Capitalism 2 and Capitalism Lab Forum

Hi,

I bought Capitalism Lab a few days ago and I really enjoy it so far, even if I really suck at it, and in the general comprehension of the business world. For instance, when you have a full chain of production, what is the point of modifying the factory price of the item you sell to your own store? Does the factory emit an invoice to the store? It seems to have an effect on the demand bar though (I'm the only client); does it mean that the store buy more of the product when the factory price is lower?

I struggle a lot, even in the first scenario (Fashion Venue), to have enough demand. I lowered the price of the factory because I'm not comfortable selling products at a lowest price than I bought them. And I'm pretty sure my factories are providing enough products (all my purchase units have a full yellow supply bar).

So, in other words: when is it a good idea to decrease or increase the factory price of a product?

And bonus question: does the COO modify the factory price as well?

Thanks.

The prise of factory have no impact on demand so to speak. If the prise is low it can atract another corporation to buy from your factory and sell it in its stores thus increasing "demand", but if you only sell to your stores (internal sale enabled for example) the prise in factory have no impact besides its own proffit/loss in balance sheet. The prise in sotres however have impact on demand and the volume of sold goods, you have to find balance between profit margin and the quantity of goods sold to maximise your total profit.

To answer your first question, if you want to atract another corporations to buy from you, you have to set atractive prise, if not, it doesnt matter, however i like to set such prises that all of my factories make some profit and dont work on "loss".

On second question, i dont know i never use COO, i like to set prises and everything myself.

avengerbg wrote: Wed Jan 08, 2020 11:36 am but if you only sell to your stores (internal sale enabled for example) the prise in factory have no impact besides its own proffit/loss in balance sheet.

I don't get that. Do my stores actually pay something to my factories when they order a product? I mean, it's the same company money, no? That shouldn't impact the profits of the factory if the store only pays for freight (which I read somewhere on this forum).

they do pay to your factories, if you check your store balance sheet, you will notice "cost of sales", thats how much your story paid for the goods its sells to factory, its like moving your money from one pocket to another Aditional to the prise of goods, store also pays freight cost. wich goes ... into the void.

Also if store dont pay for goods, the factory wont make any profits, isnt it?

How does it work in real life then? Does the law require the owner to have two different businesses? I don't really understand the concept of "paying yourself" when exchanging a product between a factory and a store. It seems extremely flawed and full of little tricks that one could abuse (maybe that's the case ).

Just for example when i was working in one local Television in my home town, there was separate company only for advertising on the tv, they was paying to the main company for the broadcast time. The owner of both was the same person ... so i wasnt joking when i said, moving your money from one pocket to another

One possible reason for doing that is that if one of companies bankrupt the other can continue doing its buisness, not to mention that you can play with your income statments .... i bet there is a lot companies in real life that do this, and not becouse law require it.

Also dont forget you control corporation, that might incorporate several companies, in that respect, every store or factory or farm is separate company owned by your corporations.

"A holding company is a company (usually a corporation) that owns a controlling interest in one or more companies. A holding company might be called an "umbrella" company or a parent company. The holding company doesn't do anything except manage the companies under its umbrella."