Retail stores and demand
Posted: Wed Feb 21, 2024 2:53 pm
So I created two factories and warehouse. Factories produced body lotion.
Then I created one discount store where I had one purchase and one selling unit for body lotion. The demand for body lotion was higher than its supply. (I adjusted the price very low on purpose to test this)
When I created second discount store one year later with the same settings, the demand bar for the first store barely decreased. Why is so? If I add another sales unit in the first store, it fixes the problem. But when I create second store where I sell body lotion, the demand for first store doesn't decrease - even though I would assume the sales would split equally between those two stores. In 50-50 style, if body lotions have same prices and quality and traffic index is the same.
It seems like customers are "stick" with the first store and don't care even when I create second store. Are customers more "conservative" that they don't want to change the shop to another one in the first place, or what's the thing?
If I create both retail stores at the same time, then demand is equally splitted.
EDIT: So when I built my 2nd store, its demand was very low in comparison with the 1st store I had built. I figured out how to increase demand for my 2nd store even though quality/traffic/price is the same as the first store. When I decrease the price of body lotion in my 2nd store, I start to gain market share. When I increase the price back to where it was initially, the demand stays quite high. Are lower prices "attracting" customers to the shop, and when I increase the price again, some of them will still buy the body lotion?
Then I created one discount store where I had one purchase and one selling unit for body lotion. The demand for body lotion was higher than its supply. (I adjusted the price very low on purpose to test this)
When I created second discount store one year later with the same settings, the demand bar for the first store barely decreased. Why is so? If I add another sales unit in the first store, it fixes the problem. But when I create second store where I sell body lotion, the demand for first store doesn't decrease - even though I would assume the sales would split equally between those two stores. In 50-50 style, if body lotions have same prices and quality and traffic index is the same.
It seems like customers are "stick" with the first store and don't care even when I create second store. Are customers more "conservative" that they don't want to change the shop to another one in the first place, or what's the thing?
If I create both retail stores at the same time, then demand is equally splitted.
EDIT: So when I built my 2nd store, its demand was very low in comparison with the 1st store I had built. I figured out how to increase demand for my 2nd store even though quality/traffic/price is the same as the first store. When I decrease the price of body lotion in my 2nd store, I start to gain market share. When I increase the price back to where it was initially, the demand stays quite high. Are lower prices "attracting" customers to the shop, and when I increase the price again, some of them will still buy the body lotion?