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shopping frenzy results

Gamma Alpha RJ: Gammatron CO: Gammatron Post Rating: 0 + / - Total Posts: 104 Karma: 62 Joined: Apr 7, 2012	Posted on May 20, 2012 So what did we gain through this shopping frenzy? Inflated import prices, disturbed b2b market with prices reaching ridiculous levels (just take a look at steel or glass) and lots of money on our accounts worth maybe 4x less comparing to yesterdays value, due to incredible inflation. Or maybe I' missing something?
Nwabudike Morgan RJ: CEO Nwabudike Morgan CO: CEO Nwabudike Morgan Post Rating: 0 + / - Total Posts: 108 Karma: 344 Joined: Apr 4, 2012	Posted on May 20, 2012 People who had a week's worth of store stock ready get to make money. Other people get to watch their stores languish for half a week. Anyone who had appreciable amounts of well-priced store stock by 12 hours in gets a sizable cash boost, though these people can probably afford to expand their companies nearly indefinitely.
Cian Kemp RJ: Cian Kemp CO: Cian Kemp Post Rating: 0 + / - Total Posts: 183 Karma: 58 Joined: Apr 9, 2012	Posted on May 20, 2012 Yea, I'm not a big fan of the crazy shopping frenzy thing. I barely restocked my stores and have more money than I know what to do with, and don't really have any drive to try and invest it since it feels pretty worthless at this point. I imagine people who put more time in keeping their shelves stocked (or those who bought a week or so of stock ahead of time) have way more cash laying around than me now. I hope events like this one won't be happening in the new server when it gets released.
Maverick khan RJ: Arigon CO: Arigon Post Rating: 0 + / - Total Posts: 20 Karma: 48 Joined: Mar 7, 2012	Posted on May 20, 2012 i love the shopping frenzy. sold away 17 passenger jets bought accidentally.
Josh Millard RJ: Tex Corman CO: J. Quaff Arabica Post Rating: 0 + / - Total Posts: 167 Karma: 231 Joined: Apr 3, 2012	Posted on May 20, 2012 Question of whether the frenzy thing is a good model for stable gameplay (short answer: probably not unless it's a much milder effect), this needs to be said: Everybody who had any inventory had a week's worth of inventory. You reprice your goods in expectation of inflated demand. If demand is going to increase and you don't have a great deal of surplus inventory, raise prices significantly. You'll maintain sales and get seriously increased per-unit margins. In the worst case, you left your goods priced the same and sold a week's worth of inventory at a week's worth of revenue in less than a week. The loss is entirely a psychological one: you moved your goods at the price you had set for them; the sales were made, the profit was made.
Lorenzo Boccaccia RJ: Mon Opoli CO: Mon Opoli Post Rating: 0 + / - Total Posts: 80 Karma: 71 Joined: Apr 10, 2012	Posted on May 20, 2012 You're not counting taxes in your model, but the general idea is correct.
David Stark RJ: Zarkonnen CO: David Stark Post Rating: 0 + / - Total Posts: 53 Karma: 23 Joined: Apr 4, 2012	Posted on May 20, 2012 Well, I had my entire company set to expand for a week before I heard of it. *sigh* *shrug*
Andrew Naples RJ: Clemen Salad CO: Clemen Post Rating: 0 + / - Total Posts: 214 Karma: 89 Joined: Apr 26, 2012	Posted on May 20, 2012 Demand is ridiculous in my sectors. Like cameras are 356% oversupplied and similar numbers for most everything else.
Gamma Alpha RJ: Gammatron CO: Gammatron Post Rating: 0 + / - Total Posts: 104 Karma: 62 Joined: Apr 7, 2012	Posted on May 21, 2012 strangely, some sectors became seriously undersupplied - like sporting goods (which have been like that for weeks, but now certain goods meet barely 20% demand or something). i believe that cameras and electronics in general have balancing on the edge of 100% long ago, haven't they?
Andrew Naples RJ: Clemen Salad CO: Clemen Post Rating: 0 + / - Total Posts: 214 Karma: 89 Joined: Apr 26, 2012	Posted on May 21, 2012 Ive noticed a ton of flux. Like one minute Tvs are at 75 then theyre at 250 an hour later. Then back to 150%. But usually electronics have 2-3 products at like 60%.
Josh Millard RJ: Tex Corman CO: J. Quaff Arabica Post Rating: 0 + / - Total Posts: 167 Karma: 231 Joined: Apr 3, 2012	Posted on May 21, 2012 You're not counting taxes in your model How so? You're also only going to pay taxes on net income, so there's no effective tax penalty for either repricing goods to stretch sales (you'll pay tax on your profits) or for making a week's sales in one day (for which you'll pay a week's taxes that day, and then no taxes on the no-sales the rest of the week if you're actually standing empty). There's also no maintenance hit for selling a week's worth of merch in a day and then standing empty; you're paying the salaries and facilities fees you'd have been paying anyway that week, from coffers filled from the cash you'd have raised as sales nets that week. If the game had tight, tight margins and some sort of exacting model of payroll, this sort of event would be potentially dangerously disruptive, but that's not the economic model we're living in. Windfall sales are, indeed, just windfall sales in this situation. Except for the psychological cost of seeing your daily routine and inventory flow upended by a sudden glut of revenue-generating sales, (assuming you didn't plan for the explicitly telegraphed sales frenzy), there is literally no downside to the actual event itself. The only people actually *bit* by this sort of thing are the ones who are updating such a large portion of their stores (or are short enough on stores in the first place) that they can't move their back inventory even at frenzy prices.
Fish Bike RJ: FishBike CO: FishBike Post Rating: 0 + / - Total Posts: 22 Karma: 51 Joined: Mar 29, 2012	Posted on May 21, 2012 Re: tax implications of selling a normal week's worth of inventory in a single day, there is a tax hit for this. The reason is that taxes are calculated for each day's net profit, and there is no tax rebate for a net loss. So all the revenue you bring in each day that is below your costs for that day is tax-free. If you sell everything all in one day, you only get one day's costs worth of tax-free revenue and everything else is taxed. If you spread the same revenue out over a week, you get seven days costs worth of tax-free revenue. Basically, any day when you have a net loss is a day when you have "lost" an opportunity for some tax-free revenue.
Josh Millard RJ: Tex Corman CO: J. Quaff Arabica Post Rating: 0 + / - Total Posts: 167 Karma: 231 Joined: Apr 3, 2012	Posted on May 21, 2012 Fair, yeah. I was seeing that side of that this morning chewing on this a bit. That said, even for a very large corporation that tax burden is in the low two digit percentage and represents very large profits, so it remains a strained complaint. And the bit of the Venn diagram where the "managing company development attentively enough to be aggressively growing while maintaining an effectively nominal net revenue vs. spending balance every day of the week" circle overlaps with the "had no idea that the shopping frenzy explicitly telegraphed in the World News section was going to happen" circle is both (a) slim and (b) maybe the only bit of that diagram that can really justify a complaint about the disruptive nature of the tax burden on their newfound income being the biggest problem their business is having. And I'd be willing to toss in (c) it seems like borderline nonfeasance to be caught off guard like that when there's so little news in the game. When the dictator prints a state newspaper that's one page long and says SHOPPING FRENZY INCOMING, probably a good idea to give that a quick skim and pass down a strategy memo to your store managers and your wholesale buyers.
Bob Malone RJ: Bob Malone CO: Malone Post Rating: 0 + / - Total Posts: 341 Karma: 191 Joined: Apr 17, 2012	Posted on May 21, 2012 When the dictator prints a state newspaper that's one page long and says SHOPPING FRENZY INCOMING And 2 days later, when your strategy is in place to face this shopping frenzy, same state newspaper announces "Oups, forecast was wrong, it's a severe depression incoming, take care" haters gonna hate :D
Scott (Admin) RJ: Ratan Joyce CO: Ratan Joyce Post Rating: 0 + / - Total Posts: 1175 Karma: 5083 Joined: Jan 13, 2012	Posted on May 21, 2012 What depression? The plan is still the same - things will go back to normal near the first predicted time, only this time it's taking place gradually.
Edwin Quintanilla RJ: EdqMaster CO: Edqmaster Post Rating: 0 + / - Total Posts: 74 Karma: 9 Joined: May 3, 2012	Posted on May 21, 2012 I think he is referring to this. "The central bank has said consumer spending is expected to fall back to normal in the coming months. Many stores are expected to close permanently due to increased competition." I dont think it say depression anywere but it could be taken taht way.

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