Hello Maxoids – Balance Designer Ross Treyz here with another blog. Today, we’re going to go over how the Global Market works, how we came up with the different prices for the goods, and what that means for people playing with them.
Markets, how do they even work?
The first thing to know about the Global Market is that each good has its own minimum and maximum price. Every hour a new price somewhere between the minimum and maximum is calculated for each good based on the number of times that good was bought and sold in the previous hour. Each SimCity
server calculates a price for each good, so some goods may be expensive on one server while being inexpensive on another server. To check how the prices are doing on your server, visit the Global Market graph by clicking the Global Market tab from the SimCity World button on the main menu.
Now let’s go into more detail. Here is a chart that explains how the market prices are calculated:
As you can see, each good has a “Min Multiplier” and a “Max Multiplier” which is used in conjunction with “Demand” and a “Base Price” in order to determine the “Current Price.”
We will use Coal as the good for these examples. Coal has a Base Price of 6,000 Simoleons. The Max Multiplier for Coal is 2 and a Min Multiplier of 0.5.
Here’s some examples:
Example #1: More buys than sells
In this example, we are going to say that in the past hour, people bought 75 loads of Coal from the Global Market on this server. However people only sold 25 loads of Coal to the Global Market.
So demand is (75 – 25)/100 = 0.5. So current price is 6,000((2 – 1)0.5 + 1) = 9,000 Simoleons.
Example #2: More sells than buys
In this example, we are going to say that in the past hour, people bought 95 loads of Coal from the Global Market on this server. However on this server people have sold 115 loads of Coal to the Global Market.
So demand is (95 – 115)/210 = -0.09 rounded. So current price is 6,000((1 – 0.5)-0.09 + 1) = 5,714 Simoleons rounded.
So we know that Demand comes from people buying and selling. We know that Current Price comes from Demand interacting with Min Multiplier, Max Multiplier, and Base Price. So let’s talk about where the Base Price, Min Multiplier, and Max Multiplier come from.
The Base Price for each good is based on how much it costs to produce that good from scratch. We added up how much it costs to run the mining/drilling operations, smelters/refineries, and the trucks that you must add and then multiply that number by a profit margin that we would like the good to have. We’re not done there though – after we figure out the Min and Max multipliers we have to revisit the base price in order to make sure that the Base Price is in line with the fluctuating profitability.
Min and Max Multipliers
When coming up with the Min and Max Multipliers we have to do a tricky balancing act. We have to take into consideration the difference between profit and profit percentage. The profit from any sale is the amount of money that you make from the sale minus the amount that it costs you to acquire whatever you sold. The profit percentage for any sale is the profit from the sale as a percentage of the cost to acquire the goods sold.
The higher the good is on the crafting chain, the higher the profit will be from selling it. That means that you will always make more money from selling fuel than you will from selling crude oil. However, that statement is a bit misleading. Notice that I wrote profit and not profit percent?
Here is where the difference between making goods from scratch (mining then refining and so on) and buying supplies (buying oil and making fuel with it) really comes into play. The further up the crafting chain you go, the lower your profit percent will be when you are buying supplies. In other words, you will always be making more money with the higher end goods, but you will be making less Simoleons per Simoleon invested if you buy your materials instead of making them.
In conclusion, here are a few tips for the Global Market:
Cities that specialize in one Global Market good either by extracting it from the ground and then selling it or by buying supplies crafting them and then selling a good are very susceptible to fluctuations in the global market. However, these cities have the potential to make a lot of money by volume of sales, selling high end goods, or both.
Cities that build goods from scratch by extraction, refining, and so on all the way up the chain have a double advantage. For one, the more they keep the supply chain inside their city, the higher their final profit percentage will be. Also, if the Global Market price on their goods fluctuates, they have the advantage of being able to sell any good that they are producing and stopping production of the goods that do not offer good profits at that time.
How have you used the Global Market? Share your successes (or failures) with us on Facebook