Merchant Archive

Thread: Merchants and Suppliers

Gavvot
Thu Aug 12, 2004 5:19 am
#14

Of course, in option 2, the response will vary depending on what item we're talking about. I can see a merchant asking for a significant discount on items like droids, tailor goods, or anything slightly less than the best it can be. In cases like that, they are taking a bit of a risk, and they may be sitting on stock for a while.



Of course, as droids are much much easier to build than compo and decay much faster it should be much cheaper....



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Look sir, droids. -4689 3336, Naboo, Theed
Gavvot
Thu Aug 12, 2004 5:40 am
#15

At all level market is driven by offer and demand.

And as far as I know, on all server, weapon and armor demand is much higher than droid demand, but so is offer.

On my server, you have about 1 DE for 10 WS and 20 AS.

WS have reasonable prices, but AS don't(200K for an helmet that will last a couple of weeks max is NOT reasonable).

There is a demand for cheaper lower armor, but you can't find it anywhere. For a simple reason : on Compo, AS can set whatever price they want, people will still buying because there is no other option.

Oh, and a merchant that have some basic knowledge of droid know what to buy. Best sellers haven't change since launch.



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DirthNader
Thu Aug 12, 2004 6:21 am
#16







Gavvot wrote:


At all level market is driven by offer and demand...

WS have reasonable prices, but AS don't (200K for an helmet that will last a couple of weeks max is NOT reasonable).




These two statements seem to be conflicting.


The first statement I'd agree with- prices are driven by offer and demand. The second statement, however,seems to be implying that what determines a reasonable cost is the useful life of the product. This is in direct contradiction with the first statement: if the useful life of a high-demand product is shortened, demand increases, and if supply remains constant, then the prices increase.






Gavvot wrote:


There is a demand for cheaper lower armor, but you can't find it anywhere. For a simple reason : on Compo, AS can set whatever price they want, people will still buying because there is no other option.




IMHO, this is a problem that should be taken up with each servers' up-and-coming 'smiths, not the arch-smiths. The up-and-coming 'smiths (at least the ones around me), are offering less of a product for not much less cost. If the demand for lower-end, lower-priced armor is there, perhaps the buying public needs to make that clear the up-and-comers. If there truly is a market, someone will take advantage of it.


FWIW, I'd agree that there's a demand for lower-end stuff.I used unlayered composite for factional grinding almost exclusively. If I had time, I'd make it. As it stands now, I can't make high-end composite fast enough.




The artist formerly known as Ittov
Happymob
Thu Aug 12, 2004 6:40 am
#17

As a merchant, I personally prefer to buy, markup, and sellrather than sell on consignment. There is too much work involved with consignment sales. I'm well financed enough that buying is not a problem.


For a market I don't understand well (say droids), I would probably mark up 100%. For a market I do understand (medicines), I would markup 10% to 20%, depending on how fast I thought it would sell.


If they did introduce a decent consignment sale system, I would want anywhere from a 2% to 20% cut of the action. The amount would depend on how much volume they did. I wouldn't want to dedicate a limited resource (the vendor) to a merchant with slow-moving, low price stock unless I got a bigger cut. For a good buff pack seller, I wouldexpect no more than 2%.



Imadoh and Ikiecobi
Quality Resources and the Corellia Butcher - NoCo
NoCo Trade Center, Corellia (just northeast of Coronet) 796, -3076


Gavvot
Thu Aug 12, 2004 6:48 am
#18

reasonable price and actual market price are 2 different things.

With a market price sky high far above a reasonable price, the demand should be reduced dramaticly.

But it is not what is happening because there is no other option.
The only other option is not buying it.
Without a droid, you can survive, and you can play the game.
Without armor, you can't.

So, yes, the market price is based on offer and demand, but offer and demand are in some market flawed.

And For the records, I use compo only if I have no other choice, the problem is that the more we go, more often I don't have other choice.



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How to make a link in those forums
Look sir, droids. -4689 3336, Naboo, Theed
DirthNader
Thu Aug 12, 2004 6:56 am
#19






Gavvot wrote:
reasonable price and actual market price are 2 different things...




OK, I see where you're coming from now, and I agree.


For example, I get one, maybe two full suits of 40% stun, 85%+ base composite from a full run of roughly 45 unsliced suits. There's really no limit to how much I could charge for them, because the demand for armor like that is through the roof, and the people driving the demand could afford just about any pricetag I hung on it. I still sell it for just over 1.4 mil for the entire suit. It's gone within an hour or two of putting it on the vendor, but I just can't see charging more than that for a suit of armor (90% base is a bit different, I consider it a bit of a prestige item, and price it accordingly).


Again though, I think the players who want lower-end armor need to vocalize that demand to the 'smiths on the server who aren't at the top of the game. At the arch-smith level, we can't make armor fast enough. It's those armorsmiths who put out composite with 10%-20% less on base resistance, 30% more encumbrance, but only about 5% less on price that you should be driving the point home to. Make them realize if them redirect their efforts to something other than triple layered composite that those items will fly off of their vendors.





The artist formerly known as Ittov
Gavvot
Thu Aug 12, 2004 7:11 am
#20

I can't point them.

They don't exist.

See, with the current armor market, if I need energy protection for PvE, I en dup with a 40% stun suit.

Do you think that's normal?

I don't need stun protection.
I just need energy.
And I don't need 85%-90% protection, I can deal with 70%.

But that's the only thing available, so everybody is running in compo.

And if I ask AS to do other type of armor here is the answer :
Sorry, but I only do high end armor because it's insane profit and they do sell well.



--
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Look sir, droids. -4689 3336, Naboo, Theed
joined42904
Thu Aug 12, 2004 7:23 am
#21

Tanks,


An interesting and refreshing post. How to cope with the new limits?


Folks who want one account and a crafter but who also want to do combat things with that toon will indeed have to deal with merchants in order to make sales through vendors.


Other options are to sell to PVP guilds in bulk. I've tried that with some on my server. One bought the products after about 1 wk delay which I didn't mind. The other guild didn't buy product conforming to their order for about 3 weeks, which irritated me though I didn't tell them that. I just retrieved it and sold it retail for more than they were going to pay. (Guild #2 is going to have to pay a non-refundable deposit on future orders.)


I've dealt with the consignment system. And there are some items like repair tools that have a huge markup and others like some vehicles that really don't. I think the fair thing to do is to figure out what the markup is in the item and disclose that fully to the merchat. This way the merchant will at least start with something that the merchant thinks is fair to the crafter as a proposal.


I've been gypped by the consignment system with by the owner of our city's mall who quit playing and didn't come back on and forward sales proceeds to me but rather hung out with his girlfriend's toon. I thought that was bad form. I would say really really trust the person before agreeing to consignment. I've overall benefitted considerably from consignment by an armorsmith friend of mine who was teaching me the AS ropes and sold my repair tools. He didn't even charge the 5% bank fee. He could do that because he didn't really need the money, though I offered him a percentage and wouldn't have been stingy.


Here is what I recommend:


1. Make your first arrangements for only a week or two to see how everything works from both sides. Do not agree to a long term arrangement for a very small or a very large percentage.


For instance, I don't want someone to agree to sell my armor for 2% markup on their vendor only to later figure out how much work it is to put armor into bags. (It is work and the effort required is a significant percentage of the work of even making the armor.)


2. I think the value of merchant services will, like everything else, depend on supply and demand. When there are few merchants, the value of each vendor slot is at a premium. Merchants should position themselves to take advantage of that rather than getting in long term contracts right off the bat. If there are lots of merchants, crafters will make more. Merchant a bit easier to grind than crafter.


3. I think the ideal transaction (and what I do on some of my vendors for items that are too much of a pain for me to make like vehicles) is the non-consignment transaction. I do this with vehicles presently. Just to have some in my city's mall, I buy them for about what I sell them for. The first time I bought and sold for 25k. The second time the other crafter saw that I had done that and offered them to me for 23k. (I told her that she didn't have to do this because I was just doing a community service as an AS and didn't need the money.) In this type of transaction in which the merchant buys in bulk the crafter can never rightfully allege that he or she has been bilked. And the merchant can charge whatever the market will bear for the goods. This has the potential for more profit for the merchant if the merchant can find a fair-priced crafter and a good shop location.


4. Let's neither merchants nor crafters criticize what the other brings to the table. Crafters can supply more than one merchant if they choose. Merchants can buy from more than one crafter if they choose. If a vendor is high turnover, restocking it will take a lot more time and effort (if it's selling single items) than doing a factory run of 1000 in crates. Keep in mind that the present item limit is 110 per vendor unless it goes up.


These are the most common areas of concern that I see. I think the merchant/crafter relationships will be wonderful if they are properly cultivated. I think they will add to the enjoyment of the game for both merchant and crafter.


I'm sure other folks will have better ideas than mine. These are just suggestions.



Issadra 12-pt Master Armorsmith, Master Merchant
NERF Armory 5103, 2008 Lost Sanctum Dantooine
Specialty Shop and Outlet in Andromeda Corellia
LonelyGhost
Thu Aug 12, 2004 7:25 am
#22

The economy is going to be screwed as long as the earning potential of people continues to be so much greater that the value of goods.


If I can make 2 to 5 million credits a night running destroy missions on Dath, what do I care if I have to buy a 1 million cred suit of composite a week? I dont!


As long as people can make such ABSURD amount of credits, the economy will never "balance". Eventually everyone will have 7 digits in their bank, and all crafters will add a zero or 2 to the end of their prices. Why not!? What else do we have to spend creds on!


Ifflow in does not equal flow out, you have no balance. Yes, its immoral maybe for AS to charge 500k for a suit of composite, but why not?! Its not like credits are hard to come by.



Crys Akkori - Merchant Engineer
Veteren of SIN, IO, and XC - A Founder of Jaxian Bay
Elder DE, Architect, Artisan, Chef, Merchant

Vendor on Naboo at -7547 4635 (Fly in to Theed)

Crafters do have decay on resources. As we use it it GOES AWAY. And when it's gone, we have to get more. - Elekae
Ryche_Mykola
Thu Aug 12, 2004 7:31 am
#23

Right now, I am using option 3 for my business.


I'll drop off my armor for sale in the store and my friend stocks it on his vendor along with his armor (he's an armorsmith also). I put "by Ryche" at the end of the item name so he knows its mine. Whenever an item of mine sells, he forwards the e-mail to me.


Every couple weeks, I tally up the e-mails, and he tips me the money owed.


Granted this is a LOT of record keeping but it has been working good for over 8 months now. You need to have a lot of trust also in the person.



Ryche Mykola
Outer Rim Collective (ORC) High Council


Ariakus Mykola
Outer Rim Collective Master Rifleman
Cancelled accounts for Wow
joined42904
Thu Aug 12, 2004 7:32 am
#24

Gavvot,


Can you deal with 69% base? That's close enough to 70%. Look at the trade boards on your server to see who is buying the AS resources. Look for the names you don't recognize. Send them PMs. Odds are that they can help you.


That's how I've entered the AS market on my server. I sell 80/80/68base (base includes energy) which i hope to get to 69 base. I've had it derided as garbage by some of the oligopolist high-quality armorsmiths on my server. But it sells quite well. And I intend to continue making it. Who's to stop me?


You can slice that to be better than most stun armor will slice to unless you are buying top quality stun armor. Which some folks still do. But stun armor is mostly for PVP and the geo cave or so the combat folks tell me.


Sounds like you need to get to know some other smiths.


One way to get in really good with an AS is to sell them hides that they need (especially good wooly) or to sell them resources that they need at a slightly below market price. I will make anything for the folks who do that for me. Others...maybe.



Issadra 12-pt Master Armorsmith, Master Merchant
NERF Armory 5103, 2008 Lost Sanctum Dantooine
Specialty Shop and Outlet in Andromeda Corellia
DirthNader
Thu Aug 12, 2004 7:38 am
#25







Gavvot wrote:


I can't point them.

They don't exist.







So every single master armorsmith on your server is +12, and/or is using the best resources to ever spawn in the server's history?


I highly doubt it. The ones that aren't are the ones you should be trying to redirect to making lower cost, lower protection armors while they build up their bankroll and/or resource base.


Myself, I don't do because of time, not money. I only have time to make one or two full runs on comp every week, and only time to get one run sliced before sale. Lower rsesits don't make it any quicker to produce. If I sold lower cost, lower resistance armor, and the demand you're citing actually exists, then I'd be sold out within a day or two, and my reputation would fall into the crapper as my customer's got tired of seeing empty vendors five days out of the week. Selling high-end armor allows me to sell at a price that ensures a more reasonable pace of sales.


FWIW, I can tell you that most of my composite customers are in fact doing high-end PvE or PvP. I see their names in the forum's PvP flames and/or in the threads auctioning off high-end loot from NPC's that require high end armor. I'm not going to turn my back on my customer base. If another market segment is being ignored, it's up to the 'smiths without a customer base to fill it, not me.

Message Edited by DirthNader on 08-12-2004 07:45 AM



The artist formerly known as Ittov
DirthNader
Thu Aug 12, 2004 7:45 am
#26






joined42904 wrote:


...That's how I've entered the AS market on my server. I sell 80/80/68base (base includes energy) which i hope to get to 69 base. I've had it derided as garbage by some of the oligopolist high-quality armorsmiths on my server. But it sells quite well. And I intend to continue making it. Who's to stop me?




That's truly poor form.


I'm starting to wonder if my earlier comments about you were justified, or if the armorsmithing "community" on your server leaves a bit to be desired. Maybe I take for granted that the dedicated 'smiths on Shadowfire are a tight community (and yes, there are some 'smiths that I consider dedicated that aren't hitting 68% base yet).


Still not with you on the possibility for the existance of oligopoliesinSWG though




The artist formerly known as Ittov
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