Raw materials costs are getting uncontrollable.

It seems like almost all of my countries and enterprises are simply paying too much for raw materials.

Here is an example.

Corporation A (mine, "Vulpinian Holdings") makes Household Products in a c3 country and pays 300 salary. It orders supplies at 140 quality and pays ~2.6 billion per game month for these.

Corporation B (not mine) in the exact same country also produces Household Products. It pays the same salary, 300. It orders supplies at 160 quality, a bit higher than mine. It pays ~1.9B per month for this.

Why is my corporation ordering lower quality supplies and paying more for them?

I see this happen consistently across my enterpris

Agreed.

Similar thing with me; have 2 CEO's on GR. I was comparing corporations in them, same country, same product, same settings, same taxes (0%), yet my 'cursed' CEO costs across the board were higher than my other CEO. I compared many corps., and it was the same. Coincidentally, Columbia Commerce Consortium's total market value for all corps have dropped close to 60% since the GM's started moving numbers down. It is down considerably more than my other CEO percentage wise (Carolina GCX).

I keep wondering, when does the devaluation of this particular CEO end?? And why are the cost higher, when my settings are exactly the same in every category as my other CEO?

I am not blaming the GM's for this, however. I may be doing something to cause this, though I have tried everything in the book so to speak, to at least slow down the downward spiral that CCC is taking.

Andy, if have the time, could

Bumping.

What's going on here? Why are certain private (and state) corporations paying so much for raw materials when others aren't?

I agree with Kitsune

I've noted this a few times among different CEO's. WTH is going on

Yep. My minds eye caught this a long while ago. I'm exhausted at finding where my profits are draining to in my CEOs especially :S

The value of corporations is declining with all other numbers.
Income and cost declined and the difference too so if earning per share is down, PE ratio restores itself by reducing the price of the shares.

measured in gold coins over time:
a year ago (or two) a very large corporations was values at 0.5-1.0 gold coin, not it is doing around 7.

We have not pushed this down, it is the result of declining numbers.
check the value of your account in gold coins. If you have done recently as good as before, the value has jumped in the past year.

the total world value used to be 3.5M gold coins, now it is 12M+.

Raw material pricing depends on the market. create some corporations that produce materials your corporations use a lot and contract it to them at a good price.

If you look at the "last price paid" column on the "available materials" section for each corporation, you will see this:

First Example Corporation, "Louth Household Products" from my enterprise "Vulpinian Holdings"

Product Avg Quality Last Price Paid
Chemicals 144 $3465
Electric Components 144 $1563
Electric Power 137 $165575
Electronic Components 146 $1813
Factory Maintenance Units 135 $4.19M
Glass 142 $2404
High Tech Services 142 $1553
Plastics 142 $2223
Services 139 $1576


Second Example Corporation, "Omega Household Products 15", in the same country as the first:
Product Avg. Quality Last Price Paid
Chemicals 167 $4052
Electric Components 154 $1514
Electric Power 154 $202253
Electronic Components 164 $2097
Fact

I don't know how the question could be explained any better than what Kitsune stated.

Could it be buying strategies, paying more because you dont get it for a month or two? To compound this the slight difference in Q ordered may matter as from what I understand the game tries to fill orders of a certain Q with offers of the same Q, if this cant be fufilled then it will do a best match.

Hard to believe, but vaguely possible that a slightly different Q order would take longer to be fufilled??? and so the 8 or 10% strategy mark up comes into play. Probably I'm clutching at straws and hopefully Andy will find out and explain exactly what is going on.

How about this thesis. Older corps buy first. Younger corps get the scraps and higher prices if product stocks are sold out at lower qualities. The older your private corps the further up in line they are to get the lower cost supplies.

kitsune. How old are those corps? Is the older one getting the better supply prices? Just curious.

Cheers.

LOL redman, but hey, most people do make and offer higher Q product, so the higher Q requests are more likely to get filled first. I wonder if the box on the corp page shows the price at the time the order was first considered or if it actually reflects any markup due to your purchasing strategy.

Also, Is the production in these corps the same?

That's an interesting theory Redman. I don't think that is it though.

Corporation Start Dates:
Louth Household Products: March 15 2714
Omega Household Products 15: July 15 2015
Batangas Household Products: June 15 2843

The corporation that is paying more for materials is Louth, which is the middle child of the three. It is owned by Vulpinian Holdings which is my (renamed a few times) first enterprise on LU. Batangas Household Products is owned by Kitsunebi which was my second enterprise on LU. And Omega Household Products 15 is actually Laguna's corp and as you can see it is very old.

Production Levels:
Louth: 107.3%
Omega: 107.3%
Batangas: 111.6%

All 3 pay 300 salaries.

Louth and Batangas use very similar trade strategies so that seems unlikely to be the cause.
Louth: Start at 91%, increase by 9% each month.
Batangas: Start at 92%, increase by 8% each month.