I used Knoll's wonderful tutorial on how to determine the correct market price for profit per minute. I'm making and selling wardrobes. Here're my calcs:
To make a wardrobe Q5:
Wood 20 @ 36 = 720 (Q5 on contract)
Steel 5 @ 137 = 685 (Q5 I produce, can sell for 137 on contract)
Power 600 @ .08 = 48 (I produce, can sell for .08 on contract)
Prod cost = 6.19 (Businessman in green)
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Total cost = 1459.19 per wardrobe.
I can sell on daily contract for 1775 (Q5).
Using Knoll's tut and my shop in Turkey, I plug in 1775 as the value-to-me and come up with a best price of 2550 in the shop for a ppm of 6.9. Now I use the same formula to determine ppm for contract. I can make 130 wardrobes per day in one joinery, cost to me is 1459.19, takes 24 hours to sell at 1775 for a ppm of 28.51.
Did I figure this correctly or should I be using 1459.19 in the value-to-me part of the formula for the retail store?
Thanks!
Am I figuring this correctly?
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Guest
Give this man a star, he did it totally right!
And I guess what you're thinking Thorsten is something like "why would I build a store and sell there for only 6.9 ppm when I could just make a second factory and sell them all on contract? And the corollary, why is this efficient for someone to buy?
To answer the second part first, I'm guessing your store doesn't have ads yet. (It shouldn't unless it's up around 20 employees.) When it does, the efficiency there will increase to the point that you get a better return.
As for why to sell in your own store, the only benefit I can see is diversifying your income streams. Stores give a very steady profit so you can always pop in and take a little cash out. But I would definitely focus more on expanding production than on expanding the store. And having it can let you perpetually test the waters, so with each quality bump you can see how the retail market stands.
And I guess what you're thinking Thorsten is something like "why would I build a store and sell there for only 6.9 ppm when I could just make a second factory and sell them all on contract? And the corollary, why is this efficient for someone to buy?
To answer the second part first, I'm guessing your store doesn't have ads yet. (It shouldn't unless it's up around 20 employees.) When it does, the efficiency there will increase to the point that you get a better return.
As for why to sell in your own store, the only benefit I can see is diversifying your income streams. Stores give a very steady profit so you can always pop in and take a little cash out. But I would definitely focus more on expanding production than on expanding the store. And having it can let you perpetually test the waters, so with each quality bump you can see how the retail market stands.
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Guest