Money - Funny in a rich man's world!

Day 1,766, 06:24 Published in South Africa South Africa by SamGibz

Hello South Africa! It has been a while. I don't know how many people I used to play with are still around, or how well this article will be recieved.

I decided to pop on just to see how the game was and to entertain myself for a while. I was curious. I noted many changes, some good, some bad, and I had intended to perhaps write an article about them and how the game had changed as I thought it may be a good comparison to read perhaps.

I then thought to myself (as I have a week or so free before I return to university), I wonder how much money I can make in this time on Erep. I have never previously taken much serious interest in the economy previously in the game. So, I restarted my companies, worked, checked my selling price and nearly had a heart attack when I find I am selling grain at 0.03 ZAR, that Q1 food is around the same price, Q2 food is often cheaper that Q1 food ... You all play the game so you know.

Not detered I thought, okay, so the game prices here have changed, what of another countr.... Nevermind.

Well I needed a job. Thank you kuckuck. "Perhaps I should employ some people" I think. "It will increase my production and therefore increase my growth". Well I can't. The economy favours the rich and makes it impossible for new players to start out. Unless you buy your gold. Or is this what everyone is doing now?

Anyhow, I investigated. To employ someone you need to be competative on their wage. Be equal or better the top persons price. That is all very well but can you afford to do it. In the case of Q1, Q2 and Q3 weapons .... no. Just look at my tables. They speak for themselves. I must add at this point that they do not include what you do as a manager. It assumes that you have to purchase all your raw materials. The feasble column asks if I can employ someone at a competaive edge. I hope the rest is self explanitory. I believe that this is a correct model but if I have made a mistake in my haste to create it, do please let me know.



The "ACTUAL" is what is happening now. It basically shows the maximum wage I can offer a person. I can not vouch for the accuracy of the numbers at the high end as I am not that wealthy, but the bottom number are basically the case for me right now.

You see, all would be well if the selling price of the lower quality stuff could all be increased. However, I predict that the market is saturated beyond belief, that the top players are "being nice" and selling cheap so new players can find it easier to start out and that players are not profit driven, only "sell my stock!". Well top players, it not helping so please stop. I notice your import tax is rediculously high so it can't be foreign companies.

The "HYPERTHETICAL" cases are just models where I make numbers work. You see in the first case, to be competative on wage, you need to be earning over 4 ZAR on each unit sold. That is more than 500% of the current price. People could just employ people for a lower wage but I want to try avoid that as as players we need as much money as we can get. So we need to raise that price and lesson the profits of the top players maybe.

I then think about the bottom line for all companies. Well, they can sell at much lower prices, the top dogs that is.

So I think to myself, what happens if we conquered a new region. Then I try make it work. I should really have said way before that numbers increaseing show I calculated left to right and decreasing is right to left. It just made it easier for me to visulize. And then make it work. But this is not really much help to be frank. It won't be done and it makes a pointless impact.

I bet some people are thinking just cut VAT, but that effects all qualities equally and we still are left with under a competative wage. Although I hope
from the first table you could see that.

So yes, the economy is royally screwed. So perhaps some solutions Mr SamGibz? The prices are too low at the lower quality end. So government, I propose you buy them. WAIT! I think I remember correctly that all players start with a farm or mine or something. In any case, new players should buy one which means you only buy raw materials to top up your supplies. If the more you need the more it costs you, that will help make smaller people more competative, a bit. So buy all the cheap stuff and sell them in another country, cheap. The same should be done for the lower quality items allowing them to be sold at higher prices which either allows greater profits allowing the individual to gain better companies quicker, or for them to employ someone which of course benifits the economy.

But isn't that wasting ZAR? Not really, seems if the government buys it then they technically only pay 75% as the tax goes back to the same pot. Then if they sell in another country for cheap they can recoup some costs and I am sure that a stronger economy in the long run would be better. (In numbers, 0.04 ZAR for grain, gov technically pays 0.03 ZAR. Sell in USA for 0.03 ZAR but after tax it more like 0.02 ZAR so really you loose 0.01 ZAR per unit. Over 100 units that 1 ZAR. Over 1,000,000 it is 1000 ZAR.)

The tax system does not allow any way of helping as this would be the next port of call.

Anyway, that is all. I hope I am right and that it possibly helps. If not, it was interesting to do.

Cheers!

SamGibz