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Investing in Food Factories – The economics behind the bad investment

Day 2,149, 07:15 • Published in Australia Ireland

• by asecondchance

Let’s keep the decision making simple if you should get into the food business given the current economy and the upgrade sale.

Here is the simple math:
Expense:
Initial Purchase: 10 Gold
Upgrade to Level 2: 11 Gold (w/current discount)
2 Fisheries for Raw Material: 20 Gold
Total investment: 41 Gold. Gold currently is worth 205 AUD so a total investment is 8,405

Revenue:
Food factory will generates 120 Q2 food which sells for on average around .12 AUD per item or 14.4 AUD per day

So to buy a factory and upgrade it to sell Q2 food it would take 583 days to break even.

A little short of 2 years to break even. The decision is yours.

Comments

Robdog31 Day 2,149, 23:52

Don't forget to factor in the shitty "work tax" that the government doesn't seem to want to eradicate. :/

asecondchance Day 2,150, 04:36

Good point I didn't even add that in now that the work as manager gets taxed...

Binda33 Day 2,150, 05:21

Keep up the great articles. 🙂

asecondchance Day 2,150, 05:40

Thanks Binda! I keep wanting to get back into the business module but really struggle to find a model that works

TanBurton Day 2,150, 05:59

in game advantage : there is no expiry date for goods,,,

thedrifter Day 2,150, 07:43

look most people wouldn't even invest in raw materials because normal rm prices is between 0.01 and 0.02. In fact I would say that it's worth while investing in food factories as long as you have the storage space and access to over seas markets to back the investment up.

asecondchance Day 2,150, 08:21

Looking at the margins, the issue is that there really is a small profit margin which would require a really long time to breakeven. So I guess it would be all about what your goal is in investing.

Cyber.Casper Day 2,150, 14:41

I completely agree. Back in V1; I had close to a dozen companies and well over a hundred workers because it was profitable. How did I do that? I bought gold of course. These days, it's just not worth it.

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