Post by Sir Flamealot on Aug 18, 2023 0:34:50 GMT
Vertical Integration serves several purposes in Sim Companies. These include lowering transport costs, being more self sufficient, making more money from the setup overall per hour than what you would have made off of just producing a singular, or even a small chain. However, many players have failed to make true money off of long VI, including myself and have ended up unhappy with what our setup is. So, I am going to attempt to explain how to successfully use a Vertical Integration Setup for a business like yourself.
There are several goals of long Vertical Integration, but I believe that there are 2 main goals in order to achieve a successful vertical integration setup.
1: Being able to make more money per hour with the setup than you would’ve in the first place producing a singular product, or a small chain of products. This is essential, if it isn’t profitable, then you likely shouldn’t use it as your source of income. Keep in mind that doing long VI takes a lot of buildings to make the products needed, so your business would not have the growth seen in other companies choosing not to go VI. Another key priority is knowing where your line stops becoming profitable. This can be tossed by buying off of contracts and/or the exchange. Another thing is with multi-input products is knowing which ones to make yourself and which ones to buy externally. This can be done using SimCo tools, other forms of doing the math involve calculators, and spreadsheets, or just hit up the game chat.
2: Being able to run your buildings consistently
This oftentimes goes a little under the radar. Sometimes, it takes massive scaling to make it so that all your products are producing at the same time, one cycle ends while another starts easily. This helps achieve consistency in your setup, spreadsheets help with figuring out what levels you will need to make your buildings to achieve goal #1 and being able to run everything in such a way that it is a convenience to do so. It might be expensive, and make sure you make money on it before scrapping it, but doing this can really help with making money.
That is all I have for now. Please ask questions, and feel free to correct me.
There are several goals of long Vertical Integration, but I believe that there are 2 main goals in order to achieve a successful vertical integration setup.
1: Being able to make more money per hour with the setup than you would’ve in the first place producing a singular product, or a small chain of products. This is essential, if it isn’t profitable, then you likely shouldn’t use it as your source of income. Keep in mind that doing long VI takes a lot of buildings to make the products needed, so your business would not have the growth seen in other companies choosing not to go VI. Another key priority is knowing where your line stops becoming profitable. This can be tossed by buying off of contracts and/or the exchange. Another thing is with multi-input products is knowing which ones to make yourself and which ones to buy externally. This can be done using SimCo tools, other forms of doing the math involve calculators, and spreadsheets, or just hit up the game chat.
2: Being able to run your buildings consistently
This oftentimes goes a little under the radar. Sometimes, it takes massive scaling to make it so that all your products are producing at the same time, one cycle ends while another starts easily. This helps achieve consistency in your setup, spreadsheets help with figuring out what levels you will need to make your buildings to achieve goal #1 and being able to run everything in such a way that it is a convenience to do so. It might be expensive, and make sure you make money on it before scrapping it, but doing this can really help with making money.
That is all I have for now. Please ask questions, and feel free to correct me.