Retail and Demand
RETAIL STORES
There are eight (8) retail buildings to chose from in game. Six (6) of the retail buildings (Grocery Store, Electronics Store, Gas Station, Fashion Store, Car Dealership, Hardware Store) are where you set the price and quantity and sell over a period of time. Two (2) of the retail buildings (Sales Offices and Restaurants) are a completely different way of doing Retail.
Sales Offices see: Aerospace Industry Guide
Restaurants see: Restaurant Guide
DEMAND
Demand in the encyclopedia determines the quality saturation.
Having higher quality doesn't automatically mean it will sell faster in retail.
The higher the demand = less quality
The lower the demand = higher quality
The blue shaded box for all retail (except aerospace = gray) shows the demand for each retail product.
Each product has a different saturation for demand. Using the encyclopedia we can see what this is for each retail product. The green line shows retail price.
On PC, hovering over the graph brings up the demand, retail price, and date.
On Mobile, pressing on the graph will bring up demand, retail price, and date where you pressed on the graph.
The demands can be: Extreme, Very High, High, Normal, Low, Very Low, and Almost None.
Extreme = lowest quality
Normal = middle quality
None = highest quality
Planks
The following image is for Planks.
Demand: Extreme
Using the Sales Calculator we can see where Quality stops affecting “Units sold an hour” and “Revenue less wages per unit”
Check out the Encyclopedia to see where the quality stops increasing in quantity/price.
Plank's highest current quality is q3. The Units per hour and revenue stops changing at q3.
If you are selling planks the most quality you would want would be q3. Going higher would not make any difference cause it would be the same units per hour and revenue as q3.
The quality saturation can change. It shows q3 right now for this example; in the future it could be lower or higher than q3. Always check out the encyclopedia to see the demand of a product and what quality is currently going to maximize your profits.
Economy Car
For comparisons in quality differences we’ll be using Economy Car
Demand: Normal
Using the Sales Calculator we can see where Quality stops affecting “Units sold an hour” and “Revenue less wages per unit.”
Check out the Encyclopedia to see where the quality stops increasing in quantity/price.
Economy Car's highest current quality is q6. The Units per hour and revenue stops changing at q6.
We can see how demand changes the quality needed for each product.
ECONOMIC PHASES
Retail's best economic phase for the most profit is a Boom. This is when selling speeds are at their highest. If you are a retailer always make sure you know what economic state the game is in and be prepared for Economic shifts. If you can make profits in a recession economy; as a retailer you'll love the faster selling speeds of a normal and boom economies.
WAGES
Wages in retail are paid out as you sell the products. Make sure you are taking this into account when looking at your Cash Receipts and Disbursements in your Headquarters.
EXECUTIVES
Retail requires a CMO (sales speed). It is highly suggested that if you are running Retail buildings to hire a CMO as soon as possible. See the Executives Guide.
Links to helpful articles from the Sim Times:
Grand Unified Theory of the Sim Economy
Identifying Supply Chain to Become a Successful Retailer
An Exhaustive Guide to the Math of Retailing (Part 1)
An Exhaustive Guide to the Math of Retailing (Part 2)
An Exhaustive Guide to the Math of Retailing (Part 3)
An Exhaustive Guide to the Math of Retailing (Part 4)
An Exhaustive Guide to the Math of Retailing (Part 5)
An Exhaustive Guide to the Math of Retailing (Part 6)
An Exhaustive Guide to the Math of Retailing (Part 7)
An Exhaustive Guide to the Math of Retailing (Part 8)
An Exhaustive Guide to the Math of Retailing (Part 9)
An Exhaustive Guide to the Math of Retailing (Part 10)
Extreme Demand! A Retail Math Discovery