Buying vs producing
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by Wilhem Klink
Supply & demand - its what makes the world's economies work, even in the supposedly commie countries (its called the black market). Here on eRep, it doesn't quite work. Unlike the real world, there's no disincentives to production. Its all fake money so we churn out stuff & sell it for the best price possible.
But there IS a cost to production. When one Works as Manager (WaM) one pays a work tax that, at a minimum, is 1% of the average wage paid. And wages have been growing with the average wage in eCanada slightly over 3610cc as of this writing
That means when one WaM, they pay 36.10 in tax. Its roughly the same world-wide.
Estonia - 1% of 3480
USA - 1% of 3490
Serbia 1% of 2790 (low!)
Poland 1% of 3430
Portugal - 1% of 3400
Croatia - 1% of 2800 (also low)
France - 1% of 2950
Food Raw Materials - in eCanada, the most FRM one gets from a company is 2.5 units (from a Hunting Lodge). Which means producing one unit costs roughly 14.4cc. But eCanada has no food bonus.
Going to high bonus Estonia [204%] one can produce 5.11 FRM for about $35 in tax, or $6.85 per unit.
Looking at the other countries mentioned
USA - bonus of 209% = 6.68cc per unit of FRM
Serbia - bonus of 170% = 6.20
Poland - bonus of 204% = 6.72
Portugal - bonus 210% = 6.48
Croatia - bonus of 205% = 5.51
France - bonus of 213% = 5.32
Food raw is selling on the market for under 5 cents. Food producers, save your cash, don't pay the tax and buy your raw materials. If the market price is less than 5.50cc it makes no sense to produce it.
Weapon raw materials, the other raw is selling for more than its production cost, so this doesn't apply to weapon raws.
Obviously, Plato handing out 25 FRM per day for free to nearly everyone has a game impact (the supply side of supply & demand) and that impact is to kill food raw material producers.
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I find your ability to count beans strangely erotic.
*low whisper* my assets are getting larger
Rahr!
The FRM companies are litterly people donating from what I believe, buying a q1 house is litterly accepting free money.
Can you do an article similar to this to show how profitable it is to own a q1 house in Canada 😛? I see everyone wasting money producing FRM and selling it for a loss, but then they don't have q1 houses, knowing that they give work tickets worth 25k(at 3.5k wages) for a cost of 17.5k atm.
I did one a while ago on q1 homes. Succintly, Highly recommend everyone at least buying one for now if they can not produce them. Currently, for profit reasons, it doesn't make sense to buy above a q2 home. That being said, there are other things that need to be considered when you go above a q2 home.
The CC calculation for houses is pretty easy: (wage – work tax) * 7 – (house price + activation price).
In the USA Q1H works out to (4000 – 40) * 7 – (17200 + 172) = +10348 cc per week
You can basically ignore the work tax & activation price part, really, at least for Q1
Calculation is the same for any Q house, only the cost part changes.
Q2H: –7948
Q3H: –40448
Q4H: –115470
Q5H: –171048
So these are the "real" price of the extra benefits of regen & energy pool. Valuing those, as Natster said, is more complicated. If you think have a Q2H will earn you an extra medal each day, then ~1150 cc for a medal is a decent return.
It's also worth noting that none of the house companies are profitable at present wages & bonuses (in the USA), so you should just buy from the market.
Until some rich fool buys them all and we need more people to produce them 😛. Wish I'd bought more at 15150 tbh.
You have to balance the rich fools buying versus the fools who just click without doing the math!
Wages are up ~35% since May, so those stockpiled houses keep getting more valuable.
There is quite a bit of variation in house prices in different countries, so it is worth shopping around when you want to buy.
Well said. I dissolved my FRW companies the day these new daily rewards were introduced. 25 FRW per day is way to much. You need at least 2 Q5 companies at full bonus to use them up by WAMing.
Same here. 🙂
~hyuu~
I only produce enought FRM for the daily challenge. +1500cc if you can get 100 activity points, +1000cc at 80 points, +600cc at 60 points.
Add in other stuff in the 80 & 100 activity points that are attractive (ARM, HRM, E😎 and that's another 1500cc to be made on the market.
My suggestion isn't to forgo producing FRM altogether, just produce the 10 FRM and buy the rest.
The alternative to producing to obtain 100 activity points would involve traveling, fighting with a booster (ghost booster would be most available), and winning a BH/SH medal.
Please buy RM from newer players. They have less storage space to work with and getting 50-52 RM everyday is 5000-5200 storage space.
The upshot of free FRM & low FRM market price is that all Q of food companies are currently profitable to WAM. The economic strategy for new players should be less WAM-based (the old strategy) and more food companies. Weapons companies only make sense at Q7, which is a huge investment, but even Q1F sells so a new player can turn a profit with a modest investment.
Buy your food from newer players too!!
That would explain why I have so much useless FRM. I had it so I used all the FRM I produced. Today i am sitting on like 2,500 FRM.
Two weeks ago I deleted all raw companies , about 100 in total, I bought enough q5 to last years,kept one q5 food co and the rest are Q7 weapons , also expanded my storage to 3m that way I can buy when its cheap
"...that impact is to kill food raw material producers."
Purely unintentional I'm sure. If admin really wants to destroy the econ (again) they'd just come out with a new mod.
Not meaning to sound smug, and realizing most people don't have private Q5 food factories, I never realized production was so complicated. Generally I haven't paid any attention to WaMing taxes as they are trivial compared to purchasing supplies off the market. Also I do keep a few employees to make extra Q7s for a stockpile and to give away.
( ˘ ³˘)♥
Way too much raw materials given in the Daily Challenge, combined with the amount of cc given out as well. Less and less need to actually work. The price of Q7 weapons is stagnating, against the inflating cc. Houses in general and their raws are going up, but not at the same percentage increase as cc is, so that's still a strong market.
Haven't looked at the aircrafts market, since I don't partake in that one in particular.