Wednesday, October 17, 2012

Pricing CEO Skill

This CEO Skill has a hidden attribute.

Description: Increases shop's Average Receivable per Demographics (ARPD).

What Hui Liu doesn't tell you is that Pricing also increases the average Unit Cost for Procurement.

Therefore, as an example, a Liquor Store with a CoGS% 58 and ARPD 42 will, after a Pricing Skill Level 3 (9%) have a CoGS% 58 and ARPD 45.78. However the unit cost goes from 24.36/unit pre-Pricing to 26.55/unit post-Pricing, increasing the profit per unit by 1.59/unit (19.23 - 17.64) pre Perks which is about 3.8% increase in profit. And remember, Perks don't increase profit per unit, they just increase units sold per unit time.

Have fun, ST

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