Architect Archive

Thread: Supoer-Simple economics

Dayln
Thu Oct 02, 2003 7:43 am
#1

Im not bashing anyone, Im not flaming anyone.


There is a simple rule about economies that has held true for centuries and it is no different in SWG.


If there is too much supply and not enough demand prices will drop. As more and more architects compete for fewer and fewer customers prices will fall, you cant stop it. As a customer if there are dozens of architects selling the same product I will buy from the one selling for less.


If there is more demand than supply then prices will rise. As more and more people look for things they cannot find for sale they will be willing to pay more and more.


Keep that in mind and I continue.


How do you fix demand? There is only 2 ways to do that, create more customers, or create a recurring need for the same products. There is a limit as to how many people will join a server. You can make items more attractive to other classes but that too is short lived. Once they also have what they need they will stop buying.


The only answer is decay of some sort. Be it the inability to re-deed, or only re-deed so many times, or machines that become less efficient over time, or increased pay maintenance over time or fix up kits or whatever. It is all a form of decay.


How do you fix too much supply? There is onlyone way….. fewer architects.


It is not SOE’s responsibility to make sure that every that wants to be an architect will be successful at it. If they did that it would no longer be an open economy.

GrandMufTartkin
Thu Oct 02, 2003 8:01 am
#2

I agree, although I do not like how low the prices have gone.


It is simple economics 101, supply and demand like you say. Too many people making things, either to advance skill, or for friends, or for structures themselvs. They flood the market with goods that they want to sell. People buy from the lowest, and people sell at the price they are willing to work for. For some that is way low(lowballer) for others like me(over priced &*#$) it is higher than average.


Although I do maintain prices to an extent are maintained through some customer dishonesty, badgering and bs.


"How do you fix too much supply? There is onlyone way….. fewer architects"


This is very true. Although I would clarify it by saying(IMO) fewer architects building and selling. Because for some, like me, I am still an architect with the potential to build and sell(and I plan on keeping that ability in not selling back skills).


Another way is to fix demand. I think you mentioned this too. And here is what I want to add to this discussion...


Demand is going to increase, due to the up and coming patch that addresses experimentation. The people with harvestors are going to most likely have to replace them(super low capacities). This should create a large demand for new harvestors, and quality will matter.


I think the demand will increase, along with prices, and the people that should be on top of this is the MA. No longer will the novice be able to pump out and flood the market with equalivant valued products. There should be a difference in price from Harvestor A from a novice that holds X, and Harvestor B from a MA that holds X+2000.

Dayln
Thu Oct 02, 2003 8:24 am
#3

But that increase will be short lived if decay is not introduced, there will again come a time when everyone has high efficiency equipment and demand will drop drastically once again.


We need to add a recuring need for products.


We wil NEVER be able to support everyone that wants to be an architect in business, it woul.d be a mistake to try, but without a recuring need, there is coming a time when the economy will hardly support any architects at all.


Not even us Wal Mart types

GrandMufTartkin
Thu Oct 02, 2003 9:02 am
#4

"But that increase will be short lived if decay is not introduced, there will again come a time when everyone has high efficiency equipment and demand will drop drastically once again."


I didn't really think about this, but now that you made me think about it, you are right. The demand will be pumped up, really high, prices should jump drastically. I would bet this would last for about two weeks. Then, like you said, when the quality harvestors are all supplied, it is back to the same old.


"We need to add a recuring need for products."


I think it will get added in the form of decay. It seems to be the intent of the developers. All items crafted did have a decay on them, at least in crafting tool screens. What worries me though is the fact that they removed it from tailored goods. If that was still in the game, I would say with a 95% probability, that it is intended and is just a matter of time.


I would like to see a decay system that is slightly different from other items. Have the slow steady decline of the structure, but never have the structure actually fall down. What I think should happen is when a structure decays, maintainence rate goes up, and storage capacity goes down, but have this repairable and upgradeable in the form of house additions/repairs. You could repair it with an architect or master artisan skill with a house repair kit(tool box) and materials(ore, metal). You could also upgrade your home and change appearance/decay rate/maintainence rate, with new architect products.. siding, different door ect..


Now, as far as the decay itself. If you let the decay drop lower and lower, you loose house capacity and increase maintainence rate. If the capacity drops below what is in the house, a random item or items is/are destroyed... hole in the roof? How about some water damage to that nice couch you bought? Maintainence rate goes up... your doors and windows are drafty and need repaired.. your heat or air conditioning is heating/cooling the neighborhood!! LOL.


Anyway, the idea is not just the old my house wore out and broke, I need to buy a new one, but my house wore out and requiredan architects repair tools, siding, and roof upgrades to keep it from falling in.


I like the idea of decay, but just not the X use or X time, buy a new one idea.


"Not even us Wal Mart types"


AHAHAHA got me there.. Mr. Walmart analogy!!

Dayln
Thu Oct 02, 2003 9:11 am
#5

Good points, I both agree and disagree...


I am not sure I would make houses decay at all, I would just totally remove the ability to re-deed. But I am open to other sugguestions. Houses have no real moving parts so decay is extreemly slow.


Extractors is another story, I would start them out at 100% efficinecy and half the pay mantenance we pay now. But over time the efficinecy would decrease ( say 10% every 2 weeks of operation ) while the pay mantenance increases.


3 months after you buy it, an extractor is pulling at 50% efficinecy and the pay mantenance has increased to twice what we pay now.


Have it bottom out at 25% efficiency and3 times the pay mantneance we pay now.


No need to ever destroy an extractor, the owner will do that themselves.


Dayln
Thu Oct 02, 2003 9:20 am
#6

Sorry for posting again but more thoughts are percolating.


Why is there an efficiency number on a harvestor.... I think they planed todo something like what I am thinking from the begining.


And I am starting to change my mind aobut house decay.


Perhaps just increase the pay mantenance on a hosue 10% every 2 to 3 weeks indefinatly.

PosiTec
Thu Oct 02, 2003 9:23 am
#7

GMT,


I think i was the first to suggest that there would be a surge in demand initialy if this goes in.


I don't think it will be as short lived as you suggest (2 weeks?), although it will of course be very finite in length.


We have been playing the game for several months now, and although demand in certain areas has fallen (small houses anyone?) I still get strong sales in heavy harvesters, and modest sales in mediums.


The ability for everyone to replace their un-experimented harvesters with new ones will be determined by 2 factors.... the money to buy them at whatever the new prices are, and the ability of architects to build them based on volume of quality materials available.


Although the cash is available for a fast purchasing ramp up, I dont think there are enough architects with the right materials to keep even close to the demand in the short term. I think you will see at least a couple of months befor the existing harvetster fleets are close to being replaces.

Dayln
Thu Oct 02, 2003 9:29 am
#8

But Posi, you must agree that this is not any kind of long term fix. The effect of this will be short lived.


We need to introduce a recurring need for products.


I don’t buy the power up thing either, That would reduce architects to selling power-ups only. We need structures ( epically harvesters ) to decay in some way. And it makes sense to do so.


I have to do pay maintenance on my car, but it still wears out. It would wear out faster if I didn’t do maintenance.

GrandMufTartkin
Thu Oct 02, 2003 9:53 am
#9

PosiTec,


Good point about the more than 2 weeks thing. I believe it will be longer because of the fewer MA's around.


About this..


#1 "the money to buy them at whatever the new prices are, and the ability of architects to build them based on volume of quality materials available." -- in terms of there being enough money.. sorry I clipped part of your paragraph and also some of the meaning. Sorry bout that.


#2 "Although the cash is available for a fast purchasing ramp up, I dont think there are enough architects with the right materials to keep even close to the demand in the short term. "


I think these two things will balance each other out. Because of #2, the prices will be high. Because the prices are high, #1 will not go as far. Demand will be high, but not at the real market price.


Basically you will have few architects getting a high price from the more wealthy customers. If the price is low enough to allow more people to afford and demand products from the limitted architects, the price will rise. When it does, fewer people will demand at this price.


If I understand correctly the price will be struck when the number of people demanding equal the number of people supplying... in terms of product and not actual people that is.


A poor example but..


1000 people demand 1000 harvestors at 1000 credits


there are 10 MA's, demand is over what the MA's can and will produce for 1000 - price goes up


500 people demand 500 harvestors at 2000 credits


there are 10 MA's, demand is over what the MA's can and will produce for 2000 - price goes up


250 people demand 250 harvestors at 3000 credits


there are 10 MA's, demand is over what the MA's can and will produce for 3000 - price goes up


and so on... until


there are 10 people that demand 10 harvestors at 50000 credits


there are 10 MA's, demand is equal to what the MA's can and will produce for50000 - price is set


This is the way I think it works.. maybe wrong, maybe flawed or missing some stuff, but this is my understanding.


As far as the decay Dayln, I didnt think about the harvestors as much. With the moving parts I would assume they should wear out. Perhaps they should wear out, be able to be repaired with some kit like weapons and armor, but eventually break totally and need replaced. The effeciency should go down with wear, and I also think that moving them should be an extra strain that wears them out faster.


PosiTec
Thu Oct 02, 2003 10:01 am
#10

Dayln,


Yes... I agree completely that this will be a relatively short lived (perhaps a few months) demand. Then we are back to a shrinking market, until it virtualy dissapears.

Dayln
Thu Oct 02, 2003 10:12 am
#11

Well this is no fun, we are all agreeing.


Should I mention Wal Mart or Business is PVP war or something?

GrandMufTartkin
Thu Oct 02, 2003 10:49 am
#12

"Well this is no fun, we are all agreeing.

Should I mention Wal Mart or Business is PVP war or something?"


HAHAHAHAHAHAHAHA!!


Different than yesterday Id say.


Walmart...


I buy my undearwar at Walmart, defianately Walmart $3.95 a pack. Walmart sucks....


Test your age... what movie is that from?!

Dayln
Thu Oct 02, 2003 10:49 am
#13

That was K mart... definatly K Mart
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