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Topic:

Topic created : 17.09.2012, 00:26

didinedz
Two years with Virtonomics
Five years with Virtonomics
 
hello friends, im new in this game
I have a mill and i produce flour,i want to know how to reduce the cost price of my product please ?.   

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17.09.2012, 02:20

Rogue_Cat
Four years with Virtonomics 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 The Standard of Virtonomics
For contribution to the development of Virtonomics Six years with Virtonomics Winner of the Contest for Managers in the nomination Trade Turnover Winner of the Contest for Managers in the nomination The Standard of Virtonomics
l:
Catnipalot
m:
Catnipalot
 
The production cost relies on the cost of materials/ingredients to make it, the proportional part of the worker's wage and then other miscellaneous factors, like energy, management and general expenses, and technology level.
 
For ingredients, look for the best ones having a decent quality/price proportion. The cheaper ingredients, the lower cost.
 
For workers, the more units a single worker produces, the less charge the wage has on the product. Example:
10 workers with 20 machines produce around 5.000 flour units. So, each worker produces 500 units per week. If you are paying that worker a wage of $150, those 500 units would cost you $0.30 each. (Ingredient cost not included here.) This is the way the wages affect the cost of product.
 
Technology allows you to make more units and with higher quality. So, if you had a much higher level, and you produced 1.000 flour units per worker instead of 500, the wage charge on the product would be reduced. (From $0.30 to $0.15, because the same worker would manufacture double the units at the same wage cost.) The more units you can make per worker, the lower the added cost of wage will be.
 
The rest is having the mill working at its max efficiency. Or else the production will be reduced too. Same goes for broken machines, but only when the number of broken units is too high.
 
I guess that's basically all. If I missed something, someone else will add it. 
 

17.09.2012, 04:26

MrVendigo
Four years with Virtonomics
Thirteen years With Virtonomics
l:
VS
 
Ok lets just go to the point of your question.
You can reduce the cost of your production by:
 
1. Getting yourself cheaper materials.
 
Minus here is that most likely cheaper materials means lower quality and thus lower quality on your production too, unless at that time your supply quality is even higher than your tech level can handle.
Anyway just look into it like a price/performance kinda thing its just most of the time higher prime cost if you get higher quality of your production is worth it so think twice before reducing prime cost like this.
 
2. Decreasing Salary for workers
 
Well here you just have to have required number of qualification of workers that is determined by equipment level that's all. There is another way tho its kinda expensive and time consuming but it will pay out eventually is to train workers. Each day that workers spends on training their qualification will increase without increasing its salary. So in other words every day spent on training reduces the salary of workers if you keep matching their qualification with required.
 
3. Getting higher tech level to increase production output without increasing number of workers.
 
Well no comments on this just make sure your top manager level can handle it.
 

I hope it helps. 
 

List of forums -> Free communication (everything except serious game talk)-> reduce price returns ?

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