eRepublik Economic's (P1)
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by David Allenkey
Earlier an article came out about the eRepublik Economic Model. I was intrigued, hoping that it would actually be someone's view of the issues surrounding the Economic functions of eRepublik. It wasn't, but it got me thinking that there are some major flaws currently facing eRepublik when it comes to it's economic structure. This will be part of a multi article production.
Disclaimer: All examples are based on eIreland and the bonuses provided in eIreland.
Making Money Ain't Easy
It is incredibly hard to generate any sizeable income in eRepublik. It really doesn't matter which industry you look at to see this is true. Let's take a look at the food industry (other industries to come in later editions).
Food Industry:
eIreland has an 80% Production Bonus for food, making it the largest advantage available in the country. The current FRM price is 0.05 CC. The best "bang for your buck" as a consumer is for Q2 food @ 0.0425 CC per 1 Energy, so we will use this for our leading example.
Assuming you purchase FRM @ 0.05 IEP, FRM would cost you 18.00 CC (360). Manager costs for production into Q2 food would be 1.71 CC. Production would be 180 Q2 Food. Revenue at the current level (lowest available price is 0.17 IEP) would be 30.60 CC. Total Taxes would be 0.29 CC. Total profit stands at 10.60 CC. Based on this, it would take roughly 910 days (or 2.5 years) for the Level 2 Food Company to pay for itself.
Assuming you produce your own FRM (with a Hunting Lodge to ensure you are self-sufficient), manager costs for FRM production would be 1.71 CC. FRM total production would be 450 FRM. Manager costs for production into Q2 food would be 1.71 CC. Production would be 180 Q2 Food. Revenue at the current level (lowest available price is 0.17 IEP) would be 30.60 CC. The FRM surplus of 90 FRM would sell for 4.50 CC. Total Taxes would be 0.29 CC. Total profit stands at 31.39 CC. Based on this, it would take roughly 665 days (or 1.82 years) for the Hunting Lodge and the Level 2 Food Company to pay for itself.
This seems like a hefty investment for very little payoff (even when you have completed paying off the initial startup costs). Let's face it, 31.39 CC doesn't buy much. A highler level of food could be produces, but the ability to sell wouldn't be as easy as the Q2 food as the actual consumer cost doesn't compare.
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Comments
missing the boat completely my article discussed the economics of erep the company not the game.
I simply stated that your article got me thinking of something, didn't attack your article.
also i recently invested into food companies that gives me a production of 10000 food a day or 700 iep a day. actually one gets both the food company and the frm company frm i think is closer to 0.02 as a noob you probably only checked the irish market which almost never get any action and have the tendency of showing elevated prizes as normal prized products is snatched up leaving you with historic entries which was higher.
I'm glad you read the disclaimer.
I thought he wrote a fairly interesting piece WTK. Why the need to go on the attack?
read his comment in my article.
Your piece was a bunch of whining.
whining it was a comedy skit based on recent changes to the game. anyway david just read through my articles i have completely covered the economy. everyone knows wrm is the best bet. employees is too fickle for q7 weps . but you cannot quantify it by ROI alone thats a bit silly. None really produce a short term ROI you need weps and food daily and maximum strength training. as you progress through the levels you need more weps and food therefore then the best option is to create a decent income to buy weps and produce a small quantity yourself. also its best with some events to have a overproduction of food.
i produce 140000 energy in a week in most weeks i just throw my paid fighters 5000 q1 food each despite their salaries which is paid in q7 weps.
Thank you. That is a comment that I can appreciate.
Hi. You must be new here. Welcome to eIreland.
David just to say that I have a little food production Q1, 2 and 4. The current Q2 sale price on the Irish Market is higher than I have seen in many months. From my experience over the last 6 to 12 months I would say the avg lowest available price is about 0.12 or 0.13.
I am not attacking your article. I am very happy and appreciative when someone takes the time to do articles like the one you have done. I just wanted to add a bit of information to your article.
Oh absolutely, I agree 100% with your statement. It's still the best deal though on a per energy point basis even at it's current price. If it were to sell for less, it's an even better deal for the consumer.
That being said, if the price goes lower, it adds even more validation to the article that it is incredibly hard to be economically savvy on here.
" flaws currently facing eRepublik "
"*currently*"
...
Didn't say they haven't been facing erep for a while, just meant that they are currently. I see what you saw there. 🙂