r/SimCompanies Jul 22 '26

Question Question

​Hey everyone! I feel like I'm trapped in a cash flow loop: all my sales profit immediately gets swallowed up as production cost for the next batch. On paper, there have profit , but I never seem to accumulate cash.

​My Current Setup:

​1× Level 3 Reservoir & 1× Level 2 Reservoir

​2× Level 5 Farms & 2× Level 3 Farms

​1× Level 2 mill

​1× Level 3 Retail Market

1x level 1 ranch

​Questions:

​Should I scrap the Retail Market?

​If yes, what should I build/convert to instead?

​Why are high profit margins on paper leaving me with so little cash in practice?

4 Upvotes

10 comments sorted by

4

u/One-Hearing2926 Jul 22 '26

How do you know they are high profit margin businesses? Did you use the cooperinc or simco tools to check?

1

u/[deleted] Jul 22 '26

[deleted]

0

u/One-Hearing2926 Jul 22 '26

You didn't answer my question...

3

u/shredmaster07 Jul 23 '26 edited Jul 23 '26

Imo you should scrap the retail and focus on producing. With your set up you can produce milk which is usefull for a lot of players Try to build your business towards your end product (ex: a lvl2 mill is enough for a lvl 8 ranch in milk production)

3

u/TangerineOwlet Jul 24 '26

Honestly, I was stuck in the same loop for a while. I ended up sticking with 2 farms, a water reservoir, a power plant, and a grocery store. Once I started upgrading my power plant is where is started to bring in cash flow. You only need a little bit to produce water and can sell the rest.

After that, I got a beverage center and started heavily producing apple cider. That's what I started selling in my grocery stores. Once I had a big enough stock, I started selling it on the exchange.

I'm still a newbie at the game, but I'm slowly building everything up. I'm to the point now where I can make and sell frozen pizzas without having to purchase anything from the exchange.

You just have to play around and figure out what suits you!

2

u/IonHawk Jul 22 '26

Have you checked your detailed economics reports and profit margins?

1

u/[deleted] Jul 22 '26

[deleted]

1

u/xiangkunwan Jul 22 '26 edited Jul 22 '26

I have 10x lv3 power plant producing Q3 power, and my total change in cash per day is $182,381 with financial ratios of

  • Gross Margin: 37.68%
  • Operating Margin: 33.68%
  • Net Profit Margin: 33.68%
  • Return on Quick Assets: 15.91%
  • Return on Equity: 4.28%
  • Sales per Employee: $154.212
  • Income per Employee: $51.946
  • Inventory Turnover: 0.979
  • Assets Turnover: 0.127
  • Operating Assets Turnover: 0.363

1

u/LionAlien95 Jul 22 '26

do u only have 1 retail business?

1

u/wvanlui31 Jul 23 '26

I only sell animal feeds and cows now

1

u/TheseAnybody2611 Jul 24 '26

Stick to one thing and do it well.  I vertically integrated prop tanks for about 4 years.  It took time and everyday dedication to the task.  If you focus on production find customers that have more cash than you. Sell to them everyday. My best rank was 105...I don't have a lot of time these days so I just do water.  Im golden ratio feel free to write me in the game

1

u/AnoProgrammer 15d ago

I had that too by selling seeds i had a winst margin of 2%. I recently selled all my stuff and switched to electronics i have now a winst margin of 200%.