Production Vs Retail

Guest · Post by **Guest** » 23.12.2009, 20:37

Dopamin wrote:
ILIYYILI wrote:producing won,
retail lost.

end topic?
Has producing really won? I would not say so, though it might look like it at the moment... I do both so I have an income no matter if market prices fluctuate. Stats fluctuate, too, but in every shop I can sell a few things if I have them on stock... I can decide what I produce and what I sell in the shops. Might not be the most profitable option, but includes a lot of security...

It always depends on the current situation. I have seen wooden toys on the market at prices I could not believe. Things like these change - no I would not put money into a toy shop anymore since I sold mine...

Dopamin

I think to start earning money producing is the best. Also right now production wins. If more people go into retail , market prices will even get higher, and therefore production will get even better profits. Hope it happens. I only produce!

Guest · Post by **Guest** » 23.12.2009, 20:38

Though if you are big it is better to retail as production drops at high levels but retailing only increases

Guest · Post by **Guest** » 23.12.2009, 20:45

I always have a problem with "small" and "big" I have collected some FA, but would not consider my company as big (others might). If I should run out of material to sell (I noticed this gap between large size production output and sales capacity already) I just put the price up and this gives me more time to renew stocks.

Sure a 20m

Guest · Post by **Guest** » 23.12.2009, 20:59

by FF1's calculations producing won, by alot!!!
I looked at his calculations, and they seems right.

Guest · Post by **Guest** » 23.12.2009, 21:39

It will not any longer, if all do the same thing - quite unlikely but seen it happening that market prices drop immensely due to a higher supply than demand and everybody underpricing the cheapest offer already on the market to make sure to sell their goods... And there is your profit going down the drain...

In my opinion you should not leave out this little fact that you are not the only participant on the realm.

On a different realm I produced and sold breads Q9. We were two producers starting off at a price of 400something each. Somehow it ended up at 50.000. Well, these are not regular selling items and prices - but I want to point out the system behind it. After the two of us got rich with them the first competitors arrived at the scene and pulled down the price back well under 1000 when I last looked... The two of us left the scene together quite early and left this playground for the newcomers underpricing each other like mad...

Dopamin

Guest · Post by **Guest** » 24.12.2009, 14:28

but there are already tone's of wardrobe producers and sellers that have many huge (10k +) stores used at any given moment.
It will take ALOT of new players to make the prices change.

producing won.

Guest · Post by **Guest** » 24.12.2009, 16:04

The prices might change or might not, because at the end it is all a question of demand and supply.

I do not want to know how many players might recalculate and turn back from retailing to production, means sell shops and buying/building huge joineries in this case. It won't need a lot bigger companies doing that... Its all a possibility not necessarily have to be like that... I only doubt you can state generally it that production wins on retailing - it all depends on the circumstances...

Standing on one leg only is not really the most stable position, is it?

Dopamin

Guest · Post by **Guest** » 24.12.2009, 18:37

well..
I'm really stable on one lag

at the moment wardrobe producer earns atleast 2times of the amount a retailer earns xD

if retailers move into producing, It shouldn't change the amounts (producers or retailers) earn, producing buildings will become more expensive, and retail buildings cheaper, thats all

there will still be the same amounts of each type of building.
the thing that will change demand and supply (and therefor the prices) is if they build new buildings or expend
and as building/expending takes awfull alot of time, It will take alot of time untill the prices change (I think it takes a month or two to build 3,000sqm building)

so the prices are pretty stable.

as for the example with the breads, there were only 2 producers (you and the other guy) so It didn't take much to change the demand and supply ratio

I win?

Guest · Post by **Guest** » 24.12.2009, 19:34

Seems like it... I never made most profits since I am playing I rather take the complicate way planning in the longterm which might mean less profits. Anyway, I am satified the way it goes...

Dopamin

Guest · Post by **Guest** » 24.12.2009, 22:59

How about mixing producing and retail?

Guest · Post by **Guest** » 24.12.2009, 23:26

TakeON wrote:How about mixing producing and retail?

ALWAYS specialize. Always.

Having a mixed bag as a small player in business will kill you faster than a gun. Only when you are huge as hell, do you have the ability AND the coffer to do both.

Guest · Post by **Guest** » 25.12.2009, 03:38

American Petroleum Cor. wrote:
TakeON wrote:How about mixing producing and retail?
ALWAYS specialize. Always.

Having a mixed bag as a small player in business will kill you faster than a gun. Only when you are huge as hell, do you have the ability AND the coffer to do both.

Well, I disagree here (like ALWAYS when I read ALWAYS) - done both (diversified product range plus similar selling facilities) from the beginning more or less and just started to expand my selling facilities a lot a few weeks or months ago...

Its ALWAYS no good if EVERYBODY acts alike... Sometimes its more profitable not to act according to the mainstream...

Dopamin

Guest · Post by **Guest** » 25.12.2009, 04:30

Unless you have a huge monetary base to begin with, then by all means, dominate everything like what Wall-Mart does.

Guest · Post by **Guest** » 25.12.2009, 04:46

Again I disagree, a few weeks/months after I started playing this a huge furniture dealer stopped playing (due to less spare time) so I lost one good customer buying all my furniture but it didnt bother me a lot that I could not sell wardrobes anymore - sold other products instead. Altogether my total production output might have been higher if I had specialized, but also it had really hurt losing my only income from one day to the other and guess what happened to the prices of furniture...?

Btw there is at least one european market where walmart could not get one foot on ground and closed down every shop after making losses...

Dopamin

Guest · Post by **Guest** » 25.12.2009, 11:47

American Petroleum Cor. wrote: ALWAYS specialize. Always.

Having a mixed bag as a small player in business will kill you faster than a gun. Only when you are huge as hell, do you have the ability AND the coffer to do both.

These calculations in the thread are made on max sized buildings. And you talking about small players? Why not compare small buildings instead of maxed then if its all about small ones?