DoE - EcTutor

Economy Tutorial

Chapter I - Setting up your own profitable Company

We can divide the companies in e-sim world into two categories. These are Production Companies: which make Iron, Grain, Oil, Diamonds, Stone or Wood; and Manufacturing Companies: which make Weapons, Food, Tickets, Gifts, Houses, Estates, Defense Systems or Hospitals.

Production Companies can be established ONLY in regions that provide proper resources, for example Iron Companies can be set up only in Iron Regions, Grain Companies only in Grain Regions etc. Although these Companies can be set up in both Medium and High Regions, it is recommended that High Region is the most reasonable choice (High Regions provide 100% productivity, while Mediums have only 75%). The Quality(Q) of Production Companies is one of the factors that determines amount of raw units produced. Given that Q1 Company produces 100 raw units, every Quality improvement increases its productivity by 20 units. So Q3 Company will produce 140 raw units and maximum Q5 is going to make 180 raw units. In conclusion, the better Quality of the Production Company, the more raw units are produced by the single worker. Other productivity factors are Economic Skill, employee multiplier(number of employees who already worked that day in the company; productivity falls every 10 workers) and the fact if country where the Company is set up controls its capital(if not, productivity falls to 75% instead of being 100%).

Manufacturing Companies can be established in every region. The Quality of this kind of Companies doesn't determine its productivity, it is the actual Quality of the product. Unfortunately, the higher Quality the product has, the less units of it are produced by the single worker. On the other hand, if Company runs in the country which controls the High Region of raw that is needed to make a product, it gains 25% productivity bonus(for example, Weapon Companies have this bonus if their country has access to High Iron, Food Companies have this with High Grain etc.), the only productivity factor that connects those two categories of Companies is control over the capital(100% if it's controlled, 75% if not).

Here are the prices of upgrading the Company for every Quality:
None to Q1 = 20 Gold
Q1 to Q2 = 20 Gold
Q2 to Q3 = 50 Gold
Q3 to Q4 = 100 Gold
Q4 to Q5 = 200 Gold


Chapter II - Resources (for Manufacturing Companies only)

To make 1 unit of Q1 Food 1 unit of Grain is needed. Q2 Food needs 2 units of Grain, Q3 - 3 and so on.
To make Weapons you will need double amount of Iron, so to make Q1 Weapon you will need 2 units of Iron, Q2 Weapon requires 4 units of Iron etc.
Notice that every worker increases his Economy Skill for every day he worked, he produces more but needs more resources. That's why you should leave more resources in the company than you did yesterday.


Chapter III - Workers and Job Market

Some people believe that the first worker of the company should be its Manager. Don't resign from your current job if you work for a good salary. You can always put Job Market offers for players with lower Economy Skill than you. They will make less products but you will be able to pay their salary from the profit at your current job if your company won't make profit from the very beginning. If you buy a company from another player, there is always a chance that it already has hired workers. To check that, go to My Places > Companies, choose your Company > view workers productivity. You will see a table with list of workers, amount of stuff they made and a day which they worked. If you will see that some of the workers haven't worked for many days, don't hesitate to fire them.
Salaries are dynamic and you need to watch and compare them with the ones on Job Market. If you won't react to changes in job offers, you can both experience that your workers will leave the job or you will be paying them too much if the offers have much lower salaries (but of course you're welcome to do so if you can afford it). Salary changes between 0.10 and 0.50 aren't a big deal and probably your workers won't leave you because of those few more nickels they'd earn, but when the changes reach 1.00 or more, you'll need to modify them.
Keep in mind that there's always should be enough money in the company to pay salaries to all workers. If you won't do that, workers will not be able to work for you and leave to find another job.


Chapter IV - Product Market or #SuTrade?

When you will have products, ot would be good to sell them. You have two ways to do so: put them on country's Product Market or sell them to specified players via contract. Product Market is the simplier way as it takes place in-game only and by doing so, your product offers is seen by wider amount of players. However, sales on Product Market are decreased by taxes, which are VAT and Import Tax. VAT is a kind of tax connected with every product and Import Tax appears when you sell the products on a Product Market other than your Citizenship country. When you put products on the market, you'll need to consider the taxes will take some part of your profit. Contract is the way to avoid all the taxes, but all players who wish to sell their stuff like that have to join #SuTrade IRC channel at Rizon network and post their offer. Most transactions via contracts are made with the use of gold instead of National Currency. The main disadvantage of this way is that not all players use IRC, so by relying only on SuTrade you lose potential customers. Other minus is boredom of time-consuming stay online on the said IRC, it can take long hours before you'll find a customer.


Chapter V - Stock Companies

Stock Companies(SC) are businesses in which more than one player can take part. The player who makes the SC becomes a CEO and, usually, he starts to issue shares which can be bought by other players. From collected gold Production or Manufacturing Companies are made or bought. If SC makes profit, once for a given time, players who have shares are paid a dividend based on percentage of gold invested in the SC. Amount of shares possessed also counts in deciding about various things considering the SC e.g. sacking and choosing a CEO, changing SC's description, issuing new shares and so on. Frauding money from SC is highly unwanted and results in a ban.