Architect Archive

Thread: Business seems like its way up Holocrons to blame?

Neilla
Fri Jan 02, 2004 7:19 am
#27

I've been doing very well with the following prices (all mediums BER-10, all heavies BER-13, fusions BER-14):

M Flora 80k
M Chem 80k
M Gas 80k
M Mineral 40k
M Water ????
H Flora 175k
H Chem 175k
H Mineral 185k
H Water 90k
H Gas ????
Fusion 170k

These prices work for me - I'm (mostly) able to keep up with demand and have most things in stock most of the time, while doing about 700k-1m/day in business. I arrived at them by looking at what other architects were charging plus keeping in the going rate (on Gorath) of 150-200k for heavy harvesters.

I honestly don't know how long this is going to last - architecture definitely has its ups and its downs - but at the moment business is good. Heavy holocron-grinding is definitely a big factor - I know this from personal experience. And the market may be a bit better on Gorath because the population is somewhat higher than on other servers. I've also noticed that a lot of architects have gone of holocron-grinding, so there aren't as many working master architects on Gorath as there used to be.

One factor in Gorath's higher prices may be that a number of architects (including myself) on Gorath made an determined effort to ratchet harvester prices upwards when experimentation went live about 3 patches ago. Prior to that, BER-7 heavies were going for 125k. When it became possible to experiment heavies up to BER-10 and (with a skill tape) BER-11, there was a lot of hand-wringing in this forum, and a lot of architects decided not to raise their prices because, for example, they were afraid that the BER-10 heavies were going to get rolled back to BER-7 (remember that?). Well, the architects on Gorath who didn't sit on their hands used the opportunity to set a new market price for Heavies of 150-200k, depending on quality, and those new prices have basically stuck.

Personally, I don't see how a galactic economy can sustain itself with prices in the 100-150k range for heavy harvesters. The only way I can sustain my business is by manufacturing harvesters in factories. You have to be running a fairly large volume to do this, and the only way to sustain such a large volume is to buy resources from miners. I'm paying 2.5 cpu for resources. The prices quoted above give a decent profit - about 250% of the cost of resources. At 100-150k, there is no way I could afford to buy resources, and I'd end up with 40-50% of my current volume.



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Neilla Bastune, Mayor of Baishi
Master Architect and CEO of Baishi Heavy Industries
AstroMech2
Fri Jan 02, 2004 6:00 pm
#28

Absolutly true, a situation that I am slowly working on myself. If you are doing high volume you need people running harvesters, as such they need to get a decent profit and you still have to make a profit. In order to reach that situation you need to raise prices. Put simply if you are constantly selling out right away your prices are too low for demand and all you are doing is hurting yourself. Remember once everyone has their harvesters, houses and factories, then there is no more need for them. Your only hope at that point are new people to the game and pray the resell market doesn't kill you or worse, old harversters given away. Make each sale count. Let inflation balance the economy and stop cheating yourselves.


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