Manufacturing, trying to better understand salary expense

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bdubbs
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Joined: Sun Feb 28, 2016 9:15 am

Re: Manufacturing, trying to better understand salary expens

Post by bdubbs »

@ Diche Bach

A seaport retail only strategy is definitely the easiest way to get started in almost any game, and I found that to be true even in my in game situation. The problem that you generally expect to run into against 15-20 AI is that the demand for seaport goods can start drastically outpacing supply in the first 5 years. In my game where there was only 1 seaport per city it happened sometime near the end of year 2 I believe, and at that point all retail stores started seeing a decline in profit and it wouldn't have made any sense to build any new stores because there wasn't enough supply to keep them profitable.

What I had going for me was the benefit of a couple low RWR cities to manufacture in if I sold the right products. I did some scouting and realized I had 5 other CEO's who had an expertise in beverages so I decided that wasn't an area I wanted to initially compete. Instead I used the money I had to R&D gold rings and leather wallets to start.

I was able to get land for cheap in Lagos, I opened a medium leather farm, a warehouse to utilize it, and a large factory to make wallets. Even though they were offered by the seaport I was the only one producing them and was able to sell a ton of them at thin margins even at low quality. After building branding in London and an R&D later I was able to make a killing off the wallets and a fair margin in my other cities. I was able to open a gold mine and took over as the only seller of gold rings, which I made a tidy profit on. I also expanded into the other leather goods, briefcases eventually became my best product.

I played through about 10 years and managed to pull a best yearly profit of 200 million without any stock investments to inflate the number. I actually want to do it over again without being stingy about borrowing money and diversify into real estate as well.
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eleaza
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Re: Manufacturing, trying to better understand salary expens

Post by eleaza »

A lot of time borrowing capital in the beginning make expanding much easier, as long as you have a good sense of your ability to pay interest. And invest very wisely to very high profit margin business from the start, make a huge impact on how quickly your business can grow in the future.

It's all about timing than everything. Pause the game and thoroughly investigate competitions, product profit possibility, distribution of good raw materials, production base, etc. And a lot of time real estate can help bring in needed cash for sustaining R&D, as long as you have capital to spare.
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