Syphal
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Posted - 2009.10.30 04:23:00 -
[1]
 Originally by: Babyface Thirteen
That might be two facts, but can theese facts be correlated to your business modell.
Lets see who will NOT be selling directly to you!
1. Pure traders. For obvious reasons, unless they sit around with -5 in broker relations there would be no incentive to take advantage of your offer.
2. Manufacturing traders. Buy stuff, make stuff, sell stuff with good margins. Selling to you would be just as stupid as selling to the normal buy orders. After all, what you offer is just a higher buy order which gives both you and the seller less margins.
3. Industry corps. I just dont see an industry corp make tons of stuff and then cutting their margins by selling to a buy order.
Who might sell stuff to you
1. Mission runners. Theese guys are per definition not intelligent so if you really have a business going your stuff will come from theese guys. Some salvage here and there, som modules, a little ammo. But the amount of mission runners that would be needed to make your business effective would result in way to much work on you side. Accepting contracts from hundreds of mission runners would for obvious reasons be way to much hazzle. Or do you really accept contracts with 50+ different items? Who do the math? you or the mission runner?
2. Stupid people in general. You know, thoose who think tritanium is free if you mine it yourself so they will sell a ship for 110mill which gives the buyer a 5mill bonus if he decide to plat insure it and blow ut up.
Anyways, lets assume there are several manufacturors who supply you with goods. We can also assume none of theese are sitting on T2 blueprints. So you are limited to people producing T1 stuff or people who for some reason waste their time inventing and selling their stuff to your buy orders.
Besides, most T1 stuff have non existing profitt margins. And you must be really lucky to find all thoose manufacturing guys out there who make the stuff that actually have a margin.
I just dont see how it can work.
As a seller setting up a sell order, you take on the risk of your stock dropping in value while you're waiting for it to sell, and you accept a delayed return. Your reward is the difference between buy and sell order prices.
As a seller selling to a buy order, you accept a lower price but you receive it immediately, allowing you to invest your cash and time in something else, and you take on no risk of loss.
Neither the people selling to buy orders or the people placing sell orders are necessarily "stupid".
A seller who sells to an underpriced buy order on a high margin item when a sell order would be accepted almost as quickly is stupid.
A seller who places a sell order on a low margin item because they're obsessed with getting that extra 2% profit, and then spends days trying to sell it, competing with others to babysit their order as the price falls, is stupid.
Whether it is best to set up a sell order or sell to a buy order is not always a straightforward question, especially in competitive markets where the difference between sell and buy order prices is often negligible. |