| Tuesday, October 20, 2009 - 01:02 am |
My names Ian Jones - ingame name ian1246. My nation is Great Britain on the world Kebir Blue and on the continent Paova Major
I m new to Sim country (this is my 2nd day playing it lol) - so i was wondering if some of you players who have some experience could tell me if my strategy is viable or not?
Basically, my plan is to drop corporation tax down to 5% (which i ve done).
This should increase the profit margins for the corporations by a decent amount. I then intend to drop the profit transfer down progressively also - currently its at 45%. This should further increase the cash going into the actual corporation's storage.
My first question therefore - is dropping the profit margins likely to increase the value of the corporation, or decrease it due to less cash going to me, and more cash going into corporation storage? If so, what impact will this have on the share values?
Right - now back to my plan lol.
With my corporations making profit, i intend to upgrade their efficiency and quality as much as possible - if i understand things properly, this means less workers, better products which means more profit.
Now - the more profit the corporations are making the better wages they can pay for their workers (which would reduce their profit) - consequently i d be aiming to improve the workers wages steadily (though ideally have the profit margin growing a little faster than the wage increases).
Here's the main focus of my plan therefore:
1.) Better wages for the workers means my companies should find it easier to draw the manpower they require, thus ensuring better productivity.
2.) Better wages for the employees, means more taxation from the citizens of my country.
I m hoping that in the long run the above plan will consequently yield a couple of economic benefits:
1.) Increased budget levels for government expenditure - resulting not from heavier corporation tax, but from improved taxation resulting from better salaries paid to my worker force.
2.) Via upgrading my facilities to make them more productive and efficient, it means i ll be able to field more corporations with my existing worker force... which in turn will improve my export capacity and even with a low corporation tax (5%) and low profit transfer percentage (currently 45%, aiming for 30% eventually)i ll still be making a reasonable amount of funds directly from corporations (tax and profit sharing).
So - what is everyone's opinions, does this strategy have potential or will it be a disaster?
Finally - how do i get my corporations assets to pick up (they are currently in decline by about 10billion to 20billion a month between them, even though their profit margins are about 0.25billion a month each) and how do i get my corporation shares to pick up (though my share portfolio is increasing by about 600million a month).
Overall my financial index is 160.71 (up from 154 when i started i think) and my business and trade index is 106.25 (up from 98 when i started i think).
If any of you do have some great advice though... please do share
Look forward to hearing from you guys!
| Tuesday, October 20, 2009 - 01:27 pm |
Set your trade strategies. Right now you are buying high and selling low. Not a good way to make a profit.
| Friday, October 23, 2009 - 04:21 pm |
Also, many game vets argue that it is not worth increasing the efficiency of the corporations. The theory behind this argument suggests that the amount of workers you're able to decrease in each corp will never actually gain you more money than it takes to upgrade the efficiency. I tend to believe this.
I'd like to see both opinions on this since I am not 100% convinced. Some say it is better to go for fully upgraded efficiency. Anyone have info to share?
| Friday, October 23, 2009 - 08:52 pm |
Upgrading effectivity probably isn't worthwhile from the point of view of the corporation owner, but from the point of view of the country owner it is worthwhile.
Less workers required = more corporations possible for a given amount of population. Further, the workers required after upgrade will be higher-salaried, meaning more income tax.
So, if you own the country and the corporation both, then you should upgrade effectivity.
Also, in countries owned by other players, I am of the opinion that you should upgrade effectivity as a courtesy to that country's owner.
With enterprise corporations located in C3 countries, it's probably better not to upgrade effectivity, both to save a little money and because those countries don't tend to have much skilled labor, owing to low education indexes.
| Friday, October 23, 2009 - 09:57 pm |
Considering there's about a 20-40% cut in salary costs, it seems quite worthwhile. Sure each corporation may initially pay a lot for those upgrades, but they should pay for themselves eventually
| Saturday, October 24, 2009 - 08:11 am |
I think that if you actually work out the difference in salaries, you will find a slight net increase in salaries AFTER the upgrades. You do, however, end up up with fewer workers, but at an overall increase in cost. Ark Mori worked this out some time ago. He used to have a website with the details of this on it, and some helpful stuff on maximizing profits which I wrote.
| Saturday, October 24, 2009 - 10:15 pm |
Hmmm, remarkable since there's this handy little graph provided by the game for any corporation I pick that shows that the salaries are declining per upgrade.
The only cost increases I see are typically in conjunction to the utilization of the Quality Upgrade and the attendant increases in FMU usage.
| Sunday, October 25, 2009 - 02:51 am |
Well a quick comparison shows a few things:
100 effectivity 300 salary: 419.22M
200 effectivity 300 salary: 410.25M
8.97M differance, with an AEP upgrade at 122.92M, it comes out to about 13.7 months for cost of one upgrade once fully upgraded.
The financial impact would from there depend on how long it takes for the decay rate of a single upgrade to come into play. I know the AQP takes 20 months to lose 1 point, whereas I'm unsure on the Effectivity possibly somewhere in the 15-20 month range as well.
| Sunday, October 25, 2009 - 02:57 am |
Definitely not the 20 to 40% impression I got. I think that may have come from some misinterpretation of game documentation.
Still, it's a tiny bit and theoretically the costs would be paid for eventually. Any simbuck saved is another for me after all.
| Sunday, October 25, 2009 - 03:04 am |
There have been a lot of tweaks in the last year, like max quality is lower, so this may be fixed. However, your numbers are close enough that when the upgrades are factored in it would seem to still be an overall slight expense.
Your amortization is wrong because you need 100-150 upgrades to get the full benefit. And the upgrades age out and need repurchased.
The advantage of the Effectivity upgrades is it frees low level workers for the army.
| Sunday, October 25, 2009 - 08:10 pm |
Hmmm, new conspiracy theory: Whitedarkness = Q.
Hey, if LH can do it so can I
| Wednesday, October 28, 2009 - 02:14 am |
| Wednesday, October 28, 2009 - 04:17 pm |
He whose name must not be spoken for fear of the ban hammer.
Say no more.