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[EoS] Production Cost, Time and Export
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Christopher Fowler RJ: W. T. Snacks CO: Sirkh Post Rating: 1 + / - Total Posts: 71 Karma: 36 Joined: Aug 11, 2012 |
Posted on Apr 5, 2013 In general, is it better to export products with a higher production cost in regards to how much money you spend and how many resources you put into the production of said product, or is there some kind of guideline on what you should and should not export in regards to those variables? Furthermore, is it recommended to produce these products that are being exported in multiple shifts or as a once-per-day sort of thing, and does this depend on the same variables related to what one should produce for the export market? |
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dan bra RJ: King CO: Post Rating: 1 + / - Total Posts: 55 Karma: 12 Joined: Mar 20, 2013 |
Posted on Apr 5, 2013 i really wanna do my best at answering you but im new to this game so take this with a grain of salt ok :)?1. when producing in bulk, it seems that the cost of all variables declined by the same formula as you increase production numbers, this means that the composition of variables doesnt matter in this regard. where it might matter is when the export market price for stuff include an over-appreciation to the cost of production of some products and in this case it will obviously an overestimation of the resources and not the simple to calculate cash production cost, so my assumption will be that it is better to export the more "complicated stuff" that way you are maximizing any possible underestimations. if your first question was is it better to export higher priced stuff compared to cheap priced? ill go for the higher simple because the bigger ROI relative to time other than higher profit. what i mean is cheap products that may give you better marginal profits will be capped on how much you can earn a day by their slower (relative to price) production time. this is probably true to any aspect of the game, but working in exports producing in bulk is a must, so the production time of products is of an even higher importance 2. i would assume go for the longest shifts you can reasonably produce, in order to achieve the lowest possible production cost, thus increasing your marginal profits as much as you can. |
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Christopher Fowler RJ: W. T. Snacks CO: Sirkh Post Rating: 0 + / - Total Posts: 71 Karma: 36 Joined: Aug 11, 2012 |
Posted on Apr 5, 2013 I'll keep that in mind, though I would like other people to throw their input on this subject in as well.- EDIT - I'm sorry if it sounded rude phrasing my post like that. I do appreciate the help and I thank you for your input. |
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Paul Jikanski RJ: Paul Jikanski CO: Paul Jikanski Post Rating: 1 + / - Total Posts: 194 Karma: 41 Joined: Jan 19, 2013 |
Posted on Apr 6, 2013 Export is usually the last way you would want to sell your goods. You will earn the least amount of profit from the export market. The only time I ever export goods, is if I have way more than I can sell in a store. (For example when I have 30,000,000 honey but only selling 800,000 per day out of my stores) I would sell maybe 10,000,000 honey on the export market and use that cash to expand my stores so I could sell more honey from my store every day. Compare the prices you're getting in stores (MSRP) to the prices you're getting on the export market. The export market price is usually less than half of what you would get from selling the same product in a store. For example right now I am getting $8.24 per honey from my store, but would only get $1.57 from the export market. The income from 10,000,000 honey sold through a store would be around $82,400,000 while I would only get $16,300,000 from selling the same amount of honey on the export market. That's a huge difference. That's why it's usually a last resort, when you really need some instant cash to get an expansion going or something. As for "production shifts" this is where Economies of Scale comes in to play. And no, I'm not referring to the name of the game. Run a google search for "economies of scale" and read the wikipedia page, that will give you the true definition. I've mentioned this before but maybe you thought I was referring to this game, and not what economies of scale actually is. Basically the more you produce at once, the less material and cash is actually required. You'd think producing 10 items would cost twice as much as producing 5 items. Because of economies of scale that's not the case. I may explain this bad, but if you took the required goods to produce 5 items, and multiplied them by 2, instead of producing 10 like you'd expect, you would actually produce 11 or 12. These numbers do not reflect the actual formula. Just an example. I usually run production in 24 or 48 hour shifts, but when my companies were your size I would run maybe 4-12 hour shifts as I couldn't afford to run shifts that were much longer. A general rule of thumb is you always want to have productions running. If a factory is not producing goods and is just sitting there, you're wasting money. The game "Industry Giant 2" (which I just tried out yesterday) used a good example on their tutorial for this. In that game you can adjust the percentage of capacity (0%, 25%, 75%, 100%) that the factory will work at. Even if you set the production to 0%, the workers at that factory are still getting paid whether they work or not, so having 0% production may stop you from overproducing, nut you're still wasting money on salaries and maintenance costs. When a production is finished, the goods will automatically go to your warehouse so if you are selling goods through a store, your shelves will automatically be restocked when the production shift is finished. Usually I'll have production "shifts" queued back to back, so I'll have 2 48-hour runs set up so that as soon as the first 48 hour shift ends, the next one starts. That way stuff is ALWAYS being produced, whether I'm offline or not, or whether I get a chance to log in that day or not, and I never pay my factory workers to sit around twiddling their thumbs. |
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Christopher Fowler RJ: W. T. Snacks CO: Sirkh Post Rating: 0 + / - Total Posts: 71 Karma: 36 Joined: Aug 11, 2012 |
Posted on Apr 6, 2013 Well thank you for the input. I don't have the confidence of capabilities to succeed in the retail market when compared to other players in this game though. That's why I decided to go with exportation until I am able to compete in retail via the research and development projects I am working on. Either way I am appreciative of the input you have given me Paul.
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Brent Goode RJ: BB Goode CO: BB Goode Post Rating: 1 + / - Total Posts: 506 Karma: 180 Joined: Apr 5, 2012 |
Posted on Apr 6, 2013 You can always sell in a retail store. Even with lower quality and higher prices, you will be able to sell your goods. And you will probably make more money that if you are selling on the export market. I would love to see a more vibrant export market available, but for now, I would encourage you to develop some retail presence. you don't have to do much to tune it in, just set a price so that you are selling something reasonable per tick, which is displayed on your shelf page, and add some advertising to at least 100% or so, and let it go. You will easily make more money. I will be happy to chat you through it if you want to drop me a PM sometime.
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Christopher Fowler RJ: W. T. Snacks CO: Sirkh Post Rating: 0 + / - Total Posts: 71 Karma: 36 Joined: Aug 11, 2012 |
Posted on Apr 7, 2013 Alright, I sent you a message. Thank you.
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Tomaž Rozina RJ: Mytheos CO: Mytheos Post Rating: 0 + / - Total Posts: 17 Karma: 9 Joined: Jun 7, 2012 |
Posted on Apr 7, 2013 From my experiences i would advise you to take Paul and BB Goode advice althow they both didn't mention the time as a factor compared to store sales or export. It is obvious that through export you gain cash immidiatlly and you need time to sell same amount but your income will be higer. So selling through exports is good idea for new companies and if you have to mutch stuff in your warehouse or you want to get rid of some low Q goods... As soon i began to play i had open a store and i always sell stuff through stores and it's always same story i just can't get enough stuff to sell-stores are always to big (they always manage to sell everything) of course i expand them but not as mutch as factories...even now demands are just crazy :) |
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Paul Jikanski RJ: Paul Jikanski CO: Paul Jikanski Post Rating: 0 + / - Total Posts: 194 Karma: 41 Joined: Jan 19, 2013 |
Posted on Apr 7, 2013 One of the main points I didn't mention about the export market, is that often in the early stages of a company, due to Economies of Scale you might not be able to produce items cheap enough to even make a profit on the export market. I've noticed early my in career if you aren't making long production runs in a large factory, you might actually be spending more to produce a single unit than that unit would sell for on the export market, so in the end you could lose money alltogether. I use the export market often, don't get me wrong, but it's secondary to my store. I will export what my store doesn't sell. I can produce around 10,000,000 of an item in a day, but my stores will only sell between 400,000 and 750,000 per day, so when I get a large surplus of that item in my warehouse I will export some of it for some quick cash to use to expand. I do hear what you're saying though about competition. The reason I can produce 10,000,000 per day and only sell 500,000 is because of competition jumping into my market with 80+ research compared to my 50. I went from not being able to produce nearly enough to keep my store's shelves stocked every day to overproducing by a great amount. But the export it still my secondary income. Either way I still make about 5-6 million per day in my stores. Steady income is the best income if you ask me. |
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