Chef Archive

Thread: Additive and schematic pricing discussion

sciguyCO
Wed Feb 18, 2004 9:30 pm
#1

I had been thinking about this on the drive home, and thought it might make a good companion to LostBoyJim's food pricing thread. Let's keep this civil (since the other thread got locked for trolling), but I think it would be useful to have both Chefs and BioEngineers give input.


1. Pricing of additive crates

BE's are going to price these however they see fit. Sad, but a fact of business. With the revamp, food has become much more of a hot commodity (although the newness may have had some effect on sales the past week). With the inclusion of an additive slot to practically every schematic, andthe marked improvement BE tissues provide to food, they rightly see a chance to make some money from their skills.


What's been causing a lot of bad feelings is what they feel their effort is worth. Or more accurately, what "share" of the chef profits they thinkthey're entitled to. Vasarian Brandy has become the benchmark for chef pricing, mainly because it's currently the most popular seller. A Broad Spectrum Nutrient can almost double Vasarian's buff size. Should chefs charge double the price for that enhancement? Should BEs base their tissue price on the difference between enhanced Vasarian and the non-enhanced version? What about when a chef wants to include that in a synthsteak, another popular--but less expensive--food?


A guess (and BE's feel free to correct this) is that the BE market has rarely had much volume. Pets are done up either as custom orders, or 10-20 at a time, and once someone's bought one, they're unlikely to need another. Well, except for the CH's, who "upgrade" as they go up in skill, the same way a combat character upgrades their weapons as they get certifications. Clothing tissues are done up in factory runs, but how many +warcry tissues does a given tailor buy?Five crates? Ten? At the point of sale, these are also generally one-time purchases by the customer.


Food is whole 'nother ball of wax. Customers buy crates of food at a time, and come back in a couple of weeks to do it again. The markup on food isn't because we're greedy little money grubbers, it's to keep the customers off our backs long enough for us to restock. If they have to take a couple more missions to afford that crate of Angerian (now Brandy), that's a bit more time for us to get it up on our vendor. There's a limit to how fast we can produce based on factory speed, harvester speed, travel time getting resources from harvester to factory, and time spent in game. Raising prices is the only method we have to slow sales down to a manageable level.


Actually, I take that back. Pet stims probably have a volume comparable to food, so there is experiencewith bulk sales on the BE side. I'll leave the above points in, though, because I think they're valid, and may need to be expressed to some people.


Another issue with tissues is that they take quite a bit of factory time, comparable to pre-patch aludian. A 1000 tissue run is going to be just over 48 hours. This, plus the fact that many require creature resources (milk, meat, some with specified types) means that getting the resources for a max factory run requires a large commitment in either time (harvesting yourself) or credits (buying, and still a lot of time since you're unlikely to find 20k meat of one type at a single vendor).


2. Pricing of schematics

That sure turned into a dirty topic quick, didn't it? On the one hand, making a schematic when someone gives you the resources takes only a little time and access to a crafting station. You don't have to get the resources (either buying or harvesting), you don't have to pay the factory maintenance/power, you don't have to travel back and forth to your factory to start it up or collect the results.


On the other hand, what the price of a schematic really represents is the return on investment in skill points, time spent leveling, and expertise gained about what makes a good product.


One thing I propose ispricingschematics based on the retail price ofa manufactured crate, subtracting out the costs that the BEdoesn't have to cover: resources, factory time, and some factor to represent the player's time.


An estimatedprice I got from a BE I trust was 50k per crate of Broad Spectrum Nutrients (+87). BSNs need 20 meat and 60 flora (ok, 25 flora and 35 organic, but who uses meat for organic slots?). At a conservative 15cpu for meat and 7cpu for flora (mid prices for good quality, at least that I've seen), that's 18k in resources per crate. At an hour and a half factory time, let's call that 200 credits saved (covering both maint and power). Determining how much of their time they don't have to spend is a little iffy, so lets say....20% of the crate's cost covered that, or 10k.


Crunching the above numbers, a schematic with a 25 unit manufacturing limit wouldbe worth50k - 18k - 10k - 200 = 21.8k, or 872 credits per tissue. This covers the "cost" of the BE's skills, and also stillincludes the original profit margin of the crate.


At this point, the BE is probably wondering why they should only get 872 credits, when a brandy using that additive will sell for 5-10k more than a non-enhanced one. Well, the chef has to spend the credits for the resources, factory, and time we subtracted from the BE's price. The cost in credits will be lower in the final analysis for the chef, buthe/she will havetraded someone else's time spent for their own. The only monetary savings will be the 10k we cut off for the BE's time, so the chef will have paid 40k for each crate of tissues, or 2k each.


And then, the chef has to take that run of tissues and make a run of additives, requiring 375 water and 1/2 an hour of factory time per crate. Credit-wise, that'll be about 100 credits per additive.


So a Broad Spectrum Nutrient additives made from a tissue schematic will cost a chef around 2100 per tissue (a savings of 200 credits each compared to buying the tissue directly) plus the cost of their time (which will include babysitting 3 days worth of factory runs). But it does cut out the waiting on another player, allowing for a more streamlined manufacturing cycle.


Well, I'm out of ideas. Discussion, anyone?





Kriles Ch'artoff , Chilastra server
Master Chef (retired)
Currently doing....stuff
Dridstar
Wed Feb 18, 2004 9:54 pm
#2

You make alot of good points. The additives ARE very resource intensive. I seriously doubt you will ever see full 1000 runs on anything. For the Supplements that's 20,000 meat. WOW. I've been running 100-200 runs of med and large supplements. Price has been small 5k, med 10k, large 15k. Thats about 3-5 cpu. I just happen to have alot of meat andI may just wind up doubling that price. Don't blame "gouging" BE's for the prices though. Frankly it's the hunters fault. The prices they charge for organics is insane. I mean really, don't they go out and kill stuff ANYWAY? It's not like they have to go out of their way to harvest this stuff. It's more like a by-product of their gameplay.


Anyway, I make a fine living on Enhanced clothes and am going to start dabbling into the chef and pet stim market. The cloning/pet thing is Fubar and holds absolutely no interest for me. It'll never work right and there will never be any documentation on HOW it works. I really don't think the BE's should think that they deserve half the chef's profit. We just make a component for them. How the Chef deems to use it is his business.





DRIDSTAR
Master Tailor/Master Bio-Engineer
Nu'Maoi/Naboo/Eclipse
BE Clothes/Chef Supplies Vendor
ALWAYS STOCKED
Qual_Tun
Wed Feb 18, 2004 11:04 pm
#3

Master BE here


i have 3 chefs im working with now, and we have had this discussion over and over.


we have agreed to 1k per additive (without milk) 1500 (withmilk),..this is a temporary contract, until we see how the market is gonna go, as a BE if feel if my additive is goin to double the price of ur product, i should get around 25-35% of that mark-up, granted flora is easy enough to get, but even as a TKM, and all other pts in scout, meat doesnt come easy, milk,eggs, and fish arent even harder, but u guys know this


just as when tailors got some love from the Devs, my BE business started booming, my tailor and i split the profits 50/50, cuz she dbl's + a few1k onthe price, she couldnt sell sell her garments at those prices without the added tissues, really its not any harder to craft regular food than BE food, is it?


/throws 2 cents




Master Bio-engineer
TKM

Dont make me sample you!
Qual_Tun
Wed Feb 18, 2004 11:05 pm
#4

forgot something


i would not sell schematics if was too undercut my own profits, whats the point than?





Master Bio-engineer
TKM

Dont make me sample you!
Gotik-CH
Wed Feb 18, 2004 11:16 pm
#5






Dridstar wrote:

You make alot of good points. The additives ARE very resource intensive. I seriously doubt you will ever see full 1000 runs on anything. For the Supplements that's 20,000 meat. WOW. I've been running 100-200 runs of med and large supplements. Price has been small 5k, med 10k, large 15k. Thats about 3-5 cpu. I just happen to have alot of meat andI may just wind up doubling that price. Don't blame "gouging" BE's for the prices though. Frankly it's the hunters fault. The prices they charge for organics is insane. I mean really, don't they go out and kill stuff ANYWAY? It's not like they have to go out of their way to harvest this stuff. It's more like a by-product of their gameplay.





I didn't sell any of my first 3 full runs of VB with Medium BE additives. I offered up a trade forum request to trade 20k meat in 4 stacks or less for 1 crate of VB or 20k meat in 1 stack for2 crates. Result so far= 1.5 million meat stocked for later use. I thought it was a good deal for both sides. The amount of meat and praise I received insured that. Its much more difficult posting a message for meat at 20 cpu.This meat trade gave my customerssomething to shoot for besides credits. Not many people are left who will work that hard for some cash. I've got to kick the factories into high gear now because I just ended the meat trade offer til tomorrow night. The response I got in emails was amazing and 2m meat is an easy goal to hit before it ends.


Meats out there.. you just gotta come up with different ways to get it besides credits.


Oh and great post Sciguy.


Gotik



Gotik
CEO Coffee & Donuts
New Vendor Tent on Rori 2188 -6828
Befishburger
Thu Feb 19, 2004 12:59 am
#6





The reason you would build a schematic rather than sell the additives themselves is thatit liberatesyou from hours and hours of maintaining a pool of resources: running harvesters, factories, visiting resource shops, negotiating with hunters, etc. Instead, the chef does all that. You spend a couple minutes of your time, and if your chef is smart, you make enough money that you feel you've been rightly compenstated. I paid a MBE 150,000 credits this evening to make me a schematic that is going to net me about 350 food additives. That's the equivalent of paying something like 11K per crate - and she didn't have to lift a finger. I don't think she was expecting that much - and really I don't know whether it was a good deal or not. I felt good with the price, and she felt very good about it. I'd conceivably have paid a bit more if she hadn't felt that total was fair.


This is, for me, still more of a hassle than buying the additives directly from a BE in crates. I'd much rather buy finished prodict in the realm of3-4 times what I paid. Precisely because I don't _have_ the time to run the harvesters, negotiate with hunters, spin all over the galaxy looking in resource shops, etc. But, being that I haven't foudn a BE making enough additives to supply me - I'm still spending all my time doing the foot work.



Hero



~




Everybody quiet, here comes the Sheriff!!
I mean ...Chef. Here comes the Chef.
SpottyGekko
Thu Feb 19, 2004 2:09 am
#7



Gotik-CH wrote:







Meats out there.. you just gotta come up with different ways to get it besides credits.



Gotik, u are lucky. You have a commodity (VB) that 70% of the player-base will (literally) kill for. If you offer a crate of VB in exchange for 20K of meat, what u are in effect offering is somewhere around 10cpu for the meat, which is a fair deal. This is based on the idea that a crate of good VB sells for around 200K, which is not outrageous in the current market.


I'm a BE, and I need meat for evrything I make. My flagship consumer product is Petstims. Good petstim B's sell for around 50K per crate, and nowadays mainly to CH's, which is a small percentage of the market. So I would have to offer 4 crates of petstims for 20K of meat. To make those 4 crates of good petstims I need Wild Wheat from Lok, Fibreplast from Tattooine, Fungus and Water from Talus, Berries from Dantooine. These are needed to make advanced components, without which I cannot make good petstims. Then I have to find some CH's who will actually do this deal (most of whom are too busy bringing u meat in exchange for crates of VB !)


There is nothing else I can offer as an incentive to Hunters, except cash. About 6 weeks ago I stumbled across a group of well-organised Rangers who were taking orders for bulk meat supplies. I thought my prayers were answered ! I placed an order for meat immediately, without even negotiating a final price (although the figures bandied-about at that stage were around 15-20cpu). To-date I have received no meat. A query last week was met with the following answer: "Well, actually we have stopped taking new orders, because we can't keep up. We have some Doc's paying us 30-40cpu for as much Avian meat as we can shoot, so u see..."


I'm not in that financial league, probably never will be, lol !


Djaz




Rankh Xholo (Master Chef)

**If I can have more than one account for SWG, can I also get a second account for LIFE ?
SpottyGekko
Thu Feb 19, 2004 3:05 am
#8



SciGuy wrote:









An estimatedprice I got from a BE I trust was 50k per crate of Broad Spectrum Nutrients (+87). BSNs need 20 meat and 60 flora (ok, 25 flora and 35 organic, but who uses meat for organic slots?). At a conservative 15cpu for meat and 7cpu for flora (mid prices for good quality, at least that I've seen), that's 18k in resources per crate. At an hour and a half factory time, let's call that 200 credits saved (covering both maint and power). Determining how much of their time they don't have to spend is a little iffy, so lets say....20% of the crate's cost covered that, or 10k.


Crunching the above numbers, a schematic with a 25 unit manufacturing limit wouldbe worth50k - 18k - 10k - 200 = 21.8k, or 872 credits per tissue. This covers the "cost" of the BE's skills, and also stillincludes the original profit margin of the crate.





Thank you Sciguy, your cool head and good math saved the day again !


By your above calculation, a full 1000-unit BE schematic, which can make 40 crates,should then fairly be worth 40 x 21.8K = 840K !


Now, the thing that made me start off that highly inflammatory thread (now closed), was the fact that most people were offering 100K for a schematic. No definition of that schematic was ever given, but I assumed it meant a full 1000-unit schematic. If I was wrong, I offer my abject apologies.


However, it is patently clear that there is a considerable difference between what u deem to be a fair price (and which I agree with) of 840K for a full schematic, as opposed to the 100K that was commonly (and often grudgingly) offered. Again, if I was wrong, I offer my abject apologies.



Rankh Xholo (Master Chef)

**If I can have more than one account for SWG, can I also get a second account for LIFE ?
MutantSquirrel
Thu Feb 19, 2004 3:40 am
#9


"really its not any harder to craft regular food than BE food, is it?"


As a matter of fact, yes it is.


First off, it has been stated previously in this thread that it is doubtful any BE is going to make a full 1000 supplement run because of the organic resources involved. Thus, if we are set to make a full 1000 of any food item, we would have to make more than one schematic and more than one factory run. Regular food, we can easily make 1000 in one factory run. So this takes up more time.


Second, we do not just simply throw in the supplement and "voiala" we now have 2x better food. No, we have to make the additives ourselves using the supplements. We have to spend the time gathering the extra resources for the additives, then make a factory run to make them. This takes more time.


Which goes back to the first point again ... If BE's do not make full 1000 runs of supplements, then we cannot make full 1000 runs of additives. So we are making extra factory runs just for the additives before we are making extra factory runs for the food itself.


So please if you are a BE and don't understand how chef works, don't be fooled into thinking that all we do is add your supplements and double our prices. We actually have to take alot of extra time to make BE supplemented food.


Finally, any of you BE's out there that are trying to take advantage of chefs by price gouging and defending yourself by saying that our profits are doubled from your supplements .... know this: I have a Master BE as well as a Master Tailor both in my guild that have helped me out some. I know the ingredients to your supplements, and I know how easy they are for you to makeas well as mass produce(despite my argument in point 1). So if you think you can charge insane prices for crates of BE supplements, you will only get a polite "F U" from me.



Message Edited by MutantSquirrel on 02-19-2004 04:47 AM



Col. Mutant Squirrel
Don't mess with me or I'll BITE YOUR NUTS OFF!!!


Hoikonnen
Thu Feb 19, 2004 4:48 am
#10

On the Server I play on (Gorath) most BEs - at least the ones I spoke to so far seem to have pretty reasonably prices. That would be around 30k for a crate Broad Spectrum Nutrient and about 37k for a crate of Intelligent Nanonutrients. I do not have a problem paying that price. I got some schematics made by friends which is ok. I would usually never ask a BE for a schematic unless I know him really well. Many times I have been asked to create Chef Schematics for other people and I never made on (well unless it was a good friend of mine or something). As soon as I create a schematic for somebody else I might be boosting a potential competitor. So I will not do so nor do I expect others to provide me with schematics.


Also my calculations look a bit different. I always think of what is possible and what would be the way I would do it. 1 unit of Broad Spectrum Nutrients needs 60 flora, 20 meat. A BE should be able to place some harvesters on flora by himself so that cuts down his expenses regarding flora to almost nothing or let's even say 3 cpu. The cost of highquality carnivore meat range on Gorath depending on how good you know your supplier anywhere from 10 cpu to 30 cpu. If we calculate worst case that would be 60x3+20x30=19500 Cr. - If you calculate best case for the BE it would be 60x3+20x10 = 9500 Cr per crate. So even with the worst case scenario he earns about 10500 if he chose to use the prices as above. With a shipment of 40 crates that would be 420k Cr. Not too bad.


But after all it is all about supply and demand. And if the BEs are starting to become too greedy (which actually doesn't seem to be the case on our server) I would most probably continue grinding my BE on my second account or just stop making BE enhanced stuff and focus on non BE enhanced food which also seems to sell pretty well and takes much less time and effort to make.
Arez_Olympus
Thu Feb 19, 2004 5:16 am
#11

"The additives ARE very resource intensive. I seriously doubt you will ever see full 1000 runs on anything."


I am only going to do 1000 runs of additives. I think this is the best service I can provide for chefs. It is very difficult to get enough resources and the factories run slow, but when you look at the time it takes, I think this is the most economic solution for both me and the chef thats want tobuy the batch.


(any chef on Eclipse wants to buy 1000 heavy additives that give +111 to nutrition?)




*
Arez Olympus
*
Brandy: 400 MFW, 40m, 49%, 21 uses only 150K
Vendors in Mall in Dunes of Fury, Tatooine


jason67
Thu Feb 19, 2004 6:31 am
#12








sciguyCO wrote:


There's a limit to how fast we can produce based on factory speed, harvester speed, travel time getting resources from harvester to factory, and time spent in game. Raising prices is the only method we have to slow sales down to a manageable level.






I think this is the same line of thinking that the BE's are taking, and it is a valid one. There is such a huge demand for their additives(somthing I dont' think most planned on) that they can not keep up with it. The only way for them to maintain their sanity with all the /tells and messages is to raise the prices enough to slow them down. As time goes on the market will stabalize a bit and prices will become much more standardized, but until then they will be a bit out of whack due to the mass influx of orders by the (now) many chefs. The one true limiting factor for them to mass produce these additives effectively is the Meats involved. It's not even truely the flora or even the time to produce them itself. Getting enough meat to produce this is very time consuming, even if you have to buy them as finding suppliers is difficult for qty orders(well unless you are willing to pay 100cpu's, in which case costs just jumped drastically and so will the price).



If you as a Chef or even as a general consumer are concerned about the cost of the additives then simply gather the meat yourself then make an arrangement with a local BE to either make the additives for you or to make you a schematic(obviously for a Fee either way). Most BE's I talked too wouldn't mind working out a great deal if you supply the meat.



Hostageh


Valcyn


Master Doc/Master Rifleman



I live and die by the food I do or do NOT have. Long live Brandy and Canap.







HostageH
Master Lightsaber /3003Enhancer /4100Healer /0044Defender
/0044Force Reflexes /Master Force Combat

Arisa
MasterWeaponsmith(125exp/130assembly/25repair/22weapons repair) /MasterArtisan(14pt) /MasterShipwright /4400Force Crafting
Vendor Location 2355, -3922 just outside Coronet
MikaelGueck
Thu Feb 19, 2004 7:04 am
#13


sciguyCO wrote:
2. Pricing of schematics
My customers will go to the chef who produces the most bang for buck, and is consistently stocked. When I'm the customer for schematics, I'll do the same, substituting being consistently stocked to being consistently accessible.



[email protected] - Master Chef
500m from the Theed Palace, /waypoint -5695 5333
+401 / 45m30s Vasarian Brandy, stocked 2004-04-11
Page 1 of 3
Previous Next