[MARY] Sales just keep expanding expanding expanding. Getting supply issues.

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Topic created : 22.02.2015, 22:10

waerth

Waerth Holdings

Hello all,

I keep on getting bigger sales volumes (which is good) but I am starting to hit walls when it comes to suppliers keeping up with me. For some goods I already have 2 or 3 suppliers that offer comparable prices and quality.

Most of the times the goods that I have to get as alternatives will be goods that do not fit my finely calibrated store sales pricing and would mean a totally different order volume (usually less) which kinda beats the reason for ordering from them :p

How do others handle this?

Are their any big food producers that are not interested in retail that want someone that can take larger volumes and plans to expand?

I am aiming at Quality between 1 and 10 for prices I can resell in my current markets.

I currently have 4 shops selling food and 1 department store. I am planning on opening 4 more food shops, but with current supply chain that is impossible. I have the money, just not the supplies. Also I want to start at least 2 more department stores. I have the same selection of goods in every store to keep things simple.

I imagined being a retail network but am starting to produce more of my own stuff in the long term which I do not want to do really.

And for those whom say their is no money in retail or food .... I beg to differ. Also all those factories DO need retailers in the end!

Waerth
Waerth Holdings Mary!

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22.02.2015, 22:28

waerth

Waerth Holdings

These are my current food products the quantities and total money I spend on them this turn. If anyone wants to talk about supplying me please pm me or through this thread. I am also interested in foods I do not sell yet. In the end I want to cover every food item Well

Some notes:
1) I produce energetic drinks myself but only cover half of my demand. And that demand could easily be double just for my existing stores.
2) I have started production of soft drinks myself, will start in 2 or 3 days from now, but it will not cover current demand which is double the 50,000 already!
3) I am thinking about getting a coffee farm to make coffee products myself. Also the other drinks like juices are on the list. But because of Management qualification I have to wait before I can gear up Not so

Milk 40 000 82 098.82$
Sugar 45 000 68 104.55$
Grapes 25 000 92 280.32$
Eggs 34 000 108 078.05$
Sausages 23 000 844 761.86$
Pastry 6 000 181 268.08$
Noodles 2 100 31 421.78$
Dairy products 35 000 221 997.85$
Icecream 25 000 98 508.57$
Flour 16 000 19 392.00$
Beer 35 000 252 860.61$
Soft drinks 50 000 140 106.78$
Juice 68 000 250 920.00$
Alcohol 32 000 663 354.72$
Bread 125 000 146 512.35$
Chocolate 1 000 168 003.00$
Sweets 30 000 330 091.02$
Canned products 20 000 1 893 916.83$
Canned fish 6 500 1 123 697.67$
"Cheesyland" 4 500 42 142.13$
Cheese 30 000 69 167.10$
Instant Coffee 2 000 1 322 043.88$
Energetic drinks 20 030 2 006 250.97$
Canned olives 100 110 121.92$

26.02.2015, 09:32

Cwalen

Supply issues are always a bitch for retailers.

There are many reasons.

1)Plenty of people put in small buy orders on retailers early in the hope of being able to be on the top of the supply list when they need more.

-solution.
Do the same yourself. If you need 50 K units, don't order 50 from the best, spread 5,10K orders round, and adjust over time.

2) Sellers often put low prices out initially, to gather buyers and then raise their price.
One day you are making out like a bandit, the next you have no supply.

-solution.
Set the point where you reject the supply contract higher than 10%.
If you would be happy enough to pay 50% more, press that button.

3) Wharehousers come through every so often and hammer specific goods.
One day the price is 10 and there are millions of units, the next one person has millions and the price is 12.
This is particularly troublesome when combined with #1 above.

-solution.
Just wait, the people who can afford to do that forever wont be pissing round with groceries.

The good news is.

DO NOT BOTHER WITH ANY GOOD THAT YOU GET LESS THAN 25% MARGIN ON!!!

Higher prices means lower sales. Canned olives, energetic drinks, instant coffee? buy what you can and control demand with price.

Once you know a market, you can warehouse bargains and then trickle them out through your stores at high margin /low volume.

Ten times local price is very low volume, even with high quality and branding.
If you are buying 1000 @ 600 and selling at 700 (local price 600), it is the same as buying 100 @ 600 and selling at 1600.

Volume is great, profit is what you are looking for.
As you have noticed, cheap supply is erratic.

Well

24.03.2015, 01:58

Last time edited : 24.03.2015, 02:03

jeka_igla

Modreator

Red Swarm LTD

I have a nice solution for you
In simple words: raise prices!

If you selling 1000 units for $100 and buying em for $50 you ll get $50,000 of net income and you need 1000 units
If you selling 900 units for $110 and buying em for $50 you ll get $54,000 of net income and you need just 900 units
And that if elasticity is = 1 which is sometimes higher (Yea, there is an elasticity in the game)

You raise prices everywhere and capture around 15% of the cities share (that way locals won't raise their quality)

If you going to raise prices that way, u might consider to move ur stores to Trendy neighborhood and look for a good brand and quality goods

Anyway successful retailer in this game usually a successful manufacturer in the same time (Good brand, good quality, low prime cost...)

25.03.2015, 00:16

Melchior2008

RoMa Inc.

waerth

I imagined being a retail network but am starting to produce more of my own stuff in the long term which I do not want to do really.

You'll come to the conclusion that producing yourself all you can is the best way, the most reliable in the long run, as you'll avoid the headache of looking for suppliers regularly. Because when the demand grows for a product, it has an impact on the wholesale market too.

I wish I could produce more myself.

25.03.2015, 06:12

jeka_igla

Modreator

Red Swarm LTD

There is always an another way

Find a friend and create a corporation. One person will produce stuff, you will sell it

Although in this game, as Melchior2008 said, people usually do everything possible in the same time (service, medicine, retail, production...)

Specialization become a thing only on really high levels of qualification (50+) when getting rid of qualification growing penalty cost 6 or more points and you can really improve only like 3-5 qualifications of all

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List of forums -> Free communication (everything except serious game talk) -> [MARY] Sales just keep expanding expanding expanding. Getting supply issues.

List of forums -> Free communication (everything except serious game talk)-> [MARY] Sales just keep expanding expanding expanding. Getting supply issues.