I need recommendation for my Product Profitability Balancing

[rlqhd5256]

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This is Manufacturing.DBF(RealWorld Mod by Piermario) + my Columns(the Colored ones).
And It would be somewhat different from original RealWorld Mod(But That is not main issue.)

[Colored Columns]
Sales per Cycle means :: (Standard Price + RD Premium) x Quantity per one Manufacturing Cycle.
Cost per Cycle 1~3 means :: Each Input price x Quantity per one Manufacturing Cycle.
Gross Cost per Cycle means :: Sum of the Input 1, 2, 3's Cost
Profit per Cycler means :: Sales per Cycle - Gross Cost per Cycle
Profitability means :: (Sales per Cycle - Gross Cost per Cycle) / Sales per Cycle

As you can see, Profitability is far higher than real world. so I'm willing to adjust it.
(And as you know, what I say 'Profit' means 'Gross Profit' in accounting.)




Q1) Which one should I adjust for balancing
:: (1) Reducing Output Quantity or (2) Increasing Input Quantity.



Q2) How much profitability would be appropriate?

I would set 30% in industry like Fastfood, Bake, energy, etc
I would set 40% in industry like Food, Beverage, auto etc
I would set 50% in industry like Bodycare, Alcholic, etc
I would set 60% in industry like Drugs, Computer, Commun, etc

but I don't know how cost process works exactly in CapLab.
Is it fine to set like this considering all the other cost like freight, Labor, Plant in CapLab?

[David]

Q1) Which one should I adjust for balancing
:: (1) Reducing Output Quantity or (2) Increasing Input Quantity.

I think either way is fine as it would produce the same end result.

Q2) How much profitability would be appropriate?
I would set 30% in industry like Fastfood, Bake, energy, etc
I would set 40% in industry like Food, Beverage, auto etc
I would set 50% in industry like Bodycare, Alcholic, etc
I would set 60% in industry like Drugs, Computer, Commun, etc

I would suggest that you link to DEMAND column from PRODUCT_TYPES spreadsheet to your spreadsheet.

For example:
For a product with a DEMAND value of 0.2, it means that there is a demand of 0.2 product per person per year, or a demand of 20 products per 1000 persons per year.

Let's say that a product has a Profit per Cycle of 30, and a DEMAND of 0.2, it would generate gross profit of 30 x 20 per 1000 persons per year.
You can use this value 30 x 0.2 = 15 as a measurement of the profitability of the product and make adjustments to the DEMAND values until there are no outliners with extreme profitability.

Once you have added the DEMAND value to the profitability analysis, you can set the profitability of all industries to more or less the same, as the DEMAND value takes into account each industry's different demands.

but I don't know how cost process works exactly in CapLab.
Is it fine to set like this considering all the other cost like freight, Labor, Plant in CapLab?

I think these factors have relatively less impact on the profitability and it is okay to leave them out in balancing.

On the plus side they would add some variation in gameplay so that not all products' profitability values are so similar, even if all products in Product_types.dbf and Manufacturing.dbf have been balanced perfectly.

If you have any other questions, please let me know.

By the way, I would recommend that you post your spreadsheet files here and share the Excel formulas with other modders.

[rlqhd5256]

To David,

All Right. That makes sense. Thanks.

Since Plant's Cost is not critical, I can change Profit per Cycle -> Profit per One Product Unit.
and then will put Profit per one product unit * Demand.

Profit per Cycle / Output Quantity = Profit per One Unit.
Profit Per One Unit * Demand(Number of Buying per one person in 1 years) = Profit per One Person.
So I have to adjust Profit per one Person. That is more intuitive to understand right? Thanks.

Oh I will attach all my sheets after but not now. These are too messy so need to be tidy up.

[David]

Profit per Cycle / Output Quantity = Profit per One Unit.
Profit Per One Unit * Demand(Number of Buying per one person in 1 years) = Profit per One Person.
So I have to adjust Profit per one Person. That is more intuitive to understand right? Thanks.

That's right.

Oh I will attach all my sheets after but not now. These are too messy so need to be tidy up.

Sounds good. Thanks.