Capitalism 2 and Capitalism Lab Forum

So I peaked into the discussion on natural resources and saw this line "The recurring cost of producing a single unit of the natural resource will equal to the original cost of acquiring natural resource site, divided by the original reserve amount, and adjusted for the current inflation."

I think a similar formula (avg land cost) should be used to set the price for a new floor, right now its super cheap to open a new floor making it a no brainier but I think its too cheap compared to the cost of building+land acquisition. Right now you can just click new floor and know that you're going to back the cost back almost immediately.

I agree its to cheap and should cost more, I think it should be more like 5 million for 2nd floor and 10 million for 3rd....
I don't think it should be based on the land cost particularly, as in general the same extension would cost a similar amount.

Personally I would like the option to choose to build a 1/2/3 floors store in one go at the start and have this more cost efficient than adding a floor on later as adding an extra floor onto an existing building would be a lot more costly.

cantdownloadit wrote:I agree its to cheap and should cost more, I think it should be more like 5 million for 2nd floor and 10 million for 3rd....
I don't think it should be based on the land cost particularly, as in general the same extension would cost a similar amount.

Personally I would like the option to choose to build a 1/2/3 floors store in one go at the start and have this more cost efficient than adding a floor on later as adding an extra floor onto an existing building would be a lot more costly.

I was thinking a million since you ideally would have to build out the second floor with fixtures, floors, equipment, stock it with product etc.

I wouldnt charge a fictive 5million or 10 million for each floor, wouldnt know for what!? buy your land you allready purchased?!

in real life, when ya get planning permission to add another floor, all ya pay is the few 100k to build the next floor, nobody will ask you to pay again for the land you allready own. they cant because you own the land allready

and actually the land cost isnt really a cost, its just an accounting action to move cash assets to land assets to simplify it.
but you havent lost a single penny. if you staert to charge 5 - 10 million for a floor thats non recoverable loss that woulsd never occur if you keep only 1 floor.

the monthly overhead for every floor and the wages/trainingscost do add for every extra floor/ employee like for a new shop, thats what was important as this would be billions saved expanses anually across the whole company if this wouldnt be charged.

anjali wrote:I wouldnt charge a fictive 5million or 10 million for each floor, wouldnt know for what!? buy your land you allready purchased?!

in real life, when ya get planning permission to add another floor, all ya pay is the few 100k to build the next floor, nobody will ask you to pay again for the land you allready own. they cant because you own the land allready

and actually the land cost isnt really a cost, its just an accounting action to move cash assets to land assets to simplify it.
but you havent lost a single penny. if you staert to charge 5 - 10 million for a floor thats non recoverable loss that woulsd never occur if you keep only 1 floor.

the monthly overhead for every floor and the wages/trainingscost do add for every extra floor/ employee like for a new shop, thats what was important as this would be billions saved expanses anually across the whole company if this wouldnt be charged.

So you like the current system?

the monthly overhead for every floor and the wages/trainings cost do add for every extra floor/ employee like for a new shop, thats what was important as this would be billions saved expanses anually across the whole company if this wouldnt be charged.

FYI, it already functions like what you wrote above in the current version.

David wrote:

the monthly overhead for every floor and the wages/trainings cost do add for every extra floor/ employee like for a new shop, thats what was important as this would be billions saved expanses anually across the whole company if this wouldnt be charged.

FYI, it already functions like what you wrote above in the current version.

Yeah I think he's stating there's no problem.

ypu thats what i mentioned to say, that the costs per floor and employee are allready reflected, and expanses for building extension are charged. and i dont see any reason for adding additional costs. exept maybe 50% additional costs per floor extension as extending costs always a little more then building it right away from scratch.

It is ofcourse much cheaper to set up 1 shop with 3 floors, but only if you count land purchase as an expanse, which is accounting wise incorrect as its not an expanse. and the only time this is notable is at the very beginning of the game if you start out with $5 million private company as your credit line is somewhere near zero. 1 year down the road its not notable really if you move a few million assets from cash to land.

but sales expanses per unit sold are still the very same and if you dont sell the neccessary amount of goods to cover those expanses, with the profit margin you gonna have, the very same losses on a 3 floor shop will occur then on 3 single floor shops.

it is even a higher risk in this case to loose market share because if you got 3 single floor shops and your marketshare / profit margin keeps declining you can just close down 1 or 2 shops and reduce your market presence, thus reducing your fixed expanses (overhead+salary) by 33% per shop closed, giving you the air to breath to come back into profit and therefore giving you the tools to strike back.

on the other hand if you only got a 3 floor shop you gonna be hit by the full overhead and salaries of 3 single floor shops (megadiscount store gonna be very expansive that way) closing down one of those will have write offs as high as 3 single floors and if, lets say you only got 1 3-floor shop left, but only got sales to cover 1 floor shop, you gonna have to withdraw your market presence in this town completely in order to get back into profit / survive a price battle which gonna give you much higher expanses to strike back, and you gonna start at zero once again when you return to this town.

having all this said, i think the system is just fine, except that slighlty higher costs to build an extension compared to building it right away from scratch in the fisrt place.

I think the current system is fine as is.

I do too.