CUEmu - Thread Posts

jadeew

Thu Jul 28, 2005 6:39 am

Isee alot of posts asking how to price foods. I personally don't ever run around to my competitors and check the prices they are charging. I have a formula that I use for coming up with a price. It has served me well. It generally prices my foods at a fair marketvalue. You can adjust the CPU to suit your needs.

I figure the price of making a single item.I use the formula of:

((Grind resource units G* 3) + (Quality resource units Q* 10) + (Creature Resource C* 40) + (250 * Number of factory runs F))1.75

I will use Breath of Heavenas the example.

Cask

40 Fiberplast (G)

10 Inert Petrochemical (G)

150 Gemstone (G)

2 Factory Runs (F)

Alcohol

60 Cereal (G)

2 Factory Runs (F)

Heavy Food Suppliment

20 Meat(C)

90 Flora (Q)

20 Water (G)

2 Factory Runs (F)

Final Combine

15 Rice (Q)

15 Oats (Q)

1 Factory Run (F)

The totals are:

G = 280

Q = 120

C= 20

F = 7

Now plug these valuesin the formula:

((G* 3)+(Q* 10)+(C*40)+(F*250))1.75

((280*3)+(120*10)+(20*40)+(7*250))1.75

(840+1200+800+1750)1.75

4590 * 1.75 = 8032.5

I round this off to 8000 per bottle and that is what I charge. Multiply by 25 and you get 200k per crate.

This allows me to either harvest resources myself and increase profit (which I hardly ever do) or purchase every resource needed to make an item and still make a decent profit.

The only thing that I don't use this formula on is items requiring milk. I use the "This is a pain in the arse to get resources for and make so I charge a bit more" formula which you will have to figure out on your own.

Message Edited by jadeew on 07-28-2005 06:46 AM

APEX Foods 400 -5555 South of CoronetAelea Laree ~ Head Chef

LloydPickering

Thu Jul 28, 2005 7:47 am

#2

I have a great pricing formula...

CompetitorPrice * HowMuchOfAPainProductIsToMake * WhatMoodImInPrice * HowDifficultToKeepStocked = Price.

I spent months as a BE trying to work out a good pricing scheme, then I realised the best way to do it was to look at what others were charging as that is who the customers were basing their expectation of prices from.

So long as you are breaking even, anything extra is a bonus...

I've taken this philosophy to Chef and am completely happy with my pricing scheme, particularly as I didn't waste a load of time working out how much profit or loss I make.

Everquest2 - Splitpaw: Sesskia <United Kingdoms> - Merccia - Tercia - Kasshia
Star Wars Galaxies - Chimaera: Zoxara (Sleeping) - Lloyd (Sleeping) - Buttercup (Cancelled) - Nublet (Cancelled)

jadeew

Thu Jul 28, 2005 11:00 am

#3

LloydPickering wrote:
I have a great pricing formula...

CompetitorPrice * HowMuchOfAPainProductIsToMake * WhatMoodImInPrice * HowDifficultToKeepStocked = Price.

I spent months as a BE trying to work out a good pricing scheme, then I realised the best way to do it was to look at what others were charging as that is who the customers were basing their expectation of prices from.

So long as you are breaking even, anything extra is a bonus...

I've taken this philosophy to Chef and am completely happy with my pricing scheme, particularly as I didn't waste a load of time working out how much profit or loss I make.

Since most people are into Chef to make credits, it is important to know where you stand on your costs for making foods. I don't necessarily make foods now to make credits (although it is nice), I enjoy the profession for the profession rather than profit. Most of the Chef community; however,are not in that position. And every Chef got started so they could make credits including myself.

So since profit is important to the vast majority of the Chef community, you should know what your cost on items are to insure that you maintain that profit. People are not wanting to spend all that time at the factories and collecting resources just to "break even." Profit is not a "bonus", it is the Chef's reward for the work put into his stock. Just the same as the looter camping an NPC for hours to get that Uber tape.

There is nothing that is difficult to make as long as you havea system to make it. By figuring factory runs into your cost, you account for "HowMuchOfAPainProductIsToMake". Idon't think that pricing foods by what mood you'rein is a good idea; however, adjusting mark-up because you can't keep an item in stock is. For an item that is hard to keep in stock, all you have to do is adjust your mark-up multiplier. I have that type of adjustment on a couple foods that I carry.

I don't go around checking other Chefs to see what they charge, but I know that most of the major Chefs on Tempest are pretty much in line with what I charge. I don't know if they check my vendors for the standard of what the going rate is, but a few newer ones definitely consult me on price. I gladly offer up the information. I think all in all, it is a good idea to have a pricing structure so that you can keep tabs on how you are doing whether you have 500 mil in the bank or 500k. Since I have seen many newcomers asking about pricing, I just thought I would offer up what works for me.

APEX Foods 400 -5555 South of CoronetAelea Laree ~ Head Chef

sciguyCO

Thu Jul 28, 2005 1:33 pm

#4

I use the PriceCalc page on my little spreadsheet ("Electronic Cookbook" link in the "Read this" sticky). It's pretty much calculated out the same as yours, although I use different numbers (2 cpu for grind, 7 cpu for quality harvestable resources, 15 cpu for creature resources, 50% markup), Chilastra seems to be a relatively cheap server. For PITA resources like milk, it's easy to just up the cpu on that particular resource. It also explicitly calculates the factory cost, rather than using a flat number (although I think it ultimately comes out about the same).

Kriles Ch'artoff , Chilastra server
Master Chef (retired)
Currently doing....stuff

Cafa

Thu Jul 28, 2005 2:12 pm

#5

Sheesh, he comes up with all this cool stuff for the Chef boards and never tells me squat on vent!

- Strength In Numbers - Loyal Subjects of the Empire
Asia Brothers Industries - Asia Hall SiN CiTY, Dantooine (Offers Vendor at -4703 -1404)
A player bodyguard can't protect you either, something agroes you, you are dead. The
only difference between a pet and the person, is you pay the person to stand there
and watch you die. -- Straker Atrella

LloydPickering

Thu Jul 28, 2005 3:59 pm

#6

jadeew wrote:

LloydPickering wrote:
I have a great pricing formula...

CompetitorPrice * HowMuchOfAPainProductIsToMake * WhatMoodImInPrice * HowDifficultToKeepStocked = Price.

I spent months as a BE trying to work out a good pricing scheme, then I realised the best way to do it was to look at what others were charging as that is who the customers were basing their expectation of prices from.

So long as you are breaking even, anything extra is a bonus...

I've taken this philosophy to Chef and am completely happy with my pricing scheme, particularly as I didn't waste a load of time working out how much profit or loss I make.

Since most people are into Chef to make credits, it is important to know where you stand on your costs for making foods. I don't necessarily make foods now to make credits (although it is nice), I enjoy the profession for the profession rather than profit. Most of the Chef community; however, are not in that position. And every Chef got started so they could make credits including myself.

So since profit is important to the vast majority of the Chef community, you should know what your cost on items are to insure that you maintain that profit. People are not wanting to spend all that time at the factories and collecting resources just to "break even." Profit is not a "bonus", it is the Chef's reward for the work put into his stock. Just the same as the looter camping an NPC for hours to get that Uber tape.

There is nothing that is difficult to make as long as you have a system to make it. By figuring factory runs into your cost, you account for "HowMuchOfAPainProductIsToMake". I don't think that pricing foods by what mood you're in is a good idea; however, adjusting mark-up because you can't keep an item in stock is. For an item that is hard to keep in stock, all you have to do is adjust your mark-up multiplier. I have that type of adjustment on a couple foods that I carry.

I don't go around checking other Chefs to see what they charge, but I know that most of the major Chefs on Tempest are pretty much in line with what I charge. I don't know if they check my vendors for the standard of what the going rate is, but a few newer ones definitely consult me on price. I gladly offer up the information. I think all in all, it is a good idea to have a pricing structure so that you can keep tabs on how you are doing whether you have 500 mil in the bank or 500k. Since I have seen many newcomers asking about pricing, I just thought I would offer up what works for me.

Dont get me wrong...Im not trying to belittle your work...just give an alternative opinion on how to price.

I was a BE for a loooong time before I decided to go Chef, and the reason I was BE was because I enjoyed it...the same reason I am a Chef now (Because its more fun than BE atm).

I see a lot of people come into the profession and start looking for a scientific way to price things when really the two main factor involved are what they are willing to accept as a price for their work, and what their competitors are charging.

I enjoy making money...but thats mainly because I have to help pay for a City...not to mention its nice to be running a business, however I personally see pricing in such a rigid way as...well...inflexible to the market needs.

Everquest2 - Splitpaw: Sesskia <United Kingdoms> - Merccia - Tercia - Kasshia
Star Wars Galaxies - Chimaera: Zoxara (Sleeping) - Lloyd (Sleeping) - Buttercup (Cancelled) - Nublet (Cancelled)

ljcoolk

Thu Jul 28, 2005 8:20 pm

#7

lol, all i do is charge an even 200k for all crates of 25, then i just make the rest up. seems to work for me. havn't had any complaints as of yet.

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