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Maric
Science Experts
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Posted - 2006.12.01 12:39:00 -
[31]
There are valid posts here. I would like to add another aproach to the problem.
Personaly I suspect that devs influenced market by putting goods undercuting price. As someone said before, seller undercuting 20mill still make good profit, but He would make even better profit when undercuting 1 isk while still having cheapest offer on market.
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Block Ukx
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Posted - 2006.12.01 12:44:00 -
[32]
Edited by: Block Ukx on 01/12/2006 12:47:45
Thing is, there is no need to undercut. Most people hate to travel 2 systems to save money.
Sorry, but there is no way anyone can argue that undercutting 20 mil is smart business management.
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Jennai
The Greater Goon
The OSS
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Posted - 2006.12.01 13:01:00 -
[33]
Edited by: Jennai on 01/12/2006 13:03:28
 Originally by: Block Ukx
Sorry, but there is no way anyone can argue that undercutting 20 mil is smart business management.
some of us don't want to sit there for hours lowering a price by 1 isk every five minutes when you could sell it right off by lowering the price by some millions instead.
and so many people still don't seem to understand that total profit equals markup per unit times sale volume. if the crap's not selling because the market price is absurd, lower it significantly and often the volume increase will more than make up for the decrease in per-unit profit.
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Block Ukx
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Posted - 2006.12.01 13:10:00 -
[34]
Whats wrong with letting people lower their price by 1 isk? Are you going to travel to the next station on the same system to save 50 isk?
Besides, anyone can undercutt your price by 1 isk five minutes latter anyways.
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Maric
Science Experts
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Posted - 2006.12.01 13:12:00 -
[35]
Originally by: Jennai
Edited by: Jennai on 01/12/2006 13:03:28
Originally by: Block Ukx
Sorry, but there is no way anyone can argue that undercutting 20 mil is smart business management.
some of us don't want to sit there for hours lowering a price by 1 isk every five minutes when you could sell it right off by lowering the price by some millions instead.
and so many people still don't seem to understand that total profit equals markup per unit times sale volume. if the crap's not selling because the market price is absurd, lower it significantly and often the volume increase will more than make up for the decrease in per-unit profit.
If someone undercut You every five minutes, He will undercut even You drop price 20mill.
For faster-selling-higher-profit strategy I must say that it works with goods allways in demand and hi production rate. Like ammo for instance. For BS busines it doesnt comply. You do not sell/produce 20 BS every 15 minutes, dont You? It is better wait few hours more for 20mill more if someone camping/undercating Your sell.
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migwar
Lawless Industries
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Posted - 2006.12.01 13:15:00 -
[36]
The prices of 120 mil for a BC were unsustainable,(some) People will pay 120 mil for a new ship but would never consider paying that for the seconds or third.
especially when the BPO only costs 350mil. Hell id buy a BPO and give to my manufactering corpmates for free if they built them for me for 38mil.
The smart people sold 6 for 60mil while yours sat there at 120 while prices plumetted it around it
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Block Ukx
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Posted - 2006.12.01 13:31:00 -
[37]
Like you said "People will pay 120 mil for a new ship."
So, there is no need to drop the prices to 60 mil so quick.
Why not let the price dorp slowly?
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Maric
Science Experts
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Posted - 2006.12.01 13:38:00 -
[38]
Originally by: migwar
The smart people sold 6 for 60mill while yours sat there at 120 while prices plumetted it around it
After that 6, how many more they sell? None. Becouse of mineral price rise, becouse of mineral acquiring problem, becouse of big time production. Ships are not Coca-Cola, Snikers or Nike shoes.
Eventualy price will drop to reasonable rate. But unreasonable ppl waste their and others chanse for unreasonable profit.
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Jennai
The Greater Goon
The OSS
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Posted - 2006.12.01 14:38:00 -
[39]
Originally by: Maric
If someone undercut You every five minutes, He will undercut even You drop price 20mill.
For faster-selling-higher-profit strategy I must say that it works with goods allways in demand and hi production rate. Like ammo for instance. For BS busines it doesnt comply. You do not sell/produce 20 BS every 15 minutes, dont You? It is better wait few hours more for 20mill more if someone camping/undercating Your sell.
yesterday afternoon, myrmidons were 55 in oursulaert. put one up at 1 isk below lowest, it'll sit there for up to several hours while you have to update every five minutes because of all the other ones at 55. put one up at 50, it sells right quick because someone out there decided that they weren't going to pay more than 50 for it.
the one at 50 sells in 10 minutes, then the market price is back to 55 and stays there until there's no longer enough people willing to pay that much. if you're going to sleep/work/school and aren't going to be around to babysit your order, either you put it up cheaper so it sells right away, or you put it up at 1 isk below lowest and probably come back hours later to find it still unsold.
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migwar
Lawless Industries
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Posted - 2006.12.01 15:05:00 -
[40]
55mil in ours? i bought mine at 9pm eve time on the market for 45mil got bless free trade :) I was actually tempted to re sell a few jumps away. Im actually suprised that more people were not doing this,
Thats the good thing about eve, You dont like people undercutting you? buy the stock and sell high
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Alatari
Arfle Barfle Gloop
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Posted - 2006.12.01 15:15:00 -
[41]
Originally by: Venalic Erus
why should they be a low margin item?
if you have the only ship for sale in the entire region do you not sell for the highest price you can get... or do you sell for the minimum?
Neither. You sell at a price to maximise your return in investment over time.
-- Alatari
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Jennai
The Greater Goon
The OSS
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Posted - 2006.12.01 15:54:00 -
[42]
oursulaert's still holding at 50, same as it was ~12 hours ago. a few outliers on the low end isn't going to reduce the average price as long as there's enough demand to keep the price stable. the price might even go up this weekend, with the increased demand from more players and the mineral shortage.
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Mirirar
Caldari
Solstice Systems Development Concourse
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Posted - 2006.12.01 20:51:00 -
[43]
Originally by: Dark Shikari
Uh, dude, tech 1 ships are a low margin item.
Only in Eve would 20% be considered "low margin". :)
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