Bio Engineer Archive
Thread: Prices
You never fail at all? else you are selling for less than 3cr/unit.
If you are on bria, give me a tell, i will buy stuff at that price 
I charge between 5-6 cr/unit since I dont run a zillion harvesters myself. I buy materials to keep up with demand, it covers any crits I might have on big stuff (omg had 4 thsi week, 3 heavies and a large house), and I can afford to buy hundreds of thousands of materials to keep up with demand and get stuff to the customer quickly
I dont deal in selling houses much, ignore those sellers for 5k. small houses arent worth your time.. BUT still contact that archtiect and see if he will sell wall modules to you for 5k each (takes LESS resources to make than a small house) and you can turn those walls into something bigger with less work and more profit for yourself (I sell smalls for 15k if the customer asks.. and believe it or not i still sell 5-6 a week at 15k even with all the crazy undercutters out there)
exactly that prices ruining or even ruined alreeady our economy /sigh
i see more and more idiots selling on my server for 3cr or even lower.
its somehow strange why all other crafters get a reasonable cr/unit prices andarchitects kick their own butt with going lower in prices then the resources would sell, without skills, without failures.
to sadwe dont have skill requirementsas RL businessman for be in game an architect.
to the original poster, sure sell away for such low prices, but u hurt yourself and the economy, but since thisworld is full of greedy egoists, u will always meet others who sell lower then u even wth that prices u posted. so u have to find your own price range, but always remember this market is soon very down.
most ppl will have their structures and wont buy more then. you will sell less and less.
please think about it and see if your prices are really what they should be
Dayln wrote:
In the real world Resources would not sell for 3cr each at some 500% profit, Any agreement between groups of architects to set a price would be met with a lawsuit for price fixing. There would be no lot limitations and the guy that sells for less would end up owning all the business in the galaxy.
Would he or would he violate antitrust law? In real life you can actually see businesses PAYING their competition so they wouldn't be considered monopoly.
He would not.. Not until he took over the market.
But currently he does not have access to advantages that others do not have access too.
Only after filling the galaxy ( or over half ) with Harvesters could such a claim be made.
There are thousands of businesses that own it all from resource to finished product, as long as they do not have exclusive access no such case would succeed.
To establish the value of a lot, assume that you are a not-very-smart miner, running a heavy harvester for commodity-grade steel on an 80% spot. The harvester will produce 8064 resources per day. Even if you are not-very-smart, you can certainly get 2.5 credits per resource, for gross revenue of 20162 credits per day (if you are smart, you'll harvest selectively, on 90% spots, choose premium resources, and get 4-5 credits per resoruce). Your costs will be maintenance of 2160 for a net profit of roughly 18000 per day. To be completely accurate you need to take into account the cost of capital (for the harvester), the cost of redeeding (4500 once a week - negligible) and the cost of power (roughtly 1/10 of a lot for the fusion generator plus 1/10 of 1440 per day for maintenance).
When you roll it all up, the value of a lot is somewhere 15000 credits per day. If you are running heavy harvesters, you need to gross 20162 per lot per day to rech this net profit.
Most architectural goods use 60% ore and 40% metals and misc. If you are good, you will harvest the ore at 60% concentration and the metals/misc at 85% concentration.
Suppose you have 7 lots of ore and 3 lots of minerals etc. and you are using heavy harvesters. You will produce a total of 42,366 ore and 26,704 metal/misc (close to 60:40).
In order to match the no-brain-required revenue from mining, you need a gross revenue of 201,620 credits per day, meaning you need to sell for at least 2.9 credits per resource.
So, if you're selling architectural goods for 3 credits per resource, you're getting no better return on your lots than a no-brain-required miner (and a lot less than a market-savvy miner). If you sell architectural goods for 2 credits per resource, you're making a profit, but now you're getting a lot less than the no-brain-required return on your lots.
I can make large profits at less than that number. My resoruce base cost is now less than .39 cr per unit. and my overhead costs per finished unit sold is quite low.
Dayln wrote:I can make large profits at less than that number. My resoruce base cost is now less than .39 cr per unit. and my overhead costs per finished unit sold is quite low.
Right, but are you making more than you would by selling bulk resource? If you are netting less than 15,000 per day per lot, your assets are underperforming.
That is not the issue,
Just because architects sell resrouces to each other at high prices does not force me to use thier prices. It might make me more money in the short term to sell resources, but short term cash is not my goal. Long term business in a declining housing market as an Architect is my goal.
Do you notice that in the real world cement makers do not make 500% profit on such low grade resources? The Structure in SWG is a little funny that way.
IF he is using heavies & fusion, here are his costs / harvester:
Fusion Power:
Daily production=1440*13*.9=16,848 power daily for a cost of 1440 credits. Over 7 days, that's 117,936 power, at a cost of 1440*7+3000=13,080. Travel costs being 2000 (1000 shuttles to setup & 1000 in shuttles to take down), and if he re-deeds 12 hours after the resource dissapears, the wasted maint cost is 720. That's 117,936 power, at a cost of 15800.
The cost / power unit at 90%=0.134 credits/unit of power.
Ore Production:
Daily Production=1440*7*.65=6,552 units of ore a day at a cost of 2160 maint, and power of 1800*.134=241. 6,552 for 2,401. Over 7 days, 45,864 units for 16,561 plus re-deed of 4500, so that's 45,864 units for 21,061. Let's say total shuttle costs were 2000 (1000 once to set them up & 1000 once to take them down). We'll say that he got to his harvesters 12 hours after the resource dissapeared, so the "wasted" maintenance cost is 1080. It's now 45,864 units for 24,141.
That's a cost of 0.526 credits / unit of Ore at a 65% concentration.
Metal Production:
Daily Production=1440*7*.9=9,072 units of metal a day at a cost of 2160 maint, and power cost of 241. 9,072 units for 2,401. Over 7 days, 63,504 units for 16,561 plus re-deed of 4500, so that's 63,504 units for 21,061. Let's say total shuttle costs were 2000 (1000 once to set them up & 1000 once to take them down). We'll say that he got to his harvesters 12 hours after the resource dissapeared, so the "wasted" maintenance cost is 1080. It's now 64,504 units for 24,141.
That's a cost of 0.374 credits / unit of Metal at 90% concentrations.
Various Others:
For gasses & chemicals, IF he's using heavies, we'll assume a concentration of 85%, so the Cost/Res would be .403 cred/res given the same factors.
Let's say his resource needs are 50% ore, & 45% metal, and 5% gasses/chemicals/etc.
.5*.526
.45*.374
.05*.403
Total average cost/Res: .451 credits / resource. That's 16% higher than Dalyn's "Less than .39 cr/unit", IF Dalyn is harvesting at 90%+metals only, 85%+chemicals only, 65%+ Ore only, and Rads at 90%+ only.
Every experienced Architect here knows that sometimes 55% ore is the best you can find, and sometimes you settle for metals at 75%, & fusion at 65%. That would translate into an 18% increase in costs on ore, 20% on metals, and 38% on Fusion, for a rough accross the board increase of costs of about 20%, so 0.541 credits/units at lower concentrations.
.39, .54, what's the difference? That's next to nothing. While it's a small amount, it's a 38% difference.
Conclusion: Dalyn's a **edit**ty businessman that can't even accurately calculate his costs.
My Fusion generators are sitting on 91% power at a potential of 783, very good power.
My Heavy ore extractors are currently stting on 72% ore.
My ore cost is currently .3185 not including overhead and NOT including the fact that my power acts as more than 1 per unit!
Other resources are at different levels which brings the price up a bit. But .38 is pretty close for this shift.
Now that assumes that I use every bit of power for every bit of ore and everything balances out perfectly, of course it does not which is another reason I sell for more than 2 cr per unit. Buty saying he is not making money is misleading, you can make good money at those prices.
You can make more selling resources, but there is no law that says you have to do that. Starting to get personal again Adune, does that mean you are about to concede?
Do you think that business is not a competitive venture? Did you think it was not the same as PvP war in SWG? Look around you, it is in the real world, and it is in SWG also.
He would do his best to use any advantage, any edge. There are a whole lot of guys that could beat me, because there is a level that I wont compete at myself. But when that happens to me I wont whine and complain and talk about jerks that know nothing of business. I will just say, "Hey, someone better at setting up a business than I am drove me out, he won, I lost". Life is like that, and I will then enjoy doing something else.
The problem isn’t people that don’t know what they are doing, the problem is people crying about them and calling them idiots when in fact they are doing a better job for the customer.
You realize after all that it is the customer we are working for right?
Dayln wrote:You realize after all that it is the customer we are working for right?
hehe, thanks buddy. I really got a good laugh out of that one. You probably picked that up from Sam, as he was well known for always having his customer's best interests at heart.
Tued the Master Builder