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Steven Dynahir
Gallente
Avaruuslaivanrakentajat Oyj
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Posted - 2007.01.21 21:21:00 -
[1]
Recently I did a market experiment at Sing Laison region, just for the fun of it. This experiment included the buyout of all Antimatter S from the region and putting it up on sale for higher price.
First I rised the price gradually, 20, 25, 30, but after looking at the sales data there was no drop on sales. So I upped it to 40, 50 and finally to 100isk/piece and no drop on purchases. Last night alone gave out 30m in returns from ammo sales of 100isk/piece, and even now people are willing to pay 120isk/piece of ammo.
So the conclusion of this experiment is: People are willing to pay atleast ten times the money of the current T1 prices. This pretty much means that the poor profit margin of T1 items is generated not by the customers, but by the manufacturers. Each producer tries to undercut others, even tho they are selling their wares at different stations.
So the moral of the story is, if you think that you don't get enought profit, then you propably aren't, and it's your own fault. 
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Sell orders
Recruitment
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Steven Dynahir
Gallente
Avaruuslaivanrakentajat Oyj
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Posted - 2007.01.24 12:36:00 -
[2]
After making this thread, there has been a rush on new sell orders on Antimatter S in Sing Laison. The original two competitors were there to start with, but now several 500k-1m orders have appeared. Supricingly as low as 18isk/piece (the market has not yet degraded to 11isk/piece where it was when I started the experiment).
The original competitors have realized that there is a market for the high priced ammo, and they are now selling at 50-75isk at the moment. So all the 18-25isk new orders must be new people entering the market.
But there is still need of ammo at other stations than the few hubs, and the 100-120isk order still seem to sell at same rate on the stations without competition. (Even on different station at same solar system as a 20isk order).
So have to say that ammo sellers are just shooting their own leg in here.
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Sell orders
Recruitment
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Steven Dynahir
Gallente
Avaruuslaivanrakentajat Oyj
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Posted - 2007.01.24 13:34:00 -
[3]
 Originally by: Professor Pizi
i watched it and wonder if its at least slithly profitable ( well it was for me =)
by now you must be sittin on tons of AM S that will not sell for a long time
Reprocess is the key in here..
When purchasing really absurd numbers of Antimatter S and then using some part of that Antimatter S pool to cover the cost, you get the rest for "free".
So for example:
1. Buy antimatter S for 100Misk
2. Sell 20% of it for 100Misk
3. Put some additional oportunistic orders for possible ISK.
4. Reprocess the rest of it and sell it
5. What's left of opportunistic sales, just reprocess an sell the minerals
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Sell orders
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Steven Dynahir
Gallente
Avaruuslaivanrakentajat Oyj
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Posted - 2007.01.26 10:15:00 -
[4]
Quote:
Right, so it's been what, 4 days between your first post and this one, and already you're getting flooded into the region's hubs. What do you think it's going to get like in another week if you manage to buy up the flood and hold prices at your level?
Please note that the experiment was over when the posting was made public. The 30 days before publishing the results was the experiment.
The additional market orders were visible immediately after publishing the information and making people aware of such opportunity in such and such region.
Quote:
Which is fine in the short term. But in the long term, supply will grow so large that you'll have to buy so much that you won't be able to sell even 20% of it. What you describe is a classic market manipulation, but it does not indicate that your price is sustainable.
Please note that the experiment was to see degration of sales based on the increased cost. The experiment clearly indicated that there is fixed need for the ammo and it's independent of the price. It also indicates that the price is set by the producers who are willing to reduce their profit margin just to keep their share of the fixed ammo usage. Even if they earn less.
Previous experiment also showed that the price of the same ammo can be lowered below it's producing/mineral costs and the producers are still willing to lower the price to gain the sales. In these experiments the value returns to mineral price after some opportunistic person buys all the orders under mineral recycle price.
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Sell orders
Recruitment
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