I personally use trims to attack/gain marketshare in a segment in which I have competition.
If there is a monopoly in the market, people will buy your vehicle no matter what. They have no choice. However the more selections they have, the less sales you will get. Therefor if you produce more of options you should be able to eat more sales from your competition than from your other trims.
Eventually you'll saturate the market, you eat more sales from yourself than the cost of making a new trim. Thus you will lose money.
Putting it into numbers, all things equal, if you sell 1 model and the competition sells 1, marketshare will be 50/50. If you produce a new trim, it will be 2 to 1, you will have 67% marketshare and the competition 33%. You will have lost 17% of sales in your base model, but gained 16% overall marketshare!
If you saturated the market, say you had 8 models and the AI had 1. You will have 88.8% marketshare, producing one more new trim, will put you at 90% marketshare. Is that extra 1% in sales worth the expense of a new trim?
So why use trims instead of a completely new model? 1) Trims are cheaper, 2) Trims take less time to make, 3) Trims share image ratings with other trims/base model which will increase sales overall.
The main problem right now is the AI is too weak to compete with the player on the scale which it needs to. Thus making it easy to flood the market with trims and creating a brand monopoly in it.
If there is a monopoly in the market, people will buy your vehicle no matter what. They have no choice. However the more selections they have, the less sales you will get. Therefor if you produce more of options you should be able to eat more sales from your competition than from your other trims.
Eventually you'll saturate the market, you eat more sales from yourself than the cost of making a new trim. Thus you will lose money.
Putting it into numbers, all things equal, if you sell 1 model and the competition sells 1, marketshare will be 50/50. If you produce a new trim, it will be 2 to 1, you will have 67% marketshare and the competition 33%. You will have lost 17% of sales in your base model, but gained 16% overall marketshare!
If you saturated the market, say you had 8 models and the AI had 1. You will have 88.8% marketshare, producing one more new trim, will put you at 90% marketshare. Is that extra 1% in sales worth the expense of a new trim?
So why use trims instead of a completely new model? 1) Trims are cheaper, 2) Trims take less time to make, 3) Trims share image ratings with other trims/base model which will increase sales overall.
The main problem right now is the AI is too weak to compete with the player on the scale which it needs to. Thus making it easy to flood the market with trims and creating a brand monopoly in it.
"great writers are indecent people, they live unfairly, saving the best part for paper.
good human beings save the world, so that bastards like me can keep creating art, become immortal.
if you read this after I am dead it means I made it." ― Charles Bukowski
good human beings save the world, so that bastards like me can keep creating art, become immortal.
if you read this after I am dead it means I made it." ― Charles Bukowski