Hello everyone! In advance of the LP that will be out later tonight, I wanted this week’s DD to be focused on a new concept that’s really pretty neat, I think, and certainly unique to 4X-type games. I will be going over the economic system in detail, but because it’s pretty intricate, I will be going over chunks at a time, so as to dive more in depth into each system. First, retail!
So, to understand where retail fits into the planet economy, you have to know that all planets have a Gross Planetary Product (GPP) that is comprised of 4 ‘parts’: the ‘base’ GPP, retail revenue, trade revenues, and import costs. This GPP is used throughout the year to set an import budget (to allow the viceroy to know how much they can/should spend on imports) and to improve the ADL (Average Development Level) of the planet by building infrastructure. While most of the ‘economy’ is based on goods and materials, the GPP of the planet is important for one critical reason: it funnels tax money back to the empire (and by proxy, you), the province governor, the system governor, and the viceroy. Since money and power are two lifebloods of AotSS, it is critical that both the Empire (and you) and Houses have as much as possible. Poor planets are worth very little, and provide very little wealth and power to Houses who Hold them.
With that in mind, let’s talk more about retail. So in AotSS, retail is somewhat abstract, and is based around 4 things: merchants, their skill, the planet’s ADL, and the number of Pops on a planet. (There are some other things that can affect this, like Viceroy skills and traits, or planet traits, but these are the main levers.) Basically, the idea works like this:
1. CALCULATE THE MONTHLY ALLOCATIONS TO THE RETAIL SECTOR: A yearly percentage of a planet’s stockpile of food and energy (and basic if the viceroy or emperor allow it; heavy and rare materials are mostly used for military and space technologies and would not be widely available for retail as we know it). For this example, let’s say 4% is the hold percentage that the viceroy has selected for their planet. So by using the formula (x * .04) / 10 (for 10 months per AotSS year) we can calculate how many goods are put ‘on the market each month.
Let’s work our way through an example on the planet Argus. If we assume, say 10,000 food units are in Argus’s planetary stockpile, and we’re holding 4% yearly, calculating the monthly food units available for retail on Argus comes to 40 units (10,000 * .04) / 10 = 40.
2. DETERMINE THE MERCHANT EFFICIENCY: The next step is determining how effective your merchants (and remember, these are merchant POPS, not individual merchants, representing a million units with an average skill level and culture between them) are in actually selling the goods to the citizen Pops on the planet. So while I’m not going to give the exact calculations, I will give enough information so that you understand how best to utilize retail. The merchant efficiency (ME) is calculated using the merchant skill and total merchants on the planet to determine a ratio from .01 to 3.0. To get the best ratio, you need either a lot of Merchant Pops or highly skilled Merchant Pops (there is a bonus to efficiency after 50 Skill, 50 is average, and below 50 is a malus).
For the purposes of this example, let’s say the ME on planet Argus is .35 (there are only 20 Merchant Pops, and their average skill is 41).
3. DETERMINE REVENUES FROM EFFICIENCY: So now you’ve got a set amount of food out on the market, and you have an efficient (or not so much) merchant corps distributing it throughout the planet. Great! There’s 2 other things that determine how much the planet actually wrings from a given retail network: the good price on that planet, and the ADL of the planet. Since ADL is derived mostly by the types of Pops that are on a planet, you’re going to have scientists and engineers who make more money going out to expensive restaurants and buying nutritious organic food, not your miners and farmers. So: the higher the ADL, the more money made.
So for our example, on Argus it’s a nice planet and there are a lot of scientists, government folk, and engineers, so the ADL is 17 (pretty high). After determining how much of the food is actually sold, the result is 11.5 units (Available Food Units / Merchant Efficiency) * (Average Merchant Skill / 50). That’s a lot of wasted food. So the last step is to determine how much revenue is made from those 11.5 units planet wide. We simply multiply the amount of goods by the current food price on the planet (we’ll say $.10 to keep it easy), and add a variable for the ADL (17) and… congratulations! Your merchants made $19.5 billion crowns (BC) from food this month!
4. DETERMINE THE PLANET’S CUT: Great! You now have your merchants out on the planet, hopefully finding a market for the finest food and finding buyers for every bit of goods you have allocated. One last thing: what part of that amount goes to the GPP? Easy. There’s a commerce tax that is set by the viceroy that determines how much of the profits the merchants make stay in their pockets. Keep the tax low? Not as many revenues, but your merchants will love it (and will stay, increasing their skills, and a planet with such a progressive tax structure for humble merchants will attract other, good merchants as well). Jack up the tax? You’ll get a quick spike in revenue, but be prepared for merchants, grumbling about oppressive fees, leaving for greener pastures. And your other Pops won’t love it either as their favorite retail establishments close up shop as well, leading to unrest and lowered Popular Support. So smart viceroys do not increase this tax too high unless there’s dire need. This is changed every year at the start of the year, like all other taxes and the Imperial Budget.
So for Argus, the viceroy set the commerce tax at 15%, so the empire’s cut (what goes to GPP that month) in food is only $2.9 BC. That’s our final number!! Remember that the same calculations are made for your energy sector and (if you have allowed it) basic materials as well.
So what happens to the goods that don’t sell? Well… they’re gone. That’s why it’s important to not set your retail allocation very high especially on a new planet. You won’t have the Pops or Merchants to support tons of retail, and the goods that are unsold are basically wasted. And if you waste too many goods, you risk running low on food or energy (or Basic) which creates its own issues. So don’t be greedy – you can overrule the viceroy on any given planet, and usually they’ll be OK with it unless you try to set the value too high, but be judicious. Also, you have the option to allow your Basic stockpile to be released to the retail allocation and since prices on basic units tend to be much higher than food or energy, this can be a quick way to boost your retail sector.
So some of you may be asking – can the retail sector cause prices to change? No. Remember that on a global scale, retail in this futuristic economy is not as all-encompassing as what we know today. Even 15% of stockpile allocation of a given good on a planet is extremely high, and that’s a yearly allocation. It’s not enough of a lever to move prices one way or another. But don’t fret. It’s possible, and I’ll describe how to manipulate prices of goods on the next DD.
So that’s a decently detailed explanation of how retail works. Now the real question: How can you, as emperor, affect the retail engine on any given planet? Several ways, in fact. Here’s just a few – you can use your imagination for others (that’s why it’s called strategy!)
- Create shortages within a trade group of a certain good. The higher the price, the more the profit
- Expand your trade infrastructure to attract more merchants
- Look for ways to keep your merchants happy! Low taxes, high ADL, a benevolent (high Humanity) viceroy, and a nice planet (terraforming) all help.
- Attract, shall we say, more noble folk (Pops) to your planet
- Train your merchants! You will eventually have the ability to build Academies on planets that train Pops, and lower-class Pops will look to use those Academies to become another Pop, and existing Pops will use them to improve their skills
- Change your retail allocation – but be careful, you don’t want to flood the market with unsold, wasted goods and decrease your stockpile!
A tooltip will give you your monthly allocation of goods and the merchant efficiency so you know how you’re doing there. Remember, if it’s low, you need either a) fewer goods b) more Merchant Pops c) better Merchant Pops d) lower Population.
That’s all for today! LP coming in hot – look for it as well! And next week: How goods work in the economy, what each good does, and how you can manipulate them all like a champ!