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sbroccoli
All worlds
23 Nov 2012 11:25Link
In the hunt for answers to why some of my corporations make a profit while similar corporations make a loss, I've come to notice that the cost of materials varies a lot.
I'm i.a. looking at two oil companies. Both have effectivity upgrade 200. The most profitable also has 200 quality, while the one running a deficit only has 188 quality.
They sell the same amount of goods and have the same revenue. Buth there's a difference in material costs of 20 to 25% in disfavour of the corporation making a loss.
The corporations that is running a deficit has almost all it's materials covered by contracts that fill no more than 100% of its monthly needs. The profitable corporation has about half of its need covered by contracts. Rest is bought on market.
Since prices are the same per unit in contracts and market, that shouldn't do a difference.
And since the corporation that loses money has 100% of its res
I'm i.a. looking at two oil companies. Both have effectivity upgrade 200. The most profitable also has 200 quality, while the one running a deficit only has 188 quality.
They sell the same amount of goods and have the same revenue. Buth there's a difference in material costs of 20 to 25% in disfavour of the corporation making a loss.
The corporations that is running a deficit has almost all it's materials covered by contracts that fill no more than 100% of its monthly needs. The profitable corporation has about half of its need covered by contracts. Rest is bought on market.
Since prices are the same per unit in contracts and market, that shouldn't do a difference.
And since the corporation that loses money has 100% of its res
O
Orbiter
All worlds
23 Nov 2012 20:33Link
the quality of the supplies, effects the material costs. buying supplies at 300Q, means that you are paying 3 times the base cost.
if 170-180 is the optimal supply quality range, anything over that, is money wasted. by contracting your own high quality supplies to yourself... you are buying higher quality goods than the corporation can use. this is normal, and a common problem with common markets.
the common market is a great tool, if you know how to use it. if not, then ignore that feature.
if 170-180 is the optimal supply quality range, anything over that, is money wasted. by contracting your own high quality supplies to yourself... you are buying higher quality goods than the corporation can use. this is normal, and a common problem with common markets.
the common market is a great tool, if you know how to use it. if not, then ignore that feature.
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sbroccoli
All worlds
23 Nov 2012 21:38Link
Good point. thx.
I usually stop quality upgrading at around 170-180, but that's too late, I see. My inputs will end up around 280 apparantly.
So far I just bought 'any quality' from the market. If I set 170 as quality, what will it buy? Only OVER 170 or what?
I usually stop quality upgrading at around 170-180, but that's too late, I see. My inputs will end up around 280 apparantly.
So far I just bought 'any quality' from the market. If I set 170 as quality, what will it buy? Only OVER 170 or what?
C
Crafty
All worlds
24 Nov 2012 18:58Link
It will buy Q170, give or take 5% ish. Any quality is too high for a corp that buys only or mainly on world market, you will hit the max Q produceable by the corp and so waste Q of supplies, that is, spend more on quality supplies than you can use, a waste as Orbiter points out.
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sbroccoli
All worlds
25 Nov 2012 18:14Link
Hmmm...I checked my countries and the Enterprise. They all had 150 as supply quality. So that can't be the reasomn after all why my supply costs are increasing and killing profit.
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Jennifer
All worlds
25 Nov 2012 18:43Link
got some computers @350Q anybody need some major overkill?Got oil at about same,Htec also.Mas Mota