such as in a city or a small area in a city,
Will this cause over supply and reduce profit?
If selling very much of the same product in a region
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ztartennery
- Posts: 3
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bdubbs
- Level 3 user
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- Joined: Sun Feb 28, 2016 9:15 am
Re: If selling very much of the same product in a region
This is just my own speculation, but my answer would be yes but possibly not in the way you are thinking of. From my observations this is how I approach differences in cities based on size and wage rate.
Every city has a certain demand for all products that are already met by local suppliers based on the city size and larger cities have larger demand for all goods that would be considered a necessity. The price consumers are then willing to pay for those goods is where the city wage rate comes in. From my experience local suppliers in a city with a low wage rate sell goods much cheaper than cities with a high wage rate which in turn requires you to set your prices much lower than you might be able to in the high wage rate city.
On the supply vs demand side you can see what portion of the market you already control in a city in the product details screen. The left pie chart is what portion of manufacturing for that product you control for that city, and the right is what portion of retail you currently control with the white space representing local suppliers.
If you fill the pie chart on either side that means you've saturated the market for that city on the production or retail side for that product. So for example lets say you manufacture jeans in a city and you sell them in retail stores until the pie chart in your retail stores is completely filled in. If you open another retail store in that city and sell jeans you will still be selling the same amount of jeans citywide as you were previously, thus losing profits in the form of upkeep costs in the extra retail stores.
This problem can be easy to run into because of the time it can take to get your retail stores and factories to get level 9 small business units. If you get off to a strong start and build too many factories and retail stores you can begin to overproduce at your factories and have more retail outlets than you need as they level up which will ultimately lead you to sell yourself short so to speak.
The way I deal with this is using significant sums of money for the HR training program. Before I've even come close to saturating the market in any of my cities I typically have enough money to boost training this way and it gives me a better idea of how much more retail I need in the city.
Sorry for getting long winded, but I hope something from that helps!
Every city has a certain demand for all products that are already met by local suppliers based on the city size and larger cities have larger demand for all goods that would be considered a necessity. The price consumers are then willing to pay for those goods is where the city wage rate comes in. From my experience local suppliers in a city with a low wage rate sell goods much cheaper than cities with a high wage rate which in turn requires you to set your prices much lower than you might be able to in the high wage rate city.
On the supply vs demand side you can see what portion of the market you already control in a city in the product details screen. The left pie chart is what portion of manufacturing for that product you control for that city, and the right is what portion of retail you currently control with the white space representing local suppliers.
If you fill the pie chart on either side that means you've saturated the market for that city on the production or retail side for that product. So for example lets say you manufacture jeans in a city and you sell them in retail stores until the pie chart in your retail stores is completely filled in. If you open another retail store in that city and sell jeans you will still be selling the same amount of jeans citywide as you were previously, thus losing profits in the form of upkeep costs in the extra retail stores.
This problem can be easy to run into because of the time it can take to get your retail stores and factories to get level 9 small business units. If you get off to a strong start and build too many factories and retail stores you can begin to overproduce at your factories and have more retail outlets than you need as they level up which will ultimately lead you to sell yourself short so to speak.
The way I deal with this is using significant sums of money for the HR training program. Before I've even come close to saturating the market in any of my cities I typically have enough money to boost training this way and it gives me a better idea of how much more retail I need in the city.
Sorry for getting long winded, but I hope something from that helps!