[Minister of Trade & Industry] WRM Prices fall to £0.03
Grampa Alfagrem
Erep Labs attempt to quell the growing over production by introducing the house industry resulted in a big fat failure and a number of remorseful company owners now trying to shift their unwanted stock and companies.
As more and more players seek or are driven into the WRM production sector by simple market mechanics or by WRM production schemes made available by MU's, Parties or other private groups the resulting effect is now being seen on the worldwide market.
So, Whilst this may mean a short-term increase in profits by Q7 Tank producers in a market that is also showing signs of glut - How does this effect the profitability and Return of Investment?
Shocking figures indeed!
A player now has to spend over a year in ownership before they start returning a true profit.
Comments
I'll say this much: because the eRep Labs have forced us to diversify our portfolios, we make less profit on each item. That's not how it's supposed to work! Diversification is supposed to be for the benefit of the consumer, not for Plato. But that's just me.
That also means that I'll make an investment in WRMs. When the market levels out, I'll be able to resell at a 33% profit margin!
You'd be gambling on the price of WRM rising!
Aside from admin intervention that's unlikely to happen.
The only things that sell in this game in any volume are;
WRM
Q7 Weapons
FRM
Q5 Food
It'd cost you 370 Gold or £72,000 (approx) to get a Q5 Food Factory and with the 10G limit on conversion that'd take you 37 days of saving and converting assuming you had the cashflow.
To make that back requires selling 189,474 units of food at current prices or 1,354 days of eUK production (and that's not taking into account worktax or energy restore).
Q5 Food = 3 1/2 years to start making pure profit.
Q7 Tanks Factory ROI is 1,700ish days.
Therefore arriving and younger players realistically have the choice of WRM or FRM.
Conventional wisdom is to push them into WRM as the ratio of RM to Product is higher for Q7 Tanks then Q5 food.
Although the number actually indicate that FRM has a bigger market share then WRM.
I would be gambling. However, I'm assuming that diversification will eventually neutralize, and the price will eventually go up.
Diversification is unlikely due to the ROI costs of branching out into another field.
It's about supply and demand.
Theory #1 is that due to the introduction of housing and the 'have 5 workers' mission that Q7 Tank plants are producing less as they lack workers but houses didn't take off and weapon prices are falling.
Theory #2 is that population is in decline and people are no longer willing to fight in non-ending and unimpacting battles meaning a glut of weapons is available and little WRM is being bought.
Coupled with this is the fact that Q7 plants are the most profitable so the owners are more then likely meeting their own WRM costs and the free market is seeing less purchases.
well, FRM are nice.
As if I wasn't making f-a already xD.
stealing is best way for profit..i know 😉
Shut up, you coward! You should be banned for your crimes!
lol 🙂 but i think it's time to return the gold now...
See Government is easy!
Sadly inevitable slide to 0.01, When I first calculated the profit of WRM it was at 0.33 🙁
At 0.01 Iron and Oil become unprofitable to WAM.
Daily Profit / ROI for the rest becomes
ALU = £0.9 / 2,144 days
SALT = £1.7 / 5,000 days
RUBBER = £2.9 / 2,329 days
Q7 Tanks will however come down to about £3 each at this point with wages at £16 for regular joe workers.
Yup, I've invested plenty in WRM knowing this was happening but unfortunately having nothing else worth investing in instead. If the Admins decide to scrap or completely change the WAM function things could get interesting though
Say, how do you come about to this 16Ł regular joe salary result. What's the formula? What's the mechanism you take into account to calculate this intersection?
£3 per tank with 16 being produced by each worker in an eUK Factory equals £48 of goods per worker.
The worker will however use up 3200WRM which would cost £32 to buy @0.01.
The CEO therefore has upto £16 to pay his/her workers before going into loss.
So basically nobody buys anything cos we can all make our own
1 Q5 Food plant & 2 Deer Farms or 4 Fisheries covers everyone who logs in of an evening and uses their 1000 to 1300 energy.
If you max train, work and use the rest to fight then you need somewhere around 10 to 12 Q7 tanks or 1 Q7 Factory and 8 Rubber or 12 Saltpeter or 16 Alu's.
In CC terms right now that's about
All RM = £38,600
Food Q5 = £72,000
Food Q7 = £235,400
Total = £346,000 or £153,000 in a 50% sale.
So Items are still bought but you must consider how many of our 400 or so actives are totally or partly self-sufficent or not receiving goods as part of a commune.
Q7's were brought in as a response to this as they use too much WRM for most people to be self-sufficient, but that was only ever going to delay the problem of overproduction in general
Oh no! WRM prices are yet again, where they are normally at...
All weapons could make a comeback if eRep Labs two small changes:
1. On the battle page show how many hits it takes to kill with each weapon you have in stock. Several missions and the DO have a kill target. So show people how many hits will get a kill instead of doing the crazy complicated damage formula... in your head... each time you have to hit. Cost per kill is game changer for the little guy.
2. Consider making Division 1 also based upon kills instead of damage. This way activity is rewarded (we already know we are pathetic, thank you) and we learn to use all weapons (not just Q7) to maximise our impact. This is an automatic boost for Q1-Q6 production.
without wishing to sound like an old fag reminiscing about the past i would really like to see a return of the market bot that bought up surplus supply and kept prices relatively steady (and profitable)
as it stands a rubber plantation costs 6,754CC (35g) and a saltpeter mine costs 8500CC (44g) given the differences in production of the two (and fixing the rubber at 35g) the saltpeter should cost 24.5g (4700CC)
now i'm going to assume when it was initially set up prices were balanced for production meaning you made a little more WRM per cc with rubber, if we were to re balance the costs this would mean an expected gold price of 345 which would make 8500cc = 24.6g
bringing back the bot would push the cost of gold up as it would add more cc into the market making the cc RM companies worthwhile again (as it stands new players have to save for alu etc) i fully understand the bot had to change at the time (gold prices hit 3k) but there could be a limit on how much it buys per day to keep it all in check
Nice analysis. Houses are indeed a disappointment and I had a feeling they would be as soon as I saw the announcement about their dissolve price being lower. One of the main things that, I personaly feel, led to this is removing the workers skills. By that I mean skill levels, not areas of expertize. When a multi or new player can make as much Q7 as anyone else you know you will have a problem. Another problem is working as manager. While I understand that it came from idea that new players could have easier time starting and having what to eat and make a bit of currency, it should have been reworked long time ago and limited in how much you can actually work as manager. Myself and many other players are overproducing WRM like mad working 200 Rubber Plants each day...We shouldn't have been able to do that. They should have set the limit to something like 20-30 companies per day max, no matter the wellness. That way production would have been balanced, job market up and running, more players would have more wellness to work AND fight an so on.
Well eRep can't remove WAM as players have invested due to the ability to WAM so they'd have to find a way to compensate those players to a level that stops them leaving in a huff.
A Potential solution would be to make each WAM click cost 1/2 of the national average wage.
CEO's are still therefore making a saving on WAM but at only half the rate of employing someone instead of the current 2% of rate.
they could also increase the RM needed for building stuff and/or re-introduce work skill. There just isn't any challenge anymore, nothing to work towards. When you and I started this game, no one was handing out Q5 weapons, I remember saving money for weeks to just get few Q3 and Q2 weapons...Nowadays Q7 if flying for free everywhere and you can afford several of them from just one salary. Maybe it's just me but if were to start this game today, I would probably leave tomorrow or the day after...But, I was always more focused on economy than on fighting so my point of view might be biased.
thanks for that my storage has been full for 2 days as i couldn't get rid of my WRM bahhh