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Why we need more Q2-Q4 diamond/iron companies

In my attempt to maximize profits and show the evil of Q1 RM companies here is the next one. My last article showed how we can take advantage of our big resources (grain, oil, wood) and put less of a strain on our economy by selling at a lower cost. In this article, I will explain how we can save the diamond/iron industry by making more and keeping costs low. Right now we have too many Q1 companies, we need to invest in our diamond/iron companies by upgrading the quality which will increase supply and decrease the cost.

If you look on the market, a Q1 diamond costs around $1.50. That is ridiculously high, compared to the other resources which can be sold around $0.60. Our country does not have a high productivity region, so we are very limited in how much we can make. My goal is to make this industry around $1.00 per diamond instead of $1.50.

So we have a few options, we can either A) set up businesses in other countries that contain high productivity and export to the USA or 😎 lower wages for diamond workers to cut cost. (Least effective) I thought these two were the only options that we had, but after my last article and using the Raw material productivity formula I noticed how we can increase productivity without going out of the country.

The way it works, the productivity formula is set up to give companies with higher quality, much more productivity. So with this said, there should be as few Q1 companies as possible. I will go through some of the math to prove it. In the Raw Material productivity formula, the quality affects the productivity by 10% each quality upgrade, while each quality upgrade produces twice as much raw materials. So say we have 5 Q1 diamond companies and they produce 225 diamonds per day (assuming 2.5 skill, 70 wellness, 10 workers, and medium productivity), and they pay their employees $6.50 based on current job posts. The total cost of wages would = $325. This means they would have to put their price at $1.44 just to break even.

Using the same employees and by upgrading the quality to Q2, here is the difference. Now we have 5 Q2 diamond companies, they now produce 202.5 Q2 which = 405 Q1 diamonds. That’s an increase of 180%. They still have the same skill so let’s pay them $7.00 based on the highest skill 2 job post. The total cost of salaries would be $350, to break even; they would need to post at $1.73, or $0.86 per unit, which is well under the cost of Q1.

Using this method, not only will diamond/iron supply increase, but also make them much more affordable. This can also be used for our iron supplies.

Now I know companies don’t always have the funds to just put in 20/50 gold. So I ask these companies to ask around for people to buy into their company, or maybe get help from the government. If we thrive for lower prices, this is one of the only ways to achieve it. This will lower gift prices, meaning a more affordable wellness source and less strain on the government in time of war.