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Retooling for Drug Store

PostPosted: Wed Oct 15, 2008 5:32 am
by Kit
Okay, so you've been playing along and all of a sudden you have passed 5 million in net worth and Admin
sends you a message that you can now access the Pharmaceutical Industry and Drug Store. Unfortunately the license for those is going to cost you a bunch of cash.

The current cost to get started in the Drug Store Trade:

  1. Drug Store License: $500,000
  2. Pharmaceutical Manufacturing License: $350,000
  3. Factory Space: (1 Med Factory) $1,100,000
  4. Warehouse Space: (1 Med Warehouse) $500,000


Total: $2.5 Million or so.

And that's assuming you don't need to purchase the Manufacturing License for Petroleum to produce your own Petrochemicals. That will add $1.5 Million or so.

You could wait until you have sufficient extra cash to bite all this off, or you could just retool. That is close your existing production lines and sell off your Food distribution network to get you the start up capital to build your Drug network. This is a very viable strategy. All buildings can be sold back and you'll get just as much cash as the build cost originally, there is no real estate bubble in The Capitalist Game :).

Things that are free.

  • Closing Buildings of any kind
  • Closing Sales Units, Storage Units and Production Lines. The only cost you will pay is if you dump the inventory, but by clever planning you can sell off the inventory before you close the unit. But don't sweat a couple of hundred thousand in closure costs, it won't kill you.

Opening Production lines is about the only thing that has a cost of construction. This is the cost to actually set up the line, but other than that most things are free, so go ahead and experiment.

One Caveat about the Pharmaceutical industry, it uses a lot of petrochemicals. Be sure that you have a ready supply either from your own stores or from a supply contract before you embark. That may be another way to get your feet we though, there should be other players looking for folks to supply them with petrochemicals. And since you have convenience stores you can easily sell off all that extra gasoline that is produced.

Re: Retooling for Drug Store

PostPosted: Tue Nov 17, 2009 9:57 pm
by Casey
Edited to reflect actual reality...

When I first unlocked the Pharmaceutical license, I tried to "dip my feet" in the industry. That was how I wound up taking my first bath on the line... It seems like Pharma is a really tough industry to do on a small scale! I've decided to try a complete retooling, selling most of my existing factories and all of my convenience stores to switch to a drugstore-based model. I believe I will have the cash to implement this plan following my next turn... wish me luck!

-c.

The $12 million plan:

Produces:
32 Aspirin
28 Cough Syrup
72 Shampoo
18 Toothpaste

INITIAL OUTLAY: $11,540k

Licenses:
- Pharmaceutical $350k
- Petroleum $500k
Factories:
- 4 large factories $8,400k
Production lines:
- 9 pharmaceuticals $270k
- 4 plastic pellets $120k
- 5 oil refineries $200k
- 1 petrochem $100k
Outlets:
- 4 drugstores $600k
Storage:
- 1 Large Warehouse $1,000k

MONTHLY OPERATING COSTS: $104,626

Goods, "Normal" economy: $42,126
- 100 oil $36,500
- 2 plastic pellets $3,276
- 2 gasoline $2,000
- 2 cotton $350
Cost of production lines: $46,300
Cost of facilities: $16,200

PRODUCTION LINES:

5x oil -> gas, pet
-100 oil, +30 gasoline, +85 petrochem
1x gas -> pet
-32 gasoline, +48 petrochem
4x pet -> pla
-48 petrochem, +68 plastic pellets

SUBTOTAL -100 oil, -2 gasoline, +85 petrochem, +68 plastic

4x shampoo -48 pet, -36 pla, +72 sha
1x toothpaste -7 pet, -6 pla, +18 too
2x cough syrup -16 pet, -16 pla, +28 cou
2x aspirin -2 cotton, -14 pet, -12 pla, +32 asp

SUBTOTAL -2 cotton, -85 petrochem, -70 plastic

PURCHASES PER MONTH: 100 oil, 2 gasoline, 2 cotton, 2 plastic

Re: Retooling for Drug Store

PostPosted: Thu Nov 19, 2009 2:10 am
by Casey
After two years of tweaking and a well-timed Boom, I'm now seeing over $2 million per year profit.

All told, I'm going to call this experimental strategy a triumph!

-c.

(makes a note: "Huge Success")

Re: Retooling for Drug Store

PostPosted: Thu Nov 19, 2009 2:50 am
by Kit
Nicely done, good write up.

Thanks for sharing your strategy and reporting how it worked out.

-- Kit

Re: Retooling for Drug Store

PostPosted: Fri Nov 20, 2009 12:34 am
by Morpheus
hmmm, kit, casey, i dont wanna be mean, but i make during the actual panic 73 832 $/month with 15 lvl 1 steel productions lines.

using the full tax free 30 lines that would be 147 664 $/month or 1 771 968 $/year profit without really doing anything(and that during a panic!!)...... so kit PLEASE fix this steel usage/production difference, since its obviously unfair to casey and others like him who invest time and brain into planning their future steps...

Re: Retooling for Drug Store

PostPosted: Fri Nov 20, 2009 1:42 am
by Kit
I'm working on it as we speak.

I know it's a problem.

-- Kit

Re: Retooling for Drug Store

PostPosted: Mon Nov 15, 2010 2:56 am
by Samm
Hi guys,
I'm new member. Seems only food license available to me?
Can i just start the pharmacy biz?

What did you do? start with that food production?

thanks,

Re: Retooling for Drug Store

PostPosted: Mon Nov 15, 2010 6:03 am
by Kit
Yes, start with food.

As you are successful and grow your business different product lines will become available.

-- Kit

Re: Retooling for Drug Store

PostPosted: Tue Nov 16, 2010 1:45 pm
by Jeff
I tried the drug store and pharma lines when I was on new player status and all I found was that it costs too much and the supply/demand cycle was bunk. I went back to the food lines and built up by upgrading levels until I unlocked the heavy industry and then I began producing my own bottles and cans. I continued upgrading until I unlocked petrochem and then expanded on the petrochem via upgrades and warehoused gasoline until the market price was nice and high and then dumped my inventory for huge gains. I say that you avoid the pharma market altogether because the the cost is high and the market is extremely unstable. Especially over the last 4 weeks or so because all of the markets are seriously deflated and profit is difficult to obtain on any low level production line regardless of the product. If you are on new player status then you are protected from market fluctuations and pay no taxes (If I remember correctly) and you are not bound by a limited time period for you company's lifespan. Therefore working with more stable products like the food line, heavy industry, and petro will actually provide you with more potential profit in the long run and you will learn a great deal about warehousing and utilizing the wholesale market to your advantage for huge gains. The warehousing experience will pay off for you in later rounds when you are no longer on new player status and scratching and clawing with the rest of us in the somewhat "free" market. Look at it from a real world perspective. The convience store market will always be a money maker but the small time drug stores are almost all dead and gone. I still use the convience stores on my company start ups the majority of the time until I stop producing gasoline. However I never use drug stores because the profits are no better than the convience stores and most of the time less. The bottom line is that selling gasoline will make you the most money and get you to the finish line, getting you on to the real game without new player protection where you can by and sell stocks and bonds. That's just my suggestion. Either way I hope you have great success and have fun.

Re: Retooling for Drug Store

PostPosted: Sat Nov 27, 2010 4:49 pm
by Morpheus
Jeff wrote:...



Jeff you cause eye cancer.




below is jeffs post formatted for better reading.





I tried the drug store and pharma lines when I was on new player status and all I found was that it costs too much and the supply/demand cycle was bunk.

I went back to the food lines and built up by upgrading levels until I unlocked the heavy industry and then I began producing my own bottles and cans.

I continued upgrading until I unlocked petrochem and then expanded on the petrochem via upgrades and warehoused gasoline until the market price was nice and high and then dumped my inventory for huge gains.

I say that you avoid the pharma market altogether because the the cost is high and the market is extremely unstable.
Especially over the last 4 weeks or so because all of the markets are seriously deflated and profit is difficult to obtain on any low level production line regardless of the product.

If you are on new player status then you are protected from market fluctuations and pay no taxes (If I remember correctly) and you are not bound by a limited time period for you company's lifespan.
Therefore working with more stable products like the food line, heavy industry, and petro will actually provide you with more potential profit in the long run and you will learn a great deal about warehousing and utilizing the wholesale market to your advantage for huge gains.

The warehousing experience will pay off for you in later rounds when you are no longer on new player status and scratching and clawing with the rest of us in the somewhat "free" market.

Look at it from a real world perspective.
The convience store market will always be a money maker but the small time drug stores are almost all dead and gone.

I still use the convience stores on my company start ups the majority of the time until I stop producing gasoline.
However I never use drug stores because the profits are no better than the convience stores and most of the time less.

The bottom line is that selling gasoline will make you the most money and get you to the finish line, getting you on to the real game without new player protection where you can by and sell stocks and bonds.


That's just my suggestion. Either way I hope you have great success and have fun.