"Mark up": wazzaaaah???
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"Mark up": wazzaaaah???
What exactly is "mark up" and its effect? English isn't my first language so maybe it's me...
I thought it was a way to sell your product internationally with "cost + x%" but I saw some post considering it as a tax on domestic consumption. At first, I was using it so the minister wouldn't sell it too low to other regions, but maybe I was shooting in my feet instead
I thought it was a way to sell your product internationally with "cost + x%" but I saw some post considering it as a tax on domestic consumption. At first, I was using it so the minister wouldn't sell it too low to other regions, but maybe I was shooting in my feet instead
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And making money.Decimatus wrote:If you are talking about the "Domestic markup" then yeah, it is just another way to tax your people. Its main use is in making people use less of the product so you don't have shortages and whatnot.
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- tkobo
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"mark up" is the price % a product is for sale at above the cost of the product.
So, if i can make lemonade for 10 cents a glass and i sell it for 20 cents a glass, my markup is 10 cents or 100%.
Markup in the game is a major part of the players possible income.In some economy types it can account for 60%+ of the player regions income.
Low unemployment and high wages can allow you to really raise those domestic prices with little to no negative dar effect.
So, if i can make lemonade for 10 cents a glass and i sell it for 20 cents a glass, my markup is 10 cents or 100%.
Markup in the game is a major part of the players possible income.In some economy types it can account for 60%+ of the player regions income.
Low unemployment and high wages can allow you to really raise those domestic prices with little to no negative dar effect.
This post approved by Tkobo:Official Rabble Rouser of the United Yahoos
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- Sebastiaan
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tkobo wrote:"mark up" is the price % a product is for sale at above the cost of the product.
So, if i can make lemonade for 10 cents a glass and i sell it for 20 cents a glass, my markup is 10 cents or 100%.
Markup in the game is a major part of the players possible income.In some economy types it can account for 60%+ of the player regions income.
Low unemployment and high wages can allow you to really raise those domestic prices with little to no negative dar effect.
That´s right. Be warned that setting the markup to high markup level in a weak economy could potentialy crash your economy.
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I have actually never seen that happen, but maybe that's because I have my economy in a tight graspSebastiaan wrote:That´s right. Be warned that setting the markup to high markup level in a weak economy could potentialy crash your economy.
I always tax as much as my people can afford. I noticed that the more u tax the more they will pay anyway, aka more profits per unit, and u can export more, meaning even more mucho money , ofcourse that doesn't really work on the world map
Always tax them mofo's untill they can no longer afford it, go below that line, and ur rich rich rich!!!
EDIT: I really think that's questionable now, increasing domestic markup DOES NOT decrease gdp/c nor does it make ur economy crash, in all cases it results in more income for u, more export for u (even more money for u) and because u tax u can redivert that money to other things (increasing ur gdp/c = increasing ur taxes = even more money!)
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Mark up
Quick question on markup that I'm trying to get my head around..
I'm playing panama to try to teach myself the economy basics. In that scenario the economy seems to be in a bad way mostly because of the amount of imports needed (and the bond debt)
For instance, Consumer goods.. lots of them need to be imported and I have a large trade deficit. What I don't understand is, if I'm buying loads of consumer goods but then sell them at 100% markup, shouldn't actually be making money out of this? It might be costing me to buy them off the WM, but I'm selling them at twice the price to my people.. do I have this concept wrong? Also, where is the income from selling all this stuff shown?
I guess some stuff you import you don't sell as it's used in factories, although there's still a markup on that.. this is confusing me.
Can anyone shed any light on this?
I'm playing panama to try to teach myself the economy basics. In that scenario the economy seems to be in a bad way mostly because of the amount of imports needed (and the bond debt)
For instance, Consumer goods.. lots of them need to be imported and I have a large trade deficit. What I don't understand is, if I'm buying loads of consumer goods but then sell them at 100% markup, shouldn't actually be making money out of this? It might be costing me to buy them off the WM, but I'm selling them at twice the price to my people.. do I have this concept wrong? Also, where is the income from selling all this stuff shown?
I guess some stuff you import you don't sell as it's used in factories, although there's still a markup on that.. this is confusing me.
Can anyone shed any light on this?
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- Balthagor
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Then I am confident that if you are selling your goods at a positive markup for a target price above your import cost you are making money from that product. If you have a case where you can't figure it out, save the game and e-mail me the save, I'll take a look at it.
Be sure to see what the WM price for the product is to be sure you're not taking a loss on the sales.
Be sure to see what the WM price for the product is to be sure you're not taking a loss on the sales.
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Balthagor,
Thanks for replying. I'm sure the are no problems in the game. It's my lack of understanding really.
Can you tell me where the income from selling stuff (say consumer goods) is shown?
I understand that having to buy more from the WM than you're selling will cause a negative trade balance. What confuses me is that, if you set a 100% markup, you should still be raking in the money. Either I have the whole principle of markup wrong, or else the income from the markup should be shown somewhere else.
In my game I was making money. I think my daily profits were about 20M, and my daily trade deficit was about 5M.
So, if I was buying 2M worth of consumer goods per day then I get a negative trade balance.. fair enough. But, with a 100% markup, I should be getting 4M a day selling them.. is this the case? If so, is there a screen that shows this income?
Thanks
Thanks for replying. I'm sure the are no problems in the game. It's my lack of understanding really.
Can you tell me where the income from selling stuff (say consumer goods) is shown?
I understand that having to buy more from the WM than you're selling will cause a negative trade balance. What confuses me is that, if you set a 100% markup, you should still be raking in the money. Either I have the whole principle of markup wrong, or else the income from the markup should be shown somewhere else.
In my game I was making money. I think my daily profits were about 20M, and my daily trade deficit was about 5M.
So, if I was buying 2M worth of consumer goods per day then I get a negative trade balance.. fair enough. But, with a 100% markup, I should be getting 4M a day selling them.. is this the case? If so, is there a screen that shows this income?
Thanks
- Balthagor
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That sounds correct. There is no screen that shows domestic sales by product, but you can see your total domestic sales in the treasury department screens. There is a screen showing all income and all expenses. Compare your production expense to your domestic sales income and you should see if production is costing you money or making you money.Muso wrote:...if I was buying 2M worth of consumer goods per day then I get a negative trade balance.. fair enough. But, with a 100% markup, I should be getting 4M a day selling them.. is this the case? If so, is there a screen that shows this income?
Thanks
There is a way to prove that your making a profit. First shut off all military production since producing/importing Military Goods will always be costing you money. Then lock all production departments and set them to produce to demand. If this is done and you have positive product markups then you should see (production cost+trade deficit) < domesitc sales. Usualy military goods is the problem, sometimes it is the over production of goods that you're unable to export that is costing you money.
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Thanks, it's starting to make more sense now.
Does domestic sales only apply to what you've produced in your factories and not show sales from WM imports, or when you say 'production expense' here, does that include the cost to import an item from the WM?Balthagor wrote: Compare your production expense to your domestic sales income and you should see if production is costing you money or making you money.
- Balthagor
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That is correct, those would be foreign sales. The income value "domestic sales" is the revenu from sales of consumables such as food and timber.Muso wrote:Does domestic sales only apply to what you've produced in your factories and not show sales from WM imports...
No, that would be a trade balance (surplus or deficit depending if your makeing money or loosing money). The expense value "production" is the cost per unit x the number of units produced x the products being produced.Muso wrote:...or when you say 'production expense' here, does that include the cost to import an item from the WM?
What you want is for domestic+foreign sales to be less that production costs+ foreign purchases. Trade is already lumped together so if it's negative it adds to production, if it's positive it offsets production costs.