Am I missing something to make cheaper products? :: Forum :: Virtonomics

Search Rating log

List of forums -> FAQ -> Am I missing something to make cheaper products?

Topic:

«...»

Topic created : 3 February 2012, 05:25

phildo

Phocker LLC

Phocker Industries

The cost for me to produce wool fabric is almost $30

I can buy it for half that from a supplier (and to add insult to injury +3.75 better quality)

I am guessing we have similar priced raw material supplier b/c there is a glut of cheap wool on the market.

Is is a difference in tech level, are they paying that much cheaper wages then me, efficiency?

Does my training go into the cost of production? (I think it should be a seperate expense if it is)

Thank you for your responses.

Page:

Message list:

3 February 2012, 20:23

goto64

goto64 Tutorial Company

Kiint Universal

This could be for several different reasons:
1. Increasing the tech level also increases the productivity per worker, so higher tech does mean lower cost per produced unit.
2. Some of your competitors may get the wool from their own sheep farm, so they have lower raw material cost than you.
3. Worker salary is different depending on the location of the factory. Maybe you are using expensive workers.
4. It is also possible to produce fabric from cotton. I think cotton fabric can be produced cheaper (but you probably need to have your own cotton farm for that).

List of forums -> FAQ-> Am I missing something to make cheaper products?

Page: