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Ion Dex
German Space Elite
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Posted - 2009.03.29 15:42:00 -
[1]
no it always has value.
If you produce an item with 4000 trit and you make less by selling the produced item then you would have selling the 4000 trit on the market you would have just lost money.
But if you value your ore at zero you can not possibly make a bad deal because to you it is always 100% profit which is wrong.
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Ion Dex
German Space Elite
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Posted - 2009.03.29 16:06:00 -
[2]
Edited by: Ion Dex on 29/03/2009 16:06:19
 Originally by: PassingThrough
That's so wrong that it's not even funny. Why don't you call up Wal-Mart's home office and tell them how much money they are loosing every day. Tell them that they should move their items to the local mom and pop store because they could sell it for a lot more there.
It all depends on how much that 4000 trit cost you not how much it's worth to someone else.
You are correct in saying "it's is not even funny"
You fail to see that Wal-Mart makes money by selling items dirt cheap and selling them in huge quantities.
Now the items Wal-Mart sells do not just magically appear in there stores but are purchased from all over the world. Each item they purchase and place into their store has value. They purchase low and sell high, NOT get the item for free and sell them.
Every item has value, there is no way around it or you get 100% profit which you claim you make :)
You also don't take the ore issue far enough. Not only do you have to assign value to your ore in order to know if you are making profit but you also have to assign a value to the time it takes to mine and adding that to the ore. Then compare the number you get to purchasing the ore and picking the item up with a transporter.
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Ion Dex
German Space Elite
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Posted - 2009.03.29 16:42:00 -
[3]
I am bored so I am responding to you again.
You claimed earlier that ore has no value via your formula of 0 x 500 = 0
Now let me take this and prove to you that you need to assign value to calculate profit and item vlaue.
I use the formula value * resource + markup to calculate the sales price. This is pretty much what most business do but in a very simple form.
We will build an item which requires 1000 trit and 200 Mexalon and a markup of 5%
So according to you:
0 * 1000 + 0 * 200 + ( (0 * 1000 + 0 * 200) * 0.05 ) = 0
Now let's assign 4.10 to trit and 24 to mexalon
4.1 * 1000 + 24 * 200 + ( (4.1 * 1000 + 24 * 200) * 0.05 ) = 9345
As you can see it is impossible to calculate profit or even item value if you don't assign a value to your resources.
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Ion Dex
German Space Elite
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Posted - 2009.03.29 17:16:00 -
[4]
Edited by: Ion Dex on 29/03/2009 17:16:37
Originally by: PassingThrough
I prefer:
I don't care about what the minerals are valued at by someone else. I only care about what I spent to get them.
What's so impossible about that? I don't mine all of my minerals so I do have some mineral production costs.
Here is the problem, you can never come up with a sales price on your own if you don't value your materials.
You just look at the market, pull a number out of your ass and sell for that price.
At this point I am removing myself from this pointless discussion.
You apparently lack the education to understand value so we have to agree to disagree.
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