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Topic created : 19.08.2012, 10:58
DrainTheBrain
One year with Virtonomics
Winner of the Contest for Managers in the nomination "Knowledge is power!" Winner of the Contest for Managers in the nomination The Standard of Virtonomics
l:
DrainTheBrain Industries
 
Hi everybody
 
I have a little question about the formula of VLLord for calculating prices in stores.
I always used the formula to calculate my prices but it never worked out very well.
I got a 100 000 profit in my store that's it.
Yesterday I thought that this was too less for me and I did something else.
 
I calculated the prices with the formula and then I did the following:
 
calculated price - ((calculated price - purchased price)/2)
 
In other words, I reduced my profit by half for each of my items.
Now, I got a profit of 1 177 000 for my store. (Almost 11 times more!)
 
This is the formula I'm using:
0.6 *(City's wealth level)^0.4  *Local Supplier's Price*  (Your Quality/Local Suppliers quality)^0.5
 
Am I doing something wrong with the formula so it doesn't give me much profit? (I sell foodstuff and clothes and shoes in a 500 m shop, Namangan)
Or is there something else like an update that makes this formula not working for me?
Can somebody please help me?
It would be great if VLLord could help me in person, I would really appreciate that.   Yes
 
Thanks for your time reading this!
 
Greetings
DrainTheBrain   

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19.08.2012, 11:39

Last time edited : 19.08.2012, 11:49
Mike1
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Hey,
 
Retail quantity is not related to the price you pay to get the goods to your store. It depends on a mix of store size, popularity, innovation, location and competition as well as product branding, quality and price.
 
What you did is adjusting your price closer to the market price and thus your sales volume jumped. 
 

19.08.2012, 16:32
DrainTheBrain
One year with Virtonomics
Winner of the Contest for Managers in the nomination "Knowledge is power!" Winner of the Contest for Managers in the nomination The Standard of Virtonomics
l:
DrainTheBrain Industries
 
Mike1
Hey,
 
Retail quantity is not related to the price you pay to get the goods to your store. It depends on a mix of store size, popularity, innovation, location and competition as well as product branding, quality and price.
 
What you did is adjusting your price closer to the market price and thus your sales volume jumped.

Ah, that's why I sold so much last update.  Well
 
Thx for the help. 
 

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