as founded at simunomics forum , we have new IMU price list , and it can be changed on weekly bases .
""Dear Simunomics Community,
Perhaps you are not familiar with me, but I am the CEO of BK Industrials and Co-Founder, with Alex Lorrine, of International Manufacturers Union (IMU). I have been very quiet since the beginnings of the trade group, however, along the way I have been attempting to guide Alex in his decision-making on behalf of the trade group, and have often put my hand into making spreadsheets for the group. My primary job in IMU is theorizing about the simunomics economy, and therefore attempting to solve problems through an extensive knowledge base, as well as through detailed conversation with many of the game’s top retailers and manufacturers.
Normally Alex Lorrine does all of the talking on behalf of IMU, but he asked me to give a more detailed explanation to the general simunomics community regarding our most recent price sheet, which will be unveiled at the end of this post.
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As many of you are aware, there has been a great problem in relation to IMU’s buyers as of late. It started when a few companies began giving large bonuses over IMU prices at high QA, because they realized that it was more profitable to sell these high QA products in their stores, for both dominance purposes and often raw profitability. Then, just a few days ago, Real Value announced that he would stop accepting all invoices of any product below QA50. Obviously, given the apparent harshness of this action, IMU members, especially those who produced all under QA50, were shocked. As they scrambled to find new suppliers, other major retailers followed suit, realizing that they did not want the new low QA inventory that had entered the market. Now these IMU members, and other small companies with low QA products, have nowhere to go with their inventories, and are struggling to keep production going.
Obviously the IMU leadership scrambled into action given these new requirements from retailers, trying to find a solution that allowed even small companies to sell their products. I have been involved in these talks, and also in data analysis in relation to more real problems at hand – supply and demand.
As IMU leadership talked to more and more retailers, we began to see a continuing trend. Retailers are absolutely bogged down in inventory. Most major retailers are far north of more than 500 billion at this point, and others are not far behind. In the past, this kind of inventory would have been a blessing – supplies were always short. However, the trend has shifted, and retailers are finding that they cannot sell goods fast enough to keep up with a growing supply. Retailers abruptly stopped buying low QA goods because they sell more slowly, and therefore sit in the warehouse longer, waiting to be used up. In addition, it is a natural way to favor stronger supplier relationships, who tend to be larger companies at this point, as they have been suppliers of major retail for years.
Retailers asked IMU leadership to reduce base price significantly, and raise QA bonus in order to allow a similar price outcome between QA50 and QA60. However, before we made any brash moves, Alex Lorrine asked me to do some data mining and number crunching in game, to see if we could counter the problem at hand – supply and demand.
As it turns out, in my humble opinion, the problem is actually two fold.
1.) Small Manufacturers are growing at a pace far greater than small retailers (small retailing is a practically non-existent practice, because any retail security requires extensive inventory, which small companies simply cannot afford).
2.) Large Manufacturers achieve a point of ROI gain as they grow with the current QA bonus. According to my calculations, 8:2 factory:R&D leverage yields this result around 500kft2, 17:3 around 350kft2, and 16:4 around 250kft2. This allows large manufacturers to outpace large retailers in ROI, and, in addition, expand more quickly in terms of time, due to lesser limitations on factory expansion time.
While the suggested solution by many of the major retailers in simunomics would solve the first problem, they would leave the second problem completely unchecked, and actually compound it, as the positive ROI gains with expansion are caused directly by leveraging quality well with factories – quality that would be more valuable under the new system. This would allow large manufacturers to get ROI in the 40-50%/month range with relative ease, when the average 250kft2 retailer only earns 20-25%. This massive ROI difference would cause manufacturers to expand far more rapidly than retailers, and therefore increase demand problems.
According to my best speculation, all that can happen when supply rises and demand remains the same, or rises more slowly than supply, is prices must fall. Right now most manufacturers are protected under IMU’s official prices, but unfortunately that pricing system cannot last in its current state with current retailer saturation. Because of this, change is demanded, so that the entire system does not collapse.
Many of the suggested changes from retailers will be taken, although there will be two specific caveats that I personally added to our calculation spreadsheets. First, there will now be a daily weighted average economic adjustment, across all cities, which will be multiplied directly into the price. At the time of writing, this average is .473%. While this number does not seem significant, it is fair for two reasons. First, when the economy is bad, retailers suffer and manufacturers boom. When the economy suffers, manufacturers will take a small hit to their bottom line, to help protect retailers. Second, when the economy is good, retailers boom and manufacturers suffer. Now, when this situation occurs, retailers will pay a premium for supply during boom time, which will help struggling manufacturers. This is simply an update to help promote equity (fairness) between the supplier and the user of all goods. Secondly, there will now be a direct affect of retail dominance on wholesale pricing. What this means, in practicality, is that when overall weighted average city dominance in a given product is above 100%, at certain steps a percentage of wholesale price will be removed. Obviously, this plan has some pitfalls. What if a retailer purposefully manipulates dominance in order to get better pricing? In order to prevent this situation, the dominance will be calculated by a 30 day moving average dominance level for each product. This solution serves to help previous problem number two, as it will essentially prevent huge manufacturers from leveraging as effectively, and therefore reduce their ROI by increasing their diversification by necessity, just like in real life. As a side effect, this force companies to move out of certain sectors and into other ones, because high competition should force change.
Because this system incorporates moving averages and daily changes to pricing, it will require a more fluid distribution method. We would use a google docs system, however, some of the automatic data cannot be pulled onto google docs, only excel. Therefore, we are going to be assembling an email list to send daily updated excel pricing sheets to. If you would like to get on this list, please send an in game message to Lorrine or myself, and we will make sure to add you. Emails should come from
IMUPricing@gmail.com, and should begin soon.
Just like in every system, the most efficient will make the most money and the least efficient the least. Without further a dew, I would like to present the newest, most accurate and advanced, IMU Pricing System to date.
Code:
Product Price QA Bonus
Action Figures $539.92 $64.79
Backpack $558.28 $66.99
Baked Desserts $244.61 $29.35
Bed $1,813.68 $217.64
Beer $79.42 $9.53
Belt $773.87 $92.87
Blankets $1,211.24 $145.35
Books $260.23 $31.23
Bottled Water $32.52 $3.90
Bread $109.49 $13.14
Briefcase $1,502.26 $180.27
Camera $1,784.90 $214.19
Candy $137.08 $16.45
Cars $48,247.26 $5,789.67
CDs $188.44 $22.61
Cell Phone $3,034.10 $364.09
Chair $1,101.20 $132.15
Coats $1,192.47 $143.09
Computer $7,537.41 $904.49
Corn $7.62 $0.80
Corn Syrup $26.80 $3.22
Digital Camera $4,217.86 $506.14
Digital Watch $534.46 $64.13
Dinnerware $1,185.54 $142.27
Dress Watch $430.00 $51.60
DVDs $191.25 $22.95
Eggs $42.64 $4.47
Electric Car $62,544.67 $7,505.36
Film $248.63 $29.84
Flour $16.17 $1.94
Glass $221.82 $18.85
Fruit $12.88 $1.36
Glassware $3,540.65 $424.88
Gold Necklace $451.16 $54.14
Gold Ring $270.70 $32.48
Handbag $1,721.36 $206.57
Ice Cream $422.77 $50.73
Juice $213.75 $25.65
Leather Jackets $3,631.16 $435.74
Lotion $262.45 $31.50
Luxury Car $61,607.75 $7,392.93
Meat $72.22 $7.58
Milk $95.94 $10.08
Monitor $3,004.59 $360.55
Motorcycle $31,113.21 $3,733.58
Pants $1,050.97 $126.12
Paper $71.48 $8.58
Perfume $719.33 $86.32
Phones $1,007.21 $120.86
Photocopier $6,016.35 $721.97
Poultry $117.53 $12.34
Printer $1,624.90 $194.99
Refrigerator $14,504.75 $1,740.57
Sheets $1,724.57 $206.95
Shirts $1,685.45 $202.26
Shoes $775.38 $93.05
Silver Necklace $1,000.52 $120.07
Silverware $957.53 $114.91
Slippers $978.63 $117.43
Sneakers $429.73 $51.56
Soap $115.44 $13.85
Soda $84.24 $10.11
Sport Socks $21.19 $2.55
Sporting Goods $1,128.65 $135.44
Stereo $1,350.63 $162.08
Storageware $1,019.83 $122.38
Stuffed Doll $843.64 $101.23
Sugar $7.67 $0.81
Sweaters $1,667.49 $200.09
Synthetics $111.16 $12.23
Table $862.95 $103.55
Television $4,387.71 $526.52
Tires $1,201.78 $144.22
Vegetables $13.72 $1.44
Video Camera $3,023.68 $362.84
Video Game Systems $5,162.01 $619.44
Video Recorder $1,281.87 $153.82
Vitamins $131.65 $15.79
Washing Machine $4,605.06 $552.61
Wine $724.98 $86.99
Wooden Toys $441.95 $53.03
Batteries $550.04 $60.51
Bricks $60.73 $-
Ceramics $169.38 $18.63
Chemicals $60.46 $6.65
Circuitry $335.26 $28.49
CPU $712.40 $78.37
Dyes $114.94 $12.64
Electricity $0.22 $0.02
Engine $4,905.99 $539.66
Extraction Tools $710.99 $78.21
Fixtures $2,631.52 $315.79
Pipes $3,038.28 $334.21
Plastic $102.42 $8.70
Steel $302.93 $25.75
Textiles $238.71 $26.26
Cotton $6.36 $0.67
Grains $7.64 $0.80
Leather $197.48 $20.73
Rubber $18.91 $1.98
Wool $86.74 $9.11
Aluminum $27.55 $2.20
Clay $6.16 $0.49
Gold $69.59 $5.57
IronOre $21.50 $1.72
Minerals $11.03 $0.88
Oil $5.37 $0.43
Silica $13.77 $1.10
Silver $53.06 $4.24
Water $0.20 $0.02
Wood $53.10 $4.25
If you would like to subscribe to the email list, again, please send Alex or myself a message in game, or on the forums with your email address. You can also send an email to
IMUPricing@gmail.com.
Any questions about these prices should be forwarded to the above email address, or Alex, or myself.
Thank you for your time.
BK Industrials.
Co-Founder, International Manufacturing Union (IMU).""
