Create your dream company in the global economy game!

Play Business Game!
Русский Українська Español Deutsch
Login Password Sign Up / Login Forgot your password? English
Search
virtonomica

List of forums -> Questions and answers. Help. -> wrong average price

Here you can learn from the interaction between experienced businessmen and young entrepreneurs. You are welcome to place your questions related to our business simulation game and get the answers from experienced players

Topic:
  

Topic created : 8.02.2010, 16:02
GriN00
Winner of the Leaders Contest in the nomination of Consumer Goods Winner of the Contest for Managers in the nomination Consumer Goods
 
http://virtonomics.com/lien/window/globalreport/marketing/by_trade_at_cities/7095/401792/401809/401871
look here
 
4 companies sell furniture... average price must be (32500+28000+41000+29840)/4 = 32835$ , but in this f$cking report average price is
Stores  24 222.81$
nonsense.... It is surprised
I'm loosing millions of profit ((((   

  • Page:
  • 1
Message list:  

8.02.2010, 19:08
sergo
Fourteen years with Virtonomics Jewelry Loupe Miner Helmet
Jewelry Loupe Six years with Virtonomics
Fifteen years with Virtonomics Jewelry Loupe
Fourteen years with Virtonomics
l:
Sergo Ltd.
n:
Mor S. Ltd.
m:
Venture Co.
 
You're wrong. Not so
In your case average must be (32500 * qty1 + 28000 * qty2 + 41000 * qty3 + 29840 * qty4) / (qty1 + qty2 + qty3 + qty4) 
 

8.02.2010, 19:29
Standard underwear Estonian bronze coin Four years with Virtonomics
Standard bed-clothing Bronze underwear Hockey skates Estonian bronze coin Steel Dumbbell of the Mr. Virtonomics 2011 participant Four years with Virtonomics Overall of the candidate of science Bronze Finnish Lion
MBA diploma Laboratory assistant’s overall
 
i don't see connection on how you loosing millions because of ''wrong'' average price of product. You are free to set your price...and if your product is quality enough, your price can be one time higher than average.
 
so i realy don't get why are you complaining about the average price. and also Sergo showed you how you get that price 
 

8.02.2010, 20:28
LongYear
 
sergo is right, average price is (32500 * qty1 + 28000 * qty2 + 41000 * qty3 + 29840 * qty4) / (qty1 + qty2 + qty3 + qty4). But anyway I don't get. How average price can be LOWER than the minimal price between 4 companies. 
 

8.02.2010, 20:37
VLLord
Eleven years with Virtonomics For contribution to the development of Virtonomics Golden amphora of Heraklion Golden bed-clothing Standard underwear
m:
Golden Empire
 
LongYear
sergo is right, average price is (32500 * qty1 + 28000 * qty2 + 41000 * qty3 + 29840 * qty4) / (qty1 + qty2 + qty3 + qty4). But anyway I don't get. How average price can be LOWER than the minimal price between 4 companies.
Don't forget about local suppliers, they are taking into account too. 
 

8.02.2010, 21:54
LongYear
 
I meant average price of stores. I thought average price of stores takes into account only prices of players but not local suppliers. But may be I'm wrong. 
 

8.02.2010, 22:16
VLLord
Eleven years with Virtonomics For contribution to the development of Virtonomics Golden amphora of Heraklion Golden bed-clothing Standard underwear
m:
Golden Empire
 
LongYear
I meant average price of stores. I thought average price of stores takes into account only prices of players but not local suppliers. But may be I'm wrong.

Average price of stores takes into account price of local suppliers and prices of players.
Look at market reports and you'll see that. 
 

8.02.2010, 22:18
GriN00
Winner of the Leaders Contest in the nomination of Consumer Goods Winner of the Contest for Managers in the nomination Consumer Goods
 
But anyway I don't get. How average price can be LOWER than the minimal price between 4 companies.
that's exactly what I meant
In your case average must be (32500 * qty1 + 28000 * qty2 + 41000 * qty3 + 29840 * qty4) / (qty1 + qty2 + qty3 + qty4)
thx, i didn't know this formula, but in my case, as you can see in report, quality is 1.0, so I calculated it rightly. average price must be exactly 32 835$.
 
why 24 220$ ??
 
don't see connection on how you loosing millions because of ''wrong'' average price of product
look.. if average price is 32000+ i can sell my current volumes for average price or higher = more profit Well
now i'm obliged to sell my good for low price to keep volumes, if I will sell it for 32 000 , it rather more than "average" price, I'll loose consumers Well
 
Don't forget about local suppliers, they are taking into account too.
local supplies must adapt to players, but not other way Not so 
 

8.02.2010, 22:32
VLLord
Eleven years with Virtonomics For contribution to the development of Virtonomics Golden amphora of Heraklion Golden bed-clothing Standard underwear
m:
Golden Empire
 
GriN00

Don't forget about local suppliers, they are taking into account too.
local supplies must adapt to players, but not other way Not so
Why local suppliers with sales in 123k Furniture should adapt to players with sales in 1k Furniture?
It's not logicalNot so 
 

9.02.2010, 16:55

Last time edited : 9.02.2010, 16:56
GriN00
Winner of the Leaders Contest in the nomination of Consumer Goods Winner of the Contest for Managers in the nomination Consumer Goods
 
Why local suppliers with sales in 123k Furniture should adapt to players with sales in 1k Furniture?
It's not logical
may be, but that's true.. in sochi I sell bread (less then 3% of city market) and if I make my price higher, local supplies make it higher too.
 
and again nobody answers the main question... why stores' average price is less then 24k$ when in fact it must be more higher (I calculated ealier) ??? 
 

9.02.2010, 17:13
Winner of the Contest for Managers in the nomination Raw Material Base Winner of the Contest for Managers in the nomination "Knowledge is power!" Winner of the Contest for Managers in the nomination Consumer Goods Winner of the Contest for Managers in the nomination Trade Turnover Winner of the Contest for Managers in the nomination The Standard of Virtonomics Three years with Virtonomics
Four years with Virtonomics Golden Finnish Lion Golden Finnish Lion MBA diploma
m:
Company 2.0
 
Market share is the big factor here. Players with under 1.2% market share are not the dominant force in the market.
 
You can tell local suppliers are counted in the city average by looking at the brand. Average is 0 but all players except the lowest seller have branded goods. 
 

9.02.2010, 22:43

Last time edited : 11.02.2010, 19:00
VLLord
Eleven years with Virtonomics For contribution to the development of Virtonomics Golden amphora of Heraklion Golden bed-clothing Standard underwear
m:
Golden Empire
 
GriN00

and again nobody answers the main question... why stores' average price is less then 24k$ when in fact it must be more higher (I calculated ealier) ???

(23917*123133+32500*500+28000*500+29840*50+41000*50+22000*50)/124616=
=23917*0.9881+32500*0.0041+28000*0.0041+29840*0.0004+41000*0.0004+22000*0.0004=
=23632+133+115+12+16+9=23917=stores average price
 
hope you'll understand 
 

10.02.2010, 10:48
Winner of the Contest for Managers in the nomination Raw Material Base Winner of the Contest for Managers in the nomination "Knowledge is power!" Winner of the Contest for Managers in the nomination Consumer Goods Winner of the Contest for Managers in the nomination Trade Turnover Winner of the Contest for Managers in the nomination The Standard of Virtonomics Three years with Virtonomics
Four years with Virtonomics Golden Finnish Lion Golden Finnish Lion MBA diploma
m:
Company 2.0
 
For sergo's formula you also need to add local supplier price and volume.
 
It is in VLLord's calculation:
(23917*123133+32500*500+28000*500+29840*50+41000*50+22000*50)/124616=
=23917*0.9881+32500*0.0041+28000*0.0041+29840*0.0004+41000*0.0004+22000*0.0004=
=23632+133+115+12+16+9=23917=stores average price.
 
Local supplier price yesterday was $23,917
Local supplier volume yesterday was 123,133
 
Whenever local suppliers have market share they are selling goods there. You can not get a correct average without counting ALL sales. 
 

List of forums -> Questions and answers. Help.-> wrong average price

  • Page:
  • 1
Mobile version coming soon Hide
Support

Copyright © Simformer Inc. 2024. || @ Virtonomics | Business simulation game

The use of any materials and articles from our website is possible only with a direct link to the Virtonomics website. When mentioning our business game in publications, please use the names "Economic game Virtonomics" or "Tycoon game Virtonomics".

visa mastercard