diff --git a/config.yml b/config.yml
index 1406cfe3..18992c7e 100644
--- a/config.yml
+++ b/config.yml
@@ -2621,9 +2621,9 @@ nether_factory:
     repair_multiple: 1    
   fuel_time: 10
   repair_time: 12
-  scaling_radius: 5000
-  cost_scaling_radius: 5000
   use_fuel_on_teleport: false
+  cost_scaling: 0.25
+  cost_epsilon: 0.05
 production_recipes:
   Wood_XP_Bottle_0:
     name: Brew XP Bottles  - 1
diff --git a/src/com/github/igotyou/FactoryMod/managers/NetherFactoryManager.java b/src/com/github/igotyou/FactoryMod/managers/NetherFactoryManager.java
index 0e46791a..86f66f7f 100644
--- a/src/com/github/igotyou/FactoryMod/managers/NetherFactoryManager.java
+++ b/src/com/github/igotyou/FactoryMod/managers/NetherFactoryManager.java
@@ -379,8 +379,21 @@ public String getSavesFileName()
 	
 	public double getScalingFactor(Location location)
 	{
-		double scalingFactor = 1;
+		
 		NetherFactoryProperties properties = plugin.getNetherFactoryProperties();
+		// scale distance to kilometers
+        double newFacX = location.getBlockX()/1000;
+        double newFacZ = location.getBlockZ()/1000;
+        
+        // Summation variable
+        double totalInverseDist = 0.0D;
+        
+        // Scaling factor for the curve - 0.25 value configured to not modify default cost if ~5,000 blocks from all factories
+        double scalingFactor = properties.getCostScaling();
+        
+        // Accuracy of the cost multiplier before defaulting it to 1.0
+        double epsilon = properties.getCostEpsilon();
+        
 		for (NetherFactory factory : netherFactorys)
 		{
 			Location factoryLoc = factory.getCenterLocation();
@@ -388,20 +401,19 @@ public double getScalingFactor(Location location)
 			{
 				continue;
 			}
-			//the distance function uses square root, which is quite expensive, let's check if it's even realistic that it's within range first.
-			if ((location.getBlockX()-factoryLoc.getBlockX()) < properties.getScalingRadius() || (location.getBlockX()-factoryLoc.getBlockX()) > -(properties.getScalingRadius()))
-			{
-				if ((location.getBlockZ()-factoryLoc.getBlockZ()) < properties.getScalingRadius() || (location.getBlockZ()-factoryLoc.getBlockZ()) > -(properties.getScalingRadius()))
-				{
-					double distance = location.distance(factoryLoc);
-					if (distance <= properties.getScalingRadius())
-					{
-						scalingFactor = scalingFactor * Math.exp(1/(distance/properties.getCostScalingRadius()));
-					}
-				}
-			}
+			double delX = newFacX - factoryLoc.getBlockX()/1000;
+            double delZ = newFacZ - factoryLoc.getBlockZ()/1000;
+
+            totalInverseDist += 1.0D/(Math.sqrt(Math.pow(delX, 2) + Math.pow(delZ, 2)));
 		}
-		return scalingFactor;
+		double multiplier = Math.pow(Math.exp(totalInverseDist), scalingFactor);
+		 
+        // multiplier guaranteed >= 1
+        if (multiplier - 1 < epsilon) {
+                multiplier = 1.0D;
+        }
+ 
+        return multiplier;
 	}		
 
 }
diff --git a/src/com/github/igotyou/FactoryMod/properties/NetherFactoryProperties.java b/src/com/github/igotyou/FactoryMod/properties/NetherFactoryProperties.java
index 7591f2cf..058204ff 100644
--- a/src/com/github/igotyou/FactoryMod/properties/NetherFactoryProperties.java
+++ b/src/com/github/igotyou/FactoryMod/properties/NetherFactoryProperties.java
@@ -18,13 +18,12 @@ public class NetherFactoryProperties
 	private String name;
 	private int repair;
 	private double repairTime;
-	private int scalingMode;
-	private int scalingRadius;
-	private int costScalingRadius;
+	private double costScaling;
+	private double costEpsilon;
 	private boolean useFuelOnTeleport;
 	
 	public NetherFactoryProperties(ItemList<NamedItemStack> constructionMaterials,	ItemList<NamedItemStack> fuel, ItemList<NamedItemStack> repairMaterials,
-			int energyTime, String name,int repair, double repairTime, int scalingRadius, boolean useFuelOnTeleport, int costScalingRadius)
+			int energyTime, String name,int repair, double repairTime, double costScaling, boolean useFuelOnTeleport, double costEpsilon)
 	{
 		this.constructionMaterials = constructionMaterials;
 		this.fuel = fuel;
@@ -33,8 +32,8 @@ public NetherFactoryProperties(ItemList<NamedItemStack> constructionMaterials,	I
 		this.name = name;
 		this.repair=repair;
 		this.repairTime=repairTime;
-		this.scalingRadius = scalingRadius;
-		this.costScalingRadius = costScalingRadius;
+		this.costScaling = costScaling;
+		this.costEpsilon = costEpsilon;
 		this.useFuelOnTeleport = useFuelOnTeleport;
 	}
 
@@ -43,14 +42,14 @@ public int getRepair()
 		return repair;
 	}
 	
-	public int getScalingRadius()
+	public double getCostEpsilon()
 	{
-		return scalingRadius;
+		return costEpsilon;
 	}
 	
-	public int getCostScalingRadius()
+	public double getCostScaling()
 	{
-		return costScalingRadius;
+		return costScaling;
 	}
 	
 	//0 == no scaling, 1==linear scaling, 2==exponential scaling
@@ -99,10 +98,10 @@ public static NetherFactoryProperties fromConfig(FactoryModPlugin plugin, Config
 		int nfRepair = costs.getInt("repair_multiple",1);
 		String nfName = configNetherFactory.getString("name", "Nether Factory");
 		int repairTime = configNetherFactory.getInt("repair_time",12);
-		int nfScalingRadius = configNetherFactory.getInt("scaling_radius", 5000);
-		int costScalingRadius = configNetherFactory.getInt("scaling_radius", 5000);
 		boolean nfUseFuelOnTeleport = configNetherFactory.getBoolean("use_fuel_on_teleport", false);
-		return new NetherFactoryProperties(nfConstructionCost, nfFuel, nfRepairCost, nfEnergyTime, nfName, nfRepair, repairTime, nfScalingRadius,nfUseFuelOnTeleport, costScalingRadius);
+		double nfCostScaling = configNetherFactory.getDouble("cost_scaling", 0.25D);
+		double nfCostEpsilon = configNetherFactory.getDouble("cost_epsilon", 0.05D);
+		return new NetherFactoryProperties(nfConstructionCost, nfFuel, nfRepairCost, nfEnergyTime, nfName, nfRepair, repairTime, nfCostScaling,nfUseFuelOnTeleport, nfCostEpsilon);
 
 	}