Finally, company upgrades!
Edelmann
[tl;dr below]
Hey everyone,
great, company upgrades. Finally. 45% off, you'll only have to spend a little more than the half of the normal price for getting one of those Q7s.
🙂
Let's do some basic maths, assuming regular market activity only (i.e. no black market sales). Time of the snapshot: Day 1884, 02:02 eRep.
Q7 tanks are sold for ~9.50 USD each, taxes are 0.4524 each. Also you'll need 200 WRM which are currently sold for 0.04 USD.
Sales price - taxes - WRM expenses = Profit
9.50 - 0.4524 - 200*0.04 = 1.0476 USD
Wow. A whole dollar profit per Q7 tank. And remember, that is only for manager work.
When you're hiring an employee, you'll have to add (salary/production) to the cost of a tank. Salary is about 18 USD, production right now is 16 Q7 tanks per worker = additional costs of 1.125 USD per tank.
So, as you can see, with the current market prices, there is no profit to be made with workers. Only a minimal profit can be achieved when using managerwork (MW).
The return of your investments when MWing is a sad thing to calculate, let's do it anyways. 10 gold to build a Q1 weapons company, 671 gold to upgrade it to Q7. Total of 681 gold, with 339 USD for 1 gold on the monetary market right now. So we have expenses of 681 gold * 339 USD/gold = 230,859 USD for a daily profit of 16 * 1.0476 = 16.7616 USD.
A quick division tells us the whole story: 230,859 / 16.7616 = 13,773.09 days.
Oh yes, it takes more than 13,000 days to get your money back from the company. That's nearly 38 years of managerworking (of course assuming that all the variables are constant from now on which is not going to happen, but who says that changes will make it better..?).
So, long story short, if you want to have a Q7 for profiting from it, it's a really really long-term investment and with the current state of the market, you'll have to use the black market for getting a higher profit than about a lousy dollar per tank. Or you can wait 38 years, maybe your children will appreciate the Q7 you'll leave to them.
..and remember, that is during a promo where companies are A LOT cheaper than normally. I won't present the calculation for upgrading without the discount, it makes me too sad.
[tl;dr version]
Before upgrading, do some maths.
Reaction after having calculated the profitability of a Q7 company:
Alternatively:
(In this case, the number that doesn't exist would be the profit.)
Signed,
Edelmann o/
Comments
lies
man, now I'm sad.
What is more interesting is that there are folks out there who STILL go for upgrades (obviously without doing the math).
I salute 'em.. with my both hands!
IN MATH WE TRUST
It would pay off if you have multislaves working for you in raw and q7 company.Then you will have profit.
funny thing is: there are thousands of newbies who are producing lower quality weapons. i think nearly nobody here is doing the math...
finally some good article in the media...
great job v+s
@metalni2:
Good idea with the multislaves, I'll consider that. : >
@eisenmutter2:
Yeah, right. This is even worse, because a) those new players will never prosper as they could and are likely to quit and b) Q7s at least make more sense since they provide more influence and more rank gain.
@morpheus2:
MATH IN OUR MINDS
MATH IN OUR HEARTS
NOW AND FOREVER
Good article my friend, V+S.
Voted, good article!
voted.
I upgraded cause i need the weapons.
There's no smarter way of spending the gold in this stupid game anyway.
@Edelmann: i dont feel that !
An eye opening article, no doubt. Thanx. 😮]
vote
Cool, the untold story of the eRep entrepreneur.
Please do not forget to include the food cost of your WAM click in your calculation. If you consume the cheapest available food (which is usually Q3 @.0😎 your WAM cost for that click is about 0.134, divided by 16 tanks, and your cost is actually 0.008 per tank lower.This makes your profit 1.0396 instead of 1.0476.
So your daily profit is actually 16.634.
And your ROI is 13,879 days. That's 106 days more than you indicated in your article.
I just didn't want your kids to get their hopes up too soon.
Good article.
...........good article!
good article, thank you for the info!
v+s
This is why I no longer care about the economics of this game. It is better to withdraw your money from the game and invest it in T-bills xdxd
v+s good article
it is true dude..........
good article, thank you for the info!
v+s brilliant article
Best thing is q5 WRM (with workers,high investment) or q4 WRM (no workers,low investment),all else is crap imho
I have zero companies and zero raw companies. I've survived mainly on gold received from training ground upgrades, TP medals and hardwork medals.
Until the economy improves, keep your gold and currency. The bot will eventually be introduced again if this keeps on.
And to think... I used to play this game because I enjoyed the economy module. (years ago)
v+s
Listen to what Gnilraps says, he got this.
I was being too enthusiastic about the offer. : /
Food is more profitable than weapons.
Edelmann you are so right
Voted and sub
RAWR!!!
I for myself did the upgrade for producing better weapons. So I can do more damage.
Yeah, profit with a Q7 food company right now would be:
sales price - taxes - wrm expenses
0.84 - 0.04 - 20*0.03 = 0.2 USD each, right now production is 180 a day, so 36 USD a day. (While using half a Q7 food for producing it, so effectively 179.5 Q7 food a day = 35.9 USD.)
But I'm not sure about the sales situation (if people actually buy it) since Q7 food is insanely expensive in comparison to others.
e.g. Q3 food (6 health, 0.08 USD): 0.01333333333 USD/health unit
Q7 food (20 health, 0.84 USD): 0.042 USD/health unit
So Q7 food is more than 3 times as expensive as Q3 food. However I guess that many players just don't care enough to do the maths or don't have to care due to their insane gold stacks. ; )
@Moritz von Sachsen:
I understand, yeah. But still it takes ages to be profitable.
WRM expenses are 200*0.04 USD = 8 USD per Q7 tank. You'll have to pay that somehow, no matter what.
Right now (13:49 eRep), Q7s are sold for ~9.8 USD.
So basically, you save 1.8 USD per Q7 tank.
Let me assume you built a Q7 out of nowhere in a full-bonus country and do 200 hits a day, that'd be expenses of 230,589 USD for the Q7 while using all the Q7s you produce by using MW.
You save 20*1.8=36 USD per day because of the cheaper tanks.
So, it will take 230,589 USD / 36 USD/day = 6412.75 days until you actually "profit" from the company, considering the huge investment at the beginning.
And that is assuming you buy the tanks from the market, there are even cheaper ones on the black market.
I still get your argument though, if I could do it, I'd also do it because having a Q7 is better than not having a Q7. That will always be the case - and what else could you invest your gold in (after having trained, of course).
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v+s
Nice article, Edeltraud. 😉
Hoping for a better economic module in v4...
Ach ja: Hab mal gesubbed. ; )
Excellent article detailing the difficulties of being self sufficient in today's eRepublik;.
Irony is that the economy does not remain stable over 38 hours; let alone years.
VISA works fine.
At first I was like.. : But then I VISA'd. : ')
Awesome article.
Vote
@gnil, that's over 38 years???? scratching head, could that be right?
Good article
hm