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Engine manufacturer cost

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medal 4860
1 year 187 days ago
Hi everyone! When you are an engine manufacturer, you have a cost, said 750k.

Is that 750k per engine, meaning if you have two cars is 1.5M, if I provide for my cars and another one is 3M? Or is that per race, doesn't matter how many cars?

And directly linked with that question, when I have a customer, I can set the price between 500k and 1M. Is that, again, per engine or per race?

Asking because I don't know if the estimated profit/loss in the Supply tab is bugged or something I really don't understand since if I set to my customer a price of 500k, I have a loss of 650k per race. 
While if I set the price to 1M, I have a loss of 550k per race, meaning that increasing 500K the price I reduce my loss only by 150k, which doesn't make any sense.

Can anyone provide some insight here? Thanks
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medal 5002
1 year 187 days ago
Tanis
Hi everyone! When you are an engine manufacturer, you have a cost, said 750k.

Is that 750k per engine, meaning if you have two cars is 1.5M, if I provide for my cars and another one is 3M? Or is that per race, doesn't matter how many cars?

And directly linked with that question, when I have a customer, I can set the price between 500k and 1M. Is that, again, per engine or per race?

Asking because I don't know if the estimated profit/loss in the Supply tab is bugged or something I really don't understand since if I set to my customer a price of 500k, I have a loss of 650k per race. 
While if I set the price to 1M, I have a loss of 550k per race, meaning that increasing 500K the price I reduce my loss only by 150k, which doesn't make any sense.

Can anyone provide some insight here? Thanks


I would like to see an answer to this as well.  I supply 4 teams yet I am losing 450k per race by doing so and if I set it to 1m I would still be losing 150k per race which is ridiculous.  Also no where in my financial transaction history can I find any evidence of incoming payments from customers.  I beginning to feel like customised engine supply hasn’t been tested or set up properly.
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medal 5602 Moderator
1 year 187 days ago

Tanis


Asking because I don't know if the estimated profit/loss in the Supply tab is bugged or something I really don't understand since if I set to my customer a price of 500k, I have a loss of 650k per race. 
While if I set the price to 1M, I have a loss of 550k per race, meaning that increasing 500K the price I reduce my loss only by 150k, which doesn't make any sense.

Hi,

The formula was explained by Jack on the blog.

A manufacturer’s profit and loss value per race is determined by subtracting the manufacturer’s cost per race for its operations (750k) from the profit per engine it sells. The profit margin is 20% per customer engine. The resulting formula looks something like this: (customerCost * 0.20) * totalCustomers - 750k.

If you apply the formula to your case, you will get the same results than the one you see in Supply tab
 
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medal 5002
1 year 187 days ago (Last edited by Dick Dastardly 1 year 187 days ago)
M.

Tanis


Asking because I don't know if the estimated profit/loss in the Supply tab is bugged or something I really don't understand since if I set to my customer a price of 500k, I have a loss of 650k per race. 
While if I set the price to 1M, I have a loss of 550k per race, meaning that increasing 500K the price I reduce my loss only by 150k, which doesn't make any sense.

Hi,

The formula was explained by Jack on the blog.

A manufacturer’s profit and loss value per race is determined by subtracting the manufacturer’s cost per race for its operations (750k) from the profit per engine it sells. The profit margin is 20% per customer engine. The resulting formula looks something like this: (customerCost * 0.20) * totalCustomers - 750k.

If you apply the formula to your case, you will get the same results than the one you see in Supply tab
 


1.  As no money is ever recorded in our transaction history something is very wrong 2.  If you say that Jack’s blog explanation is correct and the outcome is as expected then something is still very wrong since it is impossible to use customised engines and supply to other managers without making a financial loss!  There is no record of any income received from customers in my transaction history only the costs so every day I am losing 450k from being an engine supplier.  If I increase this to 1m a customer I still lose money.  This needs to be referred to the devs/Jack as clearly it cannot continue like this.  3.  We can’t even get out of this crazy situation which will force more managers to quit the game!

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medal 5246 Super Mod
1 year 187 days ago
Hi Guys. I do not believe you are charged twice for suppliers in 2 car. It’s the single charge listed on the supplier screen, this is the same for your engine manufacturing cost.

Dick I feel you are missing a small factor out of your financial assessment. Even if you were not an engine manufacturer you would be paying out between 350 and 500k for an engine from one of the other suppliers. At 450k per race you are already saving money compared to the cost of a murk / tifosi / toymotor / rednote engine.

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medal 4860
1 year 187 days ago
There is some foul logic in the formula.
It states something like the cost of developing the engine is 750k fixed, then whatever price you sell it, that's the cost of your engine + 20%. That doesn't make sense at all.

If my car engine costs 100k to fabricate and I charge my customer 120k, I am getting a 20% benefit. If I charge 200k, I am getting a 100% benefit.

Right now what we are doing is: 
If I charge 500k to my customer, my engine costs 400k and I am getting 100k.
If I charge 1M, suddenly my engine costs 800k, hence getting 200k of benefit.

The price of fabrication doubles up for no reason. Is not a case where the provider is getting more money, nor the customer getting more value for their buck. It's just how much money do we choose that will evaporate.
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medal 5002
1 year 187 days ago

Red
Hi Guys. I do not believe you are charged twice for suppliers in 2 car. It’s the single charge listed on the supplier screen, this is the same for your engine manufacturing cost.

Dick I feel you are missing a small factor out of your financial assessment. Even if you were not an engine manufacturer you would be paying out between 350 and 500k for an engine from one of the other suppliers. At 450k per race you are already saving money compared to the cost of a murk / tifosi / toymotor / rednote engine.



Thanks Craig I am aware of that.  The point I’m making is I lose on every engine I supply elsewhere as well so there is no incentive to supply anyone.  If this is how it’s meant to be then I will cancel those contracts as there is no evidence of any revenue coming into my account from those customers.  Even if I charged a million an engine I would still lose money.

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medal 5358
1 year 187 days ago (Last edited by Antonio Ascari 1 year 187 days ago)
The cost of developing your own engine is 750k per race.
If you charge 500k to your customer, after costs, taxes etc 100k remains as profit. If you charge 1m to your customer, after costs taxes etc 200k remains as profit

So you supply yourself plus 3 other customers, your cost is 750 k per race, you charge 500k so your profit is 300 k per race, that explains you lose 450 k per race

It becomes profitable at manager level 24 with 5 customers (yourself plus 4 customers) and 1m pricetag 
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medal 5002
1 year 187 days ago

Antonio
The cost of developing your own engine is 750k per race.
If you charge 500k to your customer, after costs, taxes etc 100k remains as profit. If you charge 1m to your customer, after costs taxes etc 200k remains as profit

So you supply yourself plus 3 other customers, your cost is 750 k per race, you charge 500k so your profit is 300 k per race, that explains you lose 450 k per race

It becomes profitable at manager level 24 with 5 customers (yourself plus 4 customers) and 1m pricetag 



I’m sorry Antonio, but your explanation just illustrates (assuming it is correct) just illustrates how screwed up this addition to the game is.  I will be cancelling my customers contracts immediately and if igGPManager don’t have the common sense to change how this works deleting all my accounts.  It’s ludricrous that increasing engine price increases costs!
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medal 5358
1 year 187 days ago

Dick

Antonio
The cost of developing your own engine is 750k per race.
If you charge 500k to your customer, after costs, taxes etc 100k remains as profit. If you charge 1m to your customer, after costs taxes etc 200k remains as profit

So you supply yourself plus 3 other customers, your cost is 750 k per race, you charge 500k so your profit is 300 k per race, that explains you lose 450 k per race

It becomes profitable at manager level 24 with 5 customers (yourself plus 4 customers) and 1m pricetag 



I’m sorry Antonio, but your explanation just illustrates (assuming it is correct) just illustrates how screwed up this addition to the game is.  I will be cancelling my customers contracts immediately and if igGPManager don’t have the common sense to change how this works deleting all my accounts.  It’s ludricrous that increasing engine price increases costs!


Well it’s pretty realistic imo, you charge higher price, you need more marketing, pay for better staff, pay more taxes, … 

In this game you just receive a steady 20% profit margin.

I’d be sorry to see anyone leave the game because of this (it’s not even a bug, common)




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medal 5000
1 year 187 days ago

Dick

Antonio


It becomes profitable at manager level 24 with 5 customers (yourself plus 4 customers) and 1m pricetag 



I’m sorry Antonio, but your explanation just illustrates (assuming it is correct) just illustrates how screwed up this addition to the game is.  I will be cancelling my customers contracts immediately and if igGPManager don’t have the common sense to change how this works deleting all my accounts.  It’s ludricrous that increasing engine price increases costs!


Dick is right. What sense does it make to sell your own motors at a loss? We're talking about motors that are, supposedly, superior to those offered by default. Otherwise, why take the $100 Mil/10 token plunge? Why even make it an option to sell motors? It's senseless and needs more thought.

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medal 4981 Moderator
1 year 187 days ago (Last edited by Frank Thomas 1 year 187 days ago)
Where is that notion it's a loss coming from? Gaining money, even if it's just reducing other expenses like in this case the costs of my own engines, is a profit in my books. In the example Dick made he pays 450k instead 750k for custom engines, next level he could go to 350k, which is the same as the cheapest engine in game, and he's not even ripping his customers off and sticks to the lowest possible price. How hard I look I can't find any loss for being a supplier in there.

Also, should the game really stick to a flat amount as sale cost and pay any price increase flat out as profit? So at lvl 30 with 10 customers that don't mind to pay 1 million as they don't necessarily actually race it's free custom engines and 5.25 million profit per race? Sounds that really like a proper game balance?

That said I'm not entirely happy with the system. I don't like the uphill battle and easy roll once the initial hurdle was overcome style of game balancing. So instead grouping building engine and limited customers by game, where the engine quality should put a lid on customer interest anyway at least once a proper supplier base is established, early on I'd aim for a constant financial investment if pushing engine quality (gains). However with token > money exchange there's a limit as it needs to be manageable within the games base income boundaries.
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medal 5002
1 year 186 days ago

Frank
Where is that notion it's a loss coming from? Gaining money, even if it's just reducing other expenses like in this case the costs of my own engines, is a profit in my books. In the example Dick made he pays 450k instead 750k for custom engines, next level he could go to 350k, which is the same as the cheapest engine in game, and he's not even ripping his customers off and sticks to the lowest possible price. How hard I look I can't find any loss for being a supplier in there.

Also, should the game really stick to a flat amount as sale cost and pay any price increase flat out as profit? So at lvl 30 with 10 customers that don't mind to pay 1 million as they don't necessarily actually race it's free custom engines and 5.25 million profit per race? Sounds that really like a proper game balance?

That said I'm not entirely happy with the system. I don't like the uphill battle and easy roll once the initial hurdle was overcome style of game balancing. So instead grouping building engine and limited customers by game, where the engine quality should put a lid on customer interest anyway at least once a proper supplier base is established, early on I'd aim for a constant financial investment if pushing engine quality (gains). However with token > money exchange there's a limit as it needs to be manageable within the games base income boundaries.


Sorry Frank, but if you think that making a loss is profit then just lol.  Supplying multiple engines should benefit from economies of scale resulting in a bigger profit.  However, with the way this works it’s always a loss regardless of the price set.  I can just imagine Toto Wolff telling board “don’t worry lads we’ll keep losing money by supplying other teams, but hey that’s profit in my book”

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medal 5358
1 year 186 days ago

Dick

Frank
Where is that notion it's a loss coming from? Gaining money, even if it's just reducing other expenses like in this case the costs of my own engines, is a profit in my books. In the example Dick made he pays 450k instead 750k for custom engines, next level he could go to 350k, which is the same as the cheapest engine in game, and he's not even ripping his customers off and sticks to the lowest possible price. How hard I look I can't find any loss for being a supplier in there.

Also, should the game really stick to a flat amount as sale cost and pay any price increase flat out as profit? So at lvl 30 with 10 customers that don't mind to pay 1 million as they don't necessarily actually race it's free custom engines and 5.25 million profit per race? Sounds that really like a proper game balance?

That said I'm not entirely happy with the system. I don't like the uphill battle and easy roll once the initial hurdle was overcome style of game balancing. So instead grouping building engine and limited customers by game, where the engine quality should put a lid on customer interest anyway at least once a proper supplier base is established, early on I'd aim for a constant financial investment if pushing engine quality (gains). However with token > money exchange there's a limit as it needs to be manageable within the games base income boundaries.


Sorry Frank, but if you think that making a loss is profit then just lol.  Supplying multiple engines should benefit from economies of scale resulting in a bigger profit.  However, with the way this works it’s always a loss regardless of the price set.  I can just imagine Toto Wolff telling board “don’t worry lads we’ll keep losing money by supplying other teams, but hey that’s profit in my book”



Stock engine costs 350 to 500k so you’ll always be at a loss for engines.


When you supply engines and make a loss of 200k per race, it’s more profitable (even if still a loss) then stock engines.
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medal 4981 Moderator
1 year 186 days ago
Dick
Sorry Frank, but if you think that making a loss is profit then just lol.  Supplying multiple engines should benefit from economies of scale resulting in a bigger profit.  However, with the way this works it’s always a loss regardless of the price set.  I can just imagine Toto Wolff telling board “don’t worry lads we’ll keep losing money by supplying other teams, but hey that’s profit in my book”


But by that logic there's quite probably not a single car manufacturer in the world that ever qualified for making a profit. While some might sell enough engines to cover all expenses including production for own use and generate a surplus I doubt any made profit on every used component produced in house. They all have expenses and by your argument any part costing the company money instead generating a profit means operating at a loss there. Sorry, but that view doesn't make sense to me.


In my view my engine division supplying others doesn't have to generate enough profit to cover even the expenses of my own team in order not to count as loss. Supplying is at a profit if I receive more money than supplying cost me, even if it's not enough to also get my own engines at least for free but only subsidy those costs. The setup and 750k running costs are expenses of running my own team and calculated against the cost of sourcing standard engines and if the expected advantage is worth those expenses. The future chance to earn enough to not only cover my own expenses more than fully but even generate extra funds is a welcome bonus.

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medal 4860
1 year 185 days ago
Sorry, but it doesn't make sense that you "always" get a 20% profit. If you increase your price, you are not paying for more marketing or more bullshit. You are increasing the selling price, period. And somehow, you are increasing the manufacturing cost, which suddenly evaporates (the money, I mean).

Margin of profit is what you should be able to control.

Sell at a loss for whatever reason or sell stupidly expensive to great profit. If your customers are happy overpaying (Apple model, basically), your win, their win.

A more sensible approach, probably, should be:


  • Fixed cost of developing the engine on each race (for instance, 300k) or variable depending on the number of engine points you have

  • Fixed cost of producing each engine (for instance, 100k per engine).

  • Control the margin of profit OR the total fixed price of each engine.



This way, if you are only providing for yourself, you end up paying up, if you have 2 cars, 500k (same than the default providers), and if you have customers, can charge whatever you want.

If you charge, let's say, 350k per engine to your customer, that means that they are paying for their engines and yours. That's a pro of having a customer. They can also decide that for that price they can become a manufacturer themselves, so that's a risk.


I mean, this is the first iteration of a new system. I am not saying is terrible, I am saying I see room for improvement and that part of the logic is a bit "meh".

Right now the system is: You pay 750 for developing the engine and building 1 or 2 engines, depending on the league. And then, somehow, building those engines for your customers cost between 200k and 400k EACH engine (at which point, building two engines for them is somehow more expensive than building two engines + developing it for you). This is just not logic.

I am not trying to find a "fair" model, as life is not fair, but a logic one. And the actual one lacks logic.
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