Architect Archive
Thread: Just wanted to make sure you all saw this :)
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Pawlin
Sat Feb 12, 2005 4:24 pm
#27
Dvnce wrote:
... Now.. Lets say Since I am already rich and really dont need more money I decide to price my items at say 1 cpu. so Heavies around 35k. you say well others can buy me up. I say I can build another 4k structures... Sure I wont be able to do this forever but how many archs will I drive from the profession in the process...
I'd call that the "Microsoft crushing Netscape scenario".
One big architect is able to undercut others out of the market. THis is a feasible possibility. Now I don't think Dvnce is that kind of guy. But there are definitely others that would set about doing this. Business is business.
Other scenarios:
"Home Depot and Lowes price war"
Say there are two fairly large architects with a decent amount of money and production capability. If those two architects are competing at the global level under the new system then they will quite possibly end up in a price war. Anyone smaller will be caught up in it. The big guys can last a while. Their bank accounts are already pretty deep. Its the little guys that will die first. Eventually the two big guys will either come to a truce, bottom out at the barest profit margin or one will quit.
"Organization of Harvester Exporting Companies or OHEC"
A certain number of large architects (2 or more) decide to fix prices. If you go search through the vendors on a given planet, you'll likely see that only a few architects have large amounts of stock. Their production combined greatly outweights all the other architects combined. If these big architects set a given price then they can enforce it through sheer volumes. If someone smaller undercuts them then they can buy out that person quickly and relist at their set price. Little guys may be able to stick around since they'll benefit from the higher prices as well. They won't be able to beat the price fixers but it won't kill them either.
"Battle Royal Cage Match"
In this situation, there is just a general free for all. Everyone is competing with everyone in an unorganized fashion. Undercutters may be small or large. Anyone wanting to compete will have to lower prices or they simply won't sell. As undercutting continues the prices will quickly or gradually drop to the point that margins are at a bare minimum. THis will drive out many suppliers. But its easy for the remaining few to increase production. Eventually you may be left with a few bigger guys. The smaller ones won't be able to make enough profit at the small margins to stay in business.
I wonder if SOE wants any of these things to happen to the crafting professions such as ours??
NOte these are really only likely with items such as ours that are commodity products without differences in quality.
bluejanus
Sat Feb 12, 2005 9:18 pm
#28
I'm predicting price crashes. So I imagine crafters and guilds will seriously consider collusion and blaster negotiation to try and fix the economy. Crime syndicates anyone?
Message Edited by bluejanus on 02-12-2005 08:19 PM
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