After starting your first BitLife business and creating your first product, you’ll have to head into your Production Plan and figure out the details of your finances. When you’re starting out, this might be a little overwhelming, especially if you’re trying to increase production and don’t have enough capital! If you’re interested in learning more, continue reading to understand how the production plan works in BitLife.
How Does the Production Plan Work in BitLife?
The Production Plan outlines your expenses, unit price, and total units produced each year. Below is a brief description of each section:
- Fixed Cost per Unit: This is the total cost you’ll have to pay your suppliers for each unit you produce. The only way to change this is to find a new supplier.
- Marketing Cost per Unit: Determines how much demand you get through marketing your product. The higher it is, the more you’ll have to pay for each unit you produce. You can change this cost.
- Price per Unit: How much customers pay for your product. The higher this is, the lower your demand. You’ll lose money if this is below your fixed and marketing costs.
- Production: Determines how many units you produce annually. You’ll want to change this number depending on your yearly demand.
- Total Cost: The overall fixed and variable costs of all produced units. This number fluctuates depending on your total production and marketing costs.
- Available Capital: How much money you have at your disposal to produce more goods. You increase this by profiting each year.
After receiving your first annual report on your company’s performance, you’ll find a blurb telling you how well your product did and whether you should increase or decrease your production. Depending on the percentage, you’ll want to increase the number of units you produce.
Furthermore, by selecting a product and going to a Supplier, you can try to find high-quality, low-cost manufacturers. By reducing costs and maintaining quality, you can reduce your fixed expenses while increasing customer satisfaction. Even if your supplier cost difference is only a few cents, that’ll make a massive difference when you’re producing over one million units yearly.