General Advice for General Managers
ronnyJnrJnr
After seeing our market over the time that I have been playing go from one extreme to the other, seeing production numbers for goods and citizens do the same thing, it seems that admins have maybe almost considered thinking about keeping the numbers that we have now for a while and letting business get on with itself.
Today I will try and point our GMs in the right direction again by showing them a good way for setting market standard prices and wages, because once again, wages are ridiculously high for what is recouped from the sale.
Let us begin with the price of the 2 high region resources eAustralia has.
Titanium and Grain.
Titanium currently sells for $0.09 per unit
A guru working at 100 health and a full compliment of 10 workers will produce upto 380 units.
This comes to a total of $34.20
AS there are no other costs involved other than wages, YOUR PROFIT comes straight from here.
Once again, between 10-20 % is a suitable margin
$34.2 -20% ($6.84) =.$27.36
$34.2 -10% ($3.42) = $30.78
Grain growers are getting more for their goods as the product price is higher at $0.10 per unit.
The same sums apply:
380 x $0.10 = $38.00 GROSS
$38 - 20% ($7.60) = $30.4
$38 - 10% (3.80) = $34.2
Grain growers should be aware of prices, as should titanium harvesters. Grain GMs can afford the luxury of 20% margins, thus keeping the wages fairly even between industries. Titanium would have to offer jobs at 10% margin to be able to compete.
Having our 2 strongest industries competing against each other for workers will not work. The 2 must work in conjunction and harmony to be a successful country. Yes prices change. but the same maths can be applied to new price changes.
Yes there are very few workers in Australia at the moment. Even more reason to set standardised wages so that our main industries have a level playing field. Setting wages higher than what is gained from sale creates other problems within itself. It doesn't matter if you offer 10 jobs higher than what you make form the sale of those goods if there are only 5 people available for the job in the first place.
Sure some noobs go broke offering low prices and high wages. They should do the math, get some advice first
This isn't directly collusion, but merely a standard level set.so our GMs have a level field.
Skilled GMs need to mentor these noobs or anyone considering opening a business. Some people just want to do it, no matter how bad a time it is. At least we can stop cash and gold going the way of the dodo in dead orgs and citizen accounts if we can give them some advice on whether to start or not to start, what to start and where.
Wages should be based upon sale in the Australian market, not foreign markets. If you can offer higher wages, do so in the privacy of your own company. Set levels should be on the market, with minimal increases or decreases. If the person is working well, there is nothing stopping you giving them a raise.
There was a business section in the forums. I think our economy should get back on its feet the right way, not the wrong way. All business owners operating in Australia should get active on the forums and on the IRC marketplace.
Comments
true and helpful
Managers often 'forget' to calculate wages and set job offers simply to list their company as the first on the market.
To be honest, this is the worst practice I can think of but unfortunately has been the general approach nowadays. You just need to look at job market offers and see a number of companies making net losses for themselves, even if you take into account the hidden productivity bonus by referred players, which is not guaranteed at all.
Interesting article. Boated and subscribed. Looking forward to the next issue.
Good work Ronny.
Does anyone have a company calculator for V2?
Good info. Thanks
@Scotitan: Here's a great company calculator: http://erepublik-market.cz.cc/companyCalculator.html;jsessionid=D3269EDB39DB7216A63B03D46A086789
I don't hire anyone atm. as wages are way too high.
The only active worker in my titanium business, is myself.
good info, too bad there's still so much noobs that are skyrocketing the wages and dumping the prices.
i closed most of my australian companies down and started a few outside of australia because it seems like there's not going to come an end to the salary circus here anytime soon.
I was told that my straight-line, pre-calculated, actually-in-line-with-my-profit-margin wages were "Too high and driving up market prices." I double checked after I told the guy that my wages were calculated to be within the tolerances of my profit margin, and the wage that he was complaining about had been listed when the high on the market for that skill was nearly a dollar higher, in the middle of the day. He didn't seem to have anything to say after that.