Capitalism Lab S04E08: Selling dirt cheap
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Capitalism Lab S04E08: Selling dirt cheap

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Selling Dirt Cheap

I tried different ways to tank my stock price. Creating retail stores with many ads at full. I was even nice to pay to each competitor so they both go home happy. But eventually, I resorted back to the “Selling dirt cheap” tactic. Previously, competitors would give up on a market quickly, but now it seems like they are holding on to it for long.

Lessons learned when selling dirt cheap:

1. It’s a guaranteed way to kill your stock price

Making a loss is a very sure way of doing things.

2. Make your competitors suffer

If you own the market, you will make it so bad for the competitors that they will have a factory with nothing being sold.

3. Keep an eye on firms after merge

The firms that I merged with were now using my high tech. As the internal sale was not on, my competitors were slowly carving a market share in some of my products using my own raw materials. Make sure to consider this aspect, remember the final product has the highest margin.

Bonus:

If the supply chain is in your hands completely and you have a margin in each firm. Chances are, even when selling at a loss at the retail side, you will make a profit but with lower margins. Remember, warehouses already add a margin that you can use to sell cheap.

What do you think? Leave a comment below 🙂

Also see: Breakthrough in Training Scenario

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Capitalism Lab Story

Playing Capitalism Lab in my free time for fun.
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