Srg91- General Market Analysis
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by srg91
You know what? F*ck this, this is purely inspired by Hinokai and his stupid rants, and sometimes I dont even understand why I bother. Before troller troll, this isnt an attack on anyone, rather an analysis upon the current Product Market, Monetary Market and Job Market when compared to the world.
Warning: ITS A BLOODY WALL OF TEXT
(and no pics)
Let’s start with the Monetary Market.
With the sudden treasure maps hitting around the due to the strength medals, the global general MM trading is now roughly around 47-48 currency per gold then the previous 50-51 currency per gold. This is somewhat expected, given the influx of gold that has came with the treasure maps. However, I believe that this 4% decrease will be back to the original mark given 2 to 3 week’s time.
The concept of MM is simply, a trade between two currencies in circulation. Theoretically, if there are 20,000 gold (obviously the real number is higher) in the Australian currency Market (including companies, MM, foreign assets and so on) and there are 300,000 Aud in the Currency Market (including companies, MM, foreign assets and so on). Then in theory, the trading would be 300,000/20,000 = 15 Aud for one gold. Or, 1/15 = 0.067 gold per Aud. However, in there are 20,000 Aud in circulation, then the trade will be 1 Aud for 1 gold (now wouldn’t that be nice). So basically, the general idea is that, if you wish strength your currency. There are two ways of doing this. First, increase the total gold currency within our economy and two; decrease the amount of currency in circulation, hence gold will be less valuable to the currency.
As to this date, the only way of producing more currency is via printing. Hence this is something we can control. With players leaving and quitting, their currency (and gold too) will lie in their companies, orgs and their citizen account. Hence, given the fact we do not printing, then naturally there will be less Aud in circulation day after day. This will strengthen our currency naturally.
The other way is, as mentioned gaining gold. This is usually done by foreign players wishing to buy cheaper products (either by an export license from eAustralian company or via foreign player gold) and adding gold into our economy. With eAustralian MM sitting at 80+ aud per gold, which is 60% more then the international standard, I am sure we can try and aim for that goal in the long run. With smaller steps, e.g. 75 aud by the end of this month may just be the starting step.
Now, allow me to continue with the Product market. As mentioned above, one of the ways to improve our MM is to have foreign players to buy our product. To do that, our products must be relatively cheap or close to cheapest when compared around the world.
Obviously Im not going to do every single of them with detail, but I will do the more important ones.
Let us start with Foo😛
Right now, the cheapest q1 food is sold at 0.00962gold. In eAustralia, the cheapest q1 food is sold at 0.01612g. This is 68% more expensive then the cheapest q1 food around the world. No where close to even being competitive.
As for the other Qs, q1 is the cheapest in terms of healing wellness per gold cost.
Moving Tickets: Q2 and Q3 are the most used tickets.
Q2: In eAustralia, the cost is 0.429 for a q2. Worldwide, it is sold at 0.1944gold per q2. I can buy 2 q2 tickets for just one in eAustralia. Over 100% expensive.
Q3: In eAustralia, q3 is sold at 0.3549 (funny how its cheaper then Q2 😛
), worldwide, Q3 is sold at 0.2002. 78% more expensive.
Housing: Just going to do Q1 and Q5
Q1, Cheapest around the world is 0.90675g and in eAus, 1.8382. Like q2 ticket, I can buy 2 for the price of one. Over 100% expensive.
Q5, cheapest is 8.585g around the world and in eAus 16.25g. Almost 100% more expensive.
Weapons: Q1, Q3, Q5
Tanks: q1: world wide: 0.052g, in eAus: 0.1299g. Over 100% expensive
Q3: world wide: 0.2998g, eAus: 0.40937g. 37% more expensive.
Q5: worldwide: 0.7865g, eAus: 1.29675g. 65% more expensive.
Air units: q1: world wide: 0.04848g, in eAus: 0.0819g. 69% more expensive
Q3: world wide: 0.3162g, eAus: 0.4095g. 30% more expensive
Q5: worldwide: 0.802g, eAus: 1.09174g. 36% more expensive
Rifle: q1: world wide: 0.04704g, in eAus: 0.091g. 93% more expensive
Q3: world wide: 0.2835g, eAus: 0.4368g. 54% more expensive
Q5: worldwide: 0.828g, eAus: 1.43g. 73% more expensive.
Artillery: q1: world wide: 0.06868g, in eAus: 0.20475. 198% more expensive.
Q3: world wide: 0.3728g, eAus: N/A.
Q5: worldwide: 0.76g, eAus: N/A
Raw Material: High regions: Titanium and grain:
Grain: worldwide: 0.00105g eAustralia: 0.00117g 11% more expensive
Titanium: worldwide: 0.0011g eAustralia: 0.00117g 6% more expensive.
As seen from the above data, clearly (aside from high region RM), there is a clear gap between eAustralian products then the world’s cheapest. However, given the high prices, it would be logical to assume that eAustralian workers are been paid highly for the expensive products.
Job Market: I will do skill 5 to 12.
Skill 5: Highest worldwide wage: 0.437g Highest in eAustralia wage: 0.3601g. Difference: 0.07g
Skill 6: Highest worldwide wage: 0.465g Highest in eAustralia wage: 0.3712g. Difference: 0.09g
Skill 7: Highest worldwide wage: 0.495g Highest in eAustralia wage: 0.3932g. Difference: 0.1g
Skill 8: Highest worldwide wage: 0.5445g Highest in eAustralia wage: 0.455g. Difference: 0.09g
Skill 9: Highest worldwide wage: 0.502g Highest in eAustralia wage: 0.507g. Difference: 0.04g
Skill 10: Highest worldwide wage: 0.6435g Highest in eAustralia wage: 0.5265g. Difference: 0.11g
Skill 11: Highest worldwide wage: 0.6778g Highest in eAustralia wage: 0.5539g. Difference: 0.12g
Skill 12: Highest worldwide wage: 0.912g Highest in eAustralia wage: 0.5574g. Difference: 0.35g
As seen from the job market, eAustralia does indeed rank highly in terms of wage paid. However, the gap does gap farther once skill level reaches 10+. This means like higher level players would less likely to stay in eAus to work for eAustralian companies, hence reducing our production capability. However, I believe that eAustralia GMs are selling their products at a higher cost then needed and they are making a decent profit out of it atm. In order to attract foreign players to buy our products, we need to lower certain aspects of our market to the world market level.
That is really it.
All stats taken from http://erepublik-market.cz.cc
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Comments
srgmaxxxxxxxxxxxxxxxx
Pricing is a product of labour costs, not currency costs, because goods are simply labour stored in a different form.
Wages are high because there isn't enough workers and too many companies trying to hire people. Hopefully some will go bankrupt. The markets are flooded with products but not enough people to buy them.
Noobs inevitably go bankrupt, the best price in the market at any time is usually below the current cost to produce. Those with deep pockets will stockpile, wait till booms occur and then charge higher prices after more desperate sellers have sold out.
Sound article.
One other method of removing AUD from circulation is to increase taxes. Currently our base income tax at 10pct is one of the lowest in the world. I'm not proposing a tax increase but this may contribute some to the imbalance in the market.
For the current budget the MoF is looking for an end of term exchange rate of around 71 AUD.
Once the budget is passed, the government intends to increase its consumption of domestic products. Buying at twice global rates would be a disservice to the country so we intend to negotiate with GMs for favourable prices exactly as does as RL government. These lower prices will be on the open market and available to all.
Oh and docter dry is correct about the labour shortage. Its historically been that way. We've begun advertising in other countries to try and draw workers here.
Yeh, as deputy minister of Immigration, i was about to implement a migration worker incentive program but we got PTOed so that sucked 🙁
I sympathise with all GM's. The almost constant rule changing means that GM's suffer substanial losses from time to time and the only way to cover those risks is to try and extract profits in excess of what might be reasonable in a stable economy. While there is an element of price gouging like *cough* Q5 weapons, most GM's and just trying to make an honest living in a tough environment. Many of the low prices are as infin suggests, the result of selling below cost purely for cashflow. Often times the GM has long since stopped production and is just trying to erase bad memories.
also keep in mind most of the embargoes the Indos did while they were in control are wearing off now.
"One other method of removing AUD from circulation is to increase taxes. Currently our base income tax at 10pct is one of the lowest in the world. I'm not proposing a tax increase but this may contribute some to the imbalance in the market."
You should have added, ...AND, Government limits budget expenditure with those increased taxes to PREVENT it being recirculated in to the market.
Just sayin'.
We must open the markets more to foreign companies to drive the prices down. I remember (I think It was Infin, not 100% sure) a little while ago a comment that the price of q1 weapons went down from $6 to $2.75. This has to happen again 🙂
Btw I forgot to say great article
I did say that sometime ago Anna. It is always hard to tell whether it is lower tarrifs reducing consumer prices or just a drop in demand due to lack of war. War increases consumption and thus causes scarcity. But freer markets can only help to reduce overall prices.
we have an awesome economy lol jks we suck
Hmmm bad stats dude, 16 gold for a Q5 house in Aus? 16.25 gold? No, for several weeks the price has been way lower than that, closer to 11-12 gold
Would it be possible to regulate the marketplace with GFC's?
If there were GFC's that could have their prices at a set price, so other companies have to set their prices lower than the GFC's price? Would that work as a way to stop companies charging too much for their goods?
Kinda Angie
But not really. Allow me to explain.
It assumes a static value of goods. In other words, you might set something as being worth 1.22 today, but it may actually be more worth 1.24 tomorrow. Or, 1.20. The principle of a free market is that rather than cost being regulated by government, it is regulated by the principle that people WILL buy the SAME good, at a CHEAPER cost, if it is available.
To have government attempt to regulate that will mean, that you run the risk they will get it wrong over time, and cannot account for each company have the maximised workers at the maximised skill level.
Yep, I see what you mean.
Is more war a good idea then?
@henry, i took my stats from that website, so unless that api is not right. 😒
Allow me to clarify further:
Yesterday, when i did the stats, i found the q5 housing from
PP House X - Ecotech which was selling at 1272Aud.
Current trade is, 1aud for 0.013gold
1272*0.013 = 16.536gold.
Hence, Api was not wrong, but the market at the time was indeed selling it at 16gold+.
Mine you, it was the only company at the time too.
dude are you kidding me?
the wages in eAus are pretty high and the products on the market are so cheap that you will LOSE money when you sell them.
just because our products are more expensive then the cheapest products on the world, and the wages are lower then the highest wages in the world, doesn't mean the wages are too low and the prices are too high.
seriously, that doesn't even make sence!
+1 Zimmah
I don't think there actually are many countries that offer highest wages along with cheapest products in eWorld. That means eAustralia isn't an exception. Prices are actually too low, as someone has said, compared to the wages because of the lack of demand for products and lack of workers. Nothing will change until there are more workers (demand) or until at least 30% of all companies go bankrupt thus decreasing the supply.