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Each city large or small has its own economy, It is measured in precious metals (Gold, Silver, Copper), in records or in property and fueled by a simple supply and demand system
Economies revolve around cities as they are the populated production centers that make an economy relevant, Individual buisnesses produce goods, some for sale in the city itself and some for trade and export, The lord of the city takes tithes in form of taxes and the individual taxes depend on the lord.
Production ia affected by the cost of goods, the quality of the enterprise and the skill of the foreman/overseer running the operation, These operations will need to remain in operation even if not generating profit or all initial startup costs will have to be paid again and a new overseer will have to be found
It is possible to run an entirely trade based enterprise by buying goods directly from a manufacturer and setting up shipping and trade routes to maiximise the value of the goods
To trade goods you need three things, A product to trade, Transport for the goods and a Distribution center.
The product can be aquired from any source, purchase, production, theft or looting
The transport will affect how fast the goods get to their location and thus can equal a more profitable trade, The downside is the faster you go the more it costs!
The distribution center affects the reach of your buisness in the city, Anyone can trade in a city and reach 1% of its wealth by going through a bazaar but having your own distribution center manned by skilled people can drastically increase your ability to access the finances of the area the reach of the distribution center is calculated as follows
Charisma modifier of the Operator + Investment value of the building, eachh % from 1 - 10 costs 100gp, each one from 11 - 25% costs 1000gp, 26% - 50% costs 2500gp, 51 - 75% costs 10'000gp, the final 25% must be made up with the skill of the operator and any situational modifers due to current events
Transport is calculated per cartload, some examples of the value of a cartload of goods are as follows, better production centers will generate more product.
Stone, Lumber, Food, Ale, 100gp Per cartload
Iron, Paper, Ink, Meat, 250gp per cartload
Copper, Weapons, Artworks, 1000gp per cartload
Silver, Fine Wine, Velvet, Silks 10'000gp per cartload
Gold, Gemstones, Small magical goods 100'000gp per cartload
Platinum, Heavily enchanted magical items, adamantium 1'000'000gp per cartload
It costs 1% of the goods total value to transport it safely for a day, This does not prevent the goods from being hijacked and attacked by a determined enemy but will stop any bandits or common threats from interferring, Needless to say you must make sure that the profit from the goods is worth the trip, Ideally you would also backlaod more cargo to bring back to port
Once you have worked out a trade route you can use it as a regular source of income, Doing so makes it easier for enemies or competitotrs to disrupt your operations but will also allow you to reduce the ammount of work that goes into setting up new trades.
As an example, Argon Castmire organised a trade route to the capital, He produced stone at a cost of 10GP per unit, (The quarry cost 1000GP to set up) and it sells for 100GP, He transported it 27 hexes to the capital which cost him 27 gold per cartload and sold it for its base value plus the deman modifier for the capital which was 3.4, This mean he sold his stone for 134GP (x34% from demand) making 97gp per cartload.
Mathias Corvin organised a trade route to miletia, He produced Rubies form his mines at a cost of 10GP per unit worth 10'000gp and shipped them 42 hexes to miletia costing 4200gp, the demand in hulders for rubies is high as they are not produces in that province 7.1 total, He sells the rubies for 17'100gp each making 12,890 profit, His production centeres produced 185 units of rubies last quarter generating a profit of 2'384'650gp total
It is possible to undercut an opponents trade by selling goods below there demand level, if you do so you reduce their distribution figure by your own but make a lot less profit