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Arghhh! my value of corporations is falling!

Simcountry: Simcountry Bulletin Board  Arghhh! my value of corporations is falling!

Dragontail

Friday, December 19, 2003 - 08:03 pm Click here to edit this post
I have few surplus and shortages in my corporations, the effeciency and hiring is mostly around 100%, yet the value of my companies have fallen from 700B to 575B in two months! need a little help, any explaination, and what can I do??

Dragontail

Friday, December 19, 2003 - 08:10 pm Click here to edit this post
iam a president btw

Dragontail

Friday, December 19, 2003 - 10:45 pm Click here to edit this post
now to 500B!:( anny help?

Grand Duchy of Mississauga

Saturday, December 20, 2003 - 12:44 am Click here to edit this post
Sometimes it just happens.....my corps do the same all the time. As long as your are always selling your products and have minimal shortages, dont worry about it, it will go back up again.

hymyland

Saturday, December 20, 2003 - 07:57 pm Click here to edit this post
Well Dragontail, your actually in pretty good shape. You have a handle on how education priorities work, and you seem to be good at that since your hiring is very close 100%.

Few things to be tweaked and you will be on your way to the top. Corporations first; you seem to be selling all your product at 6% below market. This is why your coporate value is sliding. What you should do here is change your sell strategy to (Product quality-100) I.e a 130 quality product would be set to 30% above. The game model see's this and moves it as though it were selling at market price. The logic being that quality goods demand a higher price, and are worth that price. Thus they are weighted in the economic model as such. Now as we all know shortage products demand more and surplus products sell for less. This is simple to deal with. After a month or so, you can begin lower or raise your asking price to accommodate its demand. You want to maximize how much you can ask for the product and still move it off the shelves. And remember, many products in this sim world have demand that comes in waves. So don't worry if a product goes unsold for 2 months, it might just be because that product is in low demand, and will be snapped up the next month. Don't worry about lowering the price until it's 3 to 4 months backlogged. If you do this and pay attention to it you will get maximum profits from your corps.


Now txation; Your taxation is not optimal for several reasons. They are complex, and to some degree not going to effect you right now. However at some point your gonna wanna to manage corporate value. If your corps get to be too valuable, (I'm not sure what the value is now, it's been raised) they will begin to embezzle money, and your bottom line will sag. Keep an eye on it, and you'll see it happen. But don't expect to occur at less that 200 B. Okay having said that I'd keep my taxes around 50 to 80 percent, and make the changes early in the year unless you've got cast iron balls. Set profit payments to zero. This scheme gives you the money your need, and ceo corps pull the same weight as your corps. The taxes is what every corp pays to you. The profit payment is the extra that is paid to the owner of the corp. Corporate value is based on profit after taxes. So profit payments have no effect on corporate value. However, Higher taxes cause lower corporate values. You can exploit this in many ways.

Now education; You have a situation that many are in. Low education, and health indexes. The education index is mucho important. The health index is relativly unimportant right now, but may become more important. So what you should do is redirect as much of your education prorities to producing educators, without causing a net loss of of healthcare workers. Later when your eduction index is above a hundred, you will be able to focus more energy on healthcare. Okay, it has been known for some time that the education system functions just fine in the absence of schools. Many people just build Universities, because they are more effective at raising the education index, and it's cheaper if you don't pay for schools. I won't do it because of the fear of jozi fixing it. But with resets, maybe it doesn't matter

Anyway, I hope I have helped.

Dragontail

Sunday, December 21, 2003 - 10:53 pm Click here to edit this post
score! thanks a million!

Dragontail

Monday, December 22, 2003 - 06:03 pm Click here to edit this post
just a quick question - lets say i fell from a corp value of 700B to 200B. if i set taxes for corps to around 50% and profit payment to 0%, would my corps rise slower than if i set my taxes to 30% and profit payment to 0%?

hymyland

Monday, December 22, 2003 - 08:13 pm Click here to edit this post
I don't remember what your original tax was, something In the mid thirties I believe.

It's complicated, the 30% taxes would result in a tendancy to increase in value. The improved profits of the corps will also tend to increase corp value.

If you follow all my advice with a tax of 50% your corp values will go up from what they were. If you did that with 30% tax, they would probably go up faster.

An that's fine if your country can live off of 30%. Me personally I like to get all the excess cash I can out of my corps so I can loan it out.

If corporate value is what you want, then do 0 taxes and 50-80 % profit, your country will make the same profit, (minus the cash the CEOs aren't paying) and your corp values will be at a maximum. That would be okay for many years, but you'd want to keep the individual corp values below 150B

The most important thing is managing your corps right. Taxes are just, something you manipulate, to suit your needs. You should be getting and idea of how it works by now though.

Dragontail

Tuesday, December 23, 2003 - 12:42 pm Click here to edit this post
great! thanks for the in - depth reply!

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