Architect Archive

Thread: How do you judge pricing?

KahpnarBalsys
Sun Aug 08, 2004 2:05 am
#1

Hey,


I was wondering how you judge pricing on items?


Do you count up the resources and do it that way?


Use other prices set aroundthe galaxy?


I have no idea how to do it.


I sell my Medium Houses for 50K and my Large houses for 90K?


What do you sell the most and for how much?



With Regards,

The Late Colonel Kahpnar Balsys
Died in a horrific crash
Pawlin
Sun Aug 08, 2004 2:22 am
#2


I use a CPU rate + profit % is a minimum baseline. I wouldn't sell something for less than the raw materials would fetch plus enough profit to make it worth my time. ON top of that its all about supply and demand and what the market on your server will bear.



From our FAQ:



Q-5.3: What should I charge for a building/harvester/piece of furniture??


A-5.3: Short answer: Specific prices that you choose are going to be very server dependent. No price is too high if your customers will gladly pay it and no price is too low if you make a good enough profit.


Copy/paste from ZenDragonMLS -


"Find the vendors for many of the Master Architects on your server. Go visit them. Copy down the prices. Talk with miners and ask them where they get their harvesters and how much they pay. Check the Bazaar for furniture prices. Check the Trade Forum for your server.


Then sit down and figure out what kind of business *you* want to run. If you want to be a low-cost / high-volume guy, then figure out how you can keep your operating costs as low as possible and yet pump out lots of stuff (high-volume means you will need extra lots and/or people to mine for you). If you want to focus on furniture, then you need to make sure that your vendor always has a large selection on it and you need to advertise a lot. If you want to only service miners by making high-end heavy harvesters, then figure out the economics of *their* business and charge for your harvesters based on their payback (e.g., selling someone a money-making machine that never decays for an amount that they can earn back in 2-4 days is not a recipe for long-term success.)


You get the idea: price is only *one* aspect of your whole business model. Think through how you want to play and pick your prices to fit that model. Whatever you do, don't take some "rule of thumb" like "charge X credits per unit of resources that it takes you to build it" and call it a "business model". Take more control over your business than that."




Pawlin Construction of Kettemoor.
Harvesters and Crafting stations - Triad Coronet Mall just outside Coronet (-177 -5490)
Architect, House, Furniture, Harvester FAQ

Oprolan the Wookiee of Sunrunner. Cheap resources W. Daeric Talus (-639 -3058)
"Worst FF ever *thumbsdown*" -- Pawlin fan club
"I am not going to win Miss Congeniality again this year in the Senate." -- John McCain


** Please refer to Elyssa's answer
Tsunami87
Sun Aug 08, 2004 4:55 am
#3

Whatever other people charge... yup, thats what I charge pretty much




Tsu - Master Squad Leader

TheArchitect101
Sun Aug 08, 2004 3:26 pm
#4

Just ask someone how much something is worth and they're bound to know ;-)



Master Architect/Master Merchant
Suvaru Black
JediArchon
Tue Aug 10, 2004 2:52 pm
#5

I stay competitive with other architects on price, especially when they are charging what I feel is too much for a relatively simple product to make. However, I also stick to my guns when people try to buy components and talk me down in price. I charge not only what I think is fair to the customer, but what also is fair to me as a businessman and consumer.


I base my prices usually off of 3cpu for resources since I mine my own, and then a variable profit margin on top of that according to how business is and if the customer is a friend or stranger. Sometimes my prices end up similar to other architects, or less, but I rarely go over other architects' prices with the system that I have. Of course, prices vary on servers so the best way to get a feel is to look in shops and compare prices, or talk to other architects (incognito if you have to) and get an idea of what a particular product is worth.


Larris



I can no longer sit back and allow Imperial infiltration, Imperial indoctrination, Imperial subversion and the interplanetary Imperial conspiracy to sap and impurify all of our precious bodily fluids.
SmarticusIOaG
Sat Aug 14, 2004 7:28 pm
#6

I found the lowest guy who wasnt just dumping, went about 25% higher, and used that for quite some time. Still havent changed my basic pricing structure, which is basically a CPU cost method at about 4-6 CPU depending on how hard the resources are to find for that item, factory runs required etc.


It's just the simplest way to price things. And my prices have stayed put despite inflation for the last 6 months. That's saying a lot on Bloodfin.
Buddhistic
Sun Aug 15, 2004 1:03 am
#7

I price my homes at 4 cpu, and my harvestors at 5.5 cpu. Been making 5-12 million a week, so it seems that the prices work with people. On my server, prices are from 100k-180k for heavy harvs, so i stay inbetween with 5.5 (about 149k for a Heavy Min Harv).



Seraphine Master Architect | iMani eDo Pikeman

For 13 BER Harvs & 14 BER Fusions under 150k, Homes under 70k, Factories for 49k, 43.01 Craft Stations for 49k, and Crated Swoops...

Visit SERAPHINE ARCHITECTURE at 803 -4651, a minute East of Coronet. OVER 200 DEEDS IN STOCK, Always
Fneegan
Sun Aug 15, 2004 4:52 am
#8

There's an excellent thread here for you to read called "am I pricing to high" or something like that.

http://forums.station.sony.com/swg/board/message?board.id=architect&message.id=62947#M62947


Maybe, on your server and on Lok, those prices are good??


Typically, I look at what other Architects sell their wares and stay about that price. Even selling a tad higher is okay. I used to sell my small houses for 10k but after reading a post that another Arch selling them for 20k....I decided to raise them to 15k - guess what ? They sell!


First, buyers are looking for either something specific to buy and oftentime, as their searching for the specific something they'll buy something else.


So, the best tip is not really the price (as there's a genearl price) but having your vendor in a popular place and having it always...always...always FULL.

Believe me, if there's a full vendor of expensive stuff and a vendor near or always empty with lower pricedstuff - the FULL vendor ALWAYS WINS...lol


I think, if someone is moving up to either a Medium or a Large house - they can afford it. I sell my Mediums for 65k and Large for 145k. (and some sell higher too).


You'll get a good idea on pricing from this forum. Good Luck


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