Companies for sale - Why so high prices?
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by GNEFCZ
I was just looking for a new company to buy and instead of founding new one i wanted to find something cheaper, cause you know that you can always buy them much cheaper from people who need gold or don't have enough time to play online...
But to my surprise I couldn't find anything cheap!! And i understood the problem right away...
The problem is that when you build your new company q1 for ex you need 40g...20 +20 right? but when people sell their companies they are thinking like this: "I dont need my comp anymore, i dont have workers,raw,goods in there...ok so i've built it for 40g so i'll make a good discount and sell it for 13 g less and try to get 27g for that"...
BUTTTT! You DIDN'T give 40g for the company! OH NO! You gave only 20G for that! Other 20 you've spent on raw and paychecks and you got it back form selling goods...So why would I or anyone else buy something for 27g when I can build it myself for 20g??? You can only sell your company for 18 or less...unless you have some workers or raw or some not sold goods there...
That is the main problem why eRep economy is not working properly...people who know nothing about accounts or costs or profit buy companies and try doing business themselves without at least reading some tutorials...
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You can buy my q2 house company with 4 license for 50g. If that is not a bargain, I don't know what is : )
That is called free advertising hahahah 😃 lol not interested in houses at the moment, but thanks for the offer 😉
I agree with the writer in regards re-selling.
But this can not be the reason why the economy does not work!!! If you are not successfull you will fold, if your price is too high it will not sell, and all that will happen is that the company will sit and mean nothing, no workers and no products, and then it has no impact on the economy. Just a white elephant until the person REALLY need his gold will he settle for less, like in real life. But he did contribute to the economy by starting a business, so 20 gold would be injected even if the company fails the very next day.
The only place it might for a while have an impact is like when your salaries is so high it makes export not profitable, but the economy will rectify this since if your salaries is too high you will not turn a profit and have to downscale, like in RL. I am just learning, but what you said does not make sense. If i am wrong educate me 🙂
there is no more company creation for most industries. Supply and demand forces up prices.
A good way to make money was to create raw material companies for 40g, remove 20g via the monetary market, and then sell the company for 21-23 gold. I made about 20 gold in France that way a few months ago.
1) There are plenty of great deals on companies, especially abroad, though also in eSA. Check out this API-using site, which among other things has a very well done companies-for-sale search function:
http://erepublik-market.cz.cc/companiesForSale.html
2) Some people want to run a company, but don't have the 40g (or more for higher Q) to start one from scratch. For someone with 30g, which is enough to get a Q1 company going, paying e.g. 23g for a company is worth it, since the alternative is not running a company.
3) For those who do not go for tax evasion, or do not know how to, you only get a portion of the 20g that sits in the company account, which makes the real cost of starting a company more than 20g. For example, at the current income tax rate of 15% for a Titanium company, one would be getting a deal by buying one instead as long as the price were less than 23g.
4) People are often driven by a desire for the common good. Idle companies represent idle money and idle productive forces. By buying an existing company instead of creating a new one, you put your money back into the country's economy. The gold spent on a new company disappears from the economy. Many people are willing to spend a bit extra to acquire a company in a socially beneficial way.
@Mashaka Kulala:
1) I've been using that website myself but not rarely do they have problems like not updating currency rate so it's really not accurate enough but i agree it could be quite useful...
2) I guess you are right about that...I was looking for my point of view whereas I have enough gold(40+)...
3) you're somewhat right about this but...people who open the company for the first time or anyone else, won't withdraw their money(20g) at the beginning from the company because they'll need it for paychecks and raw and stocks...and sooner or later they'll find out about tax invasion...so if you buy company for 23g, again you'll need 20 g for everything else, and you'll end up paying 43g instead of 40g...
4) You are right about this BUT...when people open a company here or in RL they want to make PROFIT! I mean ok there are some people driven with desire to help their nation...but to be honest everyone's prime goal is to get rich...if they really care about the nations benefit they would use tax invasion...and we all know that is very often used method in running the company...
I faced with the same problem. And mostly the raw companies are unexplainably expensive. I dont know why... There are raw companies for 40 g with 1 license no stock, no workers and they think it worth..
It is exactly the same as in RL real estate. If the business owner sets his company price at the right level, it will sell. If he does not, then the eWorld will pass him by.
It is what the market will bear.
buy company in serbia, no problem here are much more cheaper firms...
or Macedonia, i sell company for 110 gold q1 food bakery with +4.000 stock on board in Macedonia. As soon war breaks out price of bread will skyrocket. if you want do bet on extra profit you can buy this company
http://economy.erepublik.com/en/company/mkd-food/251030
They are indeed much cheaper but no profit 🙂 your bakery looks real nice and neet but still not worth 110 g...I would give you maybe 85-90g the most 😉
I'm selling an iron company in China with 5 licenses in a high iron region (Hello Kitty). For 70 gold. That's clearly a deal.