My business is failing what should I do?

[counting]

I'll do it, and it's actually more versatile than just one warehouse 8 products 1 ads. You can have different combination as you like. I'll list the most simple variations from 1 media firm to 3 media firms inside one "warehouse showroom" to advertise 8, 6, and 4 different type of products. (You can try all the different layout as you like, the permutations are huge)

warehouse_showroom1.jpg (183.06 KiB) Viewed 2501 times

warehouse_showroom2.jpg (181.87 KiB) Viewed 2501 times

warehouse_showroom3.jpg (175.39 KiB) Viewed 2501 times

[Camio]

You dont have to sell it. These warehouses are used only for advertising. You sell your products in normal retail stores.

Only difference here is all advertisement is done in a warehouse, whose sole purpose is that.

A screen shot explaining it might be helpful to him.

counting did a few screen shots just above so I wont clutter before I read you post.

I use the same layout as in the 1st screen shot. I use 3 warehouses per city, each doing a media. This is for the same 8 products. That way, I easily advertise in all medias for 8 products in 1 city using 3 warehouses.

Obviously, you dont wanna do that early on. Its best early on to use either an open spot in a factory or retail store to ad something, and simply rotate the media there. As your budget grows, this warehouses trick will save you management while opening spots in factories or retail stores for other stuff, like a sale slot in stores, for example.

Once I could afford it, I switched to this system in my current game. I built 21 warehouses at once, using the same plan. Took me no time to setup. Its less hassle down the road for sure when it comes to ads.

Warehouses are cheap, to build and also monthly cost wise. I dont use them at all so I figured, might as well use them for this.

[jondonnis]

Thats why I was getting confused because you're essentially bringing in a chunk of stock you wont sell, just to do the advetising

I guess you could see it as backup stock which you could sell later but isnt this a little cheaty? Maybe they should implement advertising agencies for this purpose.

[Camio]

Thats why I was getting confused because you're essentially bringing in a chunk of stock you wont sell, just to do the advetising

Yeah, this stock is brought in and sits there once each inputs are filled. I still sell the normal way, from factories to retail stores. The way I use those warehouses here is strickly for advertising.

I guess you could see it as backup stock which you could sell later but isnt this a little cheaty? Maybe they should implement advertising agencies for this purpose.

The way to avoid this being done would be to remove ads inputs from warehouses. But then, warehouses would serve no purpose. I really dont use them at all.

The only other situation they are useful, the way they are at the moment, besides for ads, is this: they are useful to store crops you grow in the farms, growing crops and sales units only in the farms (not using inventory units there), storing in the warehouse instead of the farms. This would allow you to grow 4 different types of crops per farms. You would then save on monthly cost: less farms required total, warehouses costing less then farms also, also you'd save on training, having only 1 farm to train instead of a few.

The correct setup in this situation would be this way: a farm with 4 inputs of 4 different products and 4 sales units for each input with an advertising unit in the middle for media type 1 (say radio). In your 2 warehouses needed for these 4 products, you would then have an input, inventory and output for each products on each sides, from top to bottom (for example). In the middle and bottom slots, you'd have 2 advertising units for media type 2 and 3 (tv and newspapers). The upper slot in each warehouses would be open, to be used any way you want

That would be the optimal warehouse setup. In my current game (only my 2nd in CapLab), I didnt do that at the start as I wasnt 100% familiarized with the new stuff added in CapLab, but will do so in my next games for sure.

Implementing ads agencies as you suggested would be nice. Currently, I'm using warehouses like they were ads agencies

[counting]

Warehouses have many uses, just check my Capitalism Strategies and Tactics Collection post. Espeically williet4038 on the warehouse utlitization, he already did an intro on using warehouses a long time ago. General idea is that warehouse is not a "storage facility", but a logistic unit to help smoothing production cycle, integrate production and supply from multiple upstream to multiple downstream, and prevent fluctuations. Especially when the demand are huge, and hundreds of stores in multiple cities need to be supplied with many many factories.

[Dav3]

I always assumed that warehouses were only good for lowering your transport cost's never thought about using them as ad-agencies. Damn thats a good idea

[counting]

I always assumed that warehouses were only good for lowering your transport cost's never thought about using them as ad-agencies. Damn thats a good idea

Actually warehouse doesn't lower transport cost, most of the time you'll pay extra freight cost (since instead of directly from source to destination, it's from source to warehouse and then warehouse to destination). But by reducing fluctuation, or increase utilization, or reduce the number of factories needed, your overall overhead marginal cost can be lower. Besides if you only sell products as wholesalers, warehouse is more effective as "wholesale retail store".

[WilliamMGary]

I always assumed that warehouses were only good for lowering your transport cost's never thought about using them as ad-agencies. Damn thats a good idea

Actually warehouse doesn't lower transport cost, most of the time you'll pay extra freight cost (since instead of directly from source to destination, it's from source to warehouse and then warehouse to destination). But by reducing fluctuation, or increase utilization, or reduce the number of factories needed, your overall overhead marginal cost can be lower. Besides if you only sell products as wholesalers, warehouse is more effective as "wholesale retail store".

Not to manage the flexibility it gives you if you need to open a larger factory.... just close the small factory open the large one and link done. Now all your firms that were buying from that warehouse is getting supplied by your new factor and your customers gets greater access to your products. Its also helpful by ensuring the old inventory is sold before the new (FIFO)

[jondonnis]

Regarding Warehouses. So my farming and supermarket business is going OK. If I get all my farms up to 100 for example and they sell frozen chicken.

Does it make sense to then ship all the frozen chicken from all the different farms to warehouses, then the supermarkets purchase from the warehouses?

[jondonnis]

Another question regarding my business is why are the Cost+Freight so different between the cigarettes and cigars?





They are both using the same Tobacco and the same Timber. Is the price difference in cost and freight simply just because cigars are bigger, sell at a higher price and taking into account the image, the cigars come in boxes?