New Productivity Formula ( EN / IT )
andredambreville
Lots of words have been spent on the new productivity formula.
Well. I think the new Formula is good indeed. What i don't agree on is that now the companies who didn't sell till now the stock ( and we could say a company not selling is badly run ) have a huge advantage. While the companies who sold all or almost all the stock find themselves in a mess.
Before going on, remember the following analisis is only about "production cost" and not "selling price".
This is because cutting the productivity effectively multiply the costs of deeds.
RAW materials productivity has been cut to 1/8 in one week.
This means the production cost of RAW materials ( relationship between salaries and productivity ) is x8 the old one.
Normal Domains productivity has been cut to 1/2.
This added to the increased costs of RAW materials will probably raise by x4 or so the production cost of normal domains.
Now if all companies were starting from Stock 0, that would be fair.
But many companies are starting with hundreds in their stock.
And those hundreds of units in stock have been produced at the old production cost.
Probably this will lead to have selling price will keep relatively low till the the old stock are sold out with a big disadvantage for the new companies or old companies with little stock.
Well... i think Admin had to either :
1. Change the production formula in steps, for instance only change RAW multiplier to 1/2 for two weeks and then switch all to the new formula after that (so companies had time to compensate)
2. Together with changing the formula even cutting old stock accordingly. To say, a RAW company with 800 unit in stock had to be lowered to 100. A weapon company with a stock of 100 had to be lowered to 50 or 25. So the stock would be sold like if it was produced with the new formula.
I had found fairer for everybody to do smth like that.
- ITALIAN TRANSLATION
Upon request by current italian president i publish the italian translation of this article :
Molte parole sono state spese sulla nuova formula per la produttività.
Bene, cred oche la nuova formula sia giusta e necessaria. Ma su un punto non mi trovo daccoro. Le compagnie che non sono riuscite a vendere il loro stock funo ad ora ( e potremmo definirle quindi compagnie gestite in modo non perfetto, dato che non riuscivano a vendere ) hanno un grande vantaggio ora. Mentre le compagnia che hanno venduto tutto o quasi il loro magazzino sono nei guai.
Prima di andare avanti con la seguente analisi, vorrei ricordare che qui ci si riferisce più al "costo di produzione" che non al "prezzo di vendita" (anche se in qualche modo i due fattori sono legati).
L'aver tagliato la prodittività ha effettivamente moltiplicato il costo di produzione dei beni.
La produttività delle materie prime è stata tagliata ad 1/8 in un asettimana.
Questo vuol dire che il costo di produzione delle materie prime è salito di 8 volte (data la relazione tra i salari e la produttività).
Per quanto riguarda gli altri prodotti la produttività è stata ridotta alla metà.
Questa riduzione, aggiunta all' aumento del costo delle materie prime probabilmente porterà ad un aumento di 4 volte del costo di produzione degli altri beni (armi, case, cibo ecc)
Ora se tutte le compagnie partissero con uno magazzino vuoto questo sarebbe equo.
Ma molte compagnie partono con centinaia di pezzi nel loro stock.
E questi centinaia di pezzi sono stati prodotti con il vecchio costo di produzione.
Probabilmente questo porterà ad avere prezzi di vendita relativamente bassi fino a che i vecchi stock non sono esauriti, con un enorme svantaggio per le nuove compagnie o quelle vecchie con stock molto piccoli (vale a dire quelle che avevano tenuti i prezzi bassi e venduto in precedenza, pur riducendo i loro margini).
Bene, penso che gli Admin avessero dovuto prendere anche uno dei seguenti provvedimenti :
1. Modificare la formula di produzione un pò alla volta. Per esempio per 2 settimane cambiare solo il moltiplicatore delle materie prime a 1/2 e al termine delle due settimane apportare gli altri cambiamenti (così le compagnie avrebbero avuto tempo per adattarsi), annunciando fin dall' inizio tali intenzioni.
2. Oltre a modificare la formula per la produttività, tagliare gli stock in proporzione. Per esempio, una compagnia di materie prime con uno stock di 800 unità, avrebbe avuto il suo stock tagliato a 100 (vale a dire come se quello stock fosse stato prodotto con la nuova formula). Oppure una compagnia di armi con 100 armin in stock, lo avrebbe visto ridotto a 50 o 25.
Penso che, in particolare il primo intervento, sarebbe stato piu equo (dato che molti troverbbero inglusto tagliare gli stock, anche se in realtà il provvedimento 2 parla di tagliare la produttività su beni già prodotti, che è invece in qualche modo equo).
Comments
Voted!
Alot of old stock that hasnt been selling will now sell, and we will now begin to see if we have enough workers to keep us going!
I think it's at least important that companies all start from a similar point
@5n4keyes : i agree but i fear companies with huge stock will monopolize the market for a while.
Voted! Definately agree with this article.
WTF? Miért nem jelenítette meg amit írtam?
BAPS Snax is doubling all prices in response to the halving of productivity. BAPS Snax also purchased the entire stock of grain that was on the market, in order to capitalise on the fact that it was drastically undervalued after these changes.
We would like to thank the Author for notifying us.
Inq
Agree with you on the oversupply issue. I do want to throw out a different perspective on it though. The companies that managed to sell all of their stock before the productivity change were probably the horribly managed companies that just wanted to get their product off the shelf first. IMO, they deserve to be screwed over for dropping the prices so much.
Very good article and I agree with most of the things.
This change we had do apply it really fast but in the future when we will make changes like this we will start giving notices to the companies and maybe even the changes will be done in steps.
Erepublik is a project that will constantly evolve and changes are done.
company spent money for that stock, you cannot delete them without any refound..
secondly, i now see new formulas..i hoped thet the ones posted in wiki were the new, but unfortunately i was wrong
i think the former was better,as more or less leaded to the same price as in beta(except for tiket and weapons,as admin increased their productivity for them..)
when you go to raw mat and finished product, you've to see not only the current demand, but also the medium-long term one and compare to production..in the next future demand will be higher than now, i don't see how these changes will help, i'm afraid we'll go from too much to too less
p.s more on the stocks..i don't see the good thing in helping bad managed company instead of 'clever' ones(the ones that keep an eye on long run), because it's what you're proposing, could you explain it to me?
1. Companies with large stock are not keeping an eye on the future IMHO, they are just not able to sell. Some stock is ok, but in real world no company wants a huge stock.
2. I'm commenting, not really proposing. I think this rule is good. but i preferred to have it from start. It's the sudden change i don't like.
3. Companies paid for stock. But paid at the cheaper productivity rate of before. And now they can sell like they produced now 🙂 this is why i didn't propose a delete, but just said that was fairer to convert not only productivity but stock as they were produced with new formula. So if u had 400 prodctivitu worh of stock ( for q2 weapons that mean 20 weapons), u convert them according to new formula to 200 productivity, so 10 weapons in srock. That's fair i think, isn't it?
I don't own a company yet, but as a personal experiance.. I was producing avg of 4.80 or better constructions, with on avg 3/5 correct on the trivia, and a supershot or two...
Now I produce with 4/5 and 2xSupershot at 2.80, my base skill is well over 3.. was the change suppose to be this drastic?
Well... it was even more drastic for RAW materials.
A employee of me productivity dropped from 90 to 10-11 🙁
Great article! Voted
voted
"2. Together with changing the formula even cutting old stock accordingly. To say, a RAW company with 800 unit in stock had to be lowered to 100. A weapon company with a stock of 100 had to be lowered to 50 or 25. So the stock would be sold like if it was produced with the new formula."
That would be stupid and extremely unfair. The market will work itself out.
@PCweiner : so unfair as changing productivity with 1 day notice? 😛
Wonderful article, even if you did contradict yourself when saying that it wasn't about selling price 😛
I agree with George that this change was necessary but will alter in due time. I am starting to see markets augment already.
@benn : yes, may english is far from perfect, i'm italian in real.
What i meant is that the math i do is referred to "production cost". but higher production cost will in the end be mirrored in "selling price" as well 🙂
Good article 🙂
I think a better solution is to change the productivity formula per industry, honestly. It's unrealistic to think a magic formula is going to work for all industries, but this is something that needed to happen to combat 12 months of overproduction. In a couple of months, we'll have to change it again though.
Voted, and all these changes are good, cant wait maybe admin will use it.
I just hope we'll not have anymore so drastic changes. BTW the industry tuning is based on the production cost (200 house, gift 2, food 1, weapon 10 and so on)
companies that kept their stock because they didn't want to sell it for a rediculous low price and just waited a moment shouldn't be punished for being smart.
voted i know a guy who had 0 in his stock🙁 sold every bit and now he's ruined
@Palodigon : Maybe u fail to get smth. Companies who saved stock didn't do that because smart. If the market switched by itself they were smart. But this is smth like one day governments say : "we cut one arm to each worker to have production halved" lol
Voted..
Any valuation about company manager are pure speculations.
We have been given for free 20.00 Gold per Company owned when V1 launched to compensate the lowering from 40 to 20 gold cost to start a new one...
Aside the fact already discussed, if a manager used all that money in one month to manage or enhance his companies, THIS is BAD MANAGEMENT.
ISG Group has held all that money, and attracted more investors with its policies, so we will EVER be able to face any market change or formula modification by admins.
Don't try to give others the responsibilities of your failures.
Market rules are the ones currently running, so you have to be prepared to face changes without advice.
We made it, and now we see no problem to manage the new situation.
Yesterday I was discussing with an employee/investor by a company of our group, about wages. Now my answer to him takes a higher level of clearvoyance.
High wages deriving from the old high level productivity formula will drop to 1/2 in a week or less.
Welcome all in the New World.
@Quartermass. Acorp has at least 40 gold CASH and 500 IEP saved to face such conditions. I'm not worried for my company. I'm saying smth different.
In real world there are market rules and physical rules.
Market rules change and Companies have to adapt or die, i agree.
But this is not market rules.
It is like, from one day to another, day length is 12 hours instead of 24.
This is why i say it is unfair, and believe me, i'm not worried for my Companies 🙂
Complimenti per le ottie considerazioni!
Thx ( grazie )
I would have to disagree with this article. I have a stockpile of 1000 units of food. I have that stockpile because I was not stupid enough to sell for 1-25 cent. I knew that prices would eventually increase, specially when the free rare material distribution ended. Now that production is being cut, which was needed, I am extra excited.
I have another point to make also. Those who were unable to sell their stockpiles went through hard times. They had to fire many employees due to lack of capital and sells, now those who were doing well by undermining cost, will have to go through a moment of hard times. If they are good business managers, they will make it through this period. Just as those who could not sell their production made it through.
Hi there to all ireland friends,,, I must saay that this article is great.. More than voted.. I think that the eWorld is full of futil company that are making the hell comingo on the economy.. why dont admin put again a COmpany Creation 40golds? There are a million of them only making the caos to the market.. i Hope the thinghs change faster 😒
Yup i have around of 3000 food stock that i wont sell in USA, Brazil and Ireland for 0.3 cent.. Is just ridiculous.. Im reserving a high skill employee level 7.5 that permanently make my stock be even more big 😃 We just need to wait sometime..