Capitalism Lab S01E06: Further Expansion
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Capitalism Lab S01E06: Further Expansion

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Further Expansion

Being stagnant never really helps anyone. Progress means you need to always go for further expansion. In a game such as Capitalism Lab, doing further expansion is key to ensure you remain competitive, grow and keep on printing money.

I always find it nice to expand vertically. If you have a retail store, you a flagship product, especially if it is from the port, start to manufacture it (that is if the raw materials are available), otherwise, you need to start from one step back and produce the raw materials to manufacture.

The idea behind it is simple, if you buy something for $80 and sell for $100, you made a $20 profit. But the person you bought it from, assuming it is either a factory or a port because you don’t buy from other retail stores in this game (stand to be corrected), your best bet for further expansion to truly make a profit is to either sell for more than $100 or buy cheaper than $80. Increasing prices is always tricky in long term due to competition, and you always want to make sure your products being sold are of the best quality because at some point a competitor might launch a better product both quality and brand wise. So by manufacturing, you now sell to your own shop for $80 but now make the profit after removing your cost of sales. Instead of earning $20 you can now double or triple! So always go for further expansion and I recommend vertically. But you will have to create more stores to sell your products as AI do not always sell your products if you want to get a bigger market share.

Lessons learned from this episode to ensure better further expansion:

1. Ensure your supply is there

The last thing you want to do is have a good product that is never available. When your product begins to catch or be in a trendy product, you want to capitalise on it. By not having the product available you end up negatively impacting yourself. Almost like your product gets ‘cancelled’.

2. Expand strategically

Go to places where you have a scope of growth. Don’t go into the deep end when you can’ fight off the competition. In a very competitive environment you need to have the scope or the risk appetite to be able to take losses until you make a name or image for yourself. Along with advertisement and good quality make sure you keep your prices good.

3. Don’t get distracted

I ended up going to another market (Cereal Bar) which resulted in me focusing my efforts elsewhere while falling behind the goal. In a custom game that isn’t an issue but here I need to be focusing on Food and Beverages.

What do you think? Leave a comment below.

Also See: Real Estate Mogul Scenario

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Capitalism Lab Story

Playing Capitalism Lab in my free time for fun.
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