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Struggling With Profitability
#4
I took a look at the save file. You seem to be doing fairly well. You are only losing $10-$20 Million per month. If you wish to turn your company to profitability during these times, there are a few things you could do.
You could cut expenses. If you cut R&D expenses (researching new components, and research teams) and cut your Racing Budget, you would be profitable again. Looking at your City Sales report, you have 21 unprofitable branches. You could close those and save $850k - $3Million.

Transportation Costs is your highest expenses. Since you have a lot of spare production capacity, you could "Restrict Shipping to same Region/Continent". You can find this toggle in the Auto-Production panel. (Factory->Production). If you do this, you need to monitor production capacity in each continent to make sure you do lose sales.

Alternative to cutting expenses, you could try to grow your way back toward profits. You would do this by lowering prices. I didn't look at your current margins, but if you have high markups, this would be an option. Otherwise, cutting expenses is generally a better way to go.

As a quick test, I restricted auto production shipping and turned a $5,171,129 positive cash flow in 6/1936. But did miss about 25 sales in Europe.
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Messages In This Thread
Struggling With Profitability - by Lutzfan - 08-12-2019, 07:55 PM
RE: Struggling With Profitability - by Eric.B - 08-12-2019, 07:59 PM
RE: Struggling With Profitability - by Lutzfan - 08-12-2019, 08:02 PM
RE: Struggling With Profitability - by Eric.B - 08-12-2019, 08:40 PM
RE: Struggling With Profitability - by Lutzfan - 08-12-2019, 09:33 PM
RE: Struggling With Profitability - by Eric.B - 08-12-2019, 10:55 PM

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