Join the new world

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all names and characters in the screenshots are completely fictional. any resemblance to citizens of erepublik living or dead is purely coincidental.

versions
eBelarus (russian)

other articles of interest
Trading on the Monetary Market
Manage your Company-Empire

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in this article i want to show you how to make profit on the market and as a manager of companies. the reason for writing this article is not to show you some trick to make big money on the market or as manager of companies. this is just not possible these days even with tricks. however if you know of a way how to make tons of money even in this economy – please contact me via PM ingame as soon as possible!!! cough...

er where were we... ah... the reason why i write this article. as i just said i write this stuff here not to bring you some magic to make big money. the main reason is to show you how to not LOSE money. there may be not much profit in the product-market but there is much money to lose – and i want that you at least don't lose money there. well some stuff i show you might bring you some extra-profits though...


the article has two parts: in the first i give a short overview on the working/manager-page. and in the second part i show you how you can produce and sell without losing money but instead use your resources (companies, products, employees, licences) to make money.


1. MANAGE AND WORK - OVERVIEW

first i want to give you a rather rough overview on the page you reach through "My Places" (fig.1). So what can you see and do here?

fig.1: My Places - working/manager-page


brown square
this is my job. you see who my boss is, the salary i am working for (like posted on job-offer-page) and the tax that will be or in fact was deducted from it because you can see also that i have already worked.
note that you can move to other countries and get a better job on the job-market there without changing your citizenship. you have to pay attention to the tax on the salary in the countries and the moving costs (back and forth) if you want to do this. it probably is a good idea to do this if you have a net-salary ~10cc and easily can get one for twice as much money.

yellow square
here you can manage your companies that is
- sell or dissolve companies you own (raw-companies can not be sold but just dissolved!)
- upgrade companies (doing so when there is a special-event for cheaper upgrades will save you more than just some gold!)
- built new companies

green square
choose companies you want to work in as manager (you work there yourself – it only costs you energy!). you see the companies are marked green meaning i have already worked there. but be careful: nowadays it is wise not to work in all kinds of companies as you might lose money just by doing this... of which more later. at the bottom you see how much energy will be used in sum if i would push the 'start producton'-button now. because i didn't select a company to work i would lose no energy.

blue square
choose how many workers should work in the respective company. you see i selected one to work in the first q5-company. if i push the 'start producton'-button his 'working power' will be used. at the bottom here you see the sum of employees haven't used (in fact it's not my employees-count but the count of working days) and how many would be used if i push the 'start producton'-button.

orange circle
here you can manage your employees meaning
- you can see who worked on which days in the past 7days
- put job offers on market
- fire employees
- change salaries (note that the first 3days after hiring someone you can't lower his salary! however if you think his salary is too high or you just don't like his name or avatar you can fire him)

red square
working as manager or letting employees work will either produce raw-material (RM) or use RM to produce products. in fig.1 you see i will use 1employee and will use 900FRM to produce 180 q5-food. note that with higher boni of your country you will use more RM and produce more products with lower boni it will be less.


2. HOW TO MAKE SOME MONEY ON THE PRODUCT MARKET

in this passage i want to show you what you can do on the market to make some profit. some of you are already trying to do this but are just doing it wrong. and when i say 'some of you' i mean more than i could ever imagine. the reason for this is that you just don't do the simple math – a small mistake. however the result of this is that you lose much money without realizing it.

yes i know you can't make big money on the product-market these days – so why even bother? but you have to realize: the knowledge about how you can avoid the loss of much money has the same value as the knowledge about how to make big profit. because the money you lost yesterday by doing stupid things will be the extra-money you have in your pockets tomorrow!


2.1 PRODUCING AND SELLING
what i see and hear very often is that some citizens (mostly newbies) are working as managers in low quality weapon companies for example q1.

so is that a good idea? lets take a closer look on working in a q1-weapon-company. before you produce anything you need to know about this stuff here:

country-boni
in russia -that is with russian citizenship (CS)- you have 60%boni on weapons so you will produce 16weapons

needed raw materials
for each q1-weapon you need 10WRM – that is 160WRM for 16weapons

tax
you find the tax for all products (and salaries) by clicking on the flag next to your name & level on the left side of the screen and then choose the 'Economy'-tab.

in fig.2 you can see the working-/manager-page. if you select to work, you can see there how much RM you will use and how many products will be produced, so you don't realy have to look up the boni of your country.


fig.2: producing q1-weapons


so lets say you produced 16 q-1weapons and now you want to sell them. the next step is that you have to take a look at the market to know for what price you can offer the weapons (=sell them). in fig.3 you see that 1 q1-weapon is worth 0.42cc. you can either sell it for this price or to make sure your offer will be bought you can make your offer a bit cheaper.


fig.3: q1-weapons top offers on market



the question is how can you put an offer on the market. you can do that in your storage. in fig.4 you see how that will look like. the product is q1-weapons and i want to offer 32units. because i live in russia my offer is for the russian-market (we will take a look at exports later). i put in the exact price like the cheapest offers on my home market - that is a marketprice of 0.42cc per unit. you see marked red in fig.4 below the market price/unit also the tax/unit will be displayed. because russia is my home market i will just have to pay the value added tax (VAT) of 1%. so you see: you don't really have to look up the tax and calculate it on your own either. don't forget the tax displayed will be deducted from the marketprice.

fig.4: q1-weapons offer in storage



now back to our question
did we make profit? lets calculate it:

needed raw materials
the WRM-price at the moment is 0.06cc
for one weapon that is 0.60cc (or 0.70cc)

tax
for 1 q1-weapon you sell for 0.42cc you get 0.4158cc because of the tax. to calculate this may seem a bit unimportant. but note that the difference between gross and net price will be much bigger if you have to pay more tax than just 1%. what do we have in the end?

profit/weapon: 0.41568cc – 0.60cc = -0.1842cc
that implies that you lose -0,1842cc on each q1-weapon. why? the reason is that WRM is worth much more than the weapons. so by producing 16 q1-weapons you lose at least 2,9472cc. you see now that if you just sell the WRM instead you can buy more weapons with the money you make than you would get weapons by producing them with the WRM yourself. (if you use employees to produce the weapons you lose even more money because here you have to pay the salary too)

if you calculate this for the different qualities of weapons you will see that producing weapons as manager will be a money losing business for at least q1-q4. working with employees might be so too even for q6 and q7. just see for yourself: calculate the profit of 16weapons produced and deduct the usual salary you would have to pay. with working as manager you not just lose money and energy but you also get experience points (working = 2EXP). this can become a problem for the younger citizens because with this they will get faster into a higher division in the battles making it harder for them to earn battle-hero-medals.


2.2 USING EMPLOYEES
well in the last part i told you that WRM are quite expensive. and now i will show you that you can try to make a small profit with producing WRM even if you use employees.

for using employees you not just have to consider the things i told you above. beside the net-price of your product you also have to pay attention to the salary you pay. to see how much you should pay to get some workers you need to take a look at the job-market. so what are the facts here? in fig.5 you see that the wages in russia are ~26cc. in fig.6 you see that with luck you can sell WRM for 0.07cc/unit (selling raw is without tax). with a q5-company you are able to produce 400units.

lets calculate the profit
400units for each 0.07cc will bring 28cc and for the employee who produced it you pay 26cc as salary. so with a q5-weapon-raw-company you can make 2cc profit per employee every day. note that selling for 0.06 will bring you losses of 2cc/employee if you don't lower the salary. but there are many countries with much lower salaries than russia. and every cc you don't spend on wages will be your profit. so depending on the wage level in your country you can make a nice profit by producing WRM with employees.


fig.5: job maket



fig.6: weapon-raw-price



2.3 EXPORT PRODUCTS
to export products you need to buy licences (you can do that in your storage). they are quite expensive but if you have good ones you should use them. i will give you a nice example: lets say i have q5-food in my storage and i want to sell it. in fig.7 you can see that i could sell q5-food on my home market in russia for 0.31cc/unit. in fig.8 you see with this marketprice i pay 0.0282cc tax (VAT) so i would get a net price of 0.2818cc.


fig.7: russia food offers on market



fig.8: russia food offer in storage



because i know that i shouldn't just do this i take a look to the markets of countries i have licences for. and there it is:
in fig.9 now you see that in belarus i could sell q5-food for 3.00cc. if i put that as marketprice for my offer and make the offer for belarus i would have to pay 1.2857cc tax (import tax + VAT of belarus) which is quite much. but that would still mean that the net price is 1.7143cc and this is much more than the 0.2818cc i would get in russia! so even with the extra import-tax it it still would be a good idea to sell in belarus instead of russia. and even if i don't have the food in my storage. i could also just buy the food cheap in russia and sell it for more money in belarus!

but don't forget even if the marketprice is higher than on your home market it doesn't mean you will make profit! you need to keep an eye on the taxes you have to pay on the market price! and you have to keep in mind that you can't trade if your CS-country is in war or has a trade embargo with the other country.

fig.9: belarus food offers on market


fig.10: belarus food offer in storage



2.4 IMPORT PRODUCTS
so now you might say that 20g for some licences is too expensive. and this might be true - at least in the bad economy these days. but even if you don't have import licences for other countries you can use price differences between your home market and other makets because you at least have a licence for your home market - that is your CS-country! so if you see cheap products in other countries you just can move there and buy the products and then sell them on your home market.

so if we just take the example of q5-food from above again and assume that you are from belarus. then you can move to russia, buy cheap food and sell it on the market in belarus with profit. the profit you would make as citizen of belarus would be even higher than in the example above because belarus is your home market – so you wouldn't have to pay import-tax (of 50% for food) but just the VAT. however you should just go for opportunities which will have enough profit to pay your traveling costs to the other country AND back to where you came from! here you also have to keep in mind that you can't (directly) move to countries your CS-country is in war with and of course you can't move to countries without any regions.

[just to mention it even if this one is not importing it is also the buy-and-sell-tactic:
you can also buy cheap products on your home market and try to sell them there again for a higher price. for example buy WRM at 0.06 and sell for 0.07cc / buy FRM for 0.02 and sell for 0.03cc. with this you stay in your country and so you don't have any moving costs.]


so all in all: what do you have to keep in mind when producing or trading products

1. you have to know the net-price you get for the products
= so you need to know how much tax you would have to pay

2. what you invest to produce or get the product
= moving costs, raws and/or salaries

3. how much you will produce with that investment
= what boni your country has


well i hope this will help you to move on the product market without losing your money. and at least on the off chance that we get a real economy again this will also help you to make some profit.


regards
eisenmutter2




abbreviations
cc - currency
CS – citizenship
EXP – experience points
g - gold
MM - monetary market
PM – personal message
RM – raw-material (WRM = weapon~ / FRM = food~)
VAT – value added tax