Droid Engineer Archive
Thread: A current example of Droid pricing. Why CPU only is silly.
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Straker_Atrella
Wed Jan 12, 2005 9:11 pm
#1
Price is often a heated debate around here, some feel that my prices are too high, and like to charge on a CPU cost.
Here is an example coming from a situation right now.
There is CURRENTLY spawning an Avian meat on our server (just started today,) that is selling for 250 cpu. Not in small numbers either, that is what everybody is paying for it, so any hunt, big or small can get 250 cpu for it easy.
My 110 Rated Harvest Droids sell for 80k each. Max Armor and HAM as well.
320 measly units of Avian meat pay for the Droid. Yes 320 Units, and the Droid is paid for. That is about one lair. Then just like the Droid will increase the harvest by up to 30%, it will increase your profit by 30% as well.
That is a huge profit.
starji
Wed Jan 12, 2005 9:28 pm
#2
Here, here. I agree with you there Straker. CPU cost should only be calculated to cover your base cost. Not really the actual value of the Droid. Value is something that should be determined by the usefullness and profit potential of having the Droid. CPU cost should only be involved to determine a break even point.
GnomeAd
Wed Jan 12, 2005 10:43 pm
#3
starji wrote:
Here, here. I agree with you there Straker. CPU cost should only be calculated to cover your base cost. Not really the actual value of the Droid. Value is something that should be determined by the usefullness and profit potential of having the Droid. CPU cost should only be involved to determine a break even point.
Absolutley. The whole concept of CPU pricing is to protect the crafter from losing the farm. In other words, if I can sell the resources used to make an Adv. R3 for more thn I can sell the droid for, I'd be a fool to be a DE. (No comments from the peanut gallery
) A per CPU price should be used as a minimum guideline. Add the current cost of the resources if you bought them to the cost of your time to make the droid and use that asyour base price. Don't listen to the undersellers...they'll be gone soon enough anyway.
CuoreDE
Thu Jan 13, 2005 5:33 am
#4
I use CPU for a base price on all droids, and I have a base price on modules as well. I use the /notepad option to keep my price list handy at all times. I have adjusted my pricing to calculatein factory runs, subcomponents, named resources and rare resources. One way I have determined a fair market value on a droid was auctioning off some droids. I had a customer order 10 Adv R3 bomb droids (in crates). I make a total of 23 (wasted some parts for schematics) of these with 57 power. I sold the customer his 10 at the agreed price (45K each), and auctioned off the rest. The auction is now up to 120K each, so I know that the demand for these are high and I will probably charge 100K each for them when I make more.
Cuore
starcraftWS
Thu Jan 13, 2005 9:42 am
#5
Rarely have I been accused of prices being too high. Not saying it doesn't happen, but not often. But you're right... CPU pricing isn't the best way to go.
*note to self: harvest some avian meat* 
Talmor1
Thu Jan 13, 2005 2:02 pm
#6
Cuore,
As a fellow DE on your Galaxy (Sunrunner) I have been viewing your last few posts and I think that those R3 Bombs are about right. I figured that for 57 Det power should go for around 80k (100k might be a little highonlybecause it was an auction. I think that the industry standard is a little lower than that.)
Like I have been saying, I have been gone from the game for a VERY long time and gave up my Master DE status (BIG MISTAKE) and am regrinding the skill points. I love selling droids for a myriad of reasons.
Anyways, Pricing as a DE is extremely difficult. The most difficult of all the crafting professions. There are soooo many options for us Droid Engineers that it can be a dauntingtask.
However, I do agree that basing your prices purely on a CPU basis is really kicking yourself in the rear. I mean come on, what other profession is so heavily reliant on factory parts. Most other professions use factories to increase efficiency and so that they can play the game while they are manufacturing. We have to use factory parts to create factory parts to create factory parts (and the list goes on). You almost need several factories just to get on top of things. At a minimum, you should try to figure this into the calculations for a minimum break even point.
Imaladris
Thu Jan 13, 2005 2:35 pm
#7
My 54 power ADV R3 goes very fast at 90k a pop. 100k for a 57 power is very fair IMO. I use CPU pricing and rarely do I go below 45 CPU. The droids I hit high harvest and combat bonuses will go fro a premium price. I have the resources, the patience and will be a DE for the long haul. I sell briskly and continue to make the more popular droids and stock my vendors on Dantoonie, Corellia, and Naboo on a regualt basis. I feel my business should be ran similar to how AS and WS do theirs. I'm not going to get in a pricing war. I do not want to go back to the days I sold my droids dirt cheap and borrow $$ from friends in game to keep afloat.
I want to be able to purchase HQ resources when I have a need. If I'm unable to do that, I wouldn't last long as a DE. I've been one for a year now due to that philosophy(sp?).
Talmor1
Thu Jan 13, 2005 3:15 pm
#8
What do you sell your Seeker and your Arakyd Probe Droids for then?
Crustyfur
Thu Jan 13, 2005 3:41 pm
#9
10k per Crate of 5 Seekers
16k per Crate of 5 Arakyd
Inifinity - European
Talmor1
Thu Jan 13, 2005 3:58 pm
#10
Cool, that is what I figured to be a good pricing for them as well. I had originally thought 5k and 8k for crates(5 percrate)of seeker and arakyd probe droids, respectively was a good price. However, after close introspection, I realized that I would be BARELY making a profit on the seeker droids and minimal profit on the arakyd probe droids.
5k for seeker droids (crate of 5)comes to about 5.8 cpu
8k forArakyd droids (crate of 5) comes to about 9.3 cpu
For the Seeker Droids at that rate, you are not making any profit at all (I broke it down that it costs about 2-3 cpu just to harvest resources. If you add factory runs, vendor costs, housing costs, you barely break even. For the Arakyd Probe Droids, it is a little bit better, however, you need more factory parts to make them. All in all, it makes sense to sell these buggers at a minimum of 10k and 16k for the Seeker Droids and Arakyd Probe Droids,respectively. (this comes to a 11.5 cpu for the Seeker Droids and 18.6 cpu for the Arakyd Probe droids)
Message Edited by Talmor1 on 01-13-2005 03:02 PM
TheRealTK421
Thu Jan 13, 2005 4:04 pm
#11
Crustyfur wrote:
10k per Crate of 5 Seekers
16k per Crate of 5 Arakyd
10k per Crate of 5 Arakyds
12k per Crate of10 Seekers
Note: I don't expect to make much on these, as they are 'loss leaders' for things like bomb droids, Space stuff and other products. I use them solely to get people coming back to the shop.
/bow
Respectfully,
Note: I don't expect to make much on these, as they are 'loss leaders' for things like bomb droids, Space stuff and other products. I use them solely to get people coming back to the shop.
/bow
Respectfully,
Ayno
Thu Jan 13, 2005 4:36 pm
#12
The biggest problem I see with CPU pricing is that it doesn't cover all your costs. There are additional costs including foremost the time of the Droid Engineer making the items. How much is you time worth?Do yo work for free? I sure don't.Some smallitems (resource wise)can be relatively difficult to make while other higher resouce costitems are easy to make, and so your prices get skewed.Once you add all your costs, including your time as a resource, then you have the true "break even" point.And to me, the value of my time is partly based on opportunity costs. How much could I make doing something else in game? For example,supposing an average player could make60k an hour killing stuff, then my timeis worth 60k/hour. If it takes me 10 minutes to put together a custom droid from someone, that means I should charge an extra 10k for the droid for my time above and beyond the the resouce costs.
In my pricing model, which I admit is somewhat complex, I add a certain amount for each sub-component or module since that means more of mytime making factory runs for the sub-components and more time combining everything (especially on custom orders). That is just to figure out my total COST.
Then I mark up because the market can bear higher prices.This extra money cover expenses I haven't accounted for, as well as some well earned profit.
The only advantage I see to a CPU pricing model is that it is easy. Just count the resouces, multiply, andpresto, the price.
EnigmaBSc
Thu Jan 13, 2005 5:38 pm
#13
I don't want to get into any big debate here. My philosophy is that everybody has a right to charge what they like, provided they are not subsidising their business with another source of income. I sell at the lower end of the scale and I do so on a CPU basis. All my additional costs - factories, speeder maintenance, vendors etc. is factored in by a doubling of the base costs. Profit is then a doubling of that value. It's just my way of working. It's not because I'm stupid or don't understand business or anything like that, I have my reasons for selling at the prices I do.
I get on well with other DEs on my server and I certainly am not putting anyone out of business with my way of doing things - case in point, Crustyfur has entered the DE world on my server and seemed to be doing very nicely last I spoke to him (actually, it's been a while - I've been away a bit - how are things going now?).
Selling by CPU only isn't silly, it's just different. In fact you contradict yourself, you say pricing by CPU is silly and then justify it by talking about the price of avian meat - in CPU!
EnigmaBSc
I get on well with other DEs on my server and I certainly am not putting anyone out of business with my way of doing things - case in point, Crustyfur has entered the DE world on my server and seemed to be doing very nicely last I spoke to him (actually, it's been a while - I've been away a bit - how are things going now?).
Selling by CPU only isn't silly, it's just different. In fact you contradict yourself, you say pricing by CPU is silly and then justify it by talking about the price of avian meat - in CPU!
EnigmaBSc
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