Architect Archive

Thread: Civilized Pricing Discussion

ievb4fun
Sun Feb 01, 2004 10:48 am
#1


No, this isn't a "What should I charge for .....?" thread. Its more of a "Migo, just doesn't understand business pricing" thread, so maybe his more established breathern could offer guidance.


Dvnce don't kill me, I just need to understandbetter


I'll use Medium and Heavy Minerals for my comparsions to keep things simple:


On my server, Mediums appear to be selling for 40 - 50k, so about 11 - 14 cpu (i know, we shouldn't be concerned with cpu, but instead focus on profit potential for the customer, but anyone purchasing 2 or 3 Mediums is not out to make a profit from them, just gathering resources they need)


Heavy Minerals are selling for 165 - 200k, so about 6 - 7 cpu.


Now, thinking about my customers I use the follow assumptions:


1) Someone purchasing 1 or 2 Mediums, is mostly like not going to have vast amounts of funds. They are most likely using the harvester for personal reasons, not resource reselling.


2) Someone purchasing 10 Mediums ata time, is most likely a static lotter and has the funds to pay the higher end price. But how do you seperate the lattercustomer from theformer customer? IfI have 30 Mediums on my vendor at 30k targetting the #1 customer, how do i protect against #2 customer getting a GREAT DEAL.


3) Someone purchasing a Heavy instead of 4 Mediums (equal price) is concerned with lot usage, and may not be concerned as muchwith price.


4) Someone purchasing 10 Heavys.... well, just send them to my shop, eventhough with current prices they are getting the best value for their money and I am making the least amount of profit.


Ok, so hear are my pondering questions: Why such the large cpu difference between sizes? Why even make Heavy models, since the profit is half, and the resources usage is LARGE? How not to take advantage of the little guy, while not letting the BIG GUY take advantage of you?


Thoughts? Ideas? Rants?





MIGO
Master Architect - Gorath Server
Bestine' Harvesters - We'll beat any Vendor's Price
(-1880 -3930 SW of Bestine on Tatooine)

tIme2DiE
Sun Feb 01, 2004 12:05 pm
#2

What do you mean by "person #2 getting a GREAT DEAL" do they somehiow get a lower price than person #1?


Heavies aren't as good for the ammount of resources they use, that's why most of the mineral harvesters are mediums, things sell by what they do, not what they cost the crafter to make.


The thing I hate is when i walk into an architecture shop and see a furniture vendor selling cheap, bad furniture at HUGE prices. I can't imagine anyone buying a novice architect bookcase for 1500 credits that uses only 150 metal. no, i dont want to spend 1k on a torch. Why are resources 3CPU anyway? Am I the only person that thinks that is WAY over priced? Using just an average harvester we can pull out resources at about 1/10CPU. If iput 5 harvesters with each a BER 10 sitting on a 50% metal spot, im maming like 200k credits a day, more than what i could make being a master BH from my missions. I'm also sick of going to vendorsthat are empty, or read "deeds" and we have no idea what kind of deeds. Driod deeds? House deeds? factory deeds? creature deeds?


Finally, the most annoying thing that has ever happend to me happend when i had been playing for about 2 weeks. I was an artisian with engineering 4. I was trying tosell BER 9 wind generators for 5k credits each and so far I had not sold a single one and I was struggling for credits. BER 9is better thanANY solar generator in any galaxy. This man walks into my shop, asks if If i sell solar generators. I tell him "no, but I do sell very good wind generators". He says to me his friend told him that solar generators are a very good deal. I try to explain to him my wind generators are better but he doesn't understand extraction rates. He went next door to an architecture shop and bought 3 solar generators with a BER of 7 for 20k each. This made me so mad when he told me he bought solar generators that I started screaming at him and calling him an idiot. After that I shut down my shop and just sold resources.



So nice to get that off oif my back. I don't think anyone is actually going to read everything i wrote; so if you did then you amaze me.




--------------------------------------------------------------------------------
Tover wrote:

Iif you started with the Vet Yacht, welded a Y-Wing on top in the back, and welded a YT-1300 on the top in the front you'd have the Enterprise.
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ievb4fun
Sun Feb 01, 2004 12:22 pm
#3



Umm... I read it, but how does that address the theme of the thread? We have had enough pricing rant threads here, lets keep this more focus'd on customer marketing, pricing theory and fundementals. Thanks


BTW, I truely believe there is more to selling than just price. You need to consider reputation, marketing effort, customer education, trust, good will, advertising, flexibility, and location.





MIGO
Master Architect - Gorath Server
Bestine' Harvesters - We'll beat any Vendor's Price
(-1880 -3930 SW of Bestine on Tatooine)

tIme2DiE
Sun Feb 01, 2004 12:25 pm
#4

Well, i did answer one of your questions.



--------------------------------------------------------------------------------
Tover wrote:

Iif you started with the Vet Yacht, welded a Y-Wing on top in the back, and welded a YT-1300 on the top in the front you'd have the Enterprise.
--------------------------------------------------------------------------------
Dvnce
Sun Feb 01, 2004 2:21 pm
#5



Well pretty much at least on our server we sell mostly mediums so that is where we should pad our prices.. and as for the person that is only buying two for personal use.. ok so its not an amount of profit they will receive but an amount they will save not having to pay 2.5+ cpu for the resources they need.. and if they are a crafter they can save up to 15 cpu for the specific High qual resources they need. So the cost benefits still effect them ...




Imaka QuHurl

Im Not Dead Yet Careful I bite

Heed the warning

Ekai
Sun Feb 01, 2004 4:14 pm
#6

For furniture, basic no special materials. 4CPU that includes material and my labor.Rip off but then they buy harvestors.


The harvestors go for 40k for the medium mineral and 50k for the other mediums.The walls vs modules being the reason.The heavies go for 10k per BER thats the way I do it.


Tips; never buy a heavy that not a BER12 or better. maintenance will kill you compared to a medium 10.

a medium 10 seems like a great deal, and it is, but if you have a crowded area and limited lots. Then a

4 BER13 will get you a free mine when compared to BER10's but will cost you more to run.


The material required to make BERBEST is not the go out and grab from the ground next to your house stuff.For a BER13 mineral i need HR SR UT of 900 + and thats for the base materials, the walls had to be 90% or better which meens 900+ material. I wont go into the full details about how to make the better stuf you need the better material which is hard to find if its even around at all. Junk makes junk.I spend alot of time moving and following resources. Alot of cash traveling to all 10 planets and to all the shuttles,surveying for material and then loosing 4500 for each mine just for the material drying up and now i have to move it.


Its a job, there is some stuff i cant find, still cant make some of the master furniture,and thank the force for the members of my guild <CGZ> that will go get me "endorian wooly hide" , I wouldnt last 10 min on Endor lol. Without their help I couldnt imagine how much i would be paying to make people beds.


Ekai

Riverveil Corelia

Chilastra



Ekai
Maser Architect
Master Artisian
Master Merchent
Mayor of a small little outpost on Talus
ZenDragonMLS
Sun Feb 01, 2004 5:22 pm
#7



Ekai wrote:
The material required to make BERBEST is not the go out and grab from the ground next to your house stuff.For a BER13 mineral i need HR SR UT of 900 + and thats for the base materials, the walls had to be 90% or better which meens 900+ material.
Ekai
Riverveil Corelia
Chilastra





BTW - the quality of the *walls* has absolutely nothing to do with the final BER of the harvester - the only two things that matter are the mining component and the final assembly.



Chilastra: Mikka R'zrPoint, Spy (Master Ranger/Master Pistoleer)
Chilastra: Zalle RazorPoint, Trader:Engineer (Master Architect, Master DE, Master Shipwright) - vendors just north of Theed at -3858 6181
Test Center: Rikka R'zrPoint, Master Artisan, Master Architect - showroom just south of Theed at -5370, 3139

Pawlin
Sun Feb 01, 2004 6:08 pm
#8




ievb4fun wrote:



Ok, so hear are my pondering questions:


Why such the large cpu difference between sizes?


Minerals are a little odd because the mediums only require 3 structure modules rather than 3 walls. This makes it so that the mediums require a lot less materials to make than the heavies.

Also pricing is based more on supply/demand than anything. We can charge morecpu for medium minerals so we do.


Why even make Heavy models, since the profit is half, and the resources usage is LARGE?


I make them simply because my customers ask for them. My business is driven by direct orders primarily. If I make a heavy and sell it for 150k then I figure my profit on that one harvester is 60k or more. 60k of profit is 60k of profit. If you've got resources then its worth making them.If you're just trying to keep a vendor well stocked then sticking to mediums only would work just fine. THen if you have resources to use putting some heavies out might be worth a try.


How not to take advantage of the little guy, while not letting the BIG GUY take advantage of you?



If you want to cut the little guy a break on pricing then I think the only way to do so is in person. But its still hard to know who has money and who doesn't. You can't really do it via a vendor.









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
ievb4fun
Sun Feb 01, 2004 6:24 pm
#9


Thank you Pawlin, exactly the kind of answer I was looking for from a Vet



MIGO
Master Architect - Gorath Server
Bestine' Harvesters - We'll beat any Vendor's Price
(-1880 -3930 SW of Bestine on Tatooine)

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