Tips and Tricks
Posted: Mon Aug 13, 2012 5:52 am
Hi all
These are my tips and tricks into paying capitalism (Many of which also work in the real world)
THE GOLDEN RULE for a game such as this... Think.... How would a greedy person act?
1) Be aware of market saturation: You can only make so much out of one line. After that, you will need to expand into other markets to keep making money. A single product range (With 3-4 products) can usually make you 600-800million depending on the product, if you are completely dominating the market that is
2) Take advantage of the new "Product expertise" and "Chain store" bonuses. Although having more than one store may partially cannabalize markets, the chain store effect will make up for alot of this. Also, the effects of advertising then can be spread over several stores
3) You never have to do everything yourself. Quite often, I buy several semi products from competitors. You dont have to make everything yourself. This can sometimes be cheaper too (Especially for minerals)
4) The key to profits are your contribution margins. If you can increase the quality and brand of your goods, your margins will be much better. Ensure you keep them high!
5) Avoid competition at the beginning. Competition results in price wars and lower margins. Expand to unserviced areas first
6) Consider the cities. Population size and wage rates should affect your early decisions as to what you will produce. Also think about the necessity index of your goods
7) Consider rates of return when deciding on financing. If you borrow too much, your loan payments will increase. However if with a loan, you can make more money than the interest being charged, then go for it!
8) Share capital should be considered carefully. Issuing new shares costs more in the long term but is cheap in the beginning. With shares, you dont need to pay interest, dividends are optional (So it can be viewed as free money). But be careful that you dont issue so many shares that you lose control of your company! (That will cost you ALOT more!)
9) When going into a new product line where competition exists, buy the tech first! Its very cheap and allows you to start competing very quickly. (I still think technology is too cheap- Tech AI dont have a chance)
10) Use warehouses to consolidate your production (Including for semi products). Often a single factory is not enough to service all your shops/factories. Use warehouses to accomplish this (Have a look at my automobile line- especially cars for an example of this- I have 9 factories producing cars- They are going into two different warehouses which then transer to goods to a third warehouse which services my outlets: It would be good in the throughput of warehouses and factories could be increased further or even an XL size added). Warehouses do increase your overhead though, so watch out for that!
11) Think supply and demand. If the demand for your goods outstrips supply, increase prices! You will make more per item, and its not as if you are decreasing sales since you cant sell any more anyway!
12) Be careful about advertising. If a line is only making you $200,000/month in profits, dont spend $500,000 in advertising!
Anyway,these tips are for retail. I havent really done the real estate or stock market thing yet. I am also planning on a tech game (Only research) and see if I can be successful, as I have never seen a successful Tech AI.
These are just a few tips I can give.
I encourage everyone to perhaps share their tips & tricks
These are my tips and tricks into paying capitalism (Many of which also work in the real world)
THE GOLDEN RULE for a game such as this... Think.... How would a greedy person act?
1) Be aware of market saturation: You can only make so much out of one line. After that, you will need to expand into other markets to keep making money. A single product range (With 3-4 products) can usually make you 600-800million depending on the product, if you are completely dominating the market that is
2) Take advantage of the new "Product expertise" and "Chain store" bonuses. Although having more than one store may partially cannabalize markets, the chain store effect will make up for alot of this. Also, the effects of advertising then can be spread over several stores
3) You never have to do everything yourself. Quite often, I buy several semi products from competitors. You dont have to make everything yourself. This can sometimes be cheaper too (Especially for minerals)
4) The key to profits are your contribution margins. If you can increase the quality and brand of your goods, your margins will be much better. Ensure you keep them high!
5) Avoid competition at the beginning. Competition results in price wars and lower margins. Expand to unserviced areas first
6) Consider the cities. Population size and wage rates should affect your early decisions as to what you will produce. Also think about the necessity index of your goods
7) Consider rates of return when deciding on financing. If you borrow too much, your loan payments will increase. However if with a loan, you can make more money than the interest being charged, then go for it!
8) Share capital should be considered carefully. Issuing new shares costs more in the long term but is cheap in the beginning. With shares, you dont need to pay interest, dividends are optional (So it can be viewed as free money). But be careful that you dont issue so many shares that you lose control of your company! (That will cost you ALOT more!)
9) When going into a new product line where competition exists, buy the tech first! Its very cheap and allows you to start competing very quickly. (I still think technology is too cheap- Tech AI dont have a chance)
10) Use warehouses to consolidate your production (Including for semi products). Often a single factory is not enough to service all your shops/factories. Use warehouses to accomplish this (Have a look at my automobile line- especially cars for an example of this- I have 9 factories producing cars- They are going into two different warehouses which then transer to goods to a third warehouse which services my outlets: It would be good in the throughput of warehouses and factories could be increased further or even an XL size added). Warehouses do increase your overhead though, so watch out for that!
11) Think supply and demand. If the demand for your goods outstrips supply, increase prices! You will make more per item, and its not as if you are decreasing sales since you cant sell any more anyway!
12) Be careful about advertising. If a line is only making you $200,000/month in profits, dont spend $500,000 in advertising!
Anyway,these tips are for retail. I havent really done the real estate or stock market thing yet. I am also planning on a tech game (Only research) and see if I can be successful, as I have never seen a successful Tech AI.
These are just a few tips I can give.
I encourage everyone to perhaps share their tips & tricks