Architect Archive

Thread: Business is booming and prices are rising.

GrandMufTartkin
Thu Oct 16, 2003 9:35 am
#1

At least for me. Why you might ask? I am not totally sure, but I think I have a good idea. Let me explain a bit about my business style.


I am one of those Master Architects that is on the higher end of pricing, most likely, one of the highest priced ones around. I would make a sale here and there, and with furniture, enough to do me fairly well. Many occasions have come by, where if I would drop my prices, I would have allot of business. Unfortunately, I would have to drop my prices, to where I would have to bust my hump to fill orders. Since this is not my style, I stayed steadfast, and kept my prices high.


For about two weeks, I have endured the typical bs of name calling and finger pointing "thats a ripoff.. blah blah blah". When I quote prices, I throw in a disclaimer. It is usually "My prices are on the high end, so I am sure you would be able to find it cheaper elsewhere, but my price is XXXX, and that is X cpu." Now though, i have noticed a big change. Common replies that used to be sarcastic digs and insults, have turned into "np, I have the money, when can you build it?"


What I think has happened, is that the suposed "average" lower than low price has vanished. No longer are people arguing with, and badgering arcitects with requests for slave labor(IMO). People have found this out the hard way. After a couple weeks of... I heard this multiple times "no one ever makes or has in stock medium houses". The products where no longer being built and supplied at the 2-3cpu. Now, because that is lower than most are willing to build for(it seems this way on my server), people started to expect to pay more. And I think they learned that rude treatment wont get them a cheap house or structure, but instead it will get the the door(ban).


Now, people have returned with hats in hand, and are willing to pay a reasonable price(I am getting 6-7 cpu, and am back logged and have been for a while now). With a polite consumer, paying me for my materials and combines, I gladly open my door, and increase my business.



PhantomNIR
Thu Oct 16, 2003 10:00 am
#2

It 's nice to know that I'm not the only one out there that sells over resource value. I commend you for holding tough to your pricing. I do the same, make plenty of sales, and get repeat business.Why? Because I can fill large orders on a whim due to having subcomponents prebuilt and resources on hand. I would love to see architects start getting paid for their work. I've had people from other planets come to my shop to purchase houses/harvesters even after they said they could get it cheaper elsewhere. I explain to them why I don't sell that low and low and behold, they come to me instead. I imagine most "undercutters" don't have any stock onhand and just peddle off what they build as they make them. Very poor business sense on their part. Anyways, just wanted to voice my appreciation for someone that understands good business sense and the benefits it has to the economy.





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- I support a rollback and keeping & balancing the old combat system.
...and making SWG a better place to be.
Your voice counts!
Dayln
Thu Oct 16, 2003 10:17 am
#3

I wish everyone would raise thier price, then I could raise mine too


So far the prices on my server have remained constant, and I remain 20% under the going rate. Which at the price that I exttract resourcesat, is very good business sence whether you understand it or not.

Rheet
Thu Oct 16, 2003 10:18 am
#4

I get just over 4cr per and have considered raising it a bit but I want tos ee how the new harvestor thing shakes down.
GrandMufTartkin
Thu Oct 16, 2003 10:26 am
#5

At the danger of starting a 3 day discussion I have to ask...


"So far the prices on my server have remained constant, and I remain 20% under the going rate. Which at the price that I exttract resourcesat, is very good business sence whether you understand it or not."


Can you please clarify, do you mean that whatever it costs you to pull a chunk of ore up, is what you charge for the finished structure?


Say, for example that..


1 piece of ore, steel or aluminumcosts you 0.5 credits to mine


1 house takes 3300of ore and metal


Your selling price for that house is 3300 credits?

Dayln
Thu Oct 16, 2003 10:27 am
#6

I generally charge 20% less than the avrage rate that other architects sell it for on my server. Which has always ( so far ) been at a very large profit for me.
GrandMufTartkin
Thu Oct 16, 2003 10:33 am
#7

I guess I am a bit confused, specifically about this...


"Which at the price that I exttract resourcesat"


Could ya please clarify that? I just want to make sure I understand where you are coming from with this.

NinjasLovePirates
Thu Oct 16, 2003 10:48 am
#8






GrandMufTartkin wrote:

I am one of those Master Architects that is on the higher end of pricing, most likely, one of the highest priced ones around. I would make a sale here and there, and with furniture, enough to do me fairly well.





That's how I am. I sell at high prices (I think) and they're firm. I will barter though... Even yesterday I had someone "tell me off" because I was selling small houses for 20k. They wished me good luck in selling it and I told them that I just sold one less than 10 minutes ago at that price. They replied by accusing me of ripping off noobs. After I explained that 20k was about 6cr/unit, and that I'm a Master and now longer have to sell at cost for xp, I told them that they could go lowball some other architect.


Anyway, tell me if my prices are about yours:


Small 20k
Med 80k (95k Generic)
Large 200k (250k Generic)
Guild 1.5 Million (2 Million Generic)


Factory 80k
Furniture 10cr/unit, more if it requires hides or is higher up the tree
Master Furniture 10k a piece


I've stopped selling harvesters for a while now. I don't see a point in selling money making machines at low prices. I wouldn't sell a large for less than 200k and I think that's pretty cheap, so I don't make them for others anymore.


The Devs seriously need to make changes to Architect... 100 experimentation points, colorable furniture, paintings even... wall papering, carpeting (floor coloring), functional furniture, optional parts on structures (balcony, porch, storage shed, expanded hoppers), maybe even windows and the ability to set furniture on the roof/balcony that exist now.


They've been making nice on lots of other professions, but why is there nothing but headaches here?


There's almost no reason to come to the Architect boards other than to complain about people complaining about pricing, or complain about lack of things and Arch can do...




Rick Maher
Master Armorsmith, Master Smuggler
"Uh... had a slight weapons malfunction. But, uh, everything's perfectly all right now. We're fine. We're all fine here, now, thank you. How are you?"
~Han Solo proving that Smugglers are the masters of talking their way out of a problem.


Dayln
Thu Oct 16, 2003 10:49 am
#9

Maybe I am being too obscure... .. sorry about that


I am currently extracting resources at .38 cr a unit and less on most extractors not counting overhead ( which I do count in the long run )


As long as 20% less than the going rate for a product still nets me a large profit compared to my extraction rate and overhead I am happy.


Not everything I sell is at the same profit margin, small houses have a tendency to go cheap on my server and to remain a low price dealer I need to sell at 8 to 8.5k. If I sell for more than that i can no longer call myself a low price dealer. I don’t worry about the guy selling at 3k, although I might be able to make a profit at that I find I do better competing against those that are in business full time.


ON larger things my profits are much higher, Generic PA halls sell for closer to 320k on my server, hence I sell for 280k which is quite a bit more profit percentage then I receive for small houses.


I used to set a price based on cr per units as most people talk about here, but I don’t do that anymore. It is pointless, units are not my competition, other architects are. So I base my prices on being less than what I call the going rate on my server/planet and if something actually stops making a profit, I will simply stop selling that item.


Nothing has even come close to not making a profit so far.


As I know for a fact that bulk resources WILL NOT sell for 3k a unit on my server, I never worry about that or any other price as the market value for a resource. I only balance the actual extraction rate ( plus overhead ) against what the "going rate" for a product is.


Personally I think the difference between me and many other architects is I am dead sure who I work for, I work for the guy that hand me money. And I know who my competition is, other architects. Im not worried about getting x amount of profit on one particular sale, I am more concerned about getting my name spread around as a low price dealer while still making a large profit..

GrandMufTartkin
Thu Oct 16, 2003 10:56 am
#10

Ahh ok. Gotchya.


Misunderstood you thinking you sold structures for what it cost you to mine the resources, but as you explain, that is not the case.

Dayln
Thu Oct 16, 2003 11:05 am
#11

GMT this is probably the most clearly I have ever stated what I actually do. because I know how people respond to it. They think I am an "undercutter" as if that is some kind of an offensive word. I could apply the name "gouger" but I think the name calling is meaningless. In the real world all business do everything they can to undercut.


The only reason my model works for me is that not very many people look at it the way I do. If people did ( like they do in the real world ) then I would be hard set to keep up with those that can make more than I can. I am very aware that a large PA could shut me down in no time. But they cant, because they see 3 cr a unit as the value of a resource.


As much as I complain about people believing in the fantasy of 3cr a unit, I am only successful because they do believe in it.


I defend the low price guys that sell at 2cr a unit and such, but I am not actually one of them. Nothing I currently sell goes for less than 2.5 cr a unit and most of it goes for more than 3.5 and some for more than 4.


But I hold to the right of anyone to sell at whatever price they want to.

LordTigris
Thu Oct 16, 2003 8:58 pm
#12






NinjasLovePirates wrote:





GrandMufTartkin wrote:

I am one of those Master Architects that is on the higher end of pricing, most likely, one of the highest priced ones around. I would make a sale here and there, and with furniture, enough to do me fairly well.






That's how I am. I sell at high prices (I think) and they're firm. I will barter though... Even yesterday I had someone "tell me off" because I was selling small houses for 20k. They wished me good luck in selling it and I told them that I just sold one less than 10 minutes ago at that price. They replied by accusing me of ripping off noobs. After I explained that 20k was about 6cr/unit, and that I'm a Master and now longer have to sell at cost for xp, I told them that they could go lowball some other architect.


Anyway, tell me if my prices are about yours:


Small 20k
Med 80k (95k Generic)
Large 200k (250k Generic)
Guild 1.5 Million (2 Million Generic)


Factory 80k
Furniture 10cr/unit, more if it requires hides or is higher up the tree
Master Furniture 10k a piece


I've stopped selling harvesters for a while now. I don't see a point in selling money making machines at low prices. I wouldn't sell a large for less than 200k and I think that's pretty cheap, so I don't make them for others anymore.


The Devs seriously need to make changes to Architect... 100 experimentation points, colorable furniture, paintings even... wall papering, carpeting (floor coloring), functional furniture, optional parts on structures (balcony, porch, storage shed, expanded hoppers), maybe even windows and the ability to set furniture on the roof/balcony that exist now.


They've been making nice on lots of other professions, but why is there nothing but headaches here?


There's almost no reason to come to the Architect boards other than to complain about people complaining about pricing, or complain about lack of things and Arch can do...






You get killed on Bria by the competition. PA halls are at 250k now and still dropping. Heavies are in the 70-90k range and you can get lights for under 200 credits.
FulminataXII
Fri Oct 17, 2003 1:56 am
#13

Dayln, your business model is a perfectly valid one, but itis not the only valid one, either in the real world or in SWG. Being aware of your competition is always wise, but you seem overly focused on your competition. There is much to be said for the businessman who focuses on his product and his client first and his competition second. In the real world that businessman is usually not number one in terms of sales volume, but is often more successful in establishing a viable long term business. This may or may not apply to SWG, but I thought I'd mention it since you often bring real world business practices into your discussion of SWG economics.

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