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Are local and common market contracts less profitable for corps? (White Giant)

Topics: White Giant: Are local and common market contracts less profitable for corps? (White Giant)

Sir Hawkal (White Giant)

Saturday, December 18, 2010 - 09:57 pm Click here to edit this post
Are local and common market contracts less profitable for corps?

I was thinking that because sales are set at market price when the contract is accepted then there isn't any rise in price as product demand rises and there isn't any chance of selling above market price.

Blueserpent (Little Upsilon)

Saturday, December 18, 2010 - 10:15 pm Click here to edit this post
Forget local or common market contracts, trade on the world martket

Navamin (White Giant)

Sunday, December 19, 2010 - 05:00 am Click here to edit this post
I found my corporations to have lost a lot of money through local market trade with each other. I asked a few of the top CEO's about it, and they agreed that my experience was typical. There might be none-bottom line reasons for using a common market...like fun, for one...but, in terms of profit, the open world market is where it's at.

Now, there could be very specific examples of where one could buy supplies at a lower price, but overall...the world market is better. That being said, I think you could have a few corporations supporting something expensive to produce like Factory Main. Units, but I'm not sure. Haven't tried that out yet, just a theory. To be more clear...the FMU would sell on the free market, but would enjoy low priced supplies from national corps who would then be only marginally profitable in order to allow the FMU to be more profitable. I'm still trying to make my FMU profitable, and so I might try this.

Blueserpent

Sunday, December 19, 2010 - 05:03 am Click here to edit this post
At the moment a common market is useful for one thing only and that is averaging the supplies for corps in your country.Unless u understand, its pointless

Sir Hawkal (White Giant)

Sunday, December 19, 2010 - 04:15 pm Click here to edit this post
Thank you for your replies. I have changed all but local contracts to the open market and already I have seen a sharp rise in profits for nearly all of my corporations.

I'm reluctant to end local contracts because I've been building corps for things other corps I own need so as to be more self sustainable and I thought this would be a good strategy. The stuff is in high demand anyway so I guess I could change to open market but I'm not sure yet.

Blueserpent

Sunday, December 19, 2010 - 04:47 pm Click here to edit this post
The problem with the contracts for you is the price paid. You pay top $, cheaper off the world market

Sir Hawkal (White Giant)

Sunday, December 19, 2010 - 07:01 pm Click here to edit this post
So from a purely profits perspective its best to buy and sell everything on the world market? Including stuff needed for your country?

Josias Jorvick (White Giant)

Sunday, December 19, 2010 - 07:15 pm Click here to edit this post
yes

but their are ways to use contracts to your advantage, but the generic answer, is its best to ignore common markets

the complicated answer, is to manipulate the quality of specific corps (don't upgrade q, and/or buy lower quality supplies,) to produce lower quality supplies in a few corps, and have them contract their low priced supplies to your other corps, that sell on the open market. if you ask around in chat, you might get pointed in the right direction. but honestly, i find it a rather tedious process, and with all the contract bugs... but i know people that just rake in profits...

Sir Hawkal (White Giant)

Sunday, December 19, 2010 - 08:42 pm Click here to edit this post
Okay thanks.


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