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Aramendel
Amarr
Queens of the Stone Age
Anarchy Empire
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Posted - 2007.02.25 18:54:00 -
[1]
Jepp, it is definately true that the t2 prices are not that high because sellers (and resellers) are pushing them that high, but because the costumers are willing to pay as much.
Noone forces people to buy t2 items - especially the most overpriced t2 items, HACs are essentially luxus toys. There is almost nothing what a BC or BS cannot do better.
One might argue, though, that the current supply is too low. Is t2 meant to be the rolls royce and ferrari of eve or more the mercedes and audi?
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Aramendel
Amarr
Queens of the Stone Age
Anarchy Empire
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Posted - 2007.02.25 21:30:00 -
[2]
I think you should look up a definition for market saturation 
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Aramendel
Amarr
Queens of the Stone Age
Anarchy Empire
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Posted - 2007.02.25 22:04:00 -
[3]
 Originally by: Goumindong
If you go by just "who has ships" then the market is saturated for both tech 1 and tech 2. Seperating ships by their tech status is stupid and arbitrary.
To the contrary, NOT doing this is stupid.
An item is not = an item just because you can file them under the same letter. Quality is a major difference between items of the same general type. Just because the market for rolls royce is saturated it does not mean that the one for volkswagens is saturated, too.
Don't even try to argue with me here, I won't bother to waste time because you a stubborn. 
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Aramendel
Amarr
Queens of the Stone Age
Anarchy Empire
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Posted - 2007.02.25 23:16:00 -
[4]
Originally by: Goumindong
You dont need a population growth for more people to buy moas.
Actually you do.
Of cource, people need to replace destroyed moas, but that is a constant factor - it does not increase or decrease suddenly.
Quote:
Its like saying "The market for cars is saturated because everyone has a car, but the market for Rolls Royces is not, because not everyone has a Rolls Royce"
To the contrary. Each "quality lvl" has a different clientbase. So essentially a different quality lvl is just the same thing as a different item alltogether for the market.
As said, you cannot simpyl throw both in the same pot.
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Aramendel
Amarr
Queens of the Stone Age
Anarchy Empire
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Posted - 2007.02.26 02:42:00 -
[5]
Originally by: Goumindong
No you dont. If i want a moa i simply train caldari cruiser and then buy a moa. It does not require more people entering the system.
This is why you can say the market isnt saturated.
Again, no, it is just the opposite.
From the original quote:
...the market is said to be saturated i.e. further growth of sales of refrigerators will occur basically only as a result of population growth and in cases where one manufacturer is able to gain market share at the expense of others....
If people train for the moa they are switching to it from another ship. That ship looses market share. The moa gains market share.
It's a sign for a saturated market.
Quote:
Saying that saturation has anything to do with cost is ridiculous. Saturation has nothing to do with cost and everything to do with market dynamics between competiting entities.
It has quite a lot to do with saturation. The price, or better: the profit margin is a direct result of the market saturation. If the supply can meet (or overtake) the demand we have a saturated market, because everyone who wants that item can get it for around the production cost.
If there is less supply than demand the market isn't saturated. As direct result the price gets higher because this is the only way to balance demand with supply. If you have 20 items and 100 people would buy it for production cost, 50 for twice the production cost and 20 for three times it's production cost the product will be sold for three times the production cost.
Basically, the higher the profit margin of a product is the more possible buyers compate for it (and rise the price as result). If there is competition the market isn't saturated, because if it would there would be no competition between the buyers since there would be enough for everyone.
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Aramendel
Amarr
Queens of the Stone Age
Anarchy Empire
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Posted - 2007.02.26 11:22:00 -
[6]
Originally by: Goumindong
The tech 2 market has high prices because instead of the steady gradual increase in quantity supplied as price increases there is a brick wall where quantity is equal to the max BPO production quantity. Producers will take any price above the price at lim(x->0+)[Q-x]. And so Supply and Demand will be equal at that quantity, no matter what the price that demands it is, so long as the price willing to be payed at that quantity is above lim(x->0+)[Q-x] for supply.
And that is the whole point.
If a market is saturated by a product further growth in sales can only be achieved through:
- product improvements
- market share gains
- a rise in overall consumer demand
However, for t2 this is not the case. Because the amount you sell is not limited by the consumers, but by your production. There are only so and so many items you can produce. Due to the max BPO production quantity "brick wall" it is impossible to have a saturated market for many t2 items.
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Aramendel
Amarr
Queens of the Stone Age
Anarchy Empire
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Posted - 2007.02.26 14:48:00 -
[7]
Edited by: Aramendel on 26/02/2007 14:45:12
Originally by: Goumindong
the part about "If a market is saturated by a product further growth in sales can only be achieved through:
- product improvements
- market share gains
- a rise in overall consumer demand"
is false, 100% false.
Then I guess these guys don't have a clue about what they are talking about.
I mean, it's not like they are one of the biggest information sites about market and investment.
Originally by: Tar Magen
Another person trying to defend the broken t2 BPO distribution system.
You might want to read my last sentence.
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Aramendel
Amarr
Queens of the Stone Age
Anarchy Empire
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Posted - 2007.02.27 00:18:00 -
[8]
Originally by: Goumindong
The way in which you stated it leads to false information, yes. None of which has any bearing on Eves markets since there is no branding, you cant make product improvements, services cannot exist.
Branding is not even mentioned there, so it's of no issue. Product improvements are not always possible in real life, too, so it's a nonissue as well.
Just because the eve market is more limited it does not mean that you can give it your own personal definition.
Quote:
Which leads to what ive been saying all along, if the tech 1 market is saturated, then the tech 2 market is saturated. If its not, then its not. but none of that has anything to do with the freaking cost of the goods
It leads that you still decide to be stubbord and ignore evidence and instead repeat your old mantra, which has no founding at all.
Since I have given you proof and you ignore it there is obviously zero sense in arguing with you about this here. So I'm out of this particular derailing of this thread.
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