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Jennai
The Greater Goon The OSS
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Posted - 2006.12.01 11:06:00 -
[1]
Edited by: Jennai on 01/12/2006 11:09:23
Originally by: Venalic Erus
Quote: so by your logic I should charge you 10,000 isk per unit for zydrine and you would happily pay it?
if you were the only seller and i was that desperate for zyd... then the obvious answer is yes...
i am saying however dropping prices by 20mill a time is downright stupidity...
the prices would have remined high for alot longer which would have been good for all manufactures..
why take a 20mill loss if you dont need to?
basic marketing, many people lack!!
I sold my first rokh on patch day for 235m. at the time, the only ones on the market were 400. I sold it cheap because I wanted money REAL QUICK so I could go buy drake bpos in kakakela and resell them in jita for 40m profit each. maybe the buyer resold it for 100m profit, maybe he kept it and was happy with getting such a great deal so early, it didn't matter to me because I needed the money right then. I put my second rokh on market for 300 and went away for a while. it eventually sold, and then I resold the bpo for 120m profit.
sometimes people want money right away. sometimes (e.g. reselling skillbooks in regions that don't have them) they're estimating that they'd make more profit over time by selling at a lower price. if there's only one guy in region selling a book and he's got it up at 40x markup and sale history says they're selling very slowly, the second reseller might put his up at 20x markup and sell them over twice as fast as they would at 40x.
when I built modules in oursulaert, I drove several competitors away by undercutting until prices were barely above mineral cost. some of them were dumb enough to undercut those prices by a large enough amount that I could buy out their entire stock and reprocess for profit, others just cancelled their sell orders and moved somewhere else. in both cases, I achieved my goal of making them go away so I could put my prices back to a good margin and not have to deal with some guy undercutting by one isk every ten minutes.
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Jennai
The Greater Goon The OSS
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Posted - 2006.12.01 13:01:00 -
[2]
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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Jennai
The Greater Goon The OSS
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Posted - 2006.12.01 14:38:00 -
[3]
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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Jennai
The Greater Goon The OSS
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Posted - 2006.12.01 15:54:00 -
[4]
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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