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List of forums -> Questions and answers. Help. -> Is the price of state enterprises too expensive?

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Topic created : 19.02.2010, 12:03
phoenix37
 
In fact, I am new to the game and I have never owned mining or agricultural enterprises. However, I am considering getting one and I just do some simple maths to check profitability.
 
Let's consider a grain farm. Given the ideal scenario, everything we produce can sell. And let's consider 10k hectare farm to maximize economy of scales.
 
Without technology effect, inefficiency, etc., 10k ha farm can produce 104mil grain/yr. Assuming we sell it at the price of Independent supplier $0.3/unit, the revenue is $31.2mil/yr. (it is revenue, not profit, all expenses are excluded).
 
The price of that firm (assuming quality of 1) is 350 points. 350 points can convert to $1.75billion.
 
Therefore, to make our purchase break-even, it takes 1.75bil / 31.2 mil = 56 yrs.
1 yr = 52 wks. So 1 yr in game = 52 updates = 52 days in real life.
56 yrs in game = 2912 days in real life = 8 yrs in real life.
 
In other words, we need to play about 8 yrs to break even our purchase. I feel that it is simply too expensive or I must miss at some places. Could anyone making those purchases before help me?
   

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19.02.2010, 15:48
Mike1
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I agree with you that some state enterprises are to expensive and the max. qualities to low.
 
On the other hand, your comment relates to the grain farm, this is the worst example. most other state enterprises appear more rewarding to own, especially if you use the resources yourself and enjoy higher quality, stable supply.
 
Grain > 1.0  may be used for animal breeding but is to expensive for most of everything else. its almost non-available in the market, so most players use the available 1.0 grain for their life stock ( if using animals > 2.0 quality but grain quality < 50% of animal quality, they will die ...)
 
Max quality is not according to what it says in the farm; with higher technology, you can achieve higher quality, see here:
http://wiki.virtonomics.com/index.php/Principles:Agriculture ...
 
2.You only get 5 Million for one game point (most state enterprises are being sold for Billions in the auctions) so it seems meaningful only if you really, really need to avoid bankruptcy (if you already have a state enterprise), or if you are at the beginning of your business and things move to slow for your taste. 
 

20.02.2010, 09:50

Last time edited : 20.02.2010, 09:52
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Quality is the key.
Anything above quality 1 is almost impossible to get hold of without a farm of your own, and prices will be many times higher than the independent's 0.3/unit. Using a conservative sale price of 30 will bring the 8 year timeframe down to about a month.
 
Another interesting point that Mike brings up is the auction system.
 
A grain farm was auctioned recently that had an initial cost of 15 points.
15 points convert to 75 million.
At auction it sold for over 15 billion...
 
Having said that I think only one player has ever bought a max size farm, so the point costs are a little prohibitive. 
 

List of forums -> Questions and answers. Help.-> Is the price of state enterprises too expensive?

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