Scale Firm Unit Costs

You may post your suggestions about Capitalism Lab here
Post Reply

Scale business unit costs with firm size?

Yes, business unit costs should scale with the size of the firm.
12
92%
No
1
8%
 
Total votes: 13

Brutus
Level 4 user
Posts: 139
Joined: Fri Jun 12, 2020 3:44 pm

Scale Firm Unit Costs

Post by Brutus »

There is currently a balancing problem with setting up units in the different sized firms.

Whether you setup a convenience store, a supermarket or a MegaStore for example it costs exactly the same to setup a sales unit across all different stores types at the moment. This should definitely scale with the store size and capacity itself. A convenience store shouldn't cost the same to setup a floor for as a MegaStore. Supermarkets can sell and store twice the amount of stock as a convenience store and MegaStores can do twice that of supermarkets again but all of these business units cost the same. It just doesn't make sense intuitively that you invest the same amount of money in them to setup their business units.

This is slightly more troublesome with Factories, where a small factory costs exactly the same to setup manufacturing units for as a large factory. A manufacturing unit costs something like ~$250,000. It makes no sense that my small factory's manufacturing unit costs the same $250,000 as a large factory unit but produces only 1/4th the quantity of goods ... how does that make sense? I understand that my small factory would only have the space to store 1/4th but how does it make sense that the same manufacturing machines I purchased only outputs 1/4th that of a large factory because I put it in a smaller factory? :roll:

In the following screenshot you can see what I am talking about when referring to business units.
Whether a small factory or a large factory, costs to setup up units are the same.
Whether a small factory or a large factory, costs to setup up units are the same.
BusinessUnitsCostTheSame.png (3.67 MiB) Viewed 426 times

Possible Solution:
Solution: A business unit should scale proportionally with the size of the firm.

As such a medium factory's manufacturing unit would cost twice as much or roughly ~$500,000 as it produces twice the amount and a large factory unit would cost roughly ~1,000,000 as it produces four times the amount of a small factory unit. It is nearly always better to go for a medium/large factory because of this quirk as the setup costs are the same with the exception of the building and land costs and it makes smaller firms relatively more expensive and less competitive than they ought to be. Smaller firms should offer a significantly cheaper solution to set up for less capacity, but all you are doing by taking a small factory is sacrificing production capacity without the cheaper unit setup costs. Having costs scale by firm size makes smaller firms more competitive and useful especially in the early game where you are cash strapped.
SchrodingerGargoyle
Level 2 user
Posts: 19
Joined: Wed May 20, 2020 5:06 pm

Re: Scale Firm Unit Costs

Post by SchrodingerGargoyle »

Good point, I agree. The "machinery costs" are currently too low for large/larger factories. The problem is even worse if you play using mods
mdemircan2
Level 4 user
Posts: 164
Joined: Wed Jan 23, 2019 3:56 pm
Has thanked: 20 times
Been thanked: 10 times

Re: Scale Firm Unit Costs

Post by mdemircan2 »

evet size katılıyorum...
bu sorun acilen düzeltilmeli.
Post Reply