the shed at the bottom of the oval, with his deadbeat friends and some chick he hated before summer holidays but now finds her "chest bumps" interesting,
.
Its the same situation for our Physicist/rocket scientist GM below him, except he is only losing 1.13 each day on his skill worker. Ok so its only 4 days until they become skill 2 and produce 8.1 but that's still 4 days away, and if you have 100 wellness and 10 employees. Its fine for these 2 GMs because they obviously don't know they are running at a loss. For all the other GMs who CAN count there's the little thing most GMs get into running a business for called, PROFIT you make from a sale.

Selling his 4 diamonds and netting 4.77 is the sale price u get back. Unsure of how to work out what u should be paid and what you should be paying??? Here's the lesson, read it, use it, learn it, live by it or it will kill you if you don't. A profit margin of between 10 and 20% is where u should be aiming for your profits. How do i work this out you ask????

VERY SIMPLY

lets stick with super genius GM No.1
SALE: $4.77

This is where you calculate your percentage of profit.

For those who cant work out %'s in their head, here's a lesson for you that you should have maybe listened to instead of following our super genius GM No. 1 to the bottom of the oval....

move the decimal point to the left......

This makes 10% of 4.77, 0.477 or 0.48 if u hate the third wheel
Doubling the 10% ($0.477) makes it 20% ($0.954)

lets make it simple

If your taking 20% profit (which is the standard to take) you subtract $0.95 from $4.77. This gives you the princely sum of $3.82. this is of course dependent on the market price not dropping (oh but it will and it does) Therefore, the wage you should be offering isn't $6.00, it isn't $5.90, it isn't even $4.77 it should be $3.82 ( even $3.8, in case the market slips down in the 3 days you cant lower the wage) and if the prices go up, you can adjust accordingly within the first 3 days trial period. Of course if you are feeling generous or you just like your workers a lot, you can take down to 10% profit, but as you will find, its barely worth the effort put in at that price.

This isn't the only case. Check through the job market and the situation is rife throughout all levels and skills. What needs to happen?? We need some eAustralian officials to get off their high horse and start mentoring some of these noob clueless GM's into how a business should be run, and a standard that all wages should adhere to.

SO.....

Lets hope that you have all followed this lesson on how to set a wage. Different and higher Q jobs will of course pay more, but a Q1 or Q2 job CAN NEVER pay the same as a Q4 or Q5 job. Stiff bickies, that's the way it is. The trade off is that u don't have to spend as much money on wellness and food in a lower Q job than you do in a higher quality job. Manufacturing jobs use the same principle but with a few other factors involved as well and i will explain how to go about setting a wage for these types of jobs.

After all this, if people want to offer jobs for more than what they will receive from them, then good luck with all that then. When you go broke and your company is insolvent and unable to produce and trade, thanks, it just gives me more market share.. If running a charity for a business is what you want to do, then by all means, offer high wages for low production, give higher wages to those on 50 (or low) wellness, gift them 10 wellness a day ( why not??? u don't care about money obviously, your not in the business for a profit is seems), but for all workers who think this is tempting to get a higher wage than you are worth, go for it.... but when your boss goes broke or you cant work and miss out on a HW medal (or something similar) because your super smart GM has no money in his account and u have to keep finding a job every 3 days, maybe its time you either went hard or went home.

If you like the idea of high wage for low prod, then by all means work at 50 wellness to make sure the GM really goes broke,(that's if he doesn't fire you as soon as you join) then after your 3 days are up of working free of fear that your wage will be lowered, quit and find another similar job and repeat the process. Cynical isn't it?

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Thanks
Rjj