Market Observations - AUD, Gifts, Weapons and Food
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by Scorpion Stinger
As observed by Kharos in the forums, there are a number of international day traders operating in our monetary market and for some reason they're pushing up the value of the AUD against gold.
The biggest beneficiaries of this are eIndonesia and the National Bank of Oz, both sitting on around 38k AUD. This would be a great time for them (or you) to turn any lazy AUD's into gold...
The GIFT market is interesting. Diamonds are very competitive and cheap but there is a shortage of gifts and they are excessively priced. An opportunity for some new mfg companies to move in..
WEAPONs are the other interesting market. Right now there is a shortage of iron and prices are high, but weapons are cheap. It might be a great time to buy a weapons company because once a war starts (and we all know at least the RWs are coming) weapons will be in short supply and prices will move up fast.
All economy students will know that markets will self correct eventually and the fleet of foot will make the profits by filling the gaps, but I think the govt can and needs to do more to make those changes happen faster. It's very nice to push some managers "to do the right thing" (and the highest praise has to go to True Blue and Kangaroo for their work on keeping prices down) but in the end the market will win and shortages will push up prices.
Let's take food for an example. Q1 grain is overpriced but its ok coz Q2 grain is super competitive. Q1 food is very competitive (which isn't a lot of good for most players) but Q2 food is way overpriced.
Q3, 4 and 5 are oddly fairly priced but never stay on the market for long. This is a key problem for the country - right now we need much more Q2 and Q3 food.
The Govt should be dealing with Q1 and Q2 food companies and making known an opportunity for sponsored quality upgrades, including funding employee gifts while the companies adjust to their new level. In return those companies will sign a contract that sets max sell prices for a period of 30 days with a lesser restriction for the following 30 days.
Of course that would apply to any market that becomes a bottleneck to growth and gives our short term governments a useful tool to shape the economy.
Scorpion
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I can tell you that Q3+ food company GMs are being very responsible right now, and not raising prices too high. This is why it is not very expensive, despite the lack of competition.
Interesting, voted
Thanks for the compliments on Kangaroo Steaks. We take pride in our product and our workers. Our prices are set based on the market and our cost to produce the steaks. A good part of our costs comes from paying our employees and helping to keep their wellness around 90.
Gifts are interesting. We are trying to work out proper pricing. I will be the first to admit the pricing on our Gifts for Sterling Cards & Gifts is higher than I would like them to be. Our employee wellness is so increadibly low that we are spending hundreds of AUD's getting their wellness up as quick as we can. The higher wellness will produce more product for us at the same cost. It is just costly to get us to that point. Please bare with us while we get through these steep costs and let the market adjust our pricing properly.
I think TureBlue is doing a great job as well.
One thing that I fully disagree with is the government interfering. If you let the market work it will correct itself. We pay taxes on everything. I do not agree with the government setting limits on pricing. Business owners need to be able to recoup their investments, take care of their own employees (pay, wellness) and make enough profit to work on other endeavors.
Let the companies like True Blue and Kangaroo Steaks lead the way to proper market adjustment.
Good article. I voted it up!
John (Icey1174)
We have just upgraded our food company Unicity Nutrition to Q2 and we plan to go even further in the future. The main problem is, and I assume it's the same for all eAus companies, that the average wellness level in eAustralia is pretty low due to lack of active wars and low Gifts offer on the market. It is extremely difficult for GMs to offer high wages to their employees if their productivity is half of their potential.
Currently Unicity sponsors its employees with Moving Tickets to fight abroad and we are also offering Gifts, but this process demands high investments, plus late ROI. The best way eAustralian government could help would be to help increasing the wellness of its citizens.
Congrats for the article Scorpion, very good analysis!
There are also 2 new Q1 Iron companies who are pricing their iron at the RRP so I resent the "Iron is over priced" statement as the only companies doing so are a) one company that looks like its out of business b) oversea's companies.
@Oakenwise Industries.
Iron isn't much of a worry to me at the moment, i am trying to work with companies to get the wood, diamond, grain and food (mostly Q1 and Q2) prices down.
Iron isn't really need at this time since there will be no war for a while. The hospital is only 1200/2000 built, so war won't be in our country.
@ Scott all of True Blue of course 😛
A few Q1 food companies could afford to upgrade to Q2 so that both Q1 and Q2 remain/become competitive. Q4 food can be purchased via the forums where CheeseBall has offered 7AUD for Q4 food http://forum.erepublik.com.au/viewtopic.php?f=29&t=187. Q3 is at a reasonable level of companies. Q5 is a bit of a shortage but, I'm sure that will be fixed soon enough.
Into weapons, there is pretty much no point in getting into a weapons company unless you have your own iron company because of the high prices. That is how most weapons companies are able to maintain relatively cheap prices.
As for food prices, it is really up to the older GMs to teach the younger ones. For instance Q1 food should never be higher than 1AUD because that is what the minimum wage is. But still Q1 food companies are seen with prices higher than 1AUD.
It is also better to hire skill appropriate workers, eg. skill 7 should never be working in a Q1 company unless
a) they need to increase their health
or
b) they have a good reason eg. Widdows9000 works in a gov. gift company
Thanks for the votes and the comments.
We're lucky to have some benevolent experienced managers. I take the point that the govt can also help with medicare type wellness programs, but I'm really not sure how active that's been in the past or can be in the future.
(Like I said - I've never experienced any)
very good observations
lol @ Scott "Which True Blue???" 😛 True Blue rocks 😃
Hello, all you Aussies! Please read the following article: http://www.erepublik.com/en/article/read-this-for-realsies--765693/1/20
Thank you. :3
Good article/
burn you filthy zionists, im gonna cruzify all of you, g´day mate.
selling q1 weapons at only 0,23 gold/piece. pm if interested
sounds like you bruce's and sheilas need some swags! hehe. Well, I can offer you some proper airconditioned houses Q3 for only 630 bucks (17 golden one's)
so pm me if your interested, and we can setup the contract, this is a true blue deal! These houses are beauties!
http://www.erepublik.com/en/citizen/profile/1338304