Bounty Hunter Archive
Thread: BHs w/ Jetpacks: Take Note
Laney_1uk wrote:
Knock off the I wanna be logical BS and gain some COMMONSENSE. These kits will be required thus a MAJOR INCREASE in demand will aris, therefore the price will plummet. Simply economics dude. Not rocket science.
Logical BS maybe but you don't seem to understand it (not a flame). HOW do you theorise that if demand INCREASES, price will plummit. Demand increase = Price rise. Price will only plummit if suppliers choose and can actually supply at a given price. If they can indeed supply large quantities at an above production cost they will do and then price will fall. There are a whole bunch of reasons why prices will fall but this is just one of them
IN TIME..... IF.... BIIIIGGGG if the mining of 'roids becomes more popular prices will decrease... MAYBE.
Simply because you have increase the amount of suppliers you effectively increase the potential supply. This shifts the supply curve vertically downward, setting a new equilibrium at a lower price. Should demand not sustain such quantity supplied, suppliers drop out of market and price returns to starting point.
A decrease in prices also assumes that the people selling the ore do so at a low enough price.... But initially you know that will not happen...
No you are dead right. Takes time to transmit the market price to others (what advertising is for). An increase in ore and everyone will want to shift it at the highest price. But as soon as consumers shop around and find better deals they will stop using other suppliers or ore and go to cheaper ones. If one undercuts you have your price war and it will continue to decline to one goes out of business or the price hits the overall costing level of mining it. OR IF SOMEBODY STARTS A CARTEL. No I’m not telling you what one is if you don’t know lol
What bugs me is that you can get a flash speeder fixed at a garage for 20K WITHOUT a kit???!!! Why is the flash special?
This on TC I presume ?
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Please read my first post it explains it all farely neatly.
Vshbaa wrote:
You've always been able to get a new flash speeder for 20k. Its non-tradeable and one of the perks of buying JTL preorder was that you were able to always generate a flash speeder.
Accepted... but wasnt the BARC a perk for buying the total experience?
A miner can sell the resources to a NPC space outpost for around 20cpu. Therefore the miner is unlikely to sell to an artisan (or a artisan/miner is unlikely to sell the end-product) for less than this price.
Currently, a BARC repair kit uses 1500 units of asteroid resources (750 carbonaceous, 750 petrochemical), so that sets an absolute floor price of a kit at 30k.
Realistically, a shipwright will pay 50cpu for the same resources and can sell the finished goods for somewhere in the region of 100cpu. That suggests a real-world cost price of 75k for a BARC repair kit. Adding a 50-100% markup would indicate a reasonable retail price range of 100-150k.
Zeddd
Eleutherios wrote:
With this in place, demand for the repair kits will increase, thus decreasing their price. They're fairly useless up until this pub (why would you buy one when you can repair it for free at a garage?), so once they start getting more popular, the price will go down.
Nice thoery ... but I can tell you that increased demand and the requirement of them to repair vehicles is going to, most likely, drive the price up.
50-100% markup is quite normal.
Eleutherios wrote:
50% to 100% markup is insane.
I have mined these resources, and in addition to having to be ATK to collect every unit, the petro asteroid is in Yavin IV space, and is "protected" as it were, by teir 3 and 4 mining pirates. With a medium mining laser, I was able to collect 250 units (so 1/3 of the petro asteroid I need to make ONE repair kit) in about 45 minutes. All the while fending off wave after wave of pirate attacks. Yes, you can bring a friend to run shotgun while you mine, but that cuts your profit in half, doesn't it?
I understand what you're saying Eleu, about demand driving down prices, but that only works if there is an abundant supply of the product and/or or several manufacturers making the same product and competing to outsell each other. Unfortunately, this just isn't the case with these kits. I would rather chew tin foil than get up there and mine these rocks, and I'm sure most others who have experienced space mining feel the same way. And this attitude is going to be reflected in our prices when we make the kits. In fact, until I get a large laser and a tractor beam, I doubt I'll be selling any at all, because I'll barely be able to make enough for myself and my guildies. Will I lower my prices just because more people want them? Not if I can't even make enough for me and my friends, I won't. If I have people knocking down my door for these (still rare) kits, I'll sell to the guy who is willing to pay the most.
So stock up, because I can guarantee that the prices aren't gonna drop. If anything they're gonna go up as demand for the product increases, because the increase in production (if there is any) simply won't keep pace.
Eleutherios wrote:
50% to 100% markup is insane.
Only if the supply is abundant - think back a little what was going on with avian and doc buffs
i love it, i have a bs in econ and im eating this stuff up. keep it coming boys
maybe we should use regressive analysis.
Eleutherios wrote:
McRibs wrote:
Eleutherios wrote:
With this in place, demand for the repair kits will increase, thus decreasing their price. They're fairly useless up until this pub (why would you buy one when you can repair it for free at a garage?), so once they start getting more popular, the price will go down.
You should check your theroy of economics chief.
They're so expensive now because there are so few of them. As they increase in number, price decreases. For example, if there was only one +25 Double-Bladed LS Speed CA on a server, that would cost a lot more than if there were 5000 of those CA.
Actually, they're that expensive because they're made with asteroid resources.
Heh.. I can have a full 1550 hold in under 10 mins. I plan on selling these kits (I run a space mining company) for 50k-75k a piece, asteroids arnt a problem for me to get, the problem is finding workers. If your careful with your AV-21/Jetpack I think its worth 50-75k to repair it rather than buy a new one....
TashunkaSapa wrote:
Demand does not change supply. The only factor that will influence supply is Opportunity Cost - that being, what's that much time worth to the seller? And can more money be made doing something else with that time? Sorry to inform you, but the answer is Yes. Anyone who can mine asteroids could just as easily be doing space missions and making a couple hundred K in the time it takes to mine enough materials for one repair kit (750 each of two materials takes an experienced miner about 30-45 minutes). I could fly to the Kimogila spawn in Endor sector and shoot fish in a barrel for 45 minutes and come home with 200k in loot and credit chips... so the value of that time will never be lower than that, and thus the value of the materials is likewise set.
You're also ignoring the fact that asteroid resources are already required by Shipwrights to make many things - among which are the components used to mine asteroids! It's not hard to find a shipwright willing to pay 60-80 cpu for asteroid resources, so that sets a base price for the finished goods (90-120k plus profit).
I think you really just don't have much of a concept about what these materials are already used for or what obtaining them entails. You can say "nobody can know" but I'll trust proven principles of economics over your wishful thinking, if it's all the same to you.
Message Edited by hi_i_am_new_here on 08-24-2005 01:52 PM
Eleutherios wrote:
50% to 100% markup is insane.
You have no experience whatsoever with managing or working in a retail business, do you? The cost a merchant pays for a product to his or her distributor is about 50-65% of the final sale price. Guess what that means? Yep, a 50-100% markup.
I guess all the successful business owners in the world are "insane" and you're the only one who can see it, right?
Shaan'ti Hokai (Kauri)