Selling you own products to your stores a good idea?

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Topic created : 18.06.2010, 06:27

globeballa

Investors Corporation

Hey everyone. I just have this question. Is it recommended to sell the products that you manufacture to your stores? I just do now whether I wold make more by selling products to other people, or by selling my products to my own store. I want to maximize profits and revs. I have been selling products to other companies before. And I have started selling clothes to my own factories. What are you guys doing with your products that you produce and why?

globe.

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18.06.2010, 06:35

Almost all of my products that being produced are sold on the wholesale market at REASONABLE PRICES. Sell your goods to small retailers so they can quickly establish their companies. Help the little guys and sell your finished goods at low prices. Well

18.06.2010, 13:59

TheMario

There is only one problem: if you set your goods to be sold 'to any company' and at 'reasonable prices', there is quite good chance, that it will be bought by someone, who will then resell it at much higher price ;) As they say 'Sorry Winnetou, but business is business' ;) (*)

On the other hand: selling wholesale means much less time needed to manage shops. As in real life: you can put your company almost 'on auto' selling all on the wholesale market, or spend your time adjusting shops, deliveries, prices...

As for myself: I sell almost all my end products in my own stores. It's most profitable - I doubt if anyone will pay me so much, as I get in my stores ;) On the other hand - I have little or large (depends on subject) overproduction of raw materials, which are sold to anyone from my warehouses. And always, when somebody ask me for some - I give his order higher priority.

(*) It's a citation from the old joke (from the times of Stalin): A teacher asks class: Who is your beloved Hero? Little boy says: My beloved hero is uncle Stalin! Very good! - says the teacher - You get very good note. The boy (in low voice): Sorry Winnetou, but business is business. ;)

18.06.2010, 14:26

casperbons

I sell everything in my 20 stores and find it very hard to keep production up with supply. My stores make more profit for most products than they would sell on whole sale.

On Lien i got a producing only think its very easy and doesn't require to play the game just check it an half hour every day and done. No Fun !!!

As for my overstock i only sell it to people that PM me or post in the BIO-Fund

18.06.2010, 15:31

Deira

Its way more profitable to sell your own goods in your own stores.

For example a Q8-10 retail stuff is hardly selling higher than local city average price at wholesale level. At retail level you can sell it for about 3-4 times local average easily.

Of course you need to operate the shop, which have costs, but thats a non-issue, because costs of shops is usually 1-2% or even less of revenue.

And BTW its better to have your own supplies, because stable, high quality, high volume retail supply is insanely hard to get. Practically non existant. And if you add proper branding, then there is no such things Not so

So if you want to get big - 10B+ revenue - you need your own goods to have something to sell in your shops.

18.06.2010, 19:00

Last time edited : 18.06.2010, 19:03

TheMario
There is only one problem: if you set your goods to be sold 'to any company' and at 'reasonable prices', there is quite good chance, that it will be bought by someone, who will then resell it at much higher price ;) As they say 'Sorry Winnetou, but business is business' ;) (*)

Yeah, but would you be happy to know that you are helping all the small businesses too? There are no independent suppliers for consumer goods except computers. Most small businesses are likely to be a retailer focused company when they started, hence, they will need finished goods at a reasonable prices to sell. If they can find more goods to sell then they are more likely to log onto Virtonomics and don't get discourage like so many newly-startup companies. User retention is essential to the survival of Virtonomics, if more people log-on often then the more likely that they will click on ads. More website traffics mean the owner will be happy and he would add more features to the game which benefits us all. It is karma.

18.06.2010, 19:03

globeballa

Investors Corporation

Awesome. I will start doing that now. And just another thing to ask. Should i sell the products from my factories to my stores at LOW prices? Or just at an average price..

18.06.2010, 19:25

Last time edited : 19.06.2010, 01:31

globeballa

Investors Corporation

And should I also upgrade my factories so that they can produce higher quality goods for my stores? Worth it?

20.06.2010, 20:30

Last time edited : 20.06.2010, 20:31

RockWhiter

It depends also of your suppliers: if you have a good supplier with nice prices you can continue with him and sell your production at a higher price.

For example: you are buying outwear for $400, selling them $1,200. You are producing outwear and you can sell them $800. Keep it like that unless you have a really biger potential of sales that can't be fulfilled by supply.

The vertical integration is certainly the most easy and reliable model, but working with a partner could be quite rewarding too: you can specialize in clothes and develop your industry (quality, production output, ...) and work with a producer of fabric for instance who will be able to do the same. If the market is flooded (fabric is a good example), you should be able to find a producer, and work directly with him on steady supply. While being its biggest client, you can ask him to increase his quality or his production and he will be sure to sell, and you to have your supply.

Eventually you are going to grow strong in one production area.

Imagine that your partner decide to begin with outwear industry, because he thinks vertical now...: great opportunity there! Propose him to exchange one of your factory against one of its fabric factory! You will both have access to completely developped business without having to start from the beginning.
It could actually be a goal from the very beginning: you want to be vertical? Set the goals right away wth a supplier who would like to do the same!

21.06.2010, 01:32

mrstickball

You make a ton more money by selling to yourself.

The only products I manufacture and sell to the open market are products that I have an excess of.

22.06.2010, 02:34

globeballa

Investors Corporation

Sweet thanks guys. I just started yesterday and my rev's are already showing it.

Check out this video! We made it for our physics project!

http://www.youtube.com/watch?v=v0mmcZIpSgA

-globeballa

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List of forums -> Main forum of the online business game "Virtonomics" -> Selling you own products to your stores a good idea?

List of forums -> Main forum of the online business game "Virtonomics"-> Selling you own products to your stores a good idea?