Artisan Archive
Thread: Basic Economics FOlks
Excellent point, its good to see more fiscally minded people out there.
The problem is that crafters in SW have no incentive to look to the long term in their businesses. They price based on cost because they are thinking of moving that ONE item. They dont think about (and likely have no concept of) moving entire inventories. So the whole idea of how price effects the number of units you will sell in the long run (we are talkin the short long run if you follow), completely escapes most people and they price their items based soley on the individual cost of that particular item.
In general I agree, but it's not as simple as it has been made out. There are much more complex things which move the RL marketplace including politics and "the other guy." We don't have to worry so much about Galaxies' political situations, but we do have to worry about the competition. Sometimes the smart thing to do is to sell for well below cost. RL situation: McDonalds wants to attract some of Burger Kings customers so McDonalds advertises Big Macs for $.99. There is no way they are making money off of those hamburgers at that price, but they are counting on people not just buying the hamburger, because most people will order a soda and fries to go with it. McDonalds would go out of business if they only sold Big Macs for $.99, but they count on that deal to attract more customers than usual so they have a gain in profits.
I have no quarrel with people who "undercut" other people's prices. I have no troubles with people buying out vendors and re-selling the items for a higher price. This is the way a mature economy should work. The problem comes when we have people in the economy who are not interested in profit...these are the hologrinders. All they want to do is grind through crafting and merchant as quickly as possible so they can move on to the next profession so they sell things for less not to attract customers, but just because they don't care about profit. Unfortunately these people can do something which we cannot do in real life: they can afford to buy resources at a cost of 20k per vehicle and then sell those vehicles at 6k, but not only do they do this with vehicles, they do it with every other crafted item they make as well...this makes all of our skills valuless.
I submit that after the hologrind stops we will again have a healthy economy where crafters are interested in profit and will price their products responsibly. So long as our competition can afford to sell all of theiritems for less than the cost of materials we will be in this situation.
Food & Chemical Crafting Station +3.xxxxxx: 350cr
I remeber first starting this game in september 2003, and were i bought my first padded armor for 6k (for chest piece) and it was the best stuff back. And it seemed people didn't rush as much as their do now and the community was more friendly.
I think the hologrind killed the game and I don't think it is a fair system to become a jedi in the first place because, 1. some guy just wants to be a jedi and justs holo grinds way though and don't care about the community. 2.Myself, I want to be a jedi but love playing the game what I want to be (a master bio engineer and a master creature handler) I got a shop opened, i take orders,I tame other peoples pets, helpnewbiesout and im a collector of rare loot. So the all holo thing penalizes us players that want to play the game and roleplay in swg by forcing us to do professions we won't todo..... bring on pub 10