Piddle Co. - Merchantilism: Pros vs Cons?

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    • Piddle Co. - Merchantilism: Pros vs Cons?

      These are just some things I wanted to cover and have sitting somewhere relatively accessable: An introduction to valuing resources.

      "Is Worth?" - A Compact Guide to Valuing Copper Ore and Bar.


      TLDR:

      @15% RRR
      1 T2 Ore = 1.176 T2 Bar*
      1 T2 Bar = .85 T2 Ore

      @30% RRR
      1 T2 Ore = 1.428 T2 Bar
      1 T2 Bar = .7 T2 Ore

      So, you wake up, not feeling great, on your island in Bridgewatch. You may have over induldged and you have no recollection of the night before. All you have to your name is a shirt, a pair of bunny slippers and an Ox, carrying 1000 T2 Copper Ore. How did you get it? How much did you pay? No one can ever find out. All we can do is move forward.

      You unmoor your dinghy "BoatyMcDeadMeme" and paddle to Bridgewatch proper. As you are tying off your faithful vessel, a deepening shadow looms over you and you turn to look into a face that is the kind of face you would rather not be looking at ever, even less so in current circumstances. The face makes a noise with parts of itself and then says, "You owe." Involuntarily you spout out a befuddled, "What?"

      "You... Owe...", parts of the creatures arms and body creak as its watermelon sized fists clench. It seems that you had incurred a sizable debt the evening before, and this gentleman is here to settle it. You explain your situation vis a vi, no money, no friends, just Ore, and a shirt, slippers and Ox that you can not sell due to its sale offending dark powers that hold sway over your soul. You promise that you will use the ore to promptly settle all outstanding debts but, while seemingly satisfied by this, the face explains that its desire to thrash you violently is a function of time and that it would be best if you finished your tasks in an efficient manner.

      We wander off the pier and head toward the market to get a lay of the proverbial ore landscape. Due to our fruit fisted new friend, we do not have time to do anything but refine the ore into bar, and so can't craft items with it. However, because of your pact with dark powers, your Ox can teleport you effortlessly around the world, ignoring all travel related time and risk.

      Unfortunately, we failed to inquire about the size of the debt we owed. Forcing us to do everything we can to maximize the amount of silver we get, before it is too late...


      Step 1


      Learning the relationship between Copper Ore and Copper Bar.


      If you take 1 Copper Ore to a smelter, and click Craft. You will recieve 1 Copper Bar and the Resource Return Rate (RRR) in Copper Ore.

      For example, if the RRR is 0.

      1 Copper Ore => 1 Copper Bar


      If the RRR is 15%.

      1 Copper Ore => 1 Copper Bar + .15 Copper Ore


      So for the time being all we have to care about is that:

      (T2 Ore) = (T2 Bar) + (RRR)(T2 Ore)


      The reason this looks like a math problem is, that it is a math problem, and can be treated in most ways like one.

      For instance we can simplify the like terms, by subtracting (RRR)(T2 Ore) from both sides.

      So if RRR is 15% we have,

      1 T2 Ore = 1 T2 Bar + .15 T2 Ore

      or

      .85 T2 Ore = 1 T2 Bar


      All of which is important to know because in Bridgewatch Ore only has basic RRR which is 15%

      So with some more math: Our 1000 ore divided by the amount of ore it takes to make a bar .85 we find that we can turn our 1000 ore into 1000/.85 = 1176.47 bars.

      So if we use a smelter on our 1000 ore in Bridgewatch it becomes 1176 bars or,

      1 T2 Ore = 1.176 T2 Bars


      BIG LETTERS

      The formula,

      1 T2 Ore = 1.176 T2 Bars

      is the same as the formula,

      .85 T2 Ore = 1 T2 Bar


      Both of them ALREADY have the compounding effect built into the formula.

      I see many people get to this point, and then add more numbers to the formula to account for the compounding nature of RRR. This is a mistake.


      Because of our teleporting Ox we also have access to the smelter in Thetford. Thetford is granted a bonus to the RRR of ore refined there. It recieves an additional 15% for a total RRR of 30%.

      This changes the above formulas into,

      1 T2 Ore = 1.428 T2 Bar

      and

      .7 T2 Ore = 1 T2 bar.


      That means that if refined in thetford 1000 ore becomes 1428 bars. That is 1428-1176 = 252 extra bars just by teleporting to Thetford to refine our Ore instead of in another city.


      What we learned so far.

      More RRR is better. We should refine in Thetford instead of Bridgewatch since our teleporting Ox makes it so that there are no travel costs.

      We now know that we have either 1000 T2 Ore to sell or, if we refine them in Thetford, 1428 T2 Bar to sell. Which is what we will use going forward, for additional steps. Next time I'll talk about relevant market pricing across AO for ore and bars and how we can use them to help us on our quest to continue questing, with all our parts still attached and in working order.


      MORE BIG LETTERS

      I just wanted to talk about two things related to this topic that many players may not know. First, Albion Online uses a lot of hidden decimal points and sometimes awkwardly rounded numbers. The more you get into the nuts and bolts, the more you will find. I mention this because along with the patch that added RRR bonuses to rim cities, I believe that.enough adjustments were made to the scaling of the return bonus to move the 1 Ore = 1.176 Bar formula for 15% RRR, closer to 1 Ore = 1.18 Bar.

      Second, the way AO works currently Crafting 1000 T2 Ore into Bars in one batch, and crafting 1000 T2 Ore into Bars individually, will give you significantly different results. If you craft in large batches you get nearly 0 variance in the result. Why I think this is, is beyond the scope of this post. Just know that if you move the slider to 1000 and click craft you will get a very mathematically precise amount of bars, but if you click craft 1000 times individually you will get a result that is somewhere around the the mathematically precise amount.

      The three attached images are of me refining 1000 Ore in a single batch and placing them in the bank, and then refining another 1000 Ore in 1000 batches and leaving them in my inventory. I did this in 2 non-bonus royal cities and also Thetford with the bonus.