Set the boundaries of the example
Following a single product is a practical way to understand how the systems in an economy game connect. How much you produce, how much you sell and which costs you cover are different parts of the same plan. Sales can look substantial while leaving too few resources for the next stage of production.
1. Allocate starting resources to production
Imagine starting with 3,000 units of cash. You buy 100 inputs for a batch, with each input costing 10 units. The inputs cost 1,000 in total, leaving 2,000 in cash. At this point you have spent money, but have not yet completed production or sold the products.
Processing each input requires another 3 units. You pay 300 for the hundred products, leaving 1,700. In this example, each input becomes one finished product. If there were production losses, waiting periods or additional capacity requirements, the plan would need to account for those conditions too.
2. Include the product’s journey in its cost
Assume that getting the entire batch to a location where it can be sold also costs 200 in transport. You now hold 1,500 in cash and 100 finished products. Production and transport together have required 1,500 in this model.
To make a comparison, we allocate that total equally across the hundred products: the illustrative cost is 15 per product. This is simply the calculation chosen for this example. It does not mean every game allocates transport charges or product costs in the same way. Excluding logistics would have suggested a unit cost of 13, leaving part of the cost out of our sales decision.
3. Separate completed sales from remaining stock
If you sell 60 of the hundred products at 20 each, sales revenue is 1,200. Cash rises to 2,700 after the sale. Remember the remaining 40 products in storage: they have not been sold and therefore have not produced sales revenue.
The illustrative cost of the 60 products sold is 60 × 15 = 900. The sale’s profit within this model is 1,200 − 900 = 300. The cost of the remaining 40 products is 600, held in inventory. We make no assumption that these remaining products will sell at a particular future price or time.
4. See why profit and cash differ
| Stage | Cash movement | Cash remaining |
|---|---|---|
| Starting resources | 3,000 available | 3,000 |
| Purchase of 100 inputs | −1,000 | 2,000 |
| Processing 100 products | −300 | 1,700 |
| Transporting the batch | −200 | 1,500 |
| Selling 60 products | +1,200 | 2,700 |
Your cash has fallen by 300 from the starting amount, yet the completed sale has generated a profit of 300. This is because resources costing 600 remain in the 40 unsold products. In this simple model, 2,700 cash + inventory at a cost of 600 = 3,300 in total resources. The 300 difference from the original 3,000 is the profit we calculated.
5. Plan the next batch around current conditions
This does not mean you should always produce more. If the remaining products fill your warehouse, another batch may require additional space. If there are fewer buyers, making more stock could tie up resources for longer. Producing a smaller batch may create a different balance of costs in some games.
Had you sold the same 60 products at 18 each, revenue would have been 1,080, profit within the model 180, and remaining cash 2,580; stock would still be 40 products. This comparison shows how a price change affects both profit and available cash. Raising a price does not guarantee that the same quantity will sell; volume, costs and the resources left afterwards need to be considered together.
Which connections should you look for in a game?
- Which inputs and processes does a product require?
- Which resources do transport and storage decisions use?
- Can you distinguish sales revenue from the cost of completed sales?
- How do unsold products affect a new plan?
- Is enough cash available for the next action?
Ticaram is an economy and business simulation in development for iOS, presenting production, trading and logistics as connected decisions. Explore the current experience on the game page. For a broader introduction, read what an economy game is. If you are considering joining the test process, continue to the beta guide.
Quick answers
How did the example make a profit while cash decreased?
Production and transport cost 1,500, while sales brought in 1,200. The net cash change was −300. However, unsold stock costing 600 is still held. Revenue of 1,200 against a cost of 900 for the products sold produces a profit of 300.
Does unsold stock guarantee future profit?
No. We show remaining inventory only at the cost used in this example. We do not guarantee a future selling price, a buyer or a sale date. That uncertainty is one reason to distinguish available cash from stock.
Are these Ticaram’s actual production or transport prices?
No. Every figure, cost allocation and process assumption belongs to an illustrative model created for this explanation. They should not be used as Ticaram’s current game prices, transport rules or profit-calculation method.