Business And Economy Archive

Thread: The Merchant Revamp, and a Forum example of how it will hurt Merchants.

Phaelyn
Mon Feb 14, 2005 3:07 am
#14






RelicOMO wrote:



Alternatively, if it's like a weapon and slices can be used to disguise quality, I might preslice crates of these unenhanced widgets and list them for between 10k to a million, depending on slice quality. It's quite probable that most consumers won't be able to tell the difference after a slice between an enhanced item and an unenhanced one. Depending on my slice luck, I might make a ton of pure profit off them. But again, that really depends on how much time I want to devote, given that crafting is just a sideline for me.


***


The above answers reflect my personal position. I am a longtime, well established, experienced crafter with a large resource stash, good connections, and more than one account. The global search would remove the joy of crafting for me, but it'd still be a simple matter for me to get a steady income from crafting without any effort. I'm not sure about the chances of others to do so in the same economy, though.







Thanks Relic, as usual you've gotten to the core of the matter.


I purposefully left out people mining their own resources and slicing. You illustrated automatically why the system would have been bad for beginning crafters, or even established crafters with very few credits. I left them out because I *knew* someone would use it in their example.


You see, non-crafters seem to think that everything we make is utterly arbitrary - We just price things according to whim. We're all greedy Merchants, and are inherently evil. I showed probable cost to ALL artisans across the board - The starting crafter would by necessity have to pay the prices I listed, and even charging a minimum price, could never compete with the established crafter in a price war.


It's like I've said in several threads - I already make a good product at a good price. I can do so because I am established. But when I complained about teh new system, Combat characters (And even other merchants) respond that I am crying because I will lose my market. Far from it. My market share will increase...


But it's unfair to the new crafter and the less established one. I argued for my competitors.


Fortunately, the Devs have seen the inherent error of their ways. They are going to make the system work - We WILL see a Galaxy search in some form - But I believe through all of our outcry and suggestions, they may now see ways to do it so everyone benefits.







Phael'yn Maxlord
- I support Common Sense - Too bad it's in short supply.

Quote that sums up the current, flawed direction of SWG:
"No, I do everything solo and I see no reason why I should need anyone else"

A way to bring Combatant and Crafter together.
Phaelyn
Mon Feb 14, 2005 3:15 am
#15






ArgonNitor wrote:

Ill provide a simple answer,


Give the public what it wants by crafting and selling both the low end and the high end items. Theres a suitable market for both. Once the galaxy wide availability becomes reality prices for everything will dropand the real compitition begins much like it did when peope started buying and selling on the internet.


Think of it as SWG Ebay.






Thanks for your answer, and your points are valid. Prices WILL come down - But as stated above in other responses, there really IS a level where going too low is detrimental. You'll find that Crafters/Merchants are all for Competition - But we want fair, balanced competition.



Phael'yn Maxlord
- I support Common Sense - Too bad it's in short supply.

Quote that sums up the current, flawed direction of SWG:
"No, I do everything solo and I see no reason why I should need anyone else"

A way to bring Combatant and Crafter together.
Tirranus
Mon Feb 14, 2005 5:41 pm
#16





RelicOMO wrote:

What I find interesting is that already, people have quoted prices that vary from 3k for unenhanced down to 1250. And all of them have taken into account a cpu price for sale. As in, 5cpu for sale is acceptable, or what have you.




And that's a pretty low margin of difference for an item that is completely absrtact, for which we have all made different assumptions. That also discounts the range of quality and presumed cost per item to us.






RelicOMO wrote:

Yet if people are prepared to pay 1 million for an enhancer that increases effect by 30%, what does that tell you? Does it tell you that the price difference for 30% effectiveness should be 800%? (1 million divided by 1250) 30%better is thus worth over 800% more in price?




Hey, rich people have watches that cost $50,000 and don't tell time 30% better than my $20 watch.




RelicOMO wrote:

What it tells me is this - if people are prepared to pay 1 million for something that improves a desirable item by 30%, then 1250 is ridiculously cheap. Ludicrously, insanely cheap. This example also operates in a vacuum - it's not an ideal example because we don't know what consumers have been paying for this item. I'd be prepared to bet that on any server, they would have been snapping these unenhanced items up at 10-20k. Particularly if it is a desirable consumable, as would seem to be implied by the price of the enhancer.


So, my question is, if 10-20k is easily affordable for the vast majority of players, and if they are prepared to pay that, why are crafters insisting on undercutting each other at 3k?




Why would anyone pay 10-20k for an item that has minimal barrier to entry? From what we have been given, the resources needed aren't dirt cheap, but are still readily available for a price. If I can churn out factory runs of them at will for 2100 credits (which assuming I did my own mining has really amounts to 210 credits) each, then 100 other people can, too. Absent of a union of crafters bent on fixing prices, 10-20k (5000-10000% profit) could not sustain itself. I think 3k is a very reasonable price.




Tyr Tirranus
High Chancellor of the Antillian Resistance
Governor of Antillia, Rori (Bloodfin)
CEO of TyrCo Industries
My Current Crusades: Category Revamp | Galaxy Search Alternative | Stop Static Loot Drops
craftr
Mon Feb 14, 2005 8:41 pm
#17

the other scenario- sell them at my public vendor for 20k a piece cause i dont like restocking and dont particularly want them to sell well so that i dont have to go through the hassle of making more(but they do sell well anyway cause people have disposable income and dont really care how much they spend anyway), and then give crates away to my guildies for free.
Pawlin
Mon Feb 14, 2005 11:44 pm
#18






Phaelyn wrote:

...I purposefully left out people mining their own resources and slicing. You illustrated automatically why the system would have been bad for beginning crafters, or even established crafters with very few credits. I left them out because I *knew* someone would use it in their example.


You see, non-crafters seem to think that everything we make is utterly arbitrary - We just price things according to whim. We're all greedy Merchants, and are inherently evil. I showed probable cost to ALL artisans across the board - The starting crafter would by necessity have to pay the prices I listed, and even charging a minimum price, could never compete with the established crafter in a price war.


It's like I've said in several threads - I already make a good product at a good price. I can do so because I am established. But when I complained about teh new system, Combat characters (And even other merchants) respond that I am crying because I will lose my market. Far from it. My market share will increase...


But it's unfair to the new crafter and the less established one. I argued for my competitors.


...





Good point there and well said.


I think that some people arguing for the change automatically assume that anyone arguing against the changeis simply"greedy" or "afraid of competition".


And like you said at the last bit there, there ARE people arguing against this change not out of self interest but because they see that it would hurt the economic system as a whole including their peers and competitors.



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
Resetgun
Tue Feb 15, 2005 12:53 am
#19




1) With enhancer 2M


2) Without enhancer 2395 (about 20% margin) - it is mass market now baby! (note: psychologial price). (Maybe 1200000from old widgets with enhancement - just need to get rid of this old junk now.)


oh... Marjaliisa already beated my prices... I am going to cry!
But she can't stay in market long, because she does have only limited supply of Colat iron....


Message Edited by Resetgun on 02-15-2005 12:03 AM

Message Edited by Resetgun on 02-15-2005 12:05 AM



――――――――――――――――――――――――――――――――――――――――――――――――――――――
It's easy to find something worth dying for. Do you have anything worth living for?
Phaelyn
Tue Feb 15, 2005 2:03 am
#20






DrClawX wrote:


In end id base my prices buying the enhaced widget assuming i needed it to advance in my craft. Knowing that any combat char can loot and sell a widget for 1mil with a bit of effort.






And the final piece falls into place.


It's not at all rare to see a Weapon enhancement go for the1 Million and up pricetag. While it's true that many times, a WS will make the weapon for their base cost provided the customer provides the Enhancement, it's also not beyond the grasp of imagination that a WS will want to make a "Showpiece" weapon. So, the WS spends 1 million credits to get the part. Makes the weapon, and decides on a minimal markup - For arguments sake, assume 1.25 Million.


Along comes the flames that "You are overcharging!" or "Another greedy weaponsmith!".


Fact is, Combatants drove the price of the weapon up in the first place. They loot the item, set a high price for the item - But don't want to pay anywhere NEAR what it costs us to make the resulting item.


I literally had this conversation when I was a Weaponsmith. I had purchased a set of wonderful Acklay bones, and made a Stun baton - Got a great result. Bones cost me 750k - A bargain at the time. I placed the item on Vendor at 1 Million,


Guy: "Hey - Nice Baton! But it's too much - It's only worth 500k"


Me: "Well, I paid 750k for the bones, plus the cost of my resources - I feel it's a fair price"


Guy: "You got robbed - And since you don't know any better, you're trying to rob your customers too!"


Me: *Explains seeing comparable bones for 1.5 and 2 million just recently*


guy: "You're full of S*** - I'm never gonna come back to your shop!"


2 days later, same guy comes back and buys the baton.


Moral of the story folks: People are always going to complain about prices. Even when the Galaxy search hits, and undercutting happens (Not going to say it will ALWAYS happen, but at the beginning, it will) - A typical item that we ALL know is sold for 5k, and is being sold at 4k by a lowballer will instantly A) Result in public perceiving item should now be sold at 4k all the time. or B) Result in people saying we STILL are over charging. It's a fact of life - Unless people understand what goes INTO the process, they will always undevalue our products.



Phael'yn Maxlord
- I support Common Sense - Too bad it's in short supply.

Quote that sums up the current, flawed direction of SWG:
"No, I do everything solo and I see no reason why I should need anyone else"

A way to bring Combatant and Crafter together.
AudioOrgana
Tue Feb 15, 2005 2:30 am
#21

I don't price by CPU, I price by function, so I can't tell you what I'd charge.

It may only cost me a few thousand to make a medical droid, but that Master Doc using it is going to make millions off it because they can sit and buff at a Starport instead of the Med Center, PLUS it gives his buffs a 10% bonus. In many ways, it's invaluable to them. So I couldn't tell you what CPU I sell them for - I sell them for a reasonable price based on the usefulness and function they give the player.

AO
DrClawX
Tue Feb 15, 2005 4:07 am
#22

Also not too mention consumption of the item plays a factor in the price, more so with quality resources. If the playerbase consumed more widges than could be made the prices would raise. the loot would also increase demand would lets say 2-3 mil. Now everyone wants enhanced widges, hmm remember that 1000 pe resource which used to be 10cpu well it is now 50 and assuming i wont use it unless crafting the enhanced widget. And assuming that resource is worth more in a finished product. that 1k crate is now 100k and the enhaced one is probably worth 2-5 mil.And if u still sell it for 1k you will be bought out by someone that knows its worth 100k.


now when opposite happens you wont even be able to sell widgets for 1k anymore beoyond the point of even making them. Why even be a widget maker. Why loot the enhaced widget.


DrClawX
Tue Feb 15, 2005 1:46 pm
#23

1) I would make a schematic for nothing for anyone who asks for one and can provide the resources. Not stock my vendor as it is a waste of space/time to bother stocking it and would keep something along the lines of the current bazzar. assume i mined 875 pe stuff myself, probably sell for 5k a crate to easily get rid of if they dont sell on my vendor.


make something with a higher profit margin to save up 1 mil for the loot then buy the loot then i would probably use the enhanced widget myself, if not id sell for 1.5-2 mil

assuming i dont want too sell it the first day i post it. I would determine the chace of finding myself before buying.


2) Global. Not even bother making cause somebodys gonna charge 1k for a crate is NOT worth making. Id make what i can use myself and if sombody asks me about widgets ill make em a schematic if they give me the resources. I dont want 20 crates of this junk sitting outside my hoppers. At this point assuming theres a large widget market it be easier to buy the crate for 1k. Which basically a worthess amount of money i could travel to coronet and spend 3k and get enough widgets for the week hell i might splurge and buy 10 crates for the month.


As for the enhaced id probably do the same as above global or not.


the loot cost 1mil compared to the 1k crate, assuming to get the loot i have to make 1mil somewhere. Being a crafter id say 25% of my time is devoted to combat id probably buy because it would not be worth my limited combat time, (assuming its rare and would take a few days to a week to loot). Thus making the highestprofit margin item of mycraft in order to afford the enhanced widgets.


In end id base my prices buying the enhaced widget assuming i needed it to advance in my craft. Knowing that any combat char can loot and sell a widget for 1mil with a bit of effort.
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