I have 2 electronic factories
1 in red ( 60 m2) and 1 in green ( 20m2)
I am using the one in red to produce e components everyday
but what should I do with the one in green.
I noticed that the production costs in green is much lower than the one in red
about 20% of the production cost in the red factory....
so should I produce computers or monitors or perhaps printers???
Which one is more profitable???
What should I produce???
Moderator: moderators
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Guest
I would suggest this. Don't expand you red E-Factory any more. Production cost of electronics in red are extremly high so it is much better to build them in green.
Best product to be made in E-Factory are TVs. They sell well in stores and a lot of people demand them by contracts also. Computers are not bad either but it takes very long to produce them. That is their biggest handicap. And it is big handicap. If you make your CPUs and E-Comps you can make 3 TVs while you produce only one computer. Profit margin of computers is a little bit higher then with TVs but not 3 times higher. Monitors are produced more slowly then TVs and are not that good when selling in stores. Lower profit margin can be done with them. The worst option are printers I think. They produce a little more faster then TVs but profit margin in stores is not that big to have advantage making them.
So my answear is clear. Make TVs. And if possible make them in green area as your TVs made in red area would lost their competitivness due to their production costs......
Best product to be made in E-Factory are TVs. They sell well in stores and a lot of people demand them by contracts also. Computers are not bad either but it takes very long to produce them. That is their biggest handicap. And it is big handicap. If you make your CPUs and E-Comps you can make 3 TVs while you produce only one computer. Profit margin of computers is a little bit higher then with TVs but not 3 times higher. Monitors are produced more slowly then TVs and are not that good when selling in stores. Lower profit margin can be done with them. The worst option are printers I think. They produce a little more faster then TVs but profit margin in stores is not that big to have advantage making them.
So my answear is clear. Make TVs. And if possible make them in green area as your TVs made in red area would lost their competitivness due to their production costs......
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Guest
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Guest
The plastic can be draining when you produce your own TV's. I got a lot of factories so I still produce my own "everything". Some one told me that it is best to produce things in red only when your factory can produce a lot of it. In this case the best thing to produce in red are E-comps, followed by printers.
It's hard for me to comment on which is the most profitable because I have only ever made TV's and E-comps. By the way there are a few players producing relatively high quality E-comps at the moment. I buy high quality E-comps and use my E-Factories to produce TV's.
The best way to find out for yourself about profitability is to make a days worth of each product in question, and work out the profit from there. In my opinion it's not the profitability you have to worry about because you can just expand your stores to increase your margin. Keep your cost down and you can make reasonable money on most things. Have you got your own stores? It's the store size you need to focus on.
If you make too many units of something and then try to sell them in stores that are too small, your margin gets really thin. So to keep profitability high I make TV's and keep my, stores large, costs down and quality high.
It's hard for me to comment on which is the most profitable because I have only ever made TV's and E-comps. By the way there are a few players producing relatively high quality E-comps at the moment. I buy high quality E-comps and use my E-Factories to produce TV's.
The best way to find out for yourself about profitability is to make a days worth of each product in question, and work out the profit from there. In my opinion it's not the profitability you have to worry about because you can just expand your stores to increase your margin. Keep your cost down and you can make reasonable money on most things. Have you got your own stores? It's the store size you need to focus on.
If you make too many units of something and then try to sell them in stores that are too small, your margin gets really thin. So to keep profitability high I make TV's and keep my, stores large, costs down and quality high.
Last edited by Guest on 02.08.2007, 10:11, edited 1 time in total.
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Guest