Average capital doubling time,cap return period,payback peri

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Average capital doubling time,cap return period,payback peri

Rio Nomo CO: RioNomo Post Rating: 0 + / - Total Posts: 5 Karma: 10 Joined: Jan 10, 2015	Posted on Jan 14, 2015 So far i see that i can return my investment in 10 days if i buy from NPC b2b traders and sell in retail on less than 20% saturated markets. If i look around and buy mid to high quality materials from b2b , produce something and sell in stores then it is 4-5 days payback period at best. There was also this one good reqest for above 30 quality cans on b2b, which could have yield 1.3 days cap return time , but this was limited to 1mil cans. The question is : is it normal to have 4-5 days capital doubling time or i am missing something ? What is considered "standart" capital return period (payback period , capital doubling time) here ?
ansi coder RJ: CO: Poola Rangadu Post Rating: 0 + / - Total Posts: 18 Karma: 10 Joined: Nov 16, 2013	Posted on Jan 14, 2015 It really depends on your current capital and varies wildly with the category of products the company is handling. I have helped new comers get to 1B networth in under a week when the choice of categories was free by just retailing stuff bought from NPCs.
Rio Nomo CO: RioNomo Post Rating: 0 + / - Total Posts: 5 Karma: 10 Joined: Jan 10, 2015	Posted on Jan 14, 2015 "choice of categories" - you refer to starting tech ? Because there no other restrictions on what you can sell as i can see. But then you probably meant not "just retailing stuff bought from NPCs. " but rather buying stuff from npc , using starting tech to manufacture something and then sell it in retail . Am i understanding you correctly ? >I have helped new comers get to 1B networth Networth seems to be "cost of shares", not real assets cost ( cash,buildings and warehouse inventory cost). Or maybe i wrong about networth. How much was value of real assets , like buildings , cash and inventory of warehouse inyour example about new comers? If i am wrong about networth , then it translates in about 1 day payback time for starting company if owner is competent enough. Meaning i have possibilities to decrease my current payback time of about 5 days if i put my mind to it.
ansi coder RJ: CO: Poola Rangadu Post Rating: 0 + / - Total Posts: 18 Karma: 10 Joined: Nov 16, 2013	Posted on Jan 15, 2015 I mean product categories your company is willing to invest in. Note that once you start in a category it is quite expensive to switch to a different category. If you have hardware stores, it is very hard to switch to setting up farmers markets. Almost all of the 1B networth is in inventory. No cash. Having cash in hand is a big mistake new comers make in my opinion. Interest rate is so low here that taking max loan automatically makes sense as long as cash is your bottleneck. After you grow bigger, your shop size/influence becomes the limiting factor. Here is one strategy that I recommend to new players if they are going into retail business. - Go to EOSpedia and sort by increasing order of average quality - Choose a few products that have low % demand met and a high average store price. - - See if anyone is selling those products in large quantities and with high quality (it is okay if there are only NPCs selling the stuff) - pick the category that covers most of the products you found in steps 2 and 3 - Setup stores for that and buy from B2B and sell in stores. Restock as often as you can. - Observe which products are more profitable. Some products are not that profitable even if demand met is low. switch them out and move to other products. - max out loan and use all the cash. If the company has more than 10x its networth in inventory, appraise and take more loan to increase shop sizes, buy new plots. - Buy new stores/increase existing store size till 500 as you keep growing. - Marketing is very important - invest in marketing till 150% in the beginning. When you grow your business, you will be able to push it up much higher. Also, starting techs should not influence your decision if you are going to be a retail company. Also, it is equally profitable to be a manufacturing company in the beginning, but players are not that active in this game, so you will get to a time when your manufactured product will sit on market for a while slowing your growth tremendously. That's probably when you would setup a second company to sell your manufactured product in stores assuming that you picked a product category that has several low demand met products. The biggest difference between starting with retail and starting with manufacturing is that manufacturing does not become massively profitable until you can start queuing up 12 hour plus manufacturing jobs to take advantage of economies of scale.
Rio Nomo CO: RioNomo Post Rating: 0 + / - Total Posts: 5 Karma: 10 Joined: Jan 10, 2015	Posted on Jan 15, 2015 Wow ,that is a lot of info ,and very helpful. Thank you !
Tiny Hogwaffle RJ: Caligula CO: Tiny Hogwaffle Post Rating: 0 + / - Total Posts: 128 Karma: 10 Joined: Jun 3, 2013	Posted on Jan 16, 2015 Most factories can be expanded 3 times faster than stores. The result is high demand for store space in the game, and low demand for manufactured stuff. Therefore, you might have trouble starting out just manufacturing stuff. The most profitable route is manufacturing stuff and then selling it in your own stores. Of course, you'll be more profitable if you pick a product that is low in demand met. Beware, though; it could be only temporarily low in demand met. Also, I wouldn't let your starting techs determine what area you should go into. Pick something that doesn't seem to be over saturated. I wouldn't worry too much about getting big fast. While the game is still fun for me, I found this game to be even more fun when I was small and struggling.

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