Increase in top manager production qualification will be negatively affected if factories generate losses or low income. It does not make sense to set prices in your factory below prime cost.
Let's say you produce for prime cost 2$, sell at your factory for 1$ and then sell at retail store for 10$. Your profits will be 8$ (I left taxes and transport out here). Now when you sell at prime cost = 2$ at the factory and for 10$ at retail store you still make a profit of 8$ but your factory will have no losses. This way your top manager's qualification growth in production will be better.
Another thought is that if your factory is in a region with low taxes, while the retail store is in a region with high taxes, I would actually sell for a high price at the factory and only with little profit at the retail store. This way the profit generator will be the factory and not the retail store and overall profits should be higher since you pay fewer taxes. Selling at an own retail store is still better than waiting for competitors to buy at your factory, because they won't pay near retail market prices at a factory.
I tend to set selling prices at least a little above prime cost so I don't need to check them all the time and also so factories generate little, but some profits to gain positive production qualification benefits. |
